1 of our client,trading concern situated in Delhi,had sold in cash a machinery in Delhi at VAT @ 5%. Now what they did , they have passed the entries as follows:- Local sales @ 5% a/c dr 1,00,000 To machinery a/c 1,05,000 now the queries I have is : How could I know whether Fixed asset eligible for imposing VAT or not? How can I determine the rate ? How sale of machinery could be treated as sale of goods? Though the VAT collected should be deposited to govt , so in DVAT RETURN how can we put these figures. . Please help as soon as possible.