VAT Rate for Sale Re-possessed Vehicle

[sachin kuchekar]

Hi,

 

Client dealing in  Sale of Re-possessed Vehicle.So,we want know VAT Rate for Sale of  Re-possessed Vehicle or second sale.and they deals in all india.

 

Kindly advice on the same.

[YAGAY andSUN]

If the tax rate has not been specifically mentioned in the Tax Schedule then it may fall under residuary list and hence peak rate of tax will be applicable.

Kindly check the State Specific Tax Schedule in this regard.

[Ramanujam Varadarajan]

In number of States, used motor vehicles are subject to lower rate of 4% or 5%, under VAT Schedule / notification, though motor vehicle are coming under residual rate.  You may refer VAT Schedule / notification of relevant States.

AI Summary

VAT rate for re possessed vehicles: consult state VAT schedules; otherwise the residuary peak tax rate applies nationwide. If a State tax schedule or notification does not specify a rate for sales of re possessed or second hand motor vehicles, those sales fall under the residuary tax category and attract the peak residuary rate; however, several States prescribe lower VAT rates for used motor vehicles by schedule or notification, so the applicable State VAT schedule must be checked to determine the correct rate.