GST on Sale of Car

This query is : Resolved

Vivek Sunil Mule (Querist)
Follow

07 January 2020 Respected Sir / Madam,

My company is selling old car on which ITC has been availed.
Company business is altogether different and not dealing in sale and purchase of cars.
Sale Value is 3Lakh
WDV is 50,000

What will be the value on which GST to be charged whether it should 3 lakh or 2.5 lakh ? and how to mention in Invoice.

CA Anita Bhadra

CA Anita Bhadra (Expert)
Follow

07 January 2020

ITC on motor car is blocked credit w.e.f. 01 July 2017 , How could company availed ITC ?

Vivek Sunil Mule

Vivek Sunil Mule (Querist)
Follow

07 January 2020 Sorry,
ITC has not been availed

CA Anita Bhadra

CA Anita Bhadra (Expert)
Follow

07 January 2020 Vide Notification 8/2018- Central Tax (Rate) dated 25 January 2018, the margin scheme was made applicable to all taxpayers on the sale of motor vehicle held as capital asset. As per Margin Scheme :-

In case your company has claimed depreciation as per the Income Tax Act, 1961, GST has to be paid on the excess of selling price over the written down ( Rs 2,50,000/-)

Where no depreciation has been claimed, GST will be paid on the difference in the selling price and the purchase price.( 3,00,000 less purchase price )

Message likes : 1 times

Vivek Sunil Mule

Vivek Sunil Mule (Querist)
Follow

07 January 2020 Ok
Thank you Madam.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now