TaxTMI 
TaxTMI 
Applicability of vat on insurance claim
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....pplicability of vat on insurance claim<br> Query (Issue) Started By: - Anil Nahata Dated:- 24-4-2008 Last Reply Date:- 28-4-2008 VAT + CST<br>Got 3 Replies<br>VAT / Sales Tax<br>whether Vat is payabl....
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....e on Insurance Claim received for stock damaged and burnt in fire Reply By V.Ramanujam: The Reply: VAT is payable only in respect of consideration received on transfer of property in goods viz. 'sale....
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....' as defined under the VAT Act. Settlement of insurance claim by the insurance company cannot said to be transfer of ownership and thus no VAT is payable. However any input tax credit availed in respe....
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....ct of the stock damaged should be reversed. Reply By Madhukar N Hiregange: The Reply: In my view the input tax credit may not always be reversible. The loss is a business loss and was after the same w....
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....as purchased and whether the same can be said to be used for any other prupose is to be determined. Under central excise it would not be reversible in case the input has entered the manufacturing stre....
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....am. Reply By V Ramanujam: The Reply: In number of State VAT Acts, there is a specific provision to the effect taht no input tax credit is available on goods which are not sold because of any loss or d....
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....estriction, for any reason including natural clamity. If ITC has already been availed, the same should be reversed.<br> Discussion Forum - Knowledge Sharing ....