Payment of EC on sale of used and old car

[Pradeep Jain]

Dear Sir,

We are doing the manufacturing of Automobile Components. We want to sale the old and used car on which cenvet credit not taken . Do we need to duty at the time of sale.

Regards

Pradeep Jain

[YAGAY andSUN]

Dear Pradeep,

You are not required to pay any duty on such sale of old/used vehicles on which no CENVAT credit was availed.

However, you would be under obligation to pay the VAT as per your State Vat laws.  Please check this aspect also.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

AI Summary

Excise duty on resale of used vehicles not payable when no CENVAT credit was availed; VAT applies. Sale of an old or used vehicle by a manufacturer on which no CENVAT credit was availed does not attract excise duty; however, the seller remains liable for applicable State VAT and must comply with the relevant VAT provisions.