sales tax on sale of car

Dear Vishal

would you please elaborate your query?

Sale of Busniess Assets means sale of furniture, machn, etc. - its old or regular business of new assets

VAT is on new assets taken by seller from purchaser.

pls elaborate your query

Regards

Hello Nitin

My query is in case a cloth dealer purchases a car which is used fro his business and he has not booked ITC on that Business Asset (Capital Goods). And then he sells that asset. Will he have to pay the local sales tax? and in case he pays the tax will the purchaser book credit for such ITC..

Stress is on the fact that he is not dealar of cars.. And only a dealer is required to pay slaes tax.. Now what does that dealer implies???

Thanks in advance

Dear Vishal

No he wont pay TAX on this and can not claim Input. its not allowable under VAT.

As per VAT / Sales Tax its not a capital asset because capital assests means an assests which involve in manufacturing like machinery, etc. not car

Regards

Hey But in this case whether the assessee will be liable to pay sales tax on this car????????? because there was a notice from the sales tax demanding such sales tax to be paid?