[avira_tk]

Originally Posted by ObsessedByFIAT

This has always confused me. Sorry if I am going off topic, however, it would greatly help if you shed some light on :

- Can salaried people claim the TCS in their IT returns?
- If yes, under which section does this fall in?
- When you say 'Adjusted' what exactly does that mean?

It's offset against liability, think of it like advance self assessment tax paid. You may qualify for a refund because of it.

[Turbanator]

Originally Posted by ObsessedByFIAT

This has always confused me. Sorry if I am going off topic, however, it would greatly help if you shed some light on

TCS - Tax collected at Source- Idea is to link high value purchase with IT return of an individual or a company. This amount is paid in your Tax account by the car dealer and should reflect on your IT - 26AS.

Consider it as an Advance tax paid against your liability for IT. In case your liabilities are less due to any reasons, you will get refund of this amount else this amount will be adjusted with your IT liability.

[SR-71]

In cases where discounts are applicable, how is the TCS calculated ? Is it calculated on the ex-showroom price (or) is it calculated on the ex-showroom price - discount. I assume its the latter, at least that's my experience from the last car purchase. However a recent quote I got from a luxury car brand is quoting the TCS @ ex-showroom not accounting for the discounts. Normally I wont bother, as its anyway tax I will be be paying one way or the other. In this case, I am thinking of going for company lease and my understanding is I cannot use the TCS certificate to offset against my taxable component. I am told the TCS certificate will be issued toward the leasing company.

[Turbanator]

Originally Posted by SR-71

In cases where discounts are applicable, how is the TCS calculated ? Is it calculated on the ex-showroom price (or) is it calculated on the ex-showroom price - discount. I assume its the latter. However a recent quote I got from a luxury car brand is quoting the TCS @ ex-showroom not accounting for the discounts.

Your understanding is correct. Tell dealer to correct, he may have to crosscheck internally unless they are trying to make a quick buck.

[thanixravindran]

Originally Posted by SR-71

In cases where discounts are applicable, how is the TCS calculated ? Is it calculated on the ex-showroom price (or) is it calculated on the ex-showroom price - discount. I assume its the latter, at least that's my experience from the last car purchase. However a recent quote I got from a luxury car brand is quoting the TCS @ ex-showroom not accounting for the discounts. Normally I wont bother, as its anyway tax I will be be paying one way or the other. In this case, I am thinking of going for company lease and my understanding is I cannot use the TCS certificate to offset against my taxable component. I am told the TCS certificate will be issued toward the leasing company.

I purchased my Skoda Kushaq in January and the TCS is indeed on the Invoice price (After discounts) and NOT on the Ex-Showroom price. It is individual purchase so I am not sure about the TCS applicability for company car lease.

[avira_tk]

Originally Posted by SR-71

In cases where discounts are applicable, how is the TCS calculated ? Is it calculated on the ex-showroom price (or) is it calculated on the ex-showroom price - discount. I... . I am told the TCS certificate will be issued toward the leasing company.

I checked my AIS for last financial year and the TCS is collected against list price. I think that is how it's done, just like they don't reduce Road tax whatever the discount. This was with a sonet purchase, so no discounts.

[itwasntme]

Originally Posted by SR-71

However a recent quote I got from a luxury car brand is quoting the TCS @ ex-showroom not accounting for the discounts.

I am told the TCS certificate will be issued toward the leasing company.

Originally Posted by Turbanator

Your understanding is correct.

Originally Posted by thanixravindran

I purchased my Skoda Kushaq in January and the TCS is indeed on the Invoice price (After discounts) and NOT on the Ex-Showroom price.

Depends on the state in question. KA demands all taxes and cesses at the MRP (ex-showroom) price list filed by the OEM in KA Vahaan. You can provide any number of documents claiming you bought a vehicle for even Re. 1 but KA RTO will demand their share at the ex-showroom rate. Consequently, TCS will also be applied at the 'listed' rate ignoring all discounts.

That is my experience since 2018 & two car purchases.

Again, on a company lease (whether operating or financial in nature), a lessee is never the owner of the asset. As far as I know, there is no question of you claiming the TCS in your individual tax return.

[blue_pulsar]

Originally Posted by itwasntme

As far as I know, there is no question of you claiming the TCS in your individual tax return.

The TCS amount I paid when I bought my EcoSport in 2018 appeared in my tax return, in the list of taxes paid. I was able to get it back as refund. This is for ITR-1.

[thanixravindran]

Originally Posted by itwasntme

Depends on the state in question. KA demands all taxes and cesses at the MRP (ex-showroom) price list filed by the OEM in KA Vahaan. You can provide any number of documents claiming you bought a vehicle for even Re. 1 but KA RTO will demand their share at the ex-showroom rate. Consequently, TCS will also be applied at the 'listed' rate ignoring all discounts.

That is my experience since 2018 & two car purchases.

I am not sure how KA RTO stands to benefit with TCS collected at Ex-showroom price. I thought TCS has to be deposited to the Income Tax department (Central Government) and all genuine buyers will get them adjusted/refunded by filing ITR.

I can understand the Road Tax tied to the Ex-showroom price to avoid revenue loss for KA Government. For TCS, if there is under invoicing by way of discounts (Above 10L car becomes Sub 10L case), probably it may allow people to escape the Income Tax radar but I don't think KA will lose direct revenue. In fact, I think KA (or any other state government) does not even have jurisdiction to change the Income tax law.

In my invoice, the ex-showroom price is mentioned as a information as last line.

[itwasntme]

Zero idea about the matters raised above. All I can say is that both Hyundai & BMW raised the invoice with TCS at the ex-showroom rate. Discounts were below the line.

@Blue-pulsar: I also got them both back. The current context is for a company lease situation.

[pannags]

Does anyone have an idea what happens in the event of a cancelled booking, where the dealer has already deposited the amount deducted as TCS to the authorities? This can happen after the car has been invoiced, but before registration. Can that value be claimed back at the time of filing returns?

[Turbanator]

Originally Posted by pannags

Does anyone have an idea what happens in the event of a cancelled booking, where the dealer has already deposited the amount deducted as TCS to the authorities? Can that value be claimed back at the time of filing returns?

If the dealer is supportive, he can file for correction of TDS and get it amended to the new person's PAN who is buying that car. If they don't then you have to get it adjusted at Year's end.

[jinojohnt]

Originally Posted by pannags

Does anyone have an idea what happens in the event of a cancelled booking, where the dealer has already deposited the amount deducted as TCS to the authorities? This can happen after the car has been invoiced, but before registration. Can that value be claimed back at the time of filing returns?

I thought TCS is deposited to central government only when the car is actually "invoiced" and not when the car is "booked". So this may be applicable in cases you are cancelling the booking after paying the full amount and the car is "invoiced".

[pannags]

Originally Posted by Turbanator

If the dealer is supportive, he can file for correction of TDS and get it amended to the new person's PAN who is buying that car. If they don't then you have to get it adjusted at Year's end.

Thanks, so that means the tax paid can be claimed back despite not going ahead with the purchase. I wonder if the personal actually buying the car would pay TCS at all?

Originally Posted by jinojohnt

I thought TCS is deposited to central government only when the car is actually "invoiced" and not when the car is "booked". So this may be applicable in cases you are cancelling the booking after paying the full amount and the car is "invoiced".

That is correct. Invoiced, but not yet registered. Dealer has remitted the taxes collected.

[drsachin]

Originally Posted by pannags

Does anyone have an idea what happens in the event of a cancelled booking, where the dealer has already deposited the amount deducted as TCS to the authorities? This can happen after the car has been invoiced, but before registration. Can that value be claimed back at the time of filing returns?

You can definitely claim refunds while filling ITR. Non salaried professionals anyway claim refunds while filling ITR.