Sale of used commercial vehciels

[Asked by Guest]

I am a dealer in used commercial vehicle, My query is, is there any VAT applicable for sale of used commercial vehicles and if yes then what percentage of VAT is applicable in the state of Maharashtra. And whether the VAT is applicable on the sale price of the vehicle or the difference between the sale and purchase price.

I also want to know if the VAT is applicable if he transfer the vehicle in his name and sells it or he does not transfer the vehicle in his name and sells it

[Ganeshan Kalyani]

VAT is applicable on selling price and not on the difference between selling price and purchase price. [email protected]% is applicable on sale of Car in the State of Maharashtra as per MVAT Act Schedule entry.

[Ganeshan Kalyani]

Hope your issue is resolved Sir. Thanks.

[Rasheed Sampagaon]

Please clarify about applicability to Cement dealer of Karnataka who sold used vehicle and applicability of Tax rate if he is not availed VAT credit at the time of Purchase.

AI Summary

VAT on sale of used vehicles applies on selling price; state law prescribes the applicable rate.
VAT on sale of used commercial vehicles is chargeable on the selling price and not on the difference between selling and purchase prices; the State VAT schedule under the applicable VAT statute prescribes the rate for sale of cars in Maharashtra, requiring dealers to account VAT on the gross sale consideration.