Buying 1st hand bike: 7% GST inquiry

[dddesmonddd]

Hi everyone,

 

Anybody knows is it standard for bike shops to charge 7% over everything (insurance COE included) or 7% over just the machine price?

 

Any official references on the subject?

 

Advance thanks for all the advices!

[bunny_hui]

GST 7% only in proudct.

etc bike, helmet, golve, jacket . .. .

Nt in COE Cos COE is nt a product

I think so but don know correct or nt

Edited August 26, 2011 by bunny_hui

[dddesmonddd]

which means the 7% should only be charge upon the machine price? is there any official references?

 

Cause i was charged 7% upon the total price of machine price, COE and insurance, so felt abit cheated =(

[bunny_hui]

which means the 7% should only be charge upon the machine price? is there any official references?

 

Cause i was charged 7% upon the total price of machine price, COE and insurance, so felt abit cheated =(

 

U buy at which bike shop ??

[dddesmonddd]

Ubi S1......

[bunny_hui]

I have check for u.

U r not cheated

http://www.iras.gov.sg/pv_obj_cache/pv_obj_id_B68B044745634A4848111AFA13DAE37852C00400/filename/GST%20Guide%20for%20Motor%20Traders_Final.pdf

 

I find this on 2007

Hope it will let u understand

Check this :-

Thanks to contrarian for the link to GST information.

 

Actually yesterday i went down to Revenue House to check on whether is it proper

to charge GST on 2nd hand motorbike.

 

This is their officer explanation: (which is the same as the link given by

contrarian but with a clearer perspective from the buyer side like us.)

 

Basically there are two scenarios (schemes) which the dealer can charge

the GST on the used bike.

 

For example: If the machine price is quoted $8k (excluding road tax,insurance,etc).

 

A. Under Gross Margin Scheme.

 

If the machine price is quoted under this scheme, then in the bill itself,

it cannot show any GST charges. It is illegal to show any amount in the GST column. Because the quoted price has already included the GST amount.

How they calculate it? You may refer to the link given by Contrarian.

 

B. Under Discounted Sale Price Scheme.

 

If the machine price is quoted under this scheme, then the GST is calculated

as such: [machine price/2] x 7% (current GST rate). For this scheme, the GST can be shown in the bill.

 

Conclusion: When buying a used motorcycle, it is not proper for them

to say that they have to include 7%GST charge on top of the machine price.

 

 

 

A few things to note before buying a used bike:

 

1. Downpayment : No need to put in full before collecting the bike.

2. Take note of how they include the GST.

3. There are write-up on the points to take note before buying a used bike.

It is worth the time to read it up.

Edited August 26, 2011 by bunny_hui

[Fried Rice]

so when buying a used motorbike the shop cannot charge 7% gst? i don't quite understand the thing actually..

[dddesmonddd]

=o thanks alot!

 

What the shop told me is as long as its a new bike, 7% is applicable. But 7% of machine price or everything im not sure. However reading the attachment,

 

Sale of New Vehicles

4.1 How do I charge GST for sale of new vehicles?

4.1.1 For sale of new vehicles, GST is charged on the Selling Price less Additional Registration Fee (ARF), Certificate of Entitlement (COE), Registration Fee (RF) and Road Tax. ARF, COE, RF and Road Tax are charges imposed by Land Transport Authority (LTA) on vehicle buyers. These charges do not attract GST as they do not relate to the provision of goods and services.

 

Do the above means they should only charge GST on the Selling Price (machine price?)??

[bunny_hui]

http://www.singaporebikes.com/forums/showthread.php/173557-GST-amp-insurance-queries?

http://www.singaporebikes.com/forums/showthread.php/145628-Any-GST-for-used-bike?

http://www.singaporebikes.com/forums/showthread.php/163788-Bike-shop-quote-for-2nd-Hand-Bike-GST?

 

May be u can read link.

For more info !!

 

Too chim for mi to understand.

maybe we can get advise from bikeshop in this foum

[dddesmonddd]

thanks bunny! but all is 2nd hand..i wanna check for new bikes =(

[shiraz]

From what I know, there is no GST for insurance. Wether it is absorbed or what I can't be sure.

 

I'm guessing the shop can charge GST for a second hand bike as well since it's a 'good' that they are selling and they are registered as a business. Of course, they can work around this to their benefit. (As in use their 'personal' funds to buy the bike then sell it including GST for the shop but it's complicated)