Sale or Disposal of Machinery

yes you need to raise a retail invoice.

Thanks Praveen Sir. But we haven't given in the Sales Tax Deptt., that we will sale machinery. Wil they object or not.

They will not. as this is sale of capital goods. which are being used in business to produce goods.

Yes one can sell off its machinery. Further VAT is to be collected by preparing invoice whether there is sale of capital goods or traded goods.

VAT has to be collected on anything sold

Golden words not to be forgotten "every sale must have an invoice"

There may be specific exemptions for certain sales.

Like in Karnataka if we dont sell used vehicles at profit we need not pay any tax on it.

Check with your  state VAT act whether there is any exemption.

I dont practise VAT , i have a query regarding your reply .

U mentioned that VAT has to be collected on anything sold .
Suppose if i am a dealer in chemicals and my VAT RC mentions the same, if i sell a car , am i supposed to collect VAT (in maharashtra) even if i am not a dealer in cars , but a dealer in chemicals as per my RC .

Pls state along with VAT provisions , i need to know this .

Was this ever challenged in any court , to your knowledge ?

yes while issuing the invoice you sould charge Vat as it s rate i e @ 4%.

Shamita, sale of machinery is sales for Sales tax dept. n u have to charge the VAt applicable in the state on that machinery n also show the same in VAt retun.