Gst on sale of car

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..... Gst on sale of car
Query (Issue) Started By: - Chandni Tolani Dated:- 8-8-2017 Last Reply Date:- 9-8-2017 Goods and Services Tax - GST
Got 4 Replies
GST
Suppose Company sells a car to a dealer for ₹ 700000 and the dealer in turns adds profit ₹ 50000 and sells it to customer for ₹ 750000.... Here the company asks the dealer to entertain a discount of ₹ 60000 to .....

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..... customer so that the final price charged to customer is ₹ 690000 (i.e. 750000-60000). Question arises at what amounts will the gst be charged by the company to dealer and by the dealer to customer...???Is company liable to issue credit note to dealer or dealer will have to pay gst to company on ₹ 700000...??? Reply By HimansuSekhar Sha: The Reply: 1. The company will pay gst on 700 .....

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..... 000 2. The company will issue a credit note. Dealer will reverse credit so that tax will on the value of the redfucedprice to the company 3. The dealer will pay gst on 690000 Reply By KASTURI SETHI: The Reply: I think the company should pay GST on 6, 40, 000/- ? Discount is to be reduced from transaction value. What is your opinion ? Sh.Himanshu Ji. Reply By HimansuSekhar Sha: The Reply: Sir .....

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..... , I have opined the same thing. The discount will be AT the dealer end . The transaction of the company with the dealer already over. Now the company will issue a credit note of 60000 and the dealer will redfuce the credit already taken proportionately. Then the liability of the company NY will be reducxxdd. The company will pay the tax on 640000. Reply By KASTURI SETHI: The Reply: O. K. Thank .....

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..... you.
Discussion Forum - Knowledge Sharing .....

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