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Old 25th January 2010, 14:06   #1
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Default Singer, Cricketer, Tycoon Miss Car Cess

It could turn out to be a big embarrassment for the likes of Sachin Tendulkar, Shankar Mahadevan and Anil Ambani. The Navi Mumbai Municipal Corporation has initiated a drive to check on cars that have failed to pay the cess for registration in their jurisdiction.

It turns out several high profile people including Tendulkar, Mahadevan and Anil Ambani's ADA Group have defaulted on their car cess payments which is approximately one percent of the car cost.

The corporation says the cess paid in Navi Mumbai is far less than the cess paid in Mumbai. Very often people register their cars in Navi Mumbai for lower cess but still default in payment.

Notices are now being sent to all the owners.

"All cars are brought through dealers and I've paid whatever the dealer asked me to pay. We got the notices and I replied saying I'm outstation and I'll return and pay but now because it's become such an issue my manager has flown down to make the payments. There is no reason for me to default as if I can buy a car of Rs 40 lakh why will I default on paying the cess. The dealer never told us to pay and we didn't," Music composer Shankar Mahadevan told NDTV.

For video news, go here : Tendulkar, Ambani duck tax on cars

NOTE: Please merge this if similar thread exists. Could find one so created a new one.

SOURCE : www.ndtv.com/news

Last edited by h@r$h@l : 25th January 2010 at 14:08.
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Old 25th January 2010, 15:31   #2
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I feel that this is done by most of the people by registering in places of low tax but they pay all the fee required to register .I think dealer should have played a role in this to skip the cess fee.
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Old 25th January 2010, 15:49   #3
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One thing I have realised with this high profile folks registering cars and stuff. I will take an analogy to land here. One such person bought land we know off but was never there to exchange money or take care of details. His funny sounding agent did it for him. This guy was trying to save Rs50 for some papers, now if tomorrow someone comes to know of this. The headlines will read Mr So-Big-Guy was trying to save Rs 50 when he earns crores.
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Old 25th January 2010, 16:08   #4
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No No, This isnt the case of people - big or small, rich or poor, trying to evade taxes. Here is the gist of the what is the matter in this case.

There are people who buy cars with Navi Mumbai registration. Some people stay here, some own businesses here etc. NMMC - cess department has started this drive almost 6/8 months back wherein they are contacting the owners of vehicles who have bought their cars with Navi Mumbai registration right from year 1996. They have got this data from RTO. Everybody is being sent the notice in this matter. Also the fact is that the onus of paying cess lies on the dealer but this fact is completely ignored and The owners are made to pay the cess with interest and penalties, something which can go upto as high as 24% to 35% per year from the date of purchase.

This is nothing but NMMC's way to earn revenue. Period

In our case, we are the owners of the place where we have our factory. We have submitted relevant documents but still have got notice to be present at their office with all the documents relevant to the purchase of the vehicle right from 2001.

Now I am in the process of finding out if the dealer has paid cess or not.

My two cents.
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Old 25th January 2010, 17:25   #5
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Is this cess applicable only for vehicles located outside Navi Mumbai area but registered in Vashi ??
If not I have not found any cess payment receipt given by M/s Automotive Nerul when I purchased my Swift and registered by dealer at Vashi .
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Old 25th January 2010, 17:28   #6
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Pardon my ignorance, I'm under the impression that until the entire money is collected from the customer, the dealer will never let the vehicle out of his yard. Now this includes all the taxes (cess, sales tax, central tax, state tax, municipal tax or may be even tax on tax!!!). So how come these cars are even allowed to be on road on the first place?
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