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Taxability of sale of used vehicle by company

Hemanth (Student LLB) (45 Points)

19 November 2018

Can anybody please provide me with the information relating to Taxability of Sale of USED vehicle by a company not dealing in second hand vehciles, what is the mechanism of taxation, Rate of GST, value of Supply Etc.

URGENT Matter

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6 Replies

gagan (student) (105 Points)
Replied 19 November 2018

If you sale the asset then its reduced 5 par qtr for itc

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 20 November 2018

As per Notification 8/2018 CT (r)

Vehicle of Vat Regime Sold in GST Regime :
GST is applicable on Profit Margin (Sale-Puchase )

Vehicle Purchased & Sold in GST Regime :
If ITC claim , then GST is on transaction Value
Else GST is on Profit Margin (Sale - Purchase)
n
GST Rate 12 % & 18% is applicable as per CC engine of vehicle mentioned in Notification.

More then 1500 CC , leanth exceeding 4000 MM, GST is 18%

Else ,.. 12%

Hemanth (Student LLB) (45 Points)
Replied 20 November 2018

As per Notification 8/2018 CT (r) Vehicle of Vat Regime Sold in GST Regime : GST is applicable on Profit Margin (Sale-Puchase )

Whether Sale Consideration Less Purchase Price has to be taken or the Written Down Value as per Income Tax Act, 1961 has to be taken