Vat on Sale of OLD DG-SETS.

[DHARMENDRA SINGH]

Dear Experts,

Please advise VAT applicable on sold our old DG-Set. If applicable which rate under Haryana vat.

[YAGAY andSUN]

Dear Dharmendra,

Since, DG sets are unclassified item under the HVAT Act, 2003, therefore, rate of tax would be 12.50 percent +Cess as applicable on sale of old DG Sets.  This aspect has been clarified in Bhaskar Genset, Gurgaon and Apple Genset, Faridabad, determining the disputed question by the HVAT Department.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

AI Summary

VAT on sale of old DG-sets: unclassified goods attract standard VAT and applicable cess on disposal transactions. Old diesel generator sets are treated as an unclassified item under the VAT statute; accordingly, the sale of such used DG-sets is subject to VAT and applicable cess at the departmental rate for unclassified goods, as reflected in departmental clarifications (Bhaskar Genset and Apple Genset).