28 October 2007
If an Employee buys the Car as per the company lease and Company paid the entire amount through cheque including taxes, VAT etc which was being deducted from the Employee salary on a monthly basis and spreaded across three years.
If the Employee wishes to leave the Company in the same financial year and the Car has to be transferred to the Employee name, could you please confirm if the Employee need to pay the VAT (or any other tax) again and if yes, on what amount?
28 October 2007
But the Company is asking for VAT on the sale value indicated for the car (which is total cost deducting the amount and interest paid so far by me).
28 October 2007
Example Compay Sales to Vehicle Rs. 2,00,000/- Vat and Other Taxes Rs. 30,000/- ------------- Deducted from Monthly on Rs. Rs. 2,30,000/- -------------
But When tranfered to Comany
Vehicle Re-Sale Value Rs. 1,45,000/- Vat and other Taxes Rs. 20,000/- ------------- Balance Amount Payable to you/adj. Rs. 1,25,000/- -------------
VAT( Value Added Taxes)Your'e not a Dealer Your'e a customer the VAT is direct effect in this cases, if your'e a Dealer than the VAT is Add only Re-Sales Value on Profit.
CAclubindia
