VAT liabaility of insurance companies

[Sanchit Valecha]

Is there any VAT liability of insurance companies? (Specifically for Maharashtra VAT)

For example, in case insurance company takes custody of damaged goods, does it have to MVAT on scrap value of those goods?

AI Summary

Insurance Companies May Face VAT on Scrap Sales Exceeding Exemption Under MVAT Act A query was raised regarding the VAT liability of insurance companies in Maharashtra, specifically whether they are liable to pay VAT on the scrap value of damaged goods they take custody of. One response indicated that the insurance company might be liable if it exceeds the exemption limit, as selling goods in the course of business typically incurs VAT. Another response confirmed that under the MVAT Act, liability would indeed arise on the sale of scrap.