Sale of used commercial vehciels, VAT + CST

[Vasim Patel]

I am a dealer in used commercial vehicle, My query is, is there any VAT applicable for sale of used commercial vehicles and if yes then what percentage of VAT is applicable in the state of Maharashtra. And whether the VAT is applicable on the sale price of the vehicle or the difference between the sale and purchase price.

I also want to know if the VAT is applicable if he transfer the vehicle in his name and sells it or he does not transfer the vehicle in his name and sells it

Posts / Replies

[Ganeshan Kalyani]

VAT is applicable on selling price and not on the difference between selling price and purchase price. VAT@12.5% is applicable on sale of Car in the State of Maharashtra as per MVAT Act Schedule entry.

[Ganeshan Kalyani]

Hope your issue is resolved Sir. Thanks.

[Rasheed Sampagaon]

Please clarify about applicability to Cement dealer of Karnataka who sold used vehicle and applicability of Tax rate if he is not availed VAT credit at the time of Purchase.