Question ID :
GST on used cars
As per notification No.8/2018 Central Tax (rate)GST on used cars will be levied on margin.
The Margin has to be arrived at by deducting the WDV as on the date of supply from the consideration.
The income tax adopts Block system for allowing depreciation.
The WDV of The Block in which car being sold is clubbed, might have been wiped out, or brought down substantially because sale value of any one asset included in the Block.
A question arises how to arrive at WDV of car being sold for purpose of GST.
Even otherwise, the income tax Act does not allow any proportioante Depreciation upto date on sale of any asset.
Any suggestion to solve above two issues.
Aug 18 2018 12:00AM