29 May 2012
Dear Sirs, In Karnataka State, the RTO officials are including VAT at the rate of 14% of the Basic value of a car while calculating Life Time Tax (LTT) or Road Tax at the rate of 13%. To this thay are adding Cess @ 11%. In my opinion, since VAT is a form of Tax, including it again for calculation of another tax like Road Tax is not correct since it results in collection of Tax for Tax. I request clarification in this regard.
CAclubindia
