Tax rate for used machinery

[Tharini R]

We want to sell used plastic injection moulding machineries, kindly let me know the tax rate for the same.

[Alkesh Jani]

Sir,

If the said machinery is older than 5 years and if you have not availed any credit in erstwhile law, than the value shall be the transaction value. The Rate is 18%. Sl.No. 330 Ch.8438 of Notification No. 1/2017-CT (Rate) dated 28.07.2017, as amended from time to time.

Thanks

[YAGAY and SUN]

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AI Summary

Tax rate for used machinery applies where machinery is beyond the notified age and no input tax credit was claimed.
Where used plastic injection moulding machinery is older than the notified age threshold and the supplier has not availed any input tax credit under the earlier law, the supply is taxable at a rate of 18%, with the taxable value taken as the transaction value.