Query: my company bought a car for me, paid by the. Company but registered in my name under individual registration. Company claimed depreciAtion benefits for the same. Now I am leaving the company and willing to buy the car at depreciated value. But company says I have to pay VAT. If the car is already in my name, am I eligible to pay VAT?
please help.
You have to pay the VAT on sale of car.
The car's purchase cost is inclusive of VAT only. So cost should be transferred to you along with VAT to you.
VAT is required to be paid because since the Car was captialised in the books of the company & the company was claiming the depreciation for the same so even if it was registered in your name the Car actually was the asset of the company so you have to pay VAT on depreciated value @ 12.5% while purchase of car from the company.
CAclubindia
