Vat on assets sales

As far as my knowledge goes in case of selling the assets you need not charge VAT as this is your fixed asset not your commodity in which you deal. As you are not collecting VAT you are not require to pay VAT

Dear Vikas,

Why do you say VAT is not applicable? Computers etc., are movable goods and therefore would definitely attract VAT.

If the business as a whole is being sold as a going concern, without valuing individual assets of the business, then it will qualify as a 'slump sale' and therefore would not attract VAT.

However, the querist says that they are closing down the business and because of that they want to sell away the Computers etc. Therefore it will definitely attract VAT.

Regards,

RAJESH CHOUDHARY.

VAT applicable only if VAT input credit claimed  at the time of purchase.

Irrespective of whether credit is claimed or not, VAT would be payable if the turnover during the exceeds the specified limit (as prescribed by the respective States).

The definition of dealer includes even those who effect sale of any goods otherwise than in the regular course of their business.

Dear Friends,

I have given my answer in the first post itself. If is only sale of computers and other IT related assets, then it will attract VAT.

If the entire business is being sold (including all its assets and liabilities) as a going concern, then it is a slump sale and exempted from sales tax...

Dear all

I Think Its is service provided co. its company does not have  sales or purchased. If any Concern have turn over more than 10 lac than must be registered in Under Vat. Less than  10 lac turnover , not need applible vat. so that its company sold all assets then not applicable Vat.

Thanks

Regards

Ramanuj

Dear RAJESH CHOUDHARY

VAT is applicable if you are selling your goods in which you deal in normal course of business so VAT wont be applicable on this sale and i agree that Computers etc.are VATABLE goods...the reply of Dharmaraju is correct...agree with it

Dear all

I Think Its is service provided co. its company does not have  sales or purchased. If any Concern have turn over more than 10 lac than must be registered in Under Vat. Less than  10 lac turnover , not need applible vat. so that its company sold all assets then not applicable Vat.

Thanks

Regards

Ramanuj

mr. rajesh...

u r using the concept of capital gain....

I agree with the ans of vikash pipara.....

u/s 6(3) of DVAT "SALES EXEMPT FROM TAX" described as

"Where a dealer sales capital goods which he has used since the time of purchase exclusively for the purposes other than making non-taxed sale of goods, and has not claimed a tax credit in respect of such capital goods u/s 9, the sale of such capital goods shall be exempt from tax.

Sale value of the assets is the criteria.If  your sale value exceeds your state sales tax limit,you have to collect  VAT  at applicable rates and to pay.

VAT would be charged on selling of asset