Details on the actual price and tax demanded for the car bought by actor Vijay in the year 2012 were out in media. It is reported that the actor who is fond of buying new model luxurious cars, imported the Rolls Royce Ghost model for Rs. 2. 5 crore at that time. Due to the non-existence of GST at that time, VAT tax couldn’t be applied for imported cars and Vijay was supposed to pay 137% of tax for the car he bought. Apart from that, he was supposed to pay road tax, insurance, registration fees, Ces tax to use the vehicle in India.
Judge Subramaniam of Madras high court imposed Rs. 1 lakh fine for actor Vijay who sought tax exemption on a luxurious car that got imported from England. He was asked to pay entry tax by the Assistant Commissioner of Business Taxation. Followed by that, Vijay filed a petition in Madras high court in the year 2012, seeking exemption for the entry tax.
In the petition, Vijay mentioned that the car couldn’t be used as the Regional Transportation Office (RTO) was not approving it for registration due to the failure of tax payment. During the hearing of the case, Judge Subramanian questioned why the petitioner didn’t mention his occupation in the petition to the lawyer of Vijay, says reports. When he was informed that he was an actor by profession, the judge, reportedly said “Renowned actors like him should pay taxes properly” to the lawyer.
“Tax income is the backbone of our country’s economy. Taxes must be paid and it is not a donation and it could not be waived off” the judge further said, according to reports. “People’s tax money is being used for the infrastructure of the country such as schools and hospitals. Tamil actors who has potential to become Chief minister of the state, should be an inspiration and act as a hero in real life as well.” Judge schooled.
Judge also condemned the act of Vijay by saying that actors who portray themselves as a socially responsible ones through their movies, shouldn’t involve in evading tax. It couldn’t be accepted, the Judge said who ordered Vijay to pay appropriate tax for the car he imported within two weeks of time. He also slapped Rs. 1 Lakh fine for the actor and directed him to pay the amount to Chief minister’s COVID 19 relief fund within two weeks.
Now, a report of Puthiya Thalaimurai emerged revealing the details on the tax amount demanded from Vijay. At the time Vijay bought the car, it was priced Rs. 2.5 crore, says the report. He was supposed to pay 137% of importing tax due to the non-existence of GST at that time, due to which VAT tax couldn’t be applied. With road tax, insurance, registration fees, Ces tax, the amount Vijay was asked to pay for the car that worth Rs. 2.5 crore, was Rs. 6.5 crore, according to the report.
To transfer the vehicle to different states, a separate tax has to be paid as an Entry tax. As the amount of entry tax differs from state to state, many who buy luxurious cars would approach court for the exemption of entry tax. Showing the documents of the case filed in court, cars could be registered with less amount of Entry tax. Vijay was asked to pay 20% of entry tax and he reportedly approached the court to reduce the amount of the entry tax like others.
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Now, during the hearing, court dismissed Vijay’s plea and fined him Rs. 1 lakh saying that people seeking tax exemption after buying luxurious cars and trying evade tax is treason.