Used bike from shop should only charge either discounted gst or by gross margin gst..

[mystupidger]

hi all...

 

Just a good question to post up... for new bikes... i know all new bikes are sold with a 7% gst on the price tag... yes...but what about used bikes? i was looking up forum post regarding this... and realise that it is what i saw above.. and that post was like last year... and not a sticky... therefore... im just doing a little research and this is what i got...

 

bike shops selling you used bikes can only charge u gst if their bike shop is a registered gst bike shop....check here...

 

this is the link for the file for gst for motor traders...

 

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

 

by the way... don't just think that its for cars... i did a confirmation with iras... and this is their reply

 

I refer to your e-mail of 2 December 2011.

 

 

 

We are informed that you intend to purchase a used motorcycle from a GST-registered motorcycle shop. You wish to enquire whether the seller should charge you GST at 7% or discounted sale price scheme.

 

 

 

You may wish to know that there are two methods to charge GST for second-hand motorcycle (i.e. used motorcycle) for a GST-registered motorcycle shop. They are the Gross Margin Scheme (“GMS”) and Discounted Sale Price Scheme (“DSPS”). For more information on GMS and DSPS, please click here.

 

http://www.iras.gov.sg/irasHome/page04.aspx?id=2302#Sale_of_second-hand_vehicle

 

In your case, you may wish to check with your supplier whether he is using the GMS or DSPS.

 

Should you require more information on GST, please visit our website at http://www.iras.gov.sg or view our GST Bulletin for more information on GST.

 

 

by the way... all this is provided its written down in the invoice.... as 7 pct on the invoice... if not... then its just talk c*** sing song

[PaLmEr]

hi all...

 

Just a good question to post up... for new bikes... i know all new bikes are sold with a 7% gst on the price tag... yes...but what about used bikes? i was looking up forum post regarding this... and realise that it is what i saw above.. and that post was like last year... and not a sticky... therefore... im just doing a little research and this is what i got...

 

bike shops selling you used bikes can only charge u gst if their bike shop is a registered gst bike shop....check here...

 

this is the link for the file for gst for motor traders...

 

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

 

by the way... don't just think that its for cars... i did a confirmation with iras... and this is their reply

 

I refer to your e-mail of 2 December 2011.

 

 

 

We are informed that you intend to purchase a used motorcycle from a GST-registered motorcycle shop. You wish to enquire whether the seller should charge you GST at 7% or discounted sale price scheme.

 

 

 

You may wish to know that there are two methods to charge GST for second-hand motorcycle (i.e. used motorcycle) for a GST-registered motorcycle shop. They are the Gross Margin Scheme (“GMS”) and Discounted Sale Price Scheme (“DSPS”). For more information on GMS and DSPS, please click here.

 

http://www.iras.gov.sg/irasHome/page04.aspx?id=2302#Sale_of_second-hand_vehicle

 

In your case, you may wish to check with your supplier whether he is using the GMS or DSPS.

 

Should you require more information on GST, please visit our website at http://www.iras.gov.sg or view our GST Bulletin for more information on GST.

 

 

by the way... all this is provided its written down in the invoice.... as 7 pct on the invoice... if not... then its just talk c*** sing song

 

your point being?

[mystupidger]

my point being... that when used bike shop charge 7pct gst when they should not be charging?

[Lexanez]

Good information, businesses that are not registered for GST yet charging for GST should be prosecuted and not ignored.

 

Here's a link to check whether the business is registered for GST.

 

It is important that the shop writes down an additional amount that explicitly said that GST 7% = $xxx. This is what many shops do if they are registered for GST, just head down to any restaurant that charges GST and their receipt will includes "7% GST"

 

Also, like what TS have stated, we should check the scheme which shops used for charging GST.

 

We should't be paying more than we should right?

 

Here's a tidbit to know why businesses register for GST

 

Is GST registration compulsory?

 

You are required to continually assess whether your business needs to be registered for GST compulsorily.

 

In most cases, registering for GST is compulsory when:

 

your taxable turnover for the past 4 quarters* is more than $1 million (unless you are certain that business turnover in the next 12 months will not exceed $1 million); or

you are currently making sales and you can reasonably expect your taxable turnover in the next 12 months to be more than $1 million.

If your situation is either of the above, you need to apply for GST registration within 30 days of the date which your registration liability arises.

 

If your business turnover does not fall under both circumstances, you do not need to register for GST. However, you may choose to register for GST on a voluntary basis after careful consideration. Please refer to our flowchart (compulsory or voluntary registration) or e-Tax Guide Do I Need To Register? (208KB) for more details on determining if you should register under compulsory basis, voluntary basis or do not qualify for GST registration.

 

*Note: Business turnover for the past 4 quarters is determined at the end of any quarter and consist of the total value of your turnover in that quarter and the previous 3 quarters. Quarter refers to a period of 3 months ending on the last day of March, June, September or December.

 

Businesses may also voluntarily register for GST.

[harryarora]

thx..............