We have cars in the company's name to take the benefit of depreciation & claim interest on loan as expense.
To sell the same, In the current scenario, irrespective of the entity of the purchaser (individual/dealer/corporate), we just quote an all inclusive sum, say 1lakh.
In Delhi, VAT being 12.5%, we deposit this tax of approx. Rs.11,000/- with the relevant authorities.
So, after 1st July, for a large car like corolla or civic with engine > 1500cc, would this mean, we ll have to deposit 43% tax to the authorities, to almost like Rs.30,000/lakh? (28%GST + 15%Cess)
Does it make sense to sell the car right now before 1st July if we're looking to sell it in a few months this year?
CAclubindia
