Hi
I wish to know if VAT is applicable on Sale of Motor Car by a Company.
The Company has purchased the Car in 2004-05 i.e. before VAT act & now selling the Car as a second hand car
The Company has not claimed set off of Tax amount at the time of Purchase.(It was capitalised)
Please reply asap
Best Regards
ashish shah
VAT is chargeable on the amount realised from the sale of second hand car @ 4% from 1.4.2007 under the Karnataka Value added tax act, 2003. Prior to that the rate of tax was 12.5%. Second hand car is goods as per defination of goods u/s 2(15) of KVAT Act, 2003 hence attracts VAT on the same.
IN THe sale of motor car by company vat is not applicable because the company have sold it asset...
KVAT Rate on Used Car. any clarification circular tell me. we observed the one circular No:355/07-08
30-04-200812.5% U/S 4(1)(b) of KVAT Act, 2003 applicalbe please tell me some more details for above circular and any new circular tell me . finally what rate is applicale for used car sold by company /Proprietor ..
CAclubindia
