Sir,
Our Company is providing cars to certain Employees. Whenever the employee got transfer or resigned, he has to surrender the Car to the Company. In such case, the employee is purchasing the car from the Company at depreciated value. Whether Andhra Pradesh VAT is to be charged on that transaction?
Pleas also quote relevant Provision with respect to the reply.
VAT Applicable on Used Cars Sold to Employees; Andhra Pradesh VAT Rules, 2005 Allow Notional Input Tax Credit A discussion on the applicability of Andhra Pradesh VAT on used cars sold by a company to its employees upon their transfer or resignation. The primary question is whether VAT should be charged on such transactions. Responses indicate that VAT is applicable, with references to amendments in the Andhra Pradesh VAT Rules, 2005, which allow for a notional input tax credit on used vehicles. The discussion also clarifies that VAT is payable regardless of whether input tax credit was claimed at the time of the car's purchase. There is also a query about the applicable VAT rate for used cars in Telangana/Andhra Pradesh. (AI Summary)
TaxTMI 
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