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


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

Love Cars Live Cars