vat liability on import license sale

[Guest]

is vat chargeable on sale of import license ?

[YAGAY andSUN]

Dear Dipneet Kaur,Licenses/scrips obtained under chapter 3 of the FTP, If sold in open market would certainly attracts VAT/CST as the case may be. Please also check the tax schedule under VAT Laws.RegardsTeam YAGAY & SUN(Management & Indirect Tax Consultants)

AI Summary

VAT on import licenses applies when FTP-derived licenses or scrips are sold in the open market. Transfers of import licenses or scrips obtained under the foreign trade policy, when sold in the open market, create an indirect tax liability and are subject to VAT or CST as applicable; the taxability and applicable rate should be confirmed against the relevant VAT tax schedule.