VAT on used Cars

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This query is : Resolved

Pritam Kumar (Querist)

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?

Pritam Kumar

Pritam Kumar (Querist)

28 October 2007 Need to know this ASAP... Much thanks for the help.

sannagovindappa.G

sannagovindappa.G (Expert)

28 October 2007 No is Not paying any tax becous alredy co will pay the tax
-sanna

Pritam Kumar

Pritam Kumar (Querist)

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).

What should I do in this circumstances?

Thanks,

Pritam.

M Janak Rao

M Janak Rao (Expert)

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/-
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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/-
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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.

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