Rate of VAT for second hand motor cars

[Rangarajan DV]

Please let me know the present rate of VAT for second-hand motor cars in Delhi. The Car was bought within Delhi in 2006 and is resold now. Hence the request. Thank you Regards

[Rajkumar Iyer]

Since you are an unregistered individual you need not charge any vat on the sale of the second hand car. and if you are selling to an individual then there is not need at all to charge del vat. If it is company to whom you are selling your car then since you are an unregistered individual you cannot recover del vat from the buying customer. hence please dont charge any vat on the sale of the second hand car. rgds

AI Summary

VAT treatment for second-hand cars: unregistered sellers should not charge VAT when selling to individuals or companies. For a private seller who is not registered for VAT, the sale of a second hand motor car in Delhi to an individual does not require charging Delhi VAT; similarly, when selling to a company an unregistered seller should not charge VAT and cannot recover or collect Delhi VAT from the buyer.