Wef June 1st govt has imposed new taxes to be collected at source due to which i am facing below problem:
I am purchasing a car of value 9lac ( 5 lac as downpayment & 4lac loan) as part of down payment i paid 2 lac in cash and remaining 3 lac with cheque, but now showroom is asking me to pay extra 9000 as TCS which i am finding difficult to understand.
Also another point to note is in there invoice they have shown entire 5lac as cash payment which i wrong and are not willing to correct it.
Are they justified in asking Rs9000 as TCS or is there something wrong which i need to address, request you to kindly clarify my doubt as soon as possible as the deadline for payment is by 8th June 🙁
In that case TCS is not at all required. I think they doing this to avoid the future risk. To be frank, it is not applicable to you.
What is the ex-showroom price of the car? You read the recent changes of TCS rules 2016? They are as below.
As per Working Model for this 1% Tax on Cars from 1st June 2016 (from Buyer Perspective in New Cars Sold)
-A Car Buyer has to deposit in additional 1% in form of TCS (Tax Collected at Source) computed on Ex-showroom Price at Dealership
-There will be no Service Tax, VAT or any other tax applicable on this 1% amount.
-The dealership will hand you over receipt of Tax Collected against your PAN Number in lieu of car purchased
-Once the amount deposited – a Tax credit certificate would be issued at dealer end to customer
-This Tax Credit Certificate would act as an Advance tax paid for the Buyer. At the time of filing returns, this Advance Tax Credit would be deducted against the tax liability of the applicant
-Implementation of 1% Tax from June. The Tax would be applicable on all goods whose price is in excess of Rs 2 Lakh or Cars having Ex-showroom Price of more than Rs 10 Lakh
Ex showroom price is 734000.
Car value is less than 10lac so why should i pay TCS? Also i have paid 2lac in cash so only TCS is applicable if its above 2lac and not exact 2 lac right?
Since i have paid 2lac in cash.. r they imposing the new 1% tax implemented on goods & services category on on-road value of the car? Wow thanks to our brilliant FM for complicating the tax regime!!