What is the difference between 1% luxury tax on cars and 1% tcs on car whose price is greater than Rs. 10 Lacs as luxury tax is indirect in nature whereas tcs is direct tax.???
What is treatment if the sale proceed from car is greater than Rs. 10 lakhs is it apply 1% tax or 2% ( i.e. 1% luxury tax & 1% tcs)???
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1% luxury tax vs. 1% tcs on cars
Replies (2)
Dear Sir,
There is a difference between the TCS and Luxary Tax regarding that TCS is to be collected only when the Price of the CAR is exceeding the Value of Rs 10 Lakhs and TDS / TCS is also one type of an Advance Tax that would be collected by the Government and while filing the return one can claim the TCS paid on the such value. And on the Other side the Luxary Tax has been levied due to the burden of the Tax has been reduced to the Small Tax Payer and the Luxary Tax has been collected is not been refundable nor creditable it has to be paid for the Luxary Items only so this is the main difference between the TCS and 1% Luxaray Tax that has been levied by the government.
The above opinion is the best of my knowledge and if there is any doubts regarding this you can also clarify with the Bare Act.
Thanks sir.
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