TAXABILITY OF SALE OF SECOND HAND PLANT MACHINERY

[NAMAN DOKANIA]

M/s Xyz a partnership firm unregistered in GST is selling his old plant and machinery to M/s AbC unregistered located in another state for a value of ₹ 18lakhs. m/s XYZ, seller has purchased the machinery in preGST era.

Will M/s XYZ need to charge gst on dat? if yes den wat will be the transaction value

[Ganeshan Kalyani]

Yes, GST is payable by M/a XYZ

[Atul Rathod]

Yes, Compulsory registration for inter state supply irrespective of turnover

[Guest]

How to calculate the trasanction value?

[KASTURI SETHI]

Transaction value can be arrived at by way of adopting depreciation methods as per accounting principles. There are 4 depreciation methods. Since the unit was unregistered, no credit was taken on the capital goods.

AI Summary

GST Required for M/s XYZ's Interstate Machinery Sale to M/s AbC; Registration Needed Despite Turnover. Depreciation Method Applies. A partnership firm, M/s XYZ, unregistered under GST, is selling old plant and machinery to another unregistered entity, M/s AbC, in a different state for 18 lakhs. The machinery was purchased before the GST era. The forum discusses whether GST is applicable. Replies indicate that GST is payable, and M/s XYZ must register for interstate supply regardless of turnover. The transaction value can be calculated using depreciation methods according to accounting principles, though no credit was taken on the capital goods since the unit was unregistered.