D Vat on Sale of Pre Used Motor Car

[Chitresh Gupta]

Dear Sir,

 

Whether sale of pre used motor car is liable to Vat in Delhi ?  if yes, under which section or rule or schedule and at what rate?

 

Regards

[Surender Gupta]

VAT is applicable on used motor car if the same is sold by the Dealer. If a person selling the motor car is not a dealer, no VAT could be levied on such person.

[Surender Gupta]

To see the meaning of dealer and casual dealer [Section 2 of Delhi VAT]

AI Summary

VAT liability on used motor cars applies when sold by a dealer; sales by non dealers are not subject to VAT. VAT on sale of a used motor car depends on the seller's status: sales by a dealer are taxable and subject to VAT rates under the Delhi VAT regime, while occasional sales by non dealers are not liable to VAT; dealer status must be determined by reference to the statutory definition and attendant factors.