Raising a Tax Invoice for sale of Assets?

Is it right to raise a sale invoice for sale of Capital asset such as plant, machinery and all? Do we pay any Vat tax for that sale? please reply..

Replies (3)

It has to be seen whether the capital asset is the stock in which we trade or the fixed asset...

If it is the fixed then we are just disposing it so we do not raise any invoice for it so there is no question of imposing any VAT on it...

But if we are dealing with these kind of capital goods as our stock in day-to-day activity of business to earn the profit as its objective then we have to raise the TAX INVOICE and charge VAT at the rate as applicable as per the concerned state VAT Act...

I would differ from Tapas sir's opinion. As long as `goods` are sold, they are liable for VAT. There is no distinction in VAT laws as to whether the sale is inventories or capital goods. Goods include all immovable properties (except growing crops, news paper, shares....) Since Fixed assets fall within the definition of `Goods`, there is exigibility to VAT on sale.

Thank u Mr. Tapas Dalar....  I would like to know only for Fixed Asset sir.. I have wrongly use the word 'capita Asset'..  But. Mr. Dharmaraju has apposed your word.. I am confused of this contradiction.. Please help me sir..

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