Tag: motor vehicle

other tax in media

Govt proposes more sops for scrapping vehicles with BS-II, older emission standard

byAdmin

With an aim to get rid of high-polluting vehicles, the transport ministry has proposed to double the rebate up to 50 per cent in one-time tax on purchase of new vehicles after scrapping those with BS-II and earlier emission standards. At present, a discount of 25 per cent in Motor Vehicle tax is provided on purchase of a new vehicle after scrapping old personal vehicles, while the rebate is capped at 15 per cent in case of commercial vehicles.

GST in Media

Confused as how GST hike on used car will work?

byAdmin

The GST council has recommended an increased 18% GST rate on the margin value of used car sales for specified petrol vehicles with 1200 cc or more, diesel vehicles with 1500 cc or more, and all EVs. The GST council also did not specify any new reverse charge liability or liability to tax on vehicles sold by unregistered sellers to registered or unregistered persons. If the seller is non GST registered then this above ruling does not apply.

AARGST Article

ITC is available on inward supply of motor vehicles used for demonstration purpose

byCA Bimal Jain

The Kerala AAR, in the case of Sai Service (P.) Ltd., held that where demo cars are crucial for sales promotion, since, prospective customers prefer to test drive cars before they make a decision, therefore, demo cars are put to use for furtherance of business as envisaged under Section 16 of the CGST Act. Hence, the Assessee is entitled to avail ITC on inward supply of motor vehicles which are used for demonstration purpose.