Vikash Singh (Job) (26 Points)
16 December 2008" my company have a plan by which they are buying new car (in the name of company) and give it to employee for office use. there is a condition that the employee will have to buy it after 5 year at WDV and it is mandatory. so my question is that , at the time of sale of car to employee by company is leviable to VAT or not."
vipul
(Audit Assistant)
(31 Points)
Replied 16 December 2008
No Your Company is not Liable to charge Vat on sale of any fixed assets
CA Mohd Gouse
(Chartered Accountant)
(497 Points)
Replied 16 December 2008
Dear Vipul can you provide me reference to Support your comment.
CA.Mkhandelwal
(Practice)
(156 Points)
Replied 16 December 2008
For which state you are asking about.
RAJU
(LEARNER)
(1089 Points)
Replied 16 December 2008
I have no doubt on exigibility to VAT on sale of motor cars. VAT is liable.
sitaram
(Executive Accounts)
(136 Points)
Replied 18 December 2008
VAT IS LIABLE OF SALE OF USED CAR.
Vaidehi
(articled assistant- studin PCC)
(104 Points)
Replied 21 December 2008
yes VAT is liable in this situation as it is a deemed sale
Ankit Kejriwal
(Article/ Student)
(297 Points)
Replied 09 February 2009
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 10 February 2009
Yes, your company is liable for VAT @ 12.50% under the MVAT Act, 2002 on sale of used car.
AJAY
(Chartered Accountant)
(70 Points)
Replied 09 July 2009
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.
Ravirajshet
(Accountant)
(24 Points)
Replied 25 September 2009
rakesh
(DGM)
(26 Points)
Replied 19 September 2016
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 ?
Saroj Behera
(Manager)
(22 Points)
Replied 24 September 2016
Yes Vat is applicable on Sales of Used motor Car, I,e 5 % on 50 % Value Under WB VAT Act
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