We are going to sell our company car which we have used 6 years for our office on which we have claimed depreciation till date in our books of account and as per IT act.
Date of Purchase was 18/09/2012
Purchase cost was Rs.1121830/-
WDV as on sale date is Rs.284933/- as per Companies Act 2013
WDV as per IT Act is Rs.112183/-
Sale Consideration is Rs.100000/-
Hence margin of supply is 100000-112183= (-)12183
Since margin of supply is negative, there will be no GST liability (i.e we can raise invoice for Rs.100000/- without GST)
Regarding this sale, we discuss with one consultant he told as the capital purchase has taken place in VAT era hence there would not be a GST sale. Whether his quote is right or wrong?
Kindly advise us whether our understanding is correct or not?
03 January 2019
His quote is not right. Since margin of supply is negative, there will be no GST liability (i.e we can raise invoice for Rs.100000/- without GST)
CAclubindia
