TCS @ 1% on Purchase of LUXURY CARS

[Siva Nandu Segu]

I had a Luxury car say BENZ or Range ROVER .Now I want to sell my car as second hand to Mr."X" for ₹ 23,00,000/-

Mr.X gave ₹ 4.5 lakh as CASH ; ₹ 6.5 lakh as CHEQUE and the remaining made online transfer to my Bank Account.

Whether I am liable to collect from Mr."X".

If your answer is YES ,then,whether i have to collect 1% TCS as his Cash payment is in excess of ₹ 2,00,000/- and another 1% TCS as he purchased a new luxury car for an amount exceeding ₹ 10,00,000/-.In total I have to collect 2% TCS from him.

OR

1% TCS is on Aggregate value of ₹ 23,00,000/-

EXPLAIN ME IN DETAIL:::::::

Thanks & Regards

Segu.Siva Nandu ( $!\/@ )

Mail Id :- [email protected]

[Ganeshan Kalyani]

The person liable to deduct TCS in case of sale of motor vehicle is a person liable to maintain account and get audited under section 44AB.

AI Summary

TCS liability on motor vehicle sale depends on whether the seller is liable to maintain accounts and undergo audit.
The advisory response states the operative rule: the person liable to collect (deduct) TCS on sale of a motor vehicle is the person who is liable to maintain accounts and get them audited under the relevant audit provisions; the seller queried whether cash receipt and aggregate sale value generate separate or single TCS obligations.