GST- Goods And Service Tax
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Disposal of scrap vehicles for consideration is a sale as per section 7, the expression ‘supply’ covers supply of such as sale or disposal made for a consideration. The supply has to be in the course or continuance of business with regard to this, the applicant is in the business of having a cash management network involving transportation of cash. The disposal of the cash carrying vans is a transaction in connection with or incidental to the business of having a cash management network. When the vehicles become scrap, they have to be disposed of and the proceeds therefrom to be identified as income for the business which is reflected in the profit and loss account of the business. Buying new assets and discarding the old unusable assets is an activity in the course of carrying on the business. Therefore, supply of motor vehicles as scrap after its usage is an activity of ‘supply’ in course or furtherance of business and such transaction would attract GST.
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