Recently Punjab Govt has imposed VAT on sale of pre owned cars by a dealer vide notification No. S.O. /P.A. 8/2005/S.8/2011 . the relevant extract of the notification is being produced herebelow:
In the said schedule ‘E’, after serial No.9, and the entries relating thereto the following shall be added, namely:-
From the above entry in schedule E it is clear that tax on pre-owned cars has to be paid by a dealer registered under the Act(i.e Punjab VAT Act, 2005). A question was asked to me whether the word dealer as mentioned in the above entry of schedule E means the dealer registered under the PVAT Act who is dealing in pre-owned cars or every person registered under the Punjab VAT Act irrespective of the fact whether he is dealing in pre-owned cars or not.
During the period when pre-owned cars were not tax free under Punjab VAT Act, it was seen that during assessment VAT was also ussualy demanded from every person on the sale of his personal car standing in his books of accounts, treating such sale of car as sale of pre-owned car.
After the above amendment tax on pre-owned cars have been imposed on a dealer registered under the Punjab VAT Act. It should be noted that the word dealer has not been defined anywhere in the Punjab VAT Act, 2005. The word used for person holding VAT registration is the Taxable Person and for the person holding TOT registration the Registered Person.
Hence in the absense of any definition of dealer it must be understood in general terms. The word dealer used in the above entry of schedule E should mean the dealer in the pre-owned cars who is registered under the Punjab VAT act and not every Taxable or Registered person under PVAT Act.
Thus if any person who is not a dealer of pre-owned cars, he is not required to pay VAT on such sale of his car under the above entry of schedule E.
In the said schedule ‘E’, after serial No.9, and the entries relating thereto the following shall be added, namely:-
‘’10 (a) Pre-owned cars having engine Rs.3000/- per car on the first
Capacity not exceeding 1000cc. sale, by a dealer
liable to pay
tax under this Act.
(b) Pre-owned cars having engine Rs.5000/- per car on the first
Capacity exceeding 1000cc. sale, by a dealer
liable to pay tax
under this Act.”
From the above entry in schedule E it is clear that tax on pre-owned cars has to be paid by a dealer registered under the Act(i.e Punjab VAT Act, 2005). A question was asked to me whether the word dealer as mentioned in the above entry of schedule E means the dealer registered under the PVAT Act who is dealing in pre-owned cars or every person registered under the Punjab VAT Act irrespective of the fact whether he is dealing in pre-owned cars or not.
During the period when pre-owned cars were not tax free under Punjab VAT Act, it was seen that during assessment VAT was also ussualy demanded from every person on the sale of his personal car standing in his books of accounts, treating such sale of car as sale of pre-owned car.
After the above amendment tax on pre-owned cars have been imposed on a dealer registered under the Punjab VAT Act. It should be noted that the word dealer has not been defined anywhere in the Punjab VAT Act, 2005. The word used for person holding VAT registration is the Taxable Person and for the person holding TOT registration the Registered Person.
Hence in the absense of any definition of dealer it must be understood in general terms. The word dealer used in the above entry of schedule E should mean the dealer in the pre-owned cars who is registered under the Punjab VAT act and not every Taxable or Registered person under PVAT Act.
Thus if any person who is not a dealer of pre-owned cars, he is not required to pay VAT on such sale of his car under the above entry of schedule E.
Posts
Hello! Are you cheking vin code before buy a car? You should do this simple but very important manipulation, this reports will help you buy and sell vehicles with confidence no matter if you're a smart buyer or an honest dealer. Check all the key data on the vehicle of your choice in a matter of seconds. No need to visit your local DMV to get relevant license plate records. It https://www.faxvin.com/vin-check will save you from unnecessary hassle and headache.
replica gucci shoes, combining elegant style and cutting-edge technology, a variety of styles of replica gucci patch shoes, the pointer walks between your exclusive taste style.
I wish to show thanks to you just for bailing me out of this particular trouble. As a result of checking through the net and meeting techniques that were not productive, I thought my life was done.internal audit firms in dubai
Thanks for sharing this article here about the VAT. Your article is very informative and I will share it with my other friends as the information is really very useful. Keep sharing your excellent work. vat registration
My rather long internet look up has at the end of the day been compensated with pleasant insight to talk about with my family and friends.family office accounting in dubai
Everyone wants to get unique place in the IT industries for that you need to upgrade your skills, your blog helps me improvise my skill set to get good career, keep sharing your thoughts with us.trade license in india
Hats off to your presence of mind. I really enjoyed reading your blog. I really appreciate your information which you shared with us. trademark registration in india
seat alhambra door lock problems carleg
Such a wonderful article shared by you. Thanks for sharing this kind of stuff. Get the Free junk car removal services and get good cash only at expressautogroup.com.au.
This is certainly an informative blog! Thanks for sharing about the pre owned cars. Find the replacement tire for your Lincoln car at nplincoln.com. Visit here Lincoln tires
I really appreciate the kind of topics you post here. Thanks for sharing us a great information that is actually helpful. If you are looking for the best quality personalized car sun shades, then totallycovers.com is the best option to buy car sun shade.
After reading your blog I think you have good information about VAT. I would like to share this information with my friends who need this. Thanks for this blog. VAT Registration