RTAs directed to ensure life tax collection on invoice price

Hyderabad: State government has asked all the vehicle registering authorities in the State to instruct the dealers to collect the life tax for the new vehicles based on the net invoice price without any extra or additional charges.

The Transport Commissioner Sandeep Kumar Sultania issued memo to the RTAs in the State stating that some dealers were issuing under invoice in sale of vehicles causing loss of revenue to the government.

The registering authorities should see that the dealers follow modalities like collection of tax and temporary registration fees whenever a vehicle is sold and delivered to customers.

No extra or additional charges should be collected in the name of permanent registration, the memo said.

A writ petition was filed in the High Court on the collection of life tax on the ex-showroom price. The single judge upheld the plea of the writ petitioner that the life tax can be levied only on the cost of the vehicle.

The cost of the vehicle is the amount actually paid by the purchaser to the dealer.