As part of the economic stimulus package, the Government of India has also reduced the rate of Tax Collection at Source (TCS) on the sale of vehicles.
The rate of TCS on sale of vehicles above Rs. 10 lakh has been reduced from 1% to 0.75%. The reduced rate will be applicable from May 14, 2020 to March 31, 2021.
TCS is excluded from the value of goods while computing Goods and Services Tax (GST) liability, therefore the reduction in TCS will not affect GST on vehicles.
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