Is VAT applicable if we are trading in used spare parts of cars?

Is VAT applicable if we are trading in used spare parts of cars?  

Replies
CA Nidhi Agarwal19/12/2019 16:09:27

Vat Registration is not linked to business activity. It is based on taxable supplies and the threshold limit. Accordingly, business dealing in used spare parts must register if its turnover exceeds the threshold limit.

2 Like  
SAJITH N19/12/2019 17:00:19

Yes it is applicable and VAT should be charged at 5% for local sale and 0% for export subject to conditions

2 Like  
Bhavin Raithatha25/12/2019 09:43:03

Yes, it is subject to VAT. Dealing in second hand car though has separate provisions if VAT was already paid while buying car. However, for parts its difficult and not advisable to apply such provisions. Hence, would recommend to charge VAT.

0 Like  
Deepak Agarwal25/12/2019 11:40:06

Additionally the definition of goods does not distinguish between new and used goods, hence the supply should be taxable. it is assumed that other conditions are met.

0 Like  

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