Liability of vat - unregistered dealer

[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

[Sanjeev Sundriyal]

If your company is having assets in Haryana and wants to sell it to in the state of Haryana, and if the value of total sale is more than 5 lacs, then you need to charge VAT on the sale of assets. For this transaction you can take registration for a single time seller and deposit the VAT amount to Department.

AI Summary

VAT liability on asset sale: unregistered sellers must obtain single time registration and remit VAT when sale exceeds prescribed threshold. VAT is payable on intra-state sales of assets by an unregistered dealer when the sale value exceeds the prescribed registration threshold; the seller should obtain a single time registration and remit VAT. A later leaseback of the assets does not negate the VAT liability arising on the original taxable sale, and the transaction must be treated accordingly under VAT law.