I have a followup query related to below queries. 1. How do we show the amount received while selling company leased vehicle to a third party to make the amount legal. Which section should we file this in ITR? Is it that we need not pay any tax while selling the car?
2. For Company Leased Vehicles which are leased for 2 or 3 years an additional GST amount is charged by the leasing vendor since last 1 year claiming that government is not returning back the input credit tax fully. As per the leasing vendors, every quarter government gives back only 5% of GST as input credit, so by end of 2 years, only 40% GST is received back + 20% GST paid as part of residual value payment, so in all only 60% received - means the person who has taken the lease needs to pay remaining 40% GST. Is there no way to get back the complete input credit tax in case of 2 years lease? Paying an additional 40% seems like a huge loss. Kindly clarify.
-------------------------previous query in your site-------------------------------- I have a query related to Car leasing. In my company we have car lease policy, where employee can lease a car which is registered in the name of my organization. I pay EMI for the car and claim income tax exemption on the EMI being paid. After the completion of car lease, i have to pay 20% of residual value to finish the lease. Post that, i can sell car directly to anyone. Sale proceed will come to my bank account. What will be the income tax implication on the money received from the car sale. I am asking this question because it is different than the car sale. In this case, the car is not registered in my name but it is registered in my company's name. I have NOC from company to sell it after paying residual amount of 20%. Can you please help with this ? Thank you,
Read more at: https://www.caclubindia.com/experts/income-tax-on-selling-a-leased-car-to-a-3rd-party-2745434.asp
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