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PURCHASE AND SALE OF SECOND HAND CAR MECHANISMS IN GST
We are purchasing car from bank via auction the owners of which have failed to pay their EMI.My questions is that bank as sellers does charge any gst so that means no gst is required in trading of 2nd hand cars
Replies (2)
Quick Summary
NO GST SIR THE GST IS HAVING ONLY TO THE MANUFACTURER OF THE CARS
THAT MEANS WHEN THE MANUFACTURER WILL SELL THE CAR HE WILL ONLY CHARGE THE GST IN THIS CASE THE CAR IS ALREADY SOLD THE THERE IS A SECOND HAND CAR SELLING
Hello sir,
I am assuming that bank is registered under gst and the buyer (who buys from bank through auction) is unregistered, in this case bank will charge gst under forward charge,
Value of supply:- Gst will be charged on the margin between sale price in auction and the purchase price for the bank.
Purchase price in this case will be Original cost minus depreciation.
Please let me know if I am wrong anywhere. Also for better understanding you can refer to arycles of gst on old and refurbished cars
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