SALE OF USED MACHINERY

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..... SALE OF USED MACHINERY
Query (Issue) Started By: - SUNDARA MOORTHI Dated:- 25-1-2019 Last Reply Date:- 28-1-2019 Goods and Services Tax - GST
Got 4 Replies
GST
MACHINERY PURCHASED DURING VAT REGIME IN 2012. VAT INPUT TAX NOT AVAILED. DEPRECIATION CLAIMED UNDER INCOME TAX AS PER IT RULES. THE USED MACHINERY IS BEING SOLD OUTSIDE THE STATE. (INTERSTATE) THE ISSUE IS WHAT IS THE RATE .....

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..... OF GST AND ON WHAT VALUE.? NEED A DETAILED REPLY ASAP. Reply By Ganeshan Kalyani: The Reply: GST is applicable on the value of supply at applicable rate. Reply By KASTURI SETHI: The Reply: You are to pay GST at depreciated value. Depreciated value can be computed by many methods but two methods are very suitable and beneficial to the assessees. These are : Written down method and straight lin .....

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..... e method. Both are easily available on google. You are to choose according to your suitability and by which you can get the maximum benefit.Thus you can arrive at correct transaction value/assessable value for correct payment of tax as per above method prescribed in accounting principles. Regarding the rate of GST, GST Tariff Act makes no difference whether it is new or old machinery. Chapter/Hea .....

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..... ding/HSN remains the same. What benefit you can get that is reduction of value(depreciation) and not any benefit from rate of GST for selling/supply of old machinery. Now there are different slab rates i.e. 28%, 18 %, 5% Rate will be applicable as per type of machinery. Machinery falls under Chapter 84 of GST Tariff Act. Intimate the type of machinery and function/purpose of machinery for correct .....

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..... GST rate. Reply By CASusheel Gupta: The Reply: Since no ITC has been taken under GST, section 18(6) is not applicable. Pay tax on the transaction value at the rate applicable to new machinery. CA Susheel Gupta 9811004443 Reply By YAGAY andSUN: The Reply: You need to pay applicable taxes on transaction value of the invoice.
Discussion Forum - Knowledge Sharing .....

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