Hyderabad: A cold war over discount offers and life taxes is in progress between automobile dealers and officials of the Road Transport Authority (RTA).
Col. P.T. Chowdary, (retd) of the automobile dealers’ association said that it was common for dealers and manufacturers to announce discounts during the festival season.
“In order to boost sales manufacturers announce discounts of up to Rs 10,000 and dealers announce discounts of Rs 20,000. We have been asking the government to consider invoice prices for the collection of life taxes. The RTA is insisting on collecting taxes based on ex-showroom prices,” he said. “We have to bear additional expenses for the handing over of temporary registrations to dealers. The TR fee may be only Rs 150, but we have to hire computer operators for generation of TRs and have to bear stationery costs,” he said.
Joint transport commissioner J. Pandurang Naik says that life taxes are applicable on ex-showroom prices and not on invoice prices.
“We follow the rules and the rules say that ex-showroom prices must be considered,” he said.
