Old car sale
This query is : Resolved
29 May 2019
Dear all Good Morning
Please confirm that if we sale old car and their wdv is Rs. 10,000/- and sale value Rs.20,000/-
how to calculate gst if
condition 1. Old car sale Value Rs.20,000/- @ 28% GST rate
Condtion 2. Old Car WDV Rs.10,000/- (- ) Old Car Sale Value Rs.20,000/- (=) Diffrence Rs. 10,000/- @ 28% GST rate
Please confirm that if we sale old car and their wdv is Rs. 10,000/- and sale value Rs.20,000/-
how to calculate gst if
condition 1. Old car sale Value Rs.20,000/- @ 28% GST rate
Condtion 2. Old Car WDV Rs.10,000/- (- ) Old Car Sale Value Rs.20,000/- (=) Diffrence Rs. 10,000/- @ 28% GST rate
29 May 2019
18% GST applicable on difference 10,000.
29 May 2019
Notification No. 8/2018 – Central Tax (Rate) also provides the mechanism on which value GST shall be levied. In such cases, Value of Supply shall be the “Margin of Supply” on which GST shall be calculated in the manner prescribed in the said notification as mentioned below:
If Depreciation Claimed u/s 32 of Income Tax Act 1961:-
Where the depreciation has been claimed under section 32 of Income Tax Act 1961 on the said goods, Margin of Supply shall be difference between Sale consideration received for supply of such goods and depreciated value of such goods on the date of supply, and where the margin of such supply is negative, it shall be ignored.
In Other Case:-
Margin of Supply shall be the difference between the selling price and the purchase price and where such margin is negative, it shall be ignored.
This Notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.
On the analysis of the said notification, it can be observed that there is no condition about the Date of Purchase of Motor Vehicle which is being sold as Old / Used Motor Vehicles.
If Depreciation Claimed u/s 32 of Income Tax Act 1961:-
Where the depreciation has been claimed under section 32 of Income Tax Act 1961 on the said goods, Margin of Supply shall be difference between Sale consideration received for supply of such goods and depreciated value of such goods on the date of supply, and where the margin of such supply is negative, it shall be ignored.
In Other Case:-
Margin of Supply shall be the difference between the selling price and the purchase price and where such margin is negative, it shall be ignored.
This Notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.
On the analysis of the said notification, it can be observed that there is no condition about the Date of Purchase of Motor Vehicle which is being sold as Old / Used Motor Vehicles.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
Trending Online Classes
CAclubindia
