Luxury buys above ₹10 lakh to now attract 1% TCS

People buying luxury items such as wrist watches, art pieces, coins, stamps, sunglasses, handbags, sportswear and footwear priced above ₹10 lakh will have to pay 1% tax that will be collected by the seller on behalf of the government, termed as 'tax collected at source' or TCS.

- HT Correspondent

NEW DELHI:

The government has expanded the provision of TCS from motor vehicles (above ₹10 lakh) to other luxurious items to widen the tax net and detect tax evaders. Besides, motor vehicles costing above ₹10 lakh, TCS at 1% rate would now be charged on specified items with immediate effect.

According to a finance ministry's notification, specific items to attract TCS include art pieces such as antiques, painting, sculpture, collectibles (coin and stamp), yacht, rowing boat, canoe, helicopter, sunglasses, handbag, purse, shoes, sportswear, golf kit, ski-wear, home theatre system, horse for racing in race clubs and for polo.