Tds @ 1% on purchase of luxury cars exceeding Rs.10lacs

Respected Sir/Madam,

With respect to the Budget 2016-17, there is a new provision of TDS on @ 1% Purchase of Luxury Cars exceeding Rs.10Lacs.

1)The liability to deduct the TDS will be on whom? a) Dealers (who purchase cars from Manufucturers) or b) The ultimate customers.

2) This new provision is effective from which date? Please advise.

Thanks and regards,

Pranay Parmar

Replies (2)

1. It is the responsibility of the Dealers to deduct 1% TCS under the new ammendment ( Sec 206C )

2. this new ammendment will be effective from 01.06.2016

 

Thank you Sir for sharing a very useful information.

Further, is there any clearification on the value of Motor Car, i.e.

1) whether TCS is applicable of ex-showroom price ?

or 

2) whether TCS is applicable on on road price of the vehicle ( i.e. on a sum of = ex-showrrom price + Insurance + Registration + accessories ) ?

Please advise.

Thanks and Regards,

Pranay Parmar

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