Tax payable on buying a new car?
By Cars & Motorcycles on Apr 22, 2009 with Comments 4
CarQuest asked: Hi, I am planning to buy a new car (Logan) in Chennai for about 5lakhs.
1. What all taxes do I need to pay?
2. How much will be the registration costs be?
3. Any other expenses?
Filed Under: Buying New Car
About the Author:
When kyou buy a car, you have several
costs right away like changing licence
plates, registration and/or inspection
now, the sales tax depends on how much
the car costs, the person at the county
tax office will calculate this for you, go &
get an estimate, the inspection costs
between 30&40 bucks. Everything will
be included when you to to the tax
office in your city, except the inspection
sticker.
go to the chennai llogan dealer and he will give u all the details.
The dealer will give you correct picture. On the show room price, you have to pay life tax which will be around 6 to 10% on the cost of car (around 25 to 35 thousand), you have to go for insurance which cost you around Rs.15,000 plus car registration around Rs.2,000 to Rs.2,500. You can go for extra fittings as per your wish.
It is different from state to state. VAT is @12.5%. Correct rate of sales tax and motor vehicle tax has to be ascertained from the particular state.