05/10/2020
A lot of buzz we are hearing about new sales tax imposition on sales of used vehicles. .
According to the new SRO issued, persons who arer registered under the sales tax act or liable to be registered and involved in the business of purchasing and selling of cars. Mainly the dealers, will have to pay the tax.
Secondly when a car is sold above its invoice price or imported price then the sales tax is paid on the differential value.
Suppose the price of car is 5,000,000 and u sell it after 06 months in Ra. 5,500,000. Then sales tax @17% is applicable on Rs. 500,000 which is Rs. 85,000. That needs to be paid by a dealer and amount must be paid through banking channel to record the transaction and its trail. However if the car is sold at a price less than its invoice price, say,4,000,000 then no sales tax liable to be paid.
However if a person sells its car to another person by direct dealing without involving any dealer then no sales tax liable to be paid. This amendement is basically introduced to document the economy and bring such dealers into tax net who are non filers and don't pay any tax.
Any query related tax??
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