Sale of Old car Purchased before GST regime

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..... Sale of Old car Purchased before GST regime
Query (Issue) Started By: - DK AGGARWAL Dated:- 1-7-2019 Last Reply Date:- 3-7-2019 Goods and Services Tax - GST
Got 7 Replies
GST
Dear Sir We purchased a car before GST regime in May 2017. Now we have sold the car as under. Please inform the GST tax implications Cost in May 17--------------------------------------------------8 lac Deprec .....

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..... iated value as per books-------------------------------6 lac Sold now-----------------------------------------------------------4 lac Please inform if any tax is to be charged Regards D K Aggarwal Reply By Prudhvi Jakkula: The Reply: As the margin is negative, tax is not required to be paid. Reply By DK AGGARWAL: The Reply: Thanks Sir for the quick response D K Aggarwal Reply By Nandan K .....

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..... hambete: The Reply: WDV of Car as per Income Tax has to be compared with Selling price. WDV as per Companies act is not relevant. Check Notification no.8/2018 - Central Tax Rate dt 25/1/18 Reply By KASTURI SETHI: The Reply: As per profile, the querist is not dealing in purchase and sale of old and used car.It is not his business. In pre-GST era, he was a distributor of chemicals and also import .....

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..... er. So he must have been registered with the department. He might have claimed depreciation under Income Tax Act or Cenvat Credit under Cenvat Credit Rules, 2004 (my presumption) . So the benefit of 'margin scheme' is not available to the querist. The following Board's Flyer is also worth reading in this context:- Margin Scheme in GST Reply By Nandan Khambete: The Reply: Dear Kastur .....

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..... iji, Kindly go through below Notification : Notification no.8/2018 - Central Tax Rate dt 25/1/18 This does not talk about margin scheme for Dealers. Reply By Prudhvi Jakkula: The Reply: I too expressed my opinion based on that notification only. Reply By KASTURI SETHI: The Reply: Dear Sh. Nandan Khambete Ji, Sir, I agree with you. Views expressed by me are additional information.
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..... ussion Forum - Knowledge Sharing .....

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