Rate of VAT on used vehicle

[vikas gupta]

Dear Sir

I own a vehicle in my name which is 5 year old. This vehicle is in the books of the company since 5 years and the company is availing the depriciation every year.

today if i sell my vehicle is there any vat payalbe to the govt or not if yes, what is the vat payable to the govt ? 

AI Summary

VAT liability on sale of used company vehicle hinges on statutory definition of sale and treatment as capital goods.
Whether sale of a company-owned, depreciated vehicle attracts VAT depends on the VAT regime and statutory definitions rather than prior sales-taxation history. Under VAT, many State laws treat every disposal of goods, whether in the course of business or not, as a sale for levy purposes. Parties must assess whether the vehicle is a capital good or capital asset, the statutory definition of sale in the applicable VAT law, and whether prior taxation or the vehicle's purpose affects VAT liability; the Delhi High Court reasoning cannot be taken as universally determinative under VAT without examining those provisions and facts.