When a dealer registered under VAT trades in fixed assets (machinery, furniture and so on), then the fixed assets/capital goods have to be treated like stock items purchased and sold.
Tax calculation does not change when a transaction is recorded for sale of capital goods or trading goods. You can use Sales Taxable as the Nature of transaction for sale of capital goods and trading goods.
In some of the states, the sale of capital goods and trading goods has to be captured in separate fields of forms and annexures. For this purpose, the option Type of goods is provided in the stock item master, as shown below:
While recording the sale of fixed assets, in the stock item master, the option Type of goods has to be set to Capital Goods to capture the values in the relevant fields of forms and annexures of the following states:
● Assam
● Dadra & Nagar Haveli
● Goa
● Haryana
● Himachal Pradesh
● Odisha
● Uttarakhand
For West Bengal, the option Nature of goods in stock item master has to be set to Not Direct Use in Business as shown below:
The values of sale of fixed assets will be captured in the relevant fields of forms and annexures
Record the sales transaction with Sales Taxable selected as the Nature of transaction , as shown below:
Press Enter to save. This transaction appears in the field provided for sale of taxable goods in the state-specific VAT return forms.
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