Sir,
One of Sales Order for sale of 'Used Vehicle- CAR' Issued by our commercial department has the term that "VAT shall be applicable as per compounding provisions"
As I understood, a notification No. 251 dt. 04/02/2008 is available regarding compounding scheme for traders having turnover upto Rs. 50.00 Lakh and it is applicable to the dealer who carries on exclusively business of resale of goods within the state. We are manufacturing company and having turnover in crore of rupees so it may not be applicable to us.
I am of opinion to charge VAT @5% as per entry at Serial No. 128, Part -A of Schedule-II.
Sir, is there any other provision in UP VAT Act regarding applicable of tax as per compounding provisions? Please guide us and advise at what rate of VAT, we should charge / invoice the sale of Scrap Material ’Used Vehicle- CAR’.
