Car Forum - Ask & Answer Questions

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  1. Vikram jadon
  2. Second Hand Cars
  3. Friday, February 22 2019
Dear sir,

I have a query, In the business of used cars while we transfer our stock from one company to another (same owner & business) with the different name, state & gst number.
Is it necessary to show us that sale on profit to create a margin and charge gst on it.or we can show all such stock transfer between our companies without any profit (assumed no expenses on repair maintenance incurred on such cars) because we can't take Input on it.

In my opinion because we can't take input on such transfer so we should not charge gst on our company to avoid extra tax liability.

Please clarify and guide on the same.

Thanks & Regards
Admin Accepted Answer
Although a CA / Tax consultant is best to answer it

But basis limited info with us The basic premise of GST is on supply of goods, means not on sale
I presume that both the companies have different GST Registration number.
Thus as the goods means cars in this case are supplied from one company to other company (even if owner name is same) then GST basis its framework model on supply of goods - will have GST Applicable on it

Rest may connect with CA for exact nitty gritty on to it.

  1. more than a month ago
  2. Second Hand Cars
  3. # 1
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