Quote:
Originally Posted by BaCkSeAtDrIVeR  Probably, "Entry Tax". This dates to the good old days of Sales Tax (now, we have VAT), when states used to compete amongst themselves in reducing sales tax so that things like this happen. So, states (like Kerala) with higher sales tax regime enacted laws which levied a tax, which is the difference between the tax rate in home state and the tax actually paid in the State of purchase as "entry tax".
I am not sure if Karnataka has entry tax. I started my reply with the word "probably".
Every other formality ought to be identical.
PS:- Are you buying some exotic which has no dealers in Karnataka? |
I think you can take out the word "probably" out of your post and replace it with surely
because that is what RTO is telling.
A friend of mine had bought a swift diesel from another state with a temp registration since here there is a waiting of 4 months.
Now he is being asked to pay "Entry Tax" which is about 50k apart from the usual road tax and all. This makes the total amount to be around 1 lac.
Now paying this entry tax does not make any sense.. so he might end up selling the car.
Any other ideas anyone?
Quote:
Originally Posted by BaCkSeAtDrIVeR So, states (like Kerala) with higher sales tax regime enacted laws which levied a tax, which is the difference between the tax rate in home state and the tax actually paid in the State of purchase as "entry tax". |
Moreover the tax being asked is not really the difference between the two "state" taxes, it is somewhere near 10-11% if I am not wrong.