Luxury Car Dealers In The Diamond City Come Under The IT Scanner

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Luxury car dealers in Surat have come under the Income Tax (IT) department's scanner. The government imposed tax collection at source (TCS) of 1 percent tax for luxury vehicles priced over Rs. 10 lakh. It was made mandatory from June 1, 2016.

Only a few luxury car dealers have paid up (TCS) till date and the rest are yet to do so. Officials say that the 1 percent tax has to be collected by the dealer along with the car's ex-showroom value and be paid to the central government.

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Surat has around 30 luxury car dealerships and a meeting was arranged by the income tax department. Dealers said that in order to pay TCS, customers will have to make an additional payment up front, and with administrative hassles, it could impact the ease of doing business.

An IT officer said, "It is the responsibility of the car dealers to collect the tax at source and deposit with the government. However, very few dealers have been doing this, while rest are yet to follow the rule. However, a meeting was organized to sensitize the dealers on the TCS payment."

Read more on: #auto news
Story first published: Thursday, September 15, 2016, 9:00 [IST]
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