Applicablity of vat on sale of scrap

[Saurabh Singh]

Dear Team

I have one Parties who is not in the business of sale and purchase of scrap  but they have vat no and they have sold some scrap to scrap vendor amounting to rs. 100000 are they liabile to pay vat on such sale

[YAGAY andSUN]

Yes, they are liable to collect the VAT at applicable rate and deposit it with VAT Department.

[Mahaganapathi V]

Sir

your question is not clear. from the question it is understood that your client is not in the business of scrap purchase and sale? Then how they had the scrap to sell? Are they coming under manufacturer or job work provider to other manufacturer.

subject to minimum exeption limits as provided in excise and vat, If the over all turnover for the full year does not exceed the minimum turnover which is not taxable, then there is no need to collect vat as well as excise duty.

 

Regards

 

[CA.Mohammed Lakkadsha]

If  your assessee is holding VAT registration and scrap sold is out of business sources he will be liable to pay VAT on sales of scrap.

[Guest]

If  your assessee is holding VAT registration  no  , so you have to collect Tax on selling of Taxable Goods , Though Scrap Sales is under Taxable Sales Catagories so  u will liable to pay tax to the Govt on sales of Scrap.

 

AI Summary

VAT liability on scrap sales: registered dealers must collect and remit VAT on taxable scrap unless turnover exemption applies. A VAT-registered seller must treat scrap as taxable goods and collect and remit VAT on scrap sales; however, if the seller's aggregate turnover for the year falls below the statutory minimum threshold an exemption may apply, relieving the seller from collecting VAT and excise obligations. The origin of the scrap (manufacturing, job work, or non-business source) is relevant to characterization and entitlement to exemption.