sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Service Tax »
 Give income tax return relief, revise slabs, hike max rate to Rs 20 lakh, says Ficci
 Income Tax saving saving investment schemes for senior citizens
  Hereā€™s all you need to know Health insurance tax benefit
 Central Goods and Services Tax (Amendment) Act, 2018- Clarification regarding section 140(1) of the CGST Act, 2017
 Relief for companies facing tax outgo over valuation premiums
 Here's how it'll impact your savings Personal taxes that changed in 2018
 Here are your new income tax brackets for 2019
 Know the income tax rules first Investing in your spouseā€™s FD account to save tax?
  How much tax do you pay on your bond investments?
 Govt tells startups it will take the devil out of angel tax
 You do not have to pay any tax on scholarships Income Tax

1 per cent tax to be levied on car purchase via cash
June, 09th 2016

Buyers of cars and premium two-wheelers who pay more than Rs 2 lakh of purchase price in cash will be levied 1 per cent tax as part of the government's drive to stifle the black economy .

Finance minister Arun Jaitley had announced 1 per cent tax collected at source (TCS) on cars costing more than Rs 10 lakh in his budget speech.

Now, Central Board of Direct Taxes (CBDT) has clarified that car dealers have to collect this tax on every motor vehicle sale to individuals where payment exceedsRs 10 lakh or there is a cash payment of over Rs 2 lakh.

The apex direct taxes body has issued detailed clarification in form of frequently asked questions on the applicability and scope of TCS on sale of motor vehicles following an amendment in this regard in the Finance Act, 2016. The Finance Act has expanded the scope of Section 206 C of the Income Tax Act to include in its ambit sale of goods and service exceeding Rs 2 lakh and sale of motor vehicles over Rs 10 lakh.

Thus, any high-end sale of any goods or service of over Rs 2 lakh in cash would now face 1 per cent TCS.

The move is to discourage deployment of cash in high-end purchases as part of the Narendra Modi-led NDA government's drive against black money.

CBDT has said that TCS on motor-vehicle sale shall apply only at retail level and not on sale by manufacturers to dealers or distributors. It would apply on each sale of motor vehicle and not on aggregate value of sale made during the year by the retailer.

TCS provisions on sale of services and goods was introduced to kill the deployment of domestic black money through high-end purchases in India and therefore discourage its generation itself, said Amit Maheshwari, partner at Ashok Maheshwary & Associates LLP.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions