Karnataka government cracks down on below-pricing, luxurious automobile registrations take a large hit

BENGALURU: If you are planning to buy a new vehicle, specifically a luxurious one in Karnataka, your wait to register the automobile is probably to get longer.
With the transport branch insisting on registering motors on the ex-showroom fee (fixed by way of manufacturers) instead of the real invoice (charge after discount) since March 6, many sellers are reluctant to register vehicles, particularly luxurious motors. This is causing severe inconvenience to customers who have paid the vehicle price to the sellers and are anticipating transport of their cars.

The transport department has determined to do so towards the sellers in case of invoices of luxurious vehicles displaying the charge as less than the real fee handiest to pay much less registration fee. The branch is investigating registrations of vehicles performed by means of the luxurious automobile sellers over time.
Sources said maximum sellers are issuing invoices after factoring in discounts or exchange fee or loyalty offers at the ex-showroom price constant by means of the manufacturers. Normally, dealers offer reductions and freebies between Rs 15,000 and Rs 70,000 for small automobiles and Rs 1 lakh and Rs 5 lakh for high-end automobiles. Though these reductions are not uniform, they may be based on their sales. With excessive-cease vehicles drawing greater taxes, the branch is usually concentrated on luxurious car sellers inside the metropolis.
Dealers selling automobiles well worth over Rs 20 lakh underneath the lens
Dealers depositing Motor Vehicle Tax on the discounted cost of luxury automobiles are inflicting a massive sales loss. We aren’t in opposition to sellers giving reductions or gives to customers, but they ought to pay MV tax based totally at the ex-showroom price fixed by producers,” stated shipping commissioner VP Ikkeri.
He stated they may be now scrutinizing taxes paid by using the sellers at the sale of motors, specifically luxurious ones, over time. “We should take a look at the ex-showroom price through the web sites of car manufacturers in addition to the Vahan 4 database. We will take action towards errant sellers if there are huge discrepancies. For example, if there is a peculiar difference like Rs 5 lakh-Rs 10 lakh, then we will take motion against the ones sellers,” he said.
Ikkeri admitted registration of luxurious vehicles has come down for the reason that March
6. “Many dealers aren’t coming ahead to sign up their vehicles when we started out checking the ex-showroom fee and actual bill,” he brought.
Sources said dealers of luxurious cars like Audi, BMW, Mercedes-Benz, Lexus, Range Rover, Jaguar, and Lamborghini are beneath the shipping department’s scanner. “We are concentrated on sellers selling vehicles worth above Rs 20 lakh. For instance, for a vehicle costing greater than Rs 20 lakh, the registration charge is ready 20% of the ex-showroom price, which interprets to approximately Rs 4 lakh. When they undervalue the sale of cars, they pay lesser tax. We will impose a penalty or cancel their trade license” said an legitimate.
A luxurious car provider in the Central Business District said: “Vehicles had been registered for numerous years at the actual bill after discounts at the ex-showroom charge. But the transport department’s move will the simplest growth for the price of cars and they’ll visit other states to sign in their vehicles. We are registering cars of owners who’re equipped to pay higher taxes.”
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Randolph Palmer

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