20 November 2023
We entered with an agreement for 2 years for Furniture on RENT which the ownership shall be transferred to the LESSEE either after expiry of 2 years or upon pre-closure of the RENT AGREEMENT with mutually agreed terms.
Now , how to do the GST billing for transfer of the furniture ( by sale).
Example: Basic product cost of the Furniture on rent is Rs. 6,00,000. The principal value of the furniture per month is ( 600000/24 months) = 25,000. The intrest agreed is 18% per year and total intrest for 2 year is ( 600000x 18% = 108000) Rs.2,16,000 and per month is ( 216000/24months )= rS. 9000 per month. So total Rent per month is Rs. 25000 ( value of furniture) + 9000 ( intrest component) = Rs. 34,000 per month.
The LESSEE paid RENT for 4 months ( total Rs. 34000 x 4 = 136000). Now the LESSEE wanted to buy the furniture on its cost price.
Total cost price of the furniture Rs. 6,00,000 Less : Principal amount paid for 4 months + 25000 x 4 = 100000 Sale value of the Furniture is Rs. 600000-100000= 500000/=
My query is :
is Eway bill applicable for sale of the furniture ? ( the furniture on RENT was transfered through Eway bill with Delivery Note) and what will be the HSN /SAC code for this transaction.
CAclubindia
