Vat impact - Capital asset without any profit

[Rahul Bagaria]

As an unregistered dealer in states of Punjab & Haryana if any sale is mamdeof Capital assets without any profit, what will be the tax impact from VAT point of view.DO the company needs to register it sellf and pay taxes if any

[Markesh Antony]

Sale of goods is subject to VAT. Profit motive or no profit motive does not alter the siutation. Even a chartiable institution would be liable to pay vat if engaged in trading activity.

AI Summary

Unregistered sellers must pay VAT on capital asset sales, even without profit; charitable institutions included. An unregistered dealer in Punjab and Haryana inquired about the VAT implications of selling capital assets without profit. The response clarified that the sale of goods is subject to VAT regardless of profit motives. Even charitable institutions must pay VAT if involved in trading activities, indicating that the company would need to register and comply with tax obligations despite the absence of profit in the sale.