Case Law Details
In re Star motors & Other 27 Applicants (MVAT AAR Maharashtra)
Q.1 Whether the One time ‘RTO Tax (Road Tax),’ required to be paid to Maharashtra Government for use of Motor Vehicle collect and paid by the dealer for the purchaser of Motor Vehicle and Insurance premium’ after registration of Motor Vehicle on the name of purchaser in the office of registration (Regional Transport office) form a part of sale price considering the provisions section 2 (24) and 2(25) and liable to tax under the provision of MVAT Act, 2002.
Ans. In affirmative ,
A) The RTO Tax collected and paid by the dealer on behalf of the customer of a motor vehicle, forms a part of “sales price’ as per MVAT Ad, 2002. And
B) The INSURANCE PREMIUM collected and paid by the dealer on behalf of the customer of a motor vehicle, forms a part of ‘sales price as per MVAT Act, 2002.
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