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 chargeability on transfer of used company computer to employee requires tax payment and possible interest for earlier non-payment.
VAT applies when a company transfers a used computer to an employee and had not claimed input tax credit; the transfer is treated as a taxable sale under the VAT schedule, requiring remittance of tax based on the invoice value and payment of applicable interest if tax was omitted. Availability of input tax credit depends on prior accounting treatment and whether the purchase relates to the vendor's taxable activity, and requires checking statutory definitions and schedule classification.