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Telangana HC: Charge road tax on invoice (after discounts)

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The Telangana High Court has ruled that life tax on vehicles can only be levied on its invoice price and not on its ex-showroom price.

A petition was filed by advocate Kishore Rai, who said that the Regional Transport Authority (RTA) had charged life tax on the ex-showroom price which was higher than the invoice price. He had purchased a Volvo XC60 at a discount of Rs. 3 lakh on the ex-showroom price and had claimed a tax refund of Rs. 51,000.

The court ruled that the petitioner is entitled for a refund since the ex-showroom price is not the actual cost of the vehicle. The RTA has been ordered to process the refund within the next 3 weeks.

Source: ET Auto

 
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