GST on used cars
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 18-8-2018 Last Reply Date:- 28-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
As per notification No.8\/2018 Central Tax (rate )GST on used cars will be levied on margin.
\nThe Margin has to be arrived at by deducting the WDV as on the date of supply from the consideration.
\nThe income tax adopts Block system for allowing depreciation.
\nThe 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.
\nA question araises how to arrive at WDV of car being sold for purpose of GST.
\nEven otherwise, the income tax Act does not allow any proportioa<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n such Margin, and where the margin of such supply is negative, it shall be ignored; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on used cars Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 18-8-2018 Last Reply Date:- 28-8-2018 Goods and Services Tax – GSTGot 4 RepliesGSTAs 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 … Continue reading “GST on used cars”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13287","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13287"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13287\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nReply By Ganeshan Kalyani:
\nThe Reply:
\nThe 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.
\nReply By Ramaswamy S:
\nThe Reply:
\nIf the selling price is higher than the book value, GST is payable on the difference between the book value and the selling price.
\nIf the selling price is less than the book value, GST is not payable.
\nRegards
\nS.Ramaswamy
\nR<\/p>\n
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