Goods and Services Tax – Started By: – Ethirajan Parthasarathy – Dated:- 18-8-2018 Last Replied Date:- 28-8-2018 – As per notification No.8/2018 Central Tax (rate )GST on used cars will be levied on margin. The Margin has to be arrived at by deducting the WDV as on the date of supply from the consideration. The income tax adopts Block system for allowing depreciation. The WDV of The Block in which car being sold is clubbed, might have been wiped out, or brouht down substantially because sale value of any one asset included in the Block. A question araises how to arrive at WDV of car being sold for purpose of GST. Even otherwise, the income tax Act does not allow any proportioante Depreciation upto date on sale of any asset. Any suggestion
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shall be ignored; – Reply By Ganeshan Kalyani – The Reply = The date of purchase of car can be found out from the books of accounts. The formula for depreciation which you are applying to a block of asset as per income tax need to be applied to a particular asset under sale. You will get the written down value of the car. Now you can apply the formula as per the notification no. 8/2018 CTR to arrive as the gst payable. – Reply By Ramaswamy S – The Reply = If the selling price is higher than the book value, GST is payable on the difference between the book value and the selling price. If the selling price is less than the book value, GST is not payable.RegardsS.Ramaswamy – Reply By Ganeshan Kalyani – The Reply = Book value means written dow
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