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

[kumar royal]

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.