Tax on Buying a Vehicle
Tax Collected at Source (TCS): Sellers must collect TCS at 1% if the vehicle's cost exceeds INR 10,00,000. This also applies to vehicle parts costing INR 2,00,000 or more.
B2B vs. B2C Transactions: Since October 1, 2020, TCS rates vary based on whether the buyer is a business or an individual customer, regulated under sections 206C(1H) and 206C(1F) respectively.
COVID-19 Relaxation: TCS rate temporarily reduced to 0.075% until March 2021 under section 206C(1H) for B2B transactions exceeding INR 50,00,000.