Telangana vat act - schedule -iv- sl.no. 2
T.N.REDDY
(Querist) 16 December 2016
This query is : Resolved
vide sl.no.2.goods of intangible or incorporeal nature as may be notified from time to time by the state government, and including
(iii)Import licenses including exim scrips, special import licenses and duty free advances license or quota
my client is in to the business of development of software, and we also import certain licenses in order to trade in india. and when we sell we collect of vat/cst rate as applicable and remit to the dept.
now the A.O. says that when you import the licenses, you are supposed to pay the VAT as purchase tax and then take the input against the output VAT.
is it correct ? kindly advice
adv.bharat @ PUNE
(Expert) 18 December 2016
Yes you need to pay VAT for it.
Though is is intangible good it have monetary value for which you get financial gain hence need to pay to government.
Will u appreciate this answer by giving like on my LCI profile?
Rajendra K Goyal
(Expert) 19 December 2016
Commercial taxation query, discuss with local tax consultant.
