VAT liabaility of insurance companies, VAT + CST

[Sanchit Valecha]

Is there any VAT liability of insurance companies? (Specifically for Maharashtra VAT)

For example, in case insurance company takes custody of damaged goods, does it have to MVAT on scrap value of those goods?

Posts / Replies

[DEV KUMAR KOTHARI]

The insurance company may l be liable becasue it is likely to exceed exemption limit, and when sale of goods is in course of business, the seller will normally be liable to VAT. However, any exceptions need to be checked in relevant law.

[Pradeep Khatri]

Under MVAT Act , the liability will surely be arose on sale of scrap.