Hello Everyone!
I would like to know what is the Vat % applicable for a used car dealer in maharashtra? Some people say it is 1.875% while some are saying its straight away 8 %. If the Vat is 8 % would mean all the second hand car dealers like me will be out of business as it is more that the net margin in todays age when customers have internet tools.
Also bearing in mind that a car has already been charged 12.5 % when it is first sold by new dealer, raod tax has been paid and other taxes too. So it does not make any sense to charge another 8 % for second sale. Also 99% customers who sell or buy cars to dealers don't have a VAT registration.
Please help with some advice as soon as possible.
Regards
CAclubindia
