Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 118586
- 0 -

SALES OFOLD MOTOR CAR

Date 16 Jun 2023
Replies6 Answers
Views 3080 Views

We have to sell an old Motor Car which was brought in Sept-2017. The depreciated Value as on 31.03.23 is Rs.4,06,200/-.& now the sale value is Rs. 5,50,000/-. (Old & used diesel driven motor vehicles of engine capacity is 2523cc).

Whether we have to charge GST on the above sale. If yes, what amount we have to consider for GST.

Is there any exemption. If yes under which notification.

6 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on Jun 16, 2023
1.

ITC on Motor Vehicle is blocked except in certain case it is allowed.

If you have not availed ITC being covered under blocked credit, you can refer to No. No. 8/2018-CTR.

Note: For this Notification, depreciation as per Income Tax Act to be considered.

If you have claimed ITC being following under exception clause, then you refer to Section 18(6) of the GST Act.

- 0
Replied on Jun 16, 2023
2.

If ITC has not been availed on the said motor car: you are required pay GST on margin i.e. (SP-Income tax depreciated value) at the rate as specified in notification 8/2018 Central Tax (Rate) dated 25.01.2018.

Experts can correct me if I am wrong or misunderstood the query.

- 0
Replied on Jun 16, 2023
3.

Already discussed in this forum. Can be easily traced out.

- 0
Replied on Jun 17, 2023
4.

I agree with Ld. friends Ashika and Kiran. Assuming ITC has not been availed you will have to pay GST at 18% on margin (Sale price - WDV).

- 0
Replied on Jun 17, 2023
5.

The depreciated value to be arrived at by following Income Tax depreciation rate. In books the depreciated value is as per Companies Act. Hence, from books one cannot take WDV right away to arrive at margin.

- 0
Replied on Jun 18, 2023
6.

Cess will be exempt for this transaction if you adopt the option of paying GST on the margin.

Old Query - New Comments are closed.

Hide
Recent Issues