Question ID :
REPO TRANSACTION OF OLD VEHICLES
What should be accounting treatment to account for repo transactions of old vehicles wherein the gst valuation rules(proviso to rule 32 (5) of CGST rules) give a very different taxable value. Resulting into wide variations in actual turnover and GST turnover. This turnover difference might invite attention of taxmen.
e.g:- original invoice value =200000/-
date of original purchase= 1.4.2018/-
REPO by financer on- 1.4.2020/- )also transfered to the new beneficiary on the same day)
sales by the new beneficiary =220000/-
date of this sale=1.4.2021
purchase price as per proviso to rule 32(5)= 80000/-
value of supply as per rule 32(5) = 140000/-[220000-80000]
This is creating a difference of Rs. 60000/-
Kindly post Any probable suggestions to this problem?
Sep 18, 2021