TaxTMI 
TaxTMI 
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
Applicablity of vat on sale of scrap
05 Oct 2012 
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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. (AI Summary)
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. (AI Summary)