07 September 2023
Dear Friends, I shall be grateful if you can share your opinion on the GST liability of a A Pvt Ltd company which sold a used car recently. The facts are.
Car was originally purchased in 2015 for Rs 35 lacs app, Sold in Aug 2023 Consideration Appx Rs 4.75 lacs WDV of the car on 31/03/2022 as per last audited B/S As per companies Act, Rs 3.50 lacs As per IT Act Rs 12 lacs
profit/loss on sale- As per companies Act- Profit 1.25 lacs As per IT Act- Loss Rs 8.50 lacs
The quries:
1. Whether the company is liable to pay GST on profit/loss on sale and at what rate. 2. The profit or loss on sale of car and GST liability is determined in this case as per Companies Act or Income tax Act. 3. Is there any GST rule or court ruling on the basis f which the GST liability is to be determined
CAclubindia
