Sale of old commercial vehicle

[Syamaprasad Menon]

How the sale of a used commercial goods carrier, TATA Ace, bought during the VAT regime, claiming ITC, with the sale value exceeding the WDV by a few thousand, can be legitimately accounted - the rate of GST - will compensation cess need be levied etc

AI Summary

Compensation cess liability arises on sale of used commercial vehicle when input tax credit was claimed; margin scheme not available.
Where input tax credit, Cenvat credit, or VAT ITC was availed on a used commercial motor vehicle, compensation cess is not exempt and is leviable at rates linked to engine capacity; the margin scheme for valuation is not available when such credits have been claimed.