Toyota Fortuner is the most popular SUV in its segment. It has been ruling this segment for years now. Like other Toyota vehicles, Fortuner is also popular among buyers for its reliability and low cost of maintenance. It is a capable SUV both on and off-the road. When it comes to pricing, Fortuner is not a cheap vehicle. Toyota India has been increasing the price for Fortuner lately and the top-end variant of the SUV would now cost you around Rs 60 lakh on-road. Few months ago, a CA did a price break-up of Toyota Fortuner and explained how government earns most of the money when a customer buys a car like Fortuner. Here we have another video that shows how one can save 51 percent on the tax that you pay for a new car.
The video has been uploaded by Taxation with CA Sahil Jain YouTube channel. In this video Sahil Jain chooses Toyota Fortuner as an example to explain how one can save 51 percent on tax on a new car. He mentions that it is better to take Input Tax Credit (ITC) while filing GST. However under section 17(C), the Income Tax department can block ITC for any vehicle that has a seating capacity of fewer than 13 people. There are exemptions in this case too. For example, if the vehicle is bought for transportation of people (employees of an organisation), driving schools, you can get the ITC.
The video then explains that whatever GST a person pays, he can claim it as ITC. For example, If the GST for the output service (transporation) is Rs 12 lakh for the first month, when you buy a new car (Fortuner). One can claim Rs 5 lakh ITC and pay Rs 7 lakh on the output instead of Rs 12 lakh. So with Toyota Fortuner, the owner can claim ITC on GST of the car which is around Rs 7.28 lakh. Sahil then explains that you can save TCS or Tax Collected at Source. You can claim this in case you have paid advance income tax. The amount is around Rs 50,000 and this cost can be removed from the payable tax.
Claim depreciation cost
After deducting the amount mentioned above, the remaining cost of Toyota Fortuner is Rs 39,67,901. The customer can easily claim depreciation on this cost over the years. If you are a person who belongs to highest taxpayer slab, you can save money by claiming the depreciating value of the car. After removing the taxes and the claim amount, a brand new Toyota Fortuner would cost you about Rs 23 lakh. The video was published in May this year and since then, Toyota has increased the prices and have also introduced the new top-end GR-S varaint of Fortuner in the market. As per the calculation in this video, the owner of a Toyota Fortuner is saving around Rs 24,34, 359 on the cost of his new car. This makes a brand new Toyota Fortuner cost less than 50 percent of its original cost for those who are into transportation and driving school business,