I understand the repossession of cars from unregistered persons is covered in rule 35 of valuation.
And the notification 8/2018 is for old and used cars.
what has to be done when the new cars are repossessed from registered car dealers by Bank ?
Menu
Repossession of New cars from registered defaulters by Banks
Replies (32)
I think you can cover it under Rule 35 instead of proviso which deals with unregn person
Rule 35 is about second hand goods. I doubt we can cover new vehicles recovered in that rule.
only that rule looks valid for this query. it's talking about regn persons who can purchase goods.
You can try interpretation of that rule.
You can try interpretation of that rule.
but that rule is for second hand goods we cannot take the interpretation of new cars which were never sold after registration to customers. would be tough to fit in that rule.
as you rightly said it is for second hand goods dealers, whereas the goods sold by original manufacturer to dealer could be treated as first sale and repossession could be treated as second hand sale.
in my view you can take this interpretation and try using the said rule
in my view you can take this interpretation and try using the said rule
I agree there is sale happening between original manufacturing and dealer in first place. But the intention of the rule doesnot look like to cover this transaction.
if we forcely interpret and fit for our benefit then there be negative consequences for this later. that's the fear.
if we forcely interpret and fit for our benefit then there be negative consequences for this later. that's the fear.
But if we take this interpretation keeping the future litigation aside, the credit availed by the defaulter is gone and the bank would anyways cannot take full credit or 50%.
There might be litigation but for such default depart is required to catch such defaulter and collect gst and not bank
There might be litigation but for such default depart is required to catch such defaulter and collect gst and not bank
That's the challenge in this transaction. Dept is loosing the credit after the banks repossess and the chain is getting broke.
Seems there is no solution for this. How an AAR can help here.?
Seems there is no solution for this. How an AAR can help here.?
Usually all the AAR are negative and not in favour of asseessee. Dont know how the bank would take it up.
If it is negative its going to be a big hit for all repossession cases.
If it is negative its going to be a big hit for all repossession cases.
even that's true.
the pain here Notification 8/2018 is also not of any use in this situation
the pain here Notification 8/2018 is also not of any use in this situation
even as per that notification also if you can interpret the word "old and used cars" then there might be some way out.
There is no definition in the GST Act and also nothing in Customs Tarriff act which we refer for descripttions.
So taking reference from Motors vehicle act could be of some use in this to draw support in this situation
So taking reference from Motors vehicle act could be of some use in this to draw support in this situation
not aware of motor vehicles act. you gotta search and fit.
thanks for your insights.
Recent Threads
- Hi i have some doubt about my microsoft exam?
- Period of holding of residential flat and its acqu
- Heard & Seen Around – Your Daily Economi
- ITRs for AY 2025-26 filed in September 2025 not pr
- Heard & Seen Around – Your Daily Economi
- Best NISM course for an Accountant
- Calculate IT on LTCG AND STCG for the FY 2025-26
- Heard and Seen Around - Your Daily Economic Quick
- Returning to India - Residency confusion
- About CMP-08
Related Threads
CAclubindia
