Planning to buy expensive vehicle? Get ready to pay more

Planning to buy expensive vehicle? Get ready to pay more
Representational Photo

New Delhi: Those who buy expensive motor vehicles are now required to pay extra taxes.

Central Board of Indirect Taxes and Customs have issued new guidelines for imposing extra tax on costly vehicles. The main reason for giving this directive is that GST is now being imposed not on the value of the goods but also on invoice, bills and Tax Collected at Source which means the consumer has to pay extra tax.

For purchasing any vehicle worth Rs. 10 lakh or more, the present tax rate is 1% on ex-showroom price which includes GST.

According to the circular issued by the Board of Direct Taxes, now the customer has to pay tax on the payments made to the dealer/supplier for extra supplies.

As per the income tax rules, some of the dealers collect extra money on perishable items also. The customer can now claim rebate on this.

The automobile industry will have a negative if the new tax rules are implemented which will ultimately affect transport industry.