VAT on sale of company cars

I keep getting conflicting views.  My company is in the software business.  They had bought cars for senior managers and now after 3 years have givne them the option to buy them.  Will VAT be payable on the profit of the sale of fixed asset?

What is set off against input credit?  let me also let you know that the car was bought in UP and is being sold in Maharashtra subsequent to the transfer of the manager to Pune.  A manager who bought the car in UP had to pay 4% on wdv of the car whereas I have to pay 12.5% of wdv in Pune

 

Please help

Replies (1)

With in 6 months you can  exclain for input tax on purchase of your cars in UP. But now you must pay output tax (VAT) on sales of your fixed assests (Cars) in Pune or in any state

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