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I have been advised by the sales manager in maruthi showroom that if I am a owner of a vehicle than asked me to transfer that ownership to someone else so that I can save up to 16000 rupees on my new car. he said because if I am a owner of second vehicle I have to pay an extra 16000 rupees has a luxury tax. am I guided in right way.
By SUDHIR 10 October 2009
Expert`s comment:

The manager might be quite wrong as there is no much evidence for the same.Hence it wont matter much if you are having a PAN card.

Answer by Shiva Shankar 10 October 2009

Which state are you from?
In AP Life tax on second vehicles is 12 % while it's 9 % for the first vehicle ( Even if first vehicle is 2 wheeler & second is 4 wheeler.). Probably the manager may be telling this but not understanding / explaining properly.
If you transfer the name / ownership for the first vehicle than the life tax would be 9 % . i.e. 3 % lower. If vehicle cost is 5.3 L - 3 % would work out to approx. 16000.

Answer by Deepam Morparia 10 October 2009

I donot think its luxury tax, it should be loyalty bonus or cask back (whatever they call it), which the manufacturer gives you if you show you owned their vehicle prior to buying a new vehicle from the same manufacturer. For that you will have to have to show registration change done on your old vehicle to someone else.

Answer by Geetendra 10 October 2009
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