Second hand computer

[Ankit Bhansali]

Service provider client has purchased computer and used it for the company. they have not taken any input vat credit on it.

Now they want to give the computer to the Retiring employee, Is they liable to charge VAT on the Second hand Laptop.

AI Summary

VAT at 6% Applies to Computer Sale to Retiring Employee; Eligibility for Input Tax Credit Discussed A service provider client purchased a computer for company use without claiming input VAT credit and now plans to give it to a retiring employee. The discussion confirms that VAT at 6% applies to the transaction value of the computer's sale. Participants clarify that the computer falls under Schedule C of the Maharashtra Value Added Tax Act. Input tax credit eligibility and payment of past VAT with interest are discussed. The importance of the principal activity related to the manufacturing of goods is highlighted, and a review of the definitions of 'goods' and 'sale' under the GVAT Act is advised.