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Old 7th August 2016, 14:30   #61
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

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Originally Posted by slicvic View Post
I bought a car in Jun whose ex showroom price was below 10 lacs, and on road above 10 lacs. When booking the car i was told that 1% TCS will be applicable.
However i have not got any voucher or separate TCS receipt from the dealer.

Has the TCS been applied or is it yet to be implemented?
AFAIK this is applicable only when the ex showroom is >10L INR. This is what was told to me by the vw dealer.
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Old 9th September 2016, 14:03   #62
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Question Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

I have recently bought a car > 10 lacs ex-showroom. Dealer says invoice is good enough proof of TCS deposited. I am insisting on a TCS certificate as recd. by dealer from IT deptt. The salesperson is not aware of any such doc. Can someone help me here. Has anyone else got this "TCS certificate" from their dealer? Can they post an image here, with finer details blanked out? I need to know what I should expect.
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Old 9th September 2016, 14:23   #63
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

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Can they post an image here, with finer details blanked out? I need to know what I should expect.
Good you brought up this point. I too purchased a Vehicle with TCS applicable and paid for and was told the same thing, which is, Dealers receipt is sufficient. Going by the TDS Certificate logic, I too was expecting a TCS Certificate to present the same ,at the time of filing my returns. Guess, the dealers too aren't completely knowledgeable on this.But you aren't alone in not receiving a "TRACES" certificate
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Old 9th September 2016, 16:04   #64
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

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I too purchased a Vehicle with TCS applicable ...
I checked my Form 26AS, but no TCS entries over there. I guess because my purchase was done just last week. May I ask when did you purchase the vehicle? Do you see any such entries in your 26AS? That would be a sure shot way of knowing that IT deptt. has recd. the TCS taken from you.
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Old 9th September 2016, 17:10   #65
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

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Originally Posted by black_rider View Post
I checked my Form 26AS, but no TCS entries over there. I guess because my purchase was done just last week. May I ask when did you purchase the vehicle? Do you see any such entries in your 26AS? That would be a sure shot way of knowing that IT deptt. has recd. the TCS taken from you.
I bought my X3 in Jun 2016 from Navnit Motors, Bangalore. The TCS was mentioned in the invoice and they sent me the FORM26AS only in mid august (dated 19th July). I guess it depends when the dealer finally submits to the IT department.
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Old 9th September 2016, 17:38   #66
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Good to know and many thanks for thread starter. Even my dealer was silent on possible refund during ITR.
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Old 9th September 2016, 21:24   #67
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Everyone who pays the TCS will be provided the submission certificate under Section 206C. No two ways about it. In fact it'll look exactly like some of us get the tax statement from our employees at the end of the year.

For all payments now, the deduction can be taken for Assessment Year 2017-18. We bought our Innova recently, and the dealer has been extremely diligent and proactive on the TCS receipt. Pls, there's no way on earth that you would be allowed to take deduction based on an invoice, so make sure they give you the submission certificate.

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Old 10th September 2016, 09:13   #68
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

I think all this discussion is becoming more or less academic, since with the GST the entire spectrum will change. So better wait for the GST. Now looks like it may be coming in on 1 April (all fools day), though I suspect it may become 1 July or so.
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Old 10th September 2016, 15:58   #69
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

I fundamentally disagree with taxation as a whole. It's just another arbitrary amount collected from the people by the people WE elected to run OUR system but with zero accountability. It's like we paying a driver to drive our car who continuously keeps wrecking it.

The whole tax system in India leaks so badly with inefficiencies that it is terrible that we are even putting money into the system that is purely focused on making decisions with politics and appeasement in mind.

I am not sure what this TCS will achieve. So, assuming more people pay taxes, does the government promise something in return? Better roads? Better infrastructure? What is this tax for? I don't think any of us question these and just blindly end up paying this 1% and 0.5% taxes. Previously, the earlier governments faced agitations and disruptions when they raised tax slabs. The governments nowadays have become very intelligent. A 0.5% tax here and a 1% tax there doesn't register as a big change and so we mutely accept it.

Sorry for the rant but I think we are missing the forest for the trees here.
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Old 10th September 2016, 16:19   #70
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

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Originally Posted by Mad Max View Post
I am not sure what this TCS will achieve. So, assuming more people pay taxes, does the government promise something in return? Better roads? Better infrastructure? What is this tax for? I don't think any of us question these and just blindly end up paying this 1% and 0.5% taxes. Previously, the earlier governments faced agitations and disruptions when they raised tax slabs. The governments nowadays have become very intelligent. A 0.5% tax here and a 1% tax there doesn't register as a big change and so we mutely accept it.

Sorry for the rant but I think we are missing the forest for the trees here.
Dear Mad Max,

I am with you on the topic of taxes being wasted.

However, I hope you know that in this case this is just a part of your income tax. So you can put this in your Income Tax return as already paid. This is not 'additional tax'.

As per my understanding, this is to identify people who do not pay any income tax and still purchase cars worth more than 10 lakh Rs.

Others can correct me - if I am wrong.

Regards,

Girish Mahajan
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Old 25th October 2016, 12:24   #71
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

This is a classic case of "income" tax being collected/paid on "expenditure" (to be reclaimed later) !!! While income tax should really be collected on income. Can happen only in India. If the government is serious about knowing who is spending big money on expensive cars they can easily do so by asking the dealers to file the PAN details of all the purchasers to the IT department and then they can be investigated upon. We cannot buy a car without PAN in any case.
I shall wait to find out the experience of friends when it comes to claiming it back.
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Old 4th December 2016, 08:13   #72
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

I recently sold Endeavour to my colleague. However, I got only partial payment and rest will be done by him in 2 Years on regular monthly basis without any interest. Will there be any IT related issues? and Do I need to pay TCS as I have got less than 10 lac now and rest I will get in EMI? I understand I will have to apply for a TAN first to deposit TCS or is there any other way.
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Old 4th December 2016, 09:48   #73
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

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However, I got only partial payment and rest will be done by him in 2 Years on regular monthly basis without any interest. Will there be any IT related issues? and Do I need to pay TCS as I have got less than 10 lac now and rest I will get in EMI? I understand I will have to apply for a TAN first to deposit TCS or is there any other way.
As per the TCS notification, it includes sale of 'any' motor vehicle exceeding 10 lakhs. TCS is applicable on the consideration value. Ideally you ought to deposit 1% of the consideration value to avoid any IT related issues later on. Do check with your CA, he would be the best person to advise.

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Originally Posted by black_rider View Post
I checked my Form 26AS, but no TCS entries over there. I guess because my purchase was done just last week. May I ask when did you purchase the vehicle? Do you see any such entries in your 26AS? That would be a sure shot way of knowing that IT deptt. has recd. the TCS taken from you.
Dealer would deposit TCS on a monthly basis,by the 7th of the month against the head of TCS. The dealer is required to filed his TCS return quarterly. If your purchase was in November, the dealer would need to file his TCS return (Form 27EQ) for the third quarter by 15 January 2017. Legally under Section 206C, they have to provide you with the TCS Certificate (Form 27D) within 15 days of them filing their return. Additionally, you can expect to see this tax credit amount online on your Form 26AS by February 2017.

Hope this helps.

Promit

Last edited by promit : 4th December 2016 at 09:59.
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Old 26th December 2016, 17:12   #74
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

I got Duster last month ( Nov 19 ) & paid 1% TCS. When I spoke to dealer about TCS certificate, he said, it will reach your residential address within 90 days. Is that the case? Could someone please confirm?
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Old 27th December 2016, 00:54   #75
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Default Re: 1% TCS on vehicles above Rs. 10 lakh from June 1, 2016

The TCS returns are filed by the dealers on a quarterly basis. The returns for Q4 (oct, nov, dec) will be filed on 31st of the month and then after processing the dealership will get the credit against tax deposited. In turn they will issue the TDS certificate to respective customers.

Reading the posts above however I have a strong feeling that individual customers will never see the corresponding TDS certificates and the dealers would simply refrain from depositing the respective amounts. The odd lone customer who would follow up may be issued one if the dealer has enough credit left over after issuing the required certificates to their corporate customers, whose clerks would be diligently following up with the dealers for the same.


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Originally Posted by RAHS View Post
I got Duster last month ( Nov 19 ) & paid 1% TCS. When I spoke to dealer about TCS certificate, he said, it will reach your residential address within 90 days. Is that the case? Could someone please confirm?
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