Reduced state tax for leased motor vehicles applies subject to pre implementation purchase and input tax credit conditions. The notification fixes a reduced state tax for leased motor vehicles at 65% of the state tax otherwise applicable for goods under Chapter 87, subject to conditions: (a) the lessor purchased and supplied the vehicle on lease before 1 July 2017; or (b) the supplier is registered, purchased the vehicle before 1 July 2017 and did not avail input tax credit on taxes paid. The notification follows First Schedule tariff interpretation rules and ceases to apply on or after 1 July 2020.
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Provisions expressly mentioned in the judgment/order text.
Reduced state tax for leased motor vehicles applies subject to pre implementation purchase and input tax credit conditions.
The notification fixes a reduced state tax for leased motor vehicles at 65% of the state tax otherwise applicable for goods under Chapter 87, subject to conditions: (a) the lessor purchased and supplied the vehicle on lease before 1 July 2017; or (b) the supplier is registered, purchased the vehicle before 1 July 2017 and did not avail input tax credit on taxes paid. The notification follows First Schedule tariff interpretation rules and ceases to apply on or after 1 July 2020.
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