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sale of FA

Ghanshyam kumar Jha (9 Points)

09 March 2019

In the case of company, On the sale of fixed assets can I gst charge

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3 Replies

Swathi (CA & CMA) (103 Points)
Replied 09 March 2019

Hi,

No . because its not your business and its not forming part of your turnover.

Regards,

Swathi.

pritesh (CA Final student) (7101 Points)
Replied 09 March 2019

yes you have to charge

You have calculate the ITC for remaining useful life of capital asset & GST on Transaction value (Sale value) whichever is greater is to be deposit.

suppose asset purchase for RS.50000 & paid GST 9000
>The useful life of asset is 60 months
> used asset for 4 years (48 months)

To calculate ITC attributable to remains usfule life is = ITC X months remain ÷60
= 9000 x12/60= 1800/-

And if suppose sale value is 9000 & GST is 1620/-

Then the GST payable will be 1800/- on sale capital asset