Q A firm who is providing consultancy services liable to collect GST on sale of car which was purchased in 2013?
As per notification no.8/2018 of Central Tax Rate that if you sale old car you have to charge GST on the margin which is difference between sale consideration and depreciated value.
It’s explain as Explanation which read as follows
Explanation –For the purposes of this notification, —
|(i)||in case of a registered person who has claimed depreciation under section 32 of the Income-Tax Act,1961(43 of 1961) on the said goods, the value that represents the margin of the supplier shall be the difference between the consideration received for supply of such goods and the depreciated value of such goods on the date of supply, and where the margin of such supply is negative, it shall be ignored; and|
|(ii)||in any other case, the value that represents the margin of supplier shall be, the difference between the selling price and the purchase price and where such margin is negative, it shall be ignored.|
This notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.
Refer Other GST Topics
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