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

Unregistered Dealer Must Charge VAT on Asset Sale Over 5 Lakhs and Obtain One-Time Registration An unregistered dealer in Haryana plans to sell assets to a registered dealer without charging VAT and then lease them back monthly. The dealer believes registration under VAT is unnecessary and intends to issue an invoice with a NIL tax rate. A response clarifies that if the asset sale exceeds 5 lakhs, VAT must be charged, and the dealer should obtain a one-time registration to deposit the VAT amount with the Department.