the total cost becomes ₹105. Upon adding ₹50 in value to the product, he sells it for ₹155. The GST on ₹155 is ₹7.75, but he can claim an input tax credit of ₹5 for the GST paid on raw materials. Therefore, the net GST liability of the manufacturer is ₹2.75...
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The previous system, with no GST, implied that tax was paid on the value of goods and margin at every stage of the production process. This would translate to a higher amount of total taxes paid, which was then carried down to the end consumer in the form of higher costs for goods and...
The majority of the High Court observed that the judges accepted that the deployment of a novel manner of displaying cars would not necessarily mean that they were being used for a purpose other than that of being held as trading stock, but considered that the novel method deployed achieved a...
Can we get an Input Tax Credit for capital expenditures like Solar panels, vehicles, etc.? Input Tax Credit (ITC) on capital goods is generally available if they are used in the course of business. However, the input tax credit is not available on cars unless you are in the business of...
Used cars now cheaper The used car market constitutes a significant portion of the automobile market. In an expected boost to the industry, the council reduced the GST rate on medium and large used cars and SUVs from 28 to 18 percent and small used cars to 12 percent. ...
If a motor car is imported by company X and was bought at S $ 100,000 onFree on Board (FOB), it incotermsthe overseas freight, handling, and insurance charges to ship the car to Singapore cost S $ 1,000. Assumingthe excise dutyfor motor cars is 20% of the customs value, the to...
Finally, you may want to know the GST-exclusive price or the initial base price for a product. To find the GST-exclusive price, you have to divide the GST-inclusive price by 1.1. So, let’s take the same product that cost $33. $33/1.1 = $30. The GST-exclusive price was $30.GS...
You may copy and use this document for your internal, reference purposes. • It is applicable only on notified goods. These goods as on date are pan masala, tobbaco and tobacco products, coal, aerated waters, motor cars & motor vehicles and any other supplies. • GST Compensation Cess ...
Get your card now Please be aware that tax regulations and procedures may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance. Sources used for this article: