Composition Dealers purchasing Scrap/Used vehicles from the Central Government, State Government, Union territory or a local authority are liable to pay tax on RCM basis.
Authority for Advance Ruling —– Composition Dealer --– The applicant sought an Advance Ruling as to whether Composition Dealer can purchase Scrap/Used vehicles from Unregistered Dealers, RCM on these purchases applicable or not; Any RCM exemption limit amount for purchase of Scrap and Used vehicles from unregistered dealers.
Held that:- The Hon’ble Authority for Advance Ruling held that composition Dealer purchasing Scrap/Used vehicles from the following Suppliers, namely Central Government, State Government, Union territory or a local authority are liable to pay tax on RCM basis. There is no RCM tax liability for purchase of subject goods from unregistered dealers.
Composition Dealers purchasing Scrap/Used vehicles from the Central Government, State Government, Union territory or a local authority are liable to pay tax on RCM basis.
Authority for Advance Ruling —– Composition Dealer --– The applicant sought an Advance Ruling as to whether Composition Dealer can purchase Scrap/Used vehicles from Unregistered Dealers, RCM on these purchases applicable or not; Any RCM exemption limit amount for purchase of Scrap and Used vehicles from unregistered dealers.
Held that:- The Hon’ble Authority for Advance Ruling held that composition Dealer purchasing Scrap/Used vehicles from the following Suppliers, namely Central Government, State Government, Union territory or a local authority are liable to pay tax on RCM basis. There is no RCM tax liability for purchase of subject goods from unregistered dealers.