![]() | #16 |
Senior - BHPian Join Date: Apr 2005 Location: bangalore
Posts: 1,042
Thanked: 566 Times
| ![]() It is similar to TDS on Bank FD interest above threshold limit, TDS on rental paid to land lord, TDS on buying a property etc. Once it is collected by dealer, he has to deposit the same with IT dept against the PAN number of customer. It will reflect in AIR ( annual information report, Form 26 AS) of the customer. He is duty bound to show the purchase in returns, otherwise notice will come. There is no escaping by not filing returns. if returns are not filed, then also notice will come |
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![]() | #17 |
BHPian ![]() Join Date: Dec 2014 Location: Jaipur
Posts: 187
Thanked: 396 Times
| ![]() Logical step by the state. But the assumption is that people who use black money will try to recover the 1% paid by filing income tax returns. If they try to file it, they will have to disclose lot of things and are subject to scrutiny and penalty if they hide or misinform. What if they do not care and are happy to donate 1% to government? In that case, government gets 1% money. So for every 100 cars sold, govt makes money equal to a car. Last year 20L+ cars were sold in India and let us assume 5L(25%) of them are above 10 lakhs. Assuming mean car value to be 12 lakhs, The total taxable amount is 60,000 crore. 1% tax amounts 600 crores and if 50% do not claim black, government makes 300 crores through this taxation. I hope they use it make sure all Toll Plazas are electronic and every car has RFID based toll collection at booth. Win-Win, I say. ![]() |
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![]() | #18 |
BHPian ![]() Join Date: Aug 2013 Location: Pune
Posts: 779
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| ![]() Excellent move by the Government. It was due anyway. Especially, owners of small businesses from rural side would now come under lens. I have known many people who buy cars much more expensive than 10L and don't even declare their income as taxable. |
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![]() | #19 |
BHPian ![]() Join Date: Sep 2014 Location: Mumbai
Posts: 775
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| ![]() This is a good initiative and reading the interpretation from others, make me feel why wasn't it implemented all this while. Government is nicely throwing a carrot to those who do not file their ITR. This reminds me of what used to be when we were little kids. We would buy soft drinks in glass bottles and take them home. The shopkeeper would charge 1 rupee extra which was returned on giving the empty glass bottle back. I would, in fact be happy to see such approach being adopted more in India. Time we put a price against our carelessness. |
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![]() | #20 |
Distinguished - BHPian ![]() ![]() Join Date: Aug 2011 Location: Bangalore
Posts: 3,990
Thanked: 12,415 Times
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![]() | #21 | |
BHPian Join Date: Mar 2013 Location: Bengaluru
Posts: 80
Thanked: 36 Times
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Scenario 1 - I've declared my taxes correctly, I buy the car, and claim a refund of the 1% TCS. Scenario 2 - I've declared less income than the actuals, I buy a car and claim a refund of 1% TCS. This rule doesn't change anything. Scenario 3 - I haven't declared any tax returns at all, I buy a car, don't claim refund. Goverment can now come after me. Scenario 3 is improbable. Most people do declare the minimum they need to; it's not that they don't file IT returns at all. Unless they actually are earning very little. | |
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![]() | #22 | |
BHPian Join Date: Sep 2015 Location: Gurgaon
Posts: 639
Thanked: 1,710 Times
Infractions: 0/1 (4) | ![]() Quote:
Actually, <3% of all Indians file Income tax return every year. That's like ![]() And in such case, Scenario 3 does look quite effective. | |
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![]() | #23 | |
BHPian ![]() Join Date: Aug 2013 Location: Pune
Posts: 779
Thanked: 1,224 Times
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![]() | #24 |
BHPian Join Date: Sep 2009 Location: Hyderabad
Posts: 53
Thanked: 7 Times
| ![]() Dont understand the Honda advt. What is buy before May 31? delivery of the car before May 31 or book the car before May 31? Can Honda actually give the delivery of the car in 3/4 days , I doubt . |
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![]() | #25 |
BHPian Join Date: Dec 2009 Location: Bangalore
Posts: 379
Thanked: 314 Times
| ![]() What in the case of company owned cars? If I am purchasing a new car through my company lease program, the car will be registered in the name of my company. In this case, who should pay the 1% TCS and how the returns can be submitted at the end of the financial year? Even if I pay the 1% TCS, since I will be purchasing and using the car, how can I file returns in my name? |
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![]() | #26 |
Distinguished - BHPian ![]() ![]() Join Date: Aug 2011 Location: Bangalore
Posts: 3,990
Thanked: 12,415 Times
| ![]() This is an ad that came in Times of India Bangalore Edition. Dealers probably have units of the Honda CVT Automatic in stock ready for delivery. The TCS piece is probably just an attempt to sweeten the deal. |
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![]() | #27 |
BHPian Join Date: Jan 2011 Location: Hyderabad
Posts: 160
Thanked: 384 Times
| ![]() Or not. People could just use cash or some part cash in the transaction to keep the overall value below Rs. 10 lakhs. I only see this increasing the presence of black money further |
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![]() | #28 | |||||
BHPian ![]() | ![]() Quote:
The same approach was taken by the Govt. when they introduced the Reverse Charge mechanism for Service Tax and it is successful. Quote:
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The relevant clause of the Finance Bill says : Quote:
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My main isuue with this (at the time of the budget speech) was what if the dealers collect the TCS and not deposit the same with the Govt. Now, I understand, the dealers will also come into the tax net because the manufacturers will also collect TCS from the dealers for every vehicle invoiced over Rs. 10 Lakh. Last edited by Sommos : 27th May 2016 at 16:21. | |||||
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![]() | #29 | ||||||
Team-BHP Support ![]() ![]() | ![]() Quote:
The purpose of the TCS is to increase the base of tax-paying citizens. Quote:
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Here, they come directly under the IT department's nose (hmmm, so you bought a 10 lakh car & still haven't filed your returns in 7 years - here's an IT notice!). Quote:
Nope. The cost of the car hasn't gone up. Quote:
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Even if you pay 4 lakhs in cash & 6 lakhs via cheque, you'll still have to pay TCS. The dealer will declare that entire 10 lakhs. | ||||||
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![]() | #30 | |
Senior - BHPian Join Date: Mar 2006 Location: mumbai
Posts: 2,046
Thanked: 2,256 Times
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They must apply same idea to second hand car as well.. that will truly stop black money circulation Last edited by apachelongbow : 27th May 2016 at 16:13. | |
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