We are a partnership firm registered under GST. We are NOT in the business of trading or dealing in cars.
As per established practice and as allowed by law a partnership firm can pay for a motor car purchased in the name of the partner and book such a vehicle as an asset of the firm. The original invoice as well as RC regn of the car is in the name of the partner. Depreciation can be claimed by the firm on this car as per the rate allowed since such a car is being shown as an asset of the firm. The current book value of this car is obviously much less than the price paid for it. If we want to sell this car now to a registered or an unregistered entity will GST be applicable ?
CAclubindia
