My company is selling old car on which ITC has been availed. Company business is altogether different and not dealing in sale and purchase of cars. Sale Value is 3Lakh WDV is 50,000
What will be the value on which GST to be charged whether it should 3 lakh or 2.5 lakh ? and how to mention in Invoice.
07 January 2020
Vide Notification 8/2018- Central Tax (Rate) dated 25 January 2018, the margin scheme was made applicable to all taxpayers on the sale of motor vehicle held as capital asset. As per Margin Scheme :-
In case your company has claimed depreciation as per the Income Tax Act, 1961, GST has to be paid on the excess of selling price over the written down ( Rs 2,50,000/-)
Where no depreciation has been claimed, GST will be paid on the difference in the selling price and the purchase price.( 3,00,000 less purchase price )
CAclubindia
