VAT in Chennai.

[VMG]

Is the second sales applicable for VAT?
I bought a car thru my company ( deducation from my salary and car is on the company name) in 2004. After 3 years, I can buy the car if I want. Since the 3 years is completed, I would like to buy the car and pay the difference to the company. My compnay is adding VAT after the depriciation value of the car. I have to pay around 40K for this. SInce I paid the ST initialy, Do I have to pay VAT now. But only catch is Car is in the company name now.

Thanks

[sreedotk]

Originally Posted by VMG

Is the second sales applicable for VAT?
I bought a car thru my company ( deducation from my salary and car is on the company name) in 2004. After 3 years, I can buy the car if I want. Since the 3 years is completed, I would like to buy the car and pay the difference to the company. My compnay is adding VAT after the depriciation value of the car. I have to pay around 40K for this. SInce I paid the ST initialy, Do I have to pay VAT now. But only catch is Car is in the company name now.

Thanks

I don't know how much this can help, as i was hunting for cars in chennai i came across a car i liked and was trying to fix the price (at a used car dealer) and he mentioned that there is a 12 or 13 % tax on the valuation of the car. As i was not sure i walked away

The car dealer was an automart so i am sure that he would have had to bill me , there are a lot of uncertainities regarding the vat in Chennai