Clarification on liability of VAT

[Rahul Bagaria]

My company is unregistered dealer in Haryana and we plan to sell our assets to a registered dealer without charging VAT.Subsequently we wan't to take the assets back on a monthly rental lease basis froom the company to whom we have sold the assets.I don't think we are required to take registration under VAT.I will charge NIL rate of tax and raise invoice.Also there should not be any liability on the leasing company for buying the assets from unregistered dealer.Please clarify

AI Summary

Unregistered dealer plans asset sale and leaseback without VAT; state-specific limits may necessitate VAT registration. A company in Haryana, operating as an unregistered dealer, plans to sell assets to a registered dealer without charging VAT and then lease them back. The company believes VAT registration is unnecessary and intends to issue an invoice with a NIL tax rate. A response clarifies that asset transactions are subject to VAT, but exemptions exist based on state-specific limits. If transactions exceed these limits, VAT registration and payment may be required according to local tax policies.