Salvage value in motor insurance claims is taxable only when the insurer takes ownership and sells the wreck. GST liability on salvage or wreck value in motor vehicle insurance claims depends on the insurance contract. If the claim is settled by deducting salvage as a pre-agreed deductible, the salvage remains the property of the insured and the insurer is not liable to discharge GST on that value. If the claim is settled on the full insured declared value without deduction, the salvage becomes the insurer's property and outward GST is payable on its disposal or sale.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Salvage value in motor insurance claims is taxable only when the insurer takes ownership and sells the wreck.
GST liability on salvage or wreck value in motor vehicle insurance claims depends on the insurance contract. If the claim is settled by deducting salvage as a pre-agreed deductible, the salvage remains the property of the insured and the insurer is not liable to discharge GST on that value. If the claim is settled on the full insured declared value without deduction, the salvage becomes the insurer's property and outward GST is payable on its disposal or sale.
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