SELLING OF OLD MACHINERY
This query is : Resolved
16 December 2019
WE WISH TO SOLD OUR OLD MACHINERY.
IN REGARD OF ABOVE MY GST RELATED QUERY ARE AS UNDER.
1) IF SELLING COST OF MACHINERY IS HIGH THAN DEPRECIATED COST OF
MACHINERY- IS GST LIABLE TO PAY ON DIFFERENCE VALUE.
2) IF SELLING COST OF MACHINERY IS LESS THAN DEPRECIATED COST OF MACHINERY- IS GST NOT LIABLE FOR PAYING
3) IS GST LIABLE TO PAY ONLY SELLING COST OF MACHINERY ( I.E NOTHING RELATED TO DECIPHERABLE VALUE )
PLEASE GUIDE. METHOD APPLYING GST ON SELLING OF OLD M/C .PLEASE NOTE THAT THIS M/C IS NOT SCRAP. ( THIS IS SECOND HAND SELLING TRANSACTION )
IN REGARD OF ABOVE MY GST RELATED QUERY ARE AS UNDER.
1) IF SELLING COST OF MACHINERY IS HIGH THAN DEPRECIATED COST OF
MACHINERY- IS GST LIABLE TO PAY ON DIFFERENCE VALUE.
2) IF SELLING COST OF MACHINERY IS LESS THAN DEPRECIATED COST OF MACHINERY- IS GST NOT LIABLE FOR PAYING
3) IS GST LIABLE TO PAY ONLY SELLING COST OF MACHINERY ( I.E NOTHING RELATED TO DECIPHERABLE VALUE )
PLEASE GUIDE. METHOD APPLYING GST ON SELLING OF OLD M/C .PLEASE NOTE THAT THIS M/C IS NOT SCRAP. ( THIS IS SECOND HAND SELLING TRANSACTION )
16 December 2019
The written down value of the machinery is not concern for applicability of of GST for second sales. The GST is to be charged for the sales value of machine. The profit or loss on sale of machinery as the case may be is to be accounted as usual for the difference between book value and sales value. Please also note that loss on sale of asset will be added back to Profit in Income Tax memo.
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