Query regarting taxability under sale tax.

DVat 644 views 4 replies

A Production process has been developed by an individual and sold by him for Rs. 1 cr. He has no TIN & service tax number. This transaction is not is normal course of business.Whether he is liable for sale tax or any other tax?

Replies (4)

HI

   GIVE DETAILS ABOUT THE LOCATION OF YOUR BUSINESS WETHER IT IS IN SEZ OR NOT AND TYPE OF GOODS PRODUCED IN BUSENESS

 

He does not perfom any production activity.It is a single transaction.He has no business.He is a salaried employee in Delhi.He developed a know how and sold it.He is not a regular dealer.Tell me whether liability of tax arises or not?

Renukaji,this is a case of know how sold to other co.for his production. So that,it is a case of Service given to other co. & Service-Tax no.reqired for this type of transtion.

 

Sir, technical know how is covered under DVAT as goods. So only VAT can be levied.But as this transaction may not be in the course of business. The person may not be called Dealer.Hence, no VAT is chargeable. As this is goods & its sale can be taxable only in DVAT not in service tax.Sir, do you agree.Please reply.


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