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Old 8th August 2015, 09:13   #16
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Default Re: Buy car in state or out of state (Major price difference)

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I am planning to buy Fiat Linea T-jet from Vellore (TN) as the dealer there is known and giving me higher discounts than what's possible in Bangalore (KA)
It should be possible , this happens all the time in this part - someone buys a car from Punjab or Haryana and get registers in Chandigarh or the other way .

Yes you should be concerned on VAT - we need to pay difference between VAT applicable in state of purchase and place where we are getting this registered , in case its higher in state of purchase then where you are getting registered you wont have to pay - this is way it works here but get this important VAT issue re-checked . I think some kind of additional form needs to be collected from Excise/ Sales Tax department - they do charge a nominal fee 500-1000 to issue such things here .
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Old 17th March 2016, 13:11   #17
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Default Re: Buy car in state or out of state (Major price difference)

Bumping the old thread for an important query.

One of my relatives is interested in buying S-CROSS DDIS 200. Since S-CROSS is sold only in NEXA showrooms and the fact that there are limited showrooms in any state, cars are not available in stock in TN Nexa showrooms for the variant that this person is interested.

However Bangalore Nexa has that variant in few colors and ready for delivery or already in transit (2016 make). It also offers certain discount on the variant chosen. So my relative is ready to pay exshowroom price, get temporary registration done in Karnataka and drive down to Madurai in TN state and pay LTT and register in TN as the car would be used there.

My doubts are as follows:
  1. Whether such a process is allowed legally?
  2. Is there any trouble taking the car across the state border (at Hosur)
  3. Apart from paying LTT and registering in TN, would the car owner incur any other expenditure? Some posts below, there is a comment that the VAT may vary from state to state and difference may have to be paid. if so, how to find out and what is the process to pay additional VAT if any.
  4. Producing Invoice from a KA state showroom at TN state registration, would this be any cause for concern?
  5. any other problems that the owner may need to anticipate?
Experts, and experienced Bhpians, please advise.


thanks in advance
best regards

Last edited by cs_rajesh : 17th March 2016 at 13:12. Reason: spell mistake
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Old 17th March 2016, 13:17   #18
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Default Re: Buy car in state or out of state (Major price difference)

When I researched 6 months back on this topic for buying a car I learnt that entry tax was abolished in KA but not in TN. I inquired with my friend in commercial taxes department in Vellore (TN) and he said that there is entry tax applicable for bringing new cars from other states. I forgot how much % it is

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Originally Posted by cs_rajesh View Post
Bumping the old thread for an important query.

One of my relatives is interested in buying S-CROSS DDIS 200. Since S-CROSS is sold only in NEXA showrooms and the fact that there are limited showrooms in any state, cars are not available in stock in TN Nexa showrooms for the variant that this person is interested.

However Bangalore Nexa has that variant in few colors and ready for delivery or already in transit (2016 make). It also offers certain discount on the variant chosen. So my relative is ready to pay exshowroom price, get temporary registration done in Karnataka and drive down to Madurai in TN state and pay LTT and register in TN as the car would be used there.

My doubts are as follows:
  1. Whether such a process is allowed legally?
  2. Is there any trouble taking the car across the state border (at Hosur)
  3. Apart from paying LTT and registering in TN, would the car owner incur any other expenditure? Some posts below, there is a comment that the VAT may vary from state to state and difference may have to be paid. if so, how to find out and what is the process to pay additional VAT if any.
  4. Producing Invoice from a KA state showroom at TN state registration, would this be any cause for concern?
  5. any other problems that the owner may need to anticipate?
Experts, and experienced Bhpians, please advise.


thanks in advance
best regards
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Old 17th March 2016, 13:29   #19
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Default Re: Buy car in state or out of state (Major price difference)

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Originally Posted by ssateesh View Post
When I researched 6 months back on this topic for buying a car I learnt that entry tax was abolished in KA but not in TN. I inquired with my friend in commercial taxes department in Vellore (TN) and he said that there is entry tax applicable for bringing new cars from other states. I forgot how much % it is
Thanks ssateesh. Could you do me a favor of finding out 1) how much %age on the invoice value 2) where to pay? at the state border ?

Would appreciate your help.

Would there be any other charges or taxes?

I checked the TN Govt website but no information can be found so easily. There is a page on TN Govt State Transport Authority at http://www.tn.gov.in/sta/taxtables.html but there is no mention of entry tax.

I saw another old thread that the HC / SC squashed the levy of entry tax on KA state. Should this not be applicable to any state? Perhaps there was no petition on TN state.

One more point I would like to highlight is that vehicles brought by transport from plant would also encounter the entry tax I suppose but the ex showroom value of the car hardly differs by 4000 rupees and not more and in some cases it is same.
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Old 17th March 2016, 13:33   #20
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Default Re: Buy car in state or out of state (Major price difference)

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Originally Posted by cs_rajesh View Post
So my relative is ready to pay exshowroom price, get temporary registration done in Karnataka and drive down to Madurai in TN state and pay LTT and register in TN as the car would be used there.
OT, few days back there is a S-Cross ad in Hindu and the address given is K.K. Nagar Nexa, Madurai. I've not personally visited, but this show room details are not mentioned in nexaexperience.com. Have you tried there?
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Old 17th March 2016, 13:45   #21
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Default Re: Buy car in state or out of state (Major price difference)

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OT, few days back there is a S-Cross ad in Hindu and the address given is K.K. Nagar Nexa, Madurai. I've not personally visited, but this show room details are not mentioned in nexaexperience.com. Have you tried there?
Chennai Nexa was tried, but vehicle at the yard cannot be clearly verified whether it was affected by the recent floods. Two cars were available at chennai Nexa and both seemed to be 2015 make. Also the dealer and salesmen were very inflexible. KA Nexa is offering 2016 make and a certain discount as well.
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Old 17th December 2016, 20:12   #22
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Default Re: Buy car in state or out of state (Major price difference)

Quote:
Originally Posted by cs_rajesh View Post
Bumping the old thread for an important query.

One of my relatives is interested in buying S-CROSS DDIS 200. Since S-CROSS is sold only in NEXA showrooms and the fact that there are limited showrooms in any state, cars are not available in stock in TN Nexa showrooms for the variant that this person is interested.

However Bangalore Nexa has that variant in few colors and ready for delivery or already in transit (2016 make). It also offers certain discount on the variant chosen. So my relative is ready to pay exshowroom price, get temporary registration done in Karnataka and drive down to Madurai in TN state and pay LTT and register in TN as the car would be used there.

My doubts are as follows:
  1. Whether such a process is allowed legally?
  2. Is there any trouble taking the car across the state border (at Hosur)
  3. Apart from paying LTT and registering in TN, would the car owner incur any other expenditure? Some posts below, there is a comment that the VAT may vary from state to state and difference may have to be paid. if so, how to find out and what is the process to pay additional VAT if any.
  4. Producing Invoice from a KA state showroom at TN state registration, would this be any cause for concern?
  5. any other problems that the owner may need to anticipate?
Experts, and experienced Bhpians, please advise.


thanks in advance
best regards
Just wondering if there is any additional cost like entry tax involved in this process. If we factor in the entry tax of 14.5%, then the total cost becomes prohibitive and there is no point in doing this exercise. Any idea guys?
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Old 17th December 2016, 20:42   #23
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Just wondering if there is any additional cost like entry tax involved in this process. If we factor in the entry tax of 14.5%, then the total cost becomes prohibitive and there is no point in doing this exercise. Any idea guys?

Depends where you are taking the car. For example, if taking into Mumbai city, you need to pay octroi, but not in Navi Mumbai or Panvel ( for example).

I assume (enlighten me if I'm wrong) that any goods entry tax is paid on goods that are going to be sold in the new place (state/city) , but your car is already sold to you and your intention is not to sell it so maybe you won't be required to pay octroi ( do clarify though about local laws though).

Also if buying a Maruti car, there is a provision so that a dealer can get a car from another co dealer incase of unavailability or urgent requirement etc. But in this case, the car will be billed (and counted as target of the dealer from where it was initially sent to from factory) by home dealer and delivered to you by a dealer close to you. In some cases it might require intervention of regional office.
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Old 17th December 2016, 21:06   #24
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Default Re: Buy car in state or out of state (Major price difference)

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Originally Posted by blackwasp View Post
Depends where you are taking the car. For example, if taking into Mumbai city, you need to pay octroi, but not in Navi Mumbai or Panvel ( for example).

I assume (enlighten me if I'm wrong) that any goods entry tax is paid on goods that are going to be sold in the new place (state/city) , but your car is already sold to you and your intention is not to sell it so maybe you won't be required to pay octroi ( do clarify though about local laws though).

Also if buying a Maruti car, there is a provision so that a dealer can get a car from another co dealer incase of unavailability or urgent requirement etc. But in this case, the car will be billed (and counted as target of the dealer from where it was initially sent to from factory) by home dealer and delivered to you by a dealer close to you. In some cases it might require intervention of regional office.
I am planning to buy a BMW at Kerala with temporary registration to get it permanently registered in Tamilnadu. My local RTO website isn't very clear about the rules behind this process and I am concerned about the hidden costs that could potentially push up the landing cost heavily.
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Old 17th December 2016, 21:12   #25
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I am planning to buy a BMW at Kerala with temporary registration to get it permanently registered in Tamilnadu. My local RTO website isn't very clear about the rules behind this process and I am concerned about the hidden costs that could potentially push up the landing cost heavily.

I don't know the exact taxes of TN, but you could enquire at the local RTO by visiting personally or asking one of the agents for assistance. Did you ask the Kerala Dealer to assist you in this regard ? I'm sure they will have the knowledge since you are a potential customer and it'll be a sale for them as well.
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Old 17th December 2016, 23:40   #26
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Default Re: Buy car in state or out of state (Major price difference)

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I don't know the exact taxes of TN, but you could enquire at the local RTO by visiting personally or asking one of the agents for assistance. Did you ask the Kerala Dealer to assist you in this regard ? I'm sure they will have the knowledge since you are a potential customer and it'll be a sale for them as well.
I am planning to visit the local RTO office to inquire personally on Monday. The dealer at Kerala doesn't have any first hand experience with this approach, but is claiming that there is no additional fee/tax involved. I am hoping that I don't come across any late surprises.
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Old 18th December 2016, 09:14   #27
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Default Re: Buy car in state or out of state (Major price difference)

Page 4 of the Act found at http://www.tnvat.gov.in/english/ENTR...LE_ACT1990.pdf says that there is a reduction in entry tax liability for the following condition:

(2) Where an importer who, not being a dealer in motor vehicles, had purchased the motor vehicle for his own use in any Union Territory, or any other State then his liability under this Act shall, subject to such conditions as may be prescribed, be reduced to the extent of the amount of tax paid, if any, under the law relating to general sales tax as may be in force in that Union Territory or State.:

But I am not able to figure out the liability when I purchase a car having an exshowroom price of 50 lakh rupees from another state with temporary registration.
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Old 18th December 2016, 19:08   #28
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Default Re: Buy car in state or out of state (Major price difference)

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Page 4 of the Act found at http://www.tnvat.gov.in/english/ENTR...LE_ACT1990.pdf says that there is a reduction in entry tax liability for the following condition:

(2) Where an importer who, not being a dealer in motor vehicles, had purchased the motor vehicle for his own use in any Union Territory, or any other State then his liability under this Act shall, subject to such conditions as may be prescribed, be reduced to the extent of the amount of tax paid, if any, under the law relating to general sales tax as may be in force in that Union Territory or State.:

But I am not able to figure out the liability when I purchase a car having an exshowroom price of 50 lakh rupees from another state with temporary registration.
Any thoughts guys? I need to take a call on whether it is worth an effort to purchase the car from Kerala and register it in Tamilnadu or if it is better to drop the plan altogether.
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Old 18th December 2016, 23:33   #29
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Default Re: Buy car in state or out of state (Major price difference)

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be reduced to the extent of the amount of tax paid, if any, under the law relating to general sales tax as may be in force in that Union Territory or State.:
I believe you will have to pay only the difference ( if applicable ) between the Tax charged on your Invoice and the Tax applicable in the state where you are getting your car registered. If it's more in the state from where you picked the car, you won't have to pay anything. But Dealership from where you are buying the car should able to help you on this. If they are not aware ask details of their regular agent.
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Old 19th December 2016, 01:03   #30
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I believe you will have to pay only the difference ( if applicable ) between the Tax charged on your Invoice and the Tax applicable in the state where you are getting your car registered. If it's more in the state from where you picked the car, you won't have to pay anything. But Dealership from where you are buying the car should able to help you on this. If they are not aware ask details of their regular agent.
the dealership outside my state is claiming that there are no additional taxes, but the dealer in my city (who is not able to offer a competitive price) warned me that I would end up spending all the savings I made on the potential entry tax. Since the tax applicable in my state is less than that of the other state's tax, it looks like I don't have to pay anything. I will try contacting some agent or local RTO office tomorrow to ascertain the rule. Thanks!
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