MVAT - Sale of Capital Assets by a Non Dealer

If a Non-dealer person (say for ex. a Doctor) sells any of his Capital Assets like car, furniture, equipments etc. and the sale value goes beyond Rs. 5 Lakhs (Mimimum Turnover for Compulsory Registration under MVAT).

1. Does this transaction attracts a VAT liability for the Non-dealer person ?

2. Is he required to get the TIN ?

3. If yes, is not a hardship on such person as he is not at adding any value still have to pay VAT ? Because he is not even able to claim Input Tax Credit paid by him at the time of purchase when he was registered under MVAT.

Please suggest.

Replies (2)

No in this case, VAT will not be levied since the doctor is not a dealer.

 

 

VAT is not leviable on the sale of assets in respect of individuals and non registered dealers.

Further they are not required to obtain registration under VAT.

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