GST liability on sale of used car of Company
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18 November 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 company is not registered in GST as there is no turnover in the company. The facts are as follows:
Car was originally purchased in 2012 for Rs 7.50 lacs app, Sold in Nov, 2023.
Sale Consideration amount Rs 2.50 Lacs.
WDV of the car on 31/03/2023 as per last audited balance sheet.
1) As per Companies Act,2013 : Rs 37108
2)As per Income Tax Act : Rs 1.26 lacs
Profit and loss on sale of car
1) As per companies Act- Profit-- 2.13 lacs
2) As per IT Act- Profit-- Rs 1.24 lacs
My queries are :
1)Is the company liable to pay GST on sale of car and at what rate.
(At present the company does not have GST number)
2)If there is any tax applicable in case of sale of company car please inform.
Please give valuable advice in the above matter.
Thanks & regards
N Kadam
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 company is not registered in GST as there is no turnover in the company. The facts are as follows:
Car was originally purchased in 2012 for Rs 7.50 lacs app, Sold in Nov, 2023.
Sale Consideration amount Rs 2.50 Lacs.
WDV of the car on 31/03/2023 as per last audited balance sheet.
1) As per Companies Act,2013 : Rs 37108
2)As per Income Tax Act : Rs 1.26 lacs
Profit and loss on sale of car
1) As per companies Act- Profit-- 2.13 lacs
2) As per IT Act- Profit-- Rs 1.24 lacs
My queries are :
1)Is the company liable to pay GST on sale of car and at what rate.
(At present the company does not have GST number)
2)If there is any tax applicable in case of sale of company car please inform.
Please give valuable advice in the above matter.
Thanks & regards
N Kadam
18 November 2023
In my opinion there is no GST liability as company has no GST registration.
Message likes :
1 times
18 November 2023
Since you are not Registered under GST Act, you do not require to pay any GST on the same
Message likes :
1 times
18 November 2023
Yes I agreed with above replies.
There is no GST liability for the sale of Car.
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