Wealth tax on motor car used for business purpose

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Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2014 Hello, can anyone please tell what is the method to be used for computation of wealth tax on motor cars used for business purpose. Whether it should be WDV on the valuation date as per Rule 14 or fair value as per Rule 20.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 November 2014 For motor cars the market value is to be taken for wealth tax purposes. Generally, one adopts 80% of the insured value of the car as the market value, as upheld by a tribunal decision.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2014 Can you tell me the reason why 80% of the value is taken or any reference of tribunal decision

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 November 2014 The decision W.T.A. No.6 to 8/Mds/10 of the Mumbai Bench of the Tribunal in the case of Samrath Knitters P.Ltd. held that 80% of the insured value should be considered for computing the net wealth.

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