IS VAT applicable on sale of Repossed Vehicle


Can any body explain whether VAT is applicable on sale by finance company Of vehicle repossed by it  due to defult in payment by Hirer
Replies (3)
Dear Mr. VIJAY,

If the finance company is covered by VAT, it has to charge VAT on sale of REPOSSED vehicle.

MANJUNATH
Dear Vijay
i am not sure which state VAT you are refering since the answer may be different
in karnataka, i enquired this issue with many
vat is applicable at every sale so also on repossessing and selling..
but there is a notification from vat authorities restricting the vat tax on the differential amount....
also, if one were to go by the law, on car repossessed, it may be examined whether we can avail vat and take full credit, and then pay full vat on sale - this is to be examined with reference to VAT act
please let me know if this meets your requirement
ascprasad

Dear Sir,

Even i have same issue regarding to the VAT on repossessed vehicles in the states of  karnataka, andhra pradesh, kerala,and podicherry. In the case of banks.

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