KVAT Liability Confirmed: Banks Taxed on Sale of Repossessed Vehicles, Even Without Ownership at Sale Time.

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Full Text of the Document

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....Liability of KVAT on the proceeds realized from the sale of hypothecated vehicles - The Bank is not the owner of the vehicle at the time of sale. But however, after re-possession, sells the vehicles and effects transfer and delivery of the goods (vehicle) to the purchaser after receiving consideration - Levy of tax on Bank confirmed.....