Margin-based state tax exemption for intra-state supplies of used motor vehicles, limited where input tax credit is claimed. Exemption of state tax on the margin of supplier is specified for certain categories of old and used motor vehicles, with distinct concessional rates per listed tariff entries. Vehicle specifications reference the Motor Vehicles Act and SUV dimensions. Supplier margin valuation is prescribed: for those who claimed depreciation the margin is consideration less depreciated value; otherwise it is selling price less purchase price; negative margins are ignored. The exemption is inapplicable if the supplier has availed input tax credit, CENVAT, VAT input tax credit or other tax 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.
Margin-based state tax exemption for intra-state supplies of used motor vehicles, limited where input tax credit is claimed.
Exemption of state tax on the margin of supplier is specified for certain categories of old and used motor vehicles, with distinct concessional rates per listed tariff entries. Vehicle specifications reference the Motor Vehicles Act and SUV dimensions. Supplier margin valuation is prescribed: for those who claimed depreciation the margin is consideration less depreciated value; otherwise it is selling price less purchase price; negative margins are ignored. The exemption is inapplicable if the supplier has availed input tax credit, CENVAT, VAT input tax credit or other tax credits on the goods.
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