Chargiability of goodwill under vat

[deepak dubey]

Can goodwill chargeable under VAT

[Guest]

absolutely no.

[Subhash Majumdar]

Mr. Dubey you must be know that VAT is applicable only on Commodity or in other words, goods. Goodwill is not goods or commodity it is completely intangible & part of capital cum assets if Goodwill will be cover VAT then after few times Govt. will be carge VAT on capital also. Finally conclussion goodwill is not chargeble under VAT.

AI Summary

Goodwill is not subject to VAT because VAT applies to goods and not intangible capital assets. Goodwill, as an intangible capital asset, does not qualify as goods or a commodity and therefore is not chargeable under VAT, which applies to goods and taxable supplies rather than capital assets.