Under Asset Basket scheme, employer earlier provided interest free amount for buying properties to be kept at employee's house to improve dignity of company image.After 5 years, employee is mandatorily bound to buy all these at 50% written down value.Now with dismantling the scheme, company wants to sell all these to respective employees in whose names, the assets are occupied at depreciated value + VAT. Since company is not in selling assets to employees but in a manufacturing business, can employer charge VAT. Understand for charging VAT, it requires to classify nature of transaction and right to deduct VAT / deposit the same / submit return.
Please enlighten urgently.
