Compensation cess

This query is : Open

ANKUSH GARG (Querist)
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14 January 2019 Dear All,

Someone is dealer in Motor Vehicle whose value is more than 10 lakh. He needs to charge Compensation cess @ 22% on the value of said car along with CGST and SGST and also to collect TCS @1 % under Income Tax Act.

My Question is that
1. whether the cess will be charged on the only on the value of Car
or
2. On the value of Car+ 1% TCS

Schedule -1 of GST (Compensation to State) Act, 2017 says that cess will be charged ad valorem. Please clear the meaning of it.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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14 January 2019 Ad Valorem means as per valuation .
Cess will be charged on transaction value
As per sec 15 of the GST Act - Transaction value includes any taxes, duties, cesses, fees and charges levied under any statute, other than GST
It cess will be charged on value of car + 1% TCS

ANKUSH GARG

ANKUSH GARG (Querist)
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15 January 2019 but mam tcs is also to be collected on transaction value then it makes it to be very complicated as TCS will be charged on Value of Car+ GST and GST will be charged on Value of car+TCS

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