Tax code for disposal of passenger car

Input tax for purchase of passenger car is Block. What is the output Tax code when we disposal?

Asked on July 30, 2015 2015-07-30 00:55:43 Business (商家)

Thanks for your clarification and contribution 🙂

on August 4, 2015. 2015-08-04 04:37:30

Welcome

on August 5, 2015. 2015-08-05 09:21:35
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1 Answer(s)

OS.

If goods under the blocked input tax, for example, purchase or importation of passenger motor car, payment of club subscription fee, expenses related to medical expenses and family benefits. are later disposed of, they are to be treated as not a supply. In this case, the registered person is not liable to charge and account for GST on such transaction.

See guideline, page 37, 53

Answered on July 30, 2015. 2015-07-30 02:27:14

53. If goods under the blocked input tax are later disposed of, they are to be

treated as not a supply. In this case, the registered person is not liable to charge and

account for GST on such transaction.

Example:

Margosa Sdn. Bhd. is registered under GST and operates as a supplier of

laboratory equipment. The company acquired a passenger car for its director

which is not allowed for input tax claim. After the car had been used for 5

years, the company intends to dispose the car to a second hand car dealer.

The sale of the car which had previously been disallowed from input tax claim

is not a supply.

on July 31, 2015. 2015-07-31 03:14:21
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