old car dealer eligibilty for composition dealer

[satbir singhwahi]

Person dealing in old cars , can he opt for composition dealer and pay 1%, or normal dealer and with 18% on margin.Pls guide.

[DR.MARIAPPAN GOVINDARAJAN]

In my view it can be do so if the turnover is within the threshold limit.

[KASTURI SETHI]

I support the views of Dr.Govindarajan, Sir.

[Ganeshan Kalyani]

Sale of old car for regular dealer will be offered for tax @12% or 18% depend upon the type of car on the differential value of sale price less depreciated value of that car as per income tax.

AI Summary

Composition scheme eligibility for dealers in old cars depends on turnover; otherwise tax on margin applies. Dealers in used cars may opt for the composition scheme if their turnover falls within the prescribed threshold; otherwise they follow regular GST treatment under which tax is levied on the margin (sale price less the depreciated value of the car as per income-tax rules), with the applicable GST rate varying by type of vehicle.