Second hand Commercial Vehicle Trading -Margin Scheme

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Second hand Commercial Vehicle Trading -Margin Scheme
Query (Issue) Started By: - SIDDHARTH KOTHARI Dated:- 21-11-2019 Last Reply Date:- 22-11-2019 Goods and Services Tax - GST
Got 1 Reply
GST
One of our client is in trading of Second hand Commercial Vehicle. He has adopted the Rule 32 of GST Valuation Rules for the purpose of GST. Following Observations found : As per Rule 32 , no w .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... here the Purchase price and Selling price are defined. The words used as margin between Sale Price and Purchase Price. So all expenses incurrred for particular vehicle are added to the purchase cost of vehicle and from sale price the amount is deducted. The practice adopted by client: Purchase of Dumpur HSN 8704: 500000(No credit claimed as we are in margin method) Repairing : 90000 Tyre: 200 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 00(Credit of 28% to be claimed-4375) -------------------------------------------------------- Cost: 610000 Sold 650000 ------------------------------------------------------- Margin 40000( inclusive of GST 28% i.e 8750) Net GST Payable was 8750-4375 =4375 Reason for taking 28% is due to claiming credit of tyres and insurance. Now due to notification 8/2018 , calculation can be changed as f .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ollows: Purchase of Dumpur HSN 8704: 500000(No credit claimed as we are in margin method) Repairing : 90000 Tyre: 25600( Total cost inclusive of GST) -------------------------------------------------------- Cost: 615600 Sold 650000 ------------------------------------------------------- Margin 34400 Now if apply the notification 8/2018 the rate would be 12% . Is it advisable to apply 8/2 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 018 and not claiming any credits and pay 12% ? Should be add all cost like RTO , Tyres , Insurance , Commission etc to the cost of vehicle as purchase cost? Thanks and Regards Reply By Rajagopalan Ranganathan: The Reply: Sir, You can pay gst @12% as per Notification No. 8/2018 -C.T. (Rate) dated 25.01.2018. All costs like RTO , Tyres , Insurance , Commission etc are to be added to the purchase .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... price only. It will constitute the purchase price.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X