ANIKET VISHNU SHINDE (Senior) (24 Points)
07 July 2012Dear colleague,
One of my manufacturer client owned factory building, now he shifted to another place and wanted to sale his factory building , so at the time of sale is any vat to be charged on resale of factory building?????
CA MOHAMMED IRFAN
(Chartered Accountant)
(136 Points)
Replied 07 July 2012
VAT is charged on resale of goods and as per the common definations contained in almost all State VAT legislation goods means moveble items (one of the exception could be in case of works contract). Thus, no VAt in attracted on resale of immovable properties.
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 07 July 2012
Agree with MD Irfan ......
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH)
(1372 Points)
Replied 08 July 2012
vat will be charged even on resale of goods
but goods under vat does not include actionable claims and immovable property
so factory building it self does not come under definition of goods under vat
any excess amount realised over indexed cost of acquisition will be taxed under capital gains
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 08 July 2012
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