Tax exemption on resale margin of specified used motor vehicles restricted where input tax credit claimed. Exempts State tax on intra state supplies of specified old and used motor vehicles to the extent tax exceeds an amount computed at prescribed rates on the margin of the supplier. Margin is defined: for registered persons claiming depreciation, consideration received less depreciated value on date of supply (negative margins ignored); otherwise selling price less purchase price (negative margins ignored). Exemption does not apply if supplier has availed input tax credit, CENVAT, or input tax credit of Value Added Tax or other taxes.
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Provisions expressly mentioned in the judgment/order text.
Tax exemption on resale margin of specified used motor vehicles restricted where input tax credit claimed.
Exempts State tax on intra state supplies of specified old and used motor vehicles to the extent tax exceeds an amount computed at prescribed rates on the margin of the supplier. Margin is defined: for registered persons claiming depreciation, consideration received less depreciated value on date of supply (negative margins ignored); otherwise selling price less purchase price (negative margins ignored). Exemption does not apply if supplier has availed input tax credit, CENVAT, or input tax credit of Value Added Tax or other taxes.
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