State tax reduction on margins of used motor vehicle supplies; capped rates apply, excluded where input tax credit claimed. Exempts state tax on intra state supplies of specified old and used motor vehicles to the extent tax exceeds a prescribed rate on the margin of the supplier. Margin is defined as consideration less depreciated value where depreciation was claimed, or as selling price less purchase price otherwise; negative margins are ignored. The exemption does not apply if the supplier has availed input tax credit, CENVAT, VAT or other input credits on the goods.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
State tax reduction on margins of used motor vehicle supplies; capped rates apply, excluded where input tax credit claimed.
Exempts state tax on intra state supplies of specified old and used motor vehicles to the extent tax exceeds a prescribed rate on the margin of the supplier. Margin is defined as consideration less depreciated value where depreciation was claimed, or as selling price less purchase price otherwise; negative margins are ignored. The exemption does not apply if the supplier has availed input tax credit, CENVAT, VAT or other input credits on the goods.
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