sale of car, Goods and Services Tax - GST

[DK AGGARWAL]

Sir

we want to sell the old car purchased before July 2107, registered in the name of Firm to another firm duly registered under GST.

Please inform if GST is applicable on sale of old car and if so whether GST input is available to the new buyer.

Please inform the rate of GST if applicable

Regards

D K Aggarwal

Posts / Replies

[Ravindra Gawande]

Hello,

You have two ways for invoicing.

1. consideration value / agreed sale value / deal value.

WDV of said car ₹ 10000/- (-) deal value ₹ 9000/- = Loss ₹ 1000/- "No GST will be attract."

WDV of said car ₹ 10000/- (-) deal value ₹ 15000/- = Profit ₹ 5000/- "GST will be attract on Profit @ 18%."

2. Abetment

You can take 35% abetment on consideration value / agreed sale value / deal value & charge GST @ 18%.

consideration value / agreed sale value / deal value ₹ 100000/- (-) Abetment @ 35% Rs. 35000/- = Taxable ₹ 65000/-

Thanks.

[MANAV KEDIA]

Sir, Please clear the query raised by Nitin Laddha ji on 23rd January 18.

[Lakshminarayanan TR]

Dear Sir

Please refer the Notification No. 8/2018 -Central Tax (Rate) dated 25th Jan 2018. Disposal of old and used goods is taxable on the margin. Rate various depends upon the category listed on the notification. Any registered person under schedule II becomes liable to pay GST on disposal of asset permanently.

[KASTURI SETHI]

Sh.Lakhshminarayan Ji, Thanks for updation and correlation .

[CA.Tarun Agarwalla]

dear Sir

I would like to bring the attention to the definition of business as per ACT. which covers single transaction to its ambit.