Is VAT applicable on sale of Used Car?

No  Your Company is not Liable to charge Vat on sale of any fixed assets

Dear Vipul can you provide me reference to Support your comment.

For which state you are asking about.

I have no doubt on exigibility to VAT on sale of motor cars.  VAT is liable.

VAT IS LIABLE OF SALE OF USED CAR.

yes VAT is liable in this situation as it is a deemed sale

Yes, your company is liable for VAT @ 12.50% under the MVAT Act, 2002 on sale of used car.

Noops ,

VAT is not applicable in case of re-sale of cars, that is because car is a non creditable item as per section 9 read with schedule VII  and section 6 (3).

The basic intention of law maker while enacting the VAT was to avoid cascading effect of taxes, i.e. No double taxation on the same goods.even the white paper on VAT emphasis this clearly. therefore VAT IS Not applicable.

I feel that validity of charging VAT on used car needs to be challanged on the ground of constitutional validity. The nomenclature of the tax itself is Value Added Tax. What value addtion is happening when tax is being charged on used Car?

In fact the value of car depreciate over a period of time. The purpose of bringing VAT was to avoid cascading effect of Tax. When the goods being sold is already charged to full tax and no further VAT credit is going to be availed by the end user Individual why VAT should be levied? Is this not "Tax Enrichment" or "unjust enrichment" by the Govenment. Many state have specifically included an entry in their VAT schedule to charge tax on used Car. How far this is valid ?

Yes Vat is applicable on Sales of Used motor Car, I,e 5 % on 50 % Value Under WB VAT Act