Bike shop quote for 2nd Hand Bike : GST

[darkavgr]

Hi

 

Need to seek some advice.

I was interested in an old bike at a bike shop.

Boss quoted me $2.5k for bike.

I counter offer $2.3k

He said ok but I have to pay insurance & transfer fee. I agreed.

Then he say I must pay 7% GST (i.e. 7% x $2.3k=$161)

I was shocked.

Is this correct? I thought car & bike cos got ARF etc shd not be subject to GST (I've not heard of anyone buying a car for $50k & having to pay 7% x 50k GST)

I told him according to IRAS website it is illegal to quote price without GST.

He got pissed off & told me to f**k off.

 

Wah...like that also can do business.

Anyone can advise.

 

Thanks & cheers

[contrarian]

Ask for a tax invoice showing that. See if the shop dares to put it down.

[Echo]

very simple. Ask for their GST-registered business no.

 

If he is unable to produce, tell him to f**k off instead.

[josephsbs]

i bought my 2nd hand 5 year-old TA200 aka phantom 2 months back. the bike salesman (quite a nice guy) said that only shops that are GST registered can charge GST... full GST 7% is only applicable for NEW BIKES, half GST i.e. 3.5% for 2nd hand bikes.

however, many bike shops absorbed that 3.5% GST when selling 2nd hand bikes... i wasn't charged for it

 

if bike shop want to charge full 7% GST, ask them to check with IRAS GST department for the correct rates applicable. if still insist and you buay song liow... then buy from another shop lor http://www.websmileys.com/sm/evil/1022.gif

 

A quick check with IRAS website confirmed what he said:

 

Extracts from GST website:

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 and they do not attract GST.

 

For sale of second-hand vehicles, motor traders may apply either the Discounted Sale Price Scheme or the Gross Margin Scheme.

 

Discounted Sale Price Scheme:

Where PARF/COE rebates or TCOE are sold at or below face value, GST is not applicable. However, where PARF/COE rebates or TCOE are sold above face value, GST has to be accounted on the profit or value-added element.

If you are selling a second-hand motor vehicle, you can charge GST on 50% of the selling price. This is known as the Discounted Sale Price Scheme. You can use it without the requirement of seeking IRAS' approval if you satisfy the condition that the used motor vehicle sold is registered under the Road Traffic Act.

 

Under the Discounted Sale Price Scheme:

• GST is charged on 50% of the selling price of the motor vehicle.
  
• Tax invoice should be issued for the supply.
  
• Customer can claim input tax if he satisfies the input tax claiming conditions

assume COE original valued is $1,000 for your 5 year-old bike, and based on GST rule, GST payable should be:

= 3.5% x ($2,300 - remaining COE value)

= 3.5% x ($2,300 - $500)

= 3.5% x $1,800

= $63

not so sure about the COE part

just my estimation http://www.websmileys.com/sm/happy/050.gif

[loufu]

then dun bother to buy wif tat shop lor... even if they did sell u wif 3.5% GST after u argue wif them, u stil dare to buy from them? dunno later they come out wat stun to chop ur carrot head.....

[madman]

he ask you f*ck off liao, wad advice you still need?

 

You die die must get that bike sibo? Then tell him you'll pay the 7%gst,

but ask him put in black and white on receipt that you paid bike price + additional 7% gst on it.

 

After bike is transferred to you, go lodge report against them and claim back that 7%... hehee...

[darkavgr]

he ask you f*ck off liao, wad advice you still need?

 

You die die must get that bike sibo? Then tell him you'll pay the 7%gst,

but ask him put in black and white on receipt that you paid bike price + additional 7% gst on it.

 

After bike is transferred to you, go lodge report against them and claim back that 7%... hehee...

 

bike is rare & in good condition so i wanted it....

i wanted advice on how gst is charged on old 2nd hand bikes mah..

i reborned newbie...not ridden for last 10yrs

[Guest NPNT]

i am original newbie.

[zalchiko]

very simple. Ask for their GST-registered business no.

 

If he is unable to produce, tell him to f**k off instead.

 

lmao!!!

[fiery]

Bike shops like to chop people de.. this kind of **** attitude.. dun buy from him lah.. sure loo gi de.

[Echo]

i am original newbie.

 

everyone knows

[tata]

wa..like that also can make business ... just mention the bike shop name let we all caution abt tat....

[prego08220]

Haha... If the shop ask me to f**k off, I'll surely complain to the relevant deparment and ask them to go pose as buyer.. Once he quote them the GST for 2nd hand bike, Good luck to him..

[Xihong]

Hey Bros **** man.. i already paid the 7% gst.. wad do u think i can do??

[chuan.z]

Hey Bros **** man.. i already paid the 7% gst.. wad do u think i can do??

 

Is it on the receipt?

[Xihong]

Ya its on the receipt. By right 2nd hand bike will be charge at 3.5% instead of 7% am i right?

[zart]

by right 2nd hand bikes dont include gst at all..

only gst registered companies can charge half of 7%

[Xihong]

Is there such a case that i bought a 2nd hand bike from this shop but i need to pay the full GST 7%? They claim that i'm not in the 3.5% category.

[contrarian]

As far as the law goes, there is no such thing as 3.5% GST. Under the Discounted Sale Price Scheme, GST is charged on 50% of the selling price of the motor vehicle. Although this is effectively 3.5%, tax wise the rate is still 7% (but on a lower value of supply).

 

This would be shown on the tax invoice as 7% GST on the taxable supply which is 50% of the selling price.

 

If you're still sure that you've been charged GST that is not right, why don't you report the case to the Comptroller of GST and provide the evidence (tax invoice, description)?

[Xihong]

Yes i have the tax invoice and i believe they charge me 7% of the vehicle which is over a thousand instead of the discounted sales price scheme. Where is the so called controller of gst?

[chuan.z]

As far as the law goes, there is no such thing as 3.5% GST. Under the Discounted Sale Price Scheme, GST is charged on 50% of the selling price of the motor vehicle. Although this is effectively 3.5%, tax wise the rate is still 7% (but on a lower value of supply).

 

This would be shown on the tax invoice as 7% GST on the taxable supply which is 50% of the selling price.

 

If you're still sure that you've been charged GST that is not right, why don't you report the case to the Comptroller of GST and provide the evidence (tax invoice, description)?

 

Interesting and good info. I always thought it was 3.5%, although the final amount is equivalent.

 

Xihong, suggest that you:

1) search to confirm that the bike shop is a GST registered business (search here)

2) confirm that the amount charged is 7% on the whole amount

3) give bike shop last chance to work things out (this one up to you)

4) enquire with IRAS whether the amount billed is legit and take it up from there if it's not