TaxTMI 
TaxTMI 
SALES OFOLD MOTOR CAR
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....ALES OFOLD MOTOR CAR<br> Query (Issue) Started By: - SURYAKANT MITHBAVKAR Dated:- 16-6-2023 Last Reply Date:- 18-6-2023 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>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 25....
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....23cc). 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. Reply By Ashika Agarwal: The Reply: 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 Notificati....
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....on, 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. Reply By Kiran Tahelani: The Reply: 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) ....
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....dated 25.01.2018. Experts can correct me if I am wrong or misunderstood the query. Reply By KASTURI SETHI: The Reply: Already discussed in this forum. Can be easily traced out. Reply By Padmanathan Kollengode: The Reply: 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). Reply By Ganeshan Kalyani: The Rep....
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....ly: 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. Reply By Shilpi Jain: The Reply: Cess will be exempt for this transaction if you adopt the option of paying GST on the margin.<br> Discussion Forum - Knowledge Sharing ....