Tax exemption on used motor vehicles limits state tax to margin-based rates, excluding suppliers who've claimed input tax credit. Exemption from state tax is provided on intra state supplies of specified old and used motor vehicles under tariff entries in Chapter/heading 8703 by applying margin based taxation: state tax is exempt to the extent it exceeds the amount computed at specified percentage rates on the supplier's margin. Supplier's margin is sale consideration less depreciated value for assets with claimed depreciation, or selling price less purchase price otherwise, with negative margins ignored. Exemption is unavailable where input tax credit, CENVAT or VAT input credit has been availed.
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Tax exemption on used motor vehicles limits state tax to margin-based rates, excluding suppliers who've claimed input tax credit.
Exemption from state tax is provided on intra state supplies of specified old and used motor vehicles under tariff entries in Chapter/heading 8703 by applying margin based taxation: state tax is exempt to the extent it exceeds the amount computed at specified percentage rates on the supplier's margin. Supplier's margin is sale consideration less depreciated value for assets with claimed depreciation, or selling price less purchase price otherwise, with negative margins ignored. Exemption is unavailable where input tax credit, CENVAT or VAT input credit has been availed.
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