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TMI BlogSALE OF OLD CARX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sirs, One of my client, who is dealer in textiles owning a car, now he sold the car and purchased a new car. Whether GST to be paid on car sold in August 2020.? - Reply By Ganeshan Kalyani - The Reply = Yes, Sir GST is applicable on profit component. - Reply By SHARAD ANADA - The Reply = Pl refer Notification 8/2018 CGST (Rate) GST will be applicable on margin value i.e. s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale price - wdv as per Income Tax Act . For eg sale price is 1.6 lakh and wdv as per Income Tax Act is 1 lakh than GST will be applicable on 60000/- If sale price is 1.60 lakh and wdv as per Income Tax Act is 1.70 lakh than resultant margine is negative and GST will not be applicable. Pl also refer other conditions in Notification - Reply By Rajagopalan Ranganathan - The Reply = S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir, In my opinion, he is not liable to pay GST for the reason that he is not engaged in the business of buying and selling old cars. Moreover, his turnover per annum will be less than 20 lakhs since it is the only occasion he is engaged in selling old car. . - Reply By KASTURI SETHI - The Reply = When the car in question was purchased, all taxes were paid. Now why to pay tax again at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sale of the same car as second hand, especially in view of the fact that car had already suffered duty and VAT. If no credit was taken (presuming that it was for personal use), no GST is payable. If credit was taken, then tax is payable at depreciated value. If depreciated value is in the negative, then no GST. - Reply By KERAGODEGOPALARAO ANANTHARAO - The Reply = My client is a registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer under GST, claimed the depreciation car in finding out taxable income under Income Tax Act for which I made above query. Now he is purchasing a new car, on which he paid GST which comes under blocked credit U/s 17(5)(a) , correct sirs? - Reply By KASTURI SETHI - The Reply = Dear KERAGODEGOPALARAO ANANTHARAO, You are 100% correct. Further, for future, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... my humble request to you whenever you post your query , full and correct facts should be posted at the first instance. Thus the experts will not grope in the dark or in the imagination or presumption. It will save time and energy of querists and experts. I hope you will agree with me. - Reply By Ganeshan Kalyani - The Reply = GST credit on car is block u/s17(5) . - SALE OF OLD CAR - Query ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Started By: - KERAGODEGOPALARAO ANANTHARAO Dated:- 5-9-2020 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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