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Sale of Old Car, Goods and Services Tax - GST |
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Sale of Old Car |
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Dear Experts, We have car in the name of partner (show in partnership firm accounts) so sale of such car to dealer (Selling-Purchasing old / new cars) will attract gst and if yes at what rate. We also purchase new car from dealer after adjustment of old car price. Thanks & Regards, Jatinder Kumar Posts / Replies Showing Replies 1 to 7 of 7 Records Page: 1
sale of old car by an individual to a dealer (or exchange) do not attract GST. Please refer FAQ and also twitter reply on the same.
However, if the sale is in the course of business (disposal), GST is payable attracts 28% GST.
From the query it is clear that sale of old car is in the course and furtherance of business. Hence taxable.
Thank you very much Sir
If the car is for further supply by the purchaser, then there will be no gst. Otherwise gst will be the rate at which the new car is sold. Also compensation cess applicable.
So far as I gathered from your query you are to sell your firm's car and / or exchange it for new one. In my view when you sell to an individual or through old car dealer you need not to pay any tax. In case it is through car dealer car and dealer sells this car to another person he has got to pay GST on difference price ( sale minus purchase price from you) Now come to exchange. You will have to pay GST on full value of car not on reduced exchange price. Suppose you buy car for 6 lakh and 1 lakh is value of old car then you have to pay 5 lakh but GST and cess is payable on Rs. 6 lakh.
I support the views of Sh.Jain Sir. Art of interpretation and expression is par excellence. It is a fact. Page: 1 Old Query - New Comments are closed. |
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