DEAR FRIENDS
A REGISTERED DEALER DEALING IN NEW CARS PURCHASED CAR FOR SELLING THE CARS TO CUSTOMERS BUT HE TRANSFERRED FEW CARS TO HIS FIXED ASSETS AND HAS ALSO GIVEN THE MVAT EFFECT IN THE STOCK TRANSFER JOURNAL ENTRY.
CAN SOMEDAY GUIDE ME AS TO WHAT IS THE RULE OR PROCEDURE UNDER MVAT ACT ON THIS TYPE OF STOCK TRANSFERS.
there is no bar to take stock in trade to fixed assets, however he will have to reverse the vat input credit taken on such stock transfer. as car taken in fixed asset from business of car is not eligible for input credit.
To register VAT in gujarat you may contact me. C. A. Thakkar Contact No. (079)30521120
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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