Sold old car

This query is : Resolved

manisha (Querist)
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02 November 2018 A Private Limited Company purchased Car in 2012 used by the Company Directors for Business purpose. Now the company want to sell the used car. We claim the depreciation on it and Company registered in GST-Maharashtra State. The Car Registered on company director name in Mumbai & the old car sold to directly of Dealer only. Whether GST is applicable on Sales of Used Car. What is the GST Tax Rate in sales of used Car.

While purchasing new car we have paid GST and we have not taken ITC for the same.

Please tell me how to charge depreciation as per company law and

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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04 November 2018 Please calculate the WDV of the Car before Sale and compare with the sale price of the old car. If the Sale Price is Lower than the WDV then no GST if the Sale Price is More than the WDV the GST needs to be paid on difference amount. (Sale Price - WDV) GST Rate depends on the type of car which is sold.

In case of new car no GST Input can be claimed. Under depreciation can be claimed on total car price including GST.

VK

manisha

manisha (Querist)
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13 November 2018 Dear Sir

Thanks for your email but could you please help to calculate Depreciation as per company law. if new car purchase on 31.01.2018 Rs.2200000 & Old car WDV Value Rs.115000/- old car sold to Delear only Rs.500000/-

Now can you please help me to calculate depreciation as per company law act.