PANJIM: The State government document has made a very serious charge against the vehicle dealers wherein it said that the vehicle dealers manipulate the invoice cost of vehicles to benefit customers causing loss of revenue to the State.
The charge has been made with regards a Bill called the “Goa Motor Vehicle Tax (Amendment) Bill, 2020, which was tabled before the Cabinet on Wednesday for approval.
The background note moved by thee Transport department states “the taxation rate of a motor vehicle depends on the cost of vehicle, The Bill seeks to insert clause – in Section 2 of the Goa, Daman and Diu Motor Vehicles Tax Act, 1974 (Act No. 8 of 1974) so as to define the cost of vehicle and remove ambiguity in calculation of the tax to be paid on a motor vehicle during registration of the vehicle.
“There are also instances noticed wherein vehicle dealers manipulate the invoice cost of the vehicles to benefit the customer, causing loss of revenue. Inclusion of the expression cost of vehicle will remove the aforesaid difficulty,” it said.
PRESENT PROPOSAL
The proposal of the department in the Bill says the rate of tax leviable on motor vehicle other than transport vehicle is specified in Part “B” of the schedule to the Goa, Daman and Diu Motor Vehicles Tax Act, 1974 (Act No. 8 of 1974) and such rate is required to be calculated on the basis of cost of vehicle, however, the term cost of the vehicle is not defined in the said Act. The Bill therefore seeks to define the term “cost of the vehicle in said Act.
It further says that the taxation rate of a motor vehicle depends on the cost of vehicle. This Bill seeks to define the term “cost of vehicle” so as to remove ambiguity and secure revenue of this Department under Goa, Daman and Diu Motor Vehicle Tax Act, 1974.
The amendments proposed to the Bill says, “the cost as per purchase invoice of the motor vehicle issued by its manufacturer and shall include the basic manufacturing cost, excise duty. sales tax/ value added tax/ goods and services tax payable in the State of Goa in relation to motor vehicle manufactured in India or the cost as per landed value of the motor vehicle consisting of assessable value under the Customs Act, 1962 (Act No. 52 of 1962) and the customize duty paid thereupon including additional duty paid, if any, as endorsed in the bill of entry by the Customs Department in the State of Goa in relation to motor vehicle imported into India, irrespective of its place of manufacture.”
In short, the it means, “the discount offered by the manufacturer or dealer shall not be deducted from cost of the motor vehicle”.