How to buy a Toyota Fortuner luxury SUV for just Rs. 23 lakh? CA explains


A few days ago, a CA did a price structure break-up of the Toyota Fortuner. In that, he explained how the government pockets most of the money when you buy a new car like Toyota Fortuner. Here is new information available that shares how you can save 51% on the tax that you pay for a new car.

The video by Sahil Jain takes the example of the Toyota Fortuner again to explain how one can save 51% on tax on a new car. In the video, he says that it is better to take ITC or Input Tax Credit (ITC) while filing GST.

However, there is a problem with the ITC. Under section 17(C), the Income Tax department can block ITC for any vehicle that has a seating capacity of fewer than 13 people. But you can use exemptions. For example, if you buy the vehicle to supply it further or you can buy the car for transportation of people (pick and drop for employees) or you have bought the car to teach driving to someone (driving school). You can get ITC if you’re exempt for the above reasons.

He further explains that whatever GST you pay, you can claim it as ITC. For example, the GST for the output service that you provide (transportation) is Rs 12 lakh for the first month when you buy the new car (Fortuner). You can claim ITC of Rs 5 lakh and pay Rs 7 lakh on the output instead of Rs 12 lakh. So on Fortuner, you can claim ITC on GST of the car, which comes to Rs 7,28,560.

The second part that you can save is TCS or Tax Collected at Source. It is about Rs 49,280. You can claim it in case you have paid advanced income tax. You can remove this cost from the payable tax.

Claim depreciation cost

How to buy a Toyota Fortuner luxury SUV for just Rs. 23 lakh? CA explains

The remaining cost of the car is Rs 39,67,901. You can claim the depreciation on this cost over the years. If you belong to the highest taxpayer category, which is 42% in India, you can save money over the years by claiming the depreciating value of the car.

So after removing all the taxes and claim amount, a new Toyota Fortuner will cost you about Rs 23 lakhs! But you will have to save the tax on the vehicle over the years. You save about Rs 24,34,359 on the cost of the car. This effectively makes the Fortuner cost less than 50% of the original cost if you do any of the businesses like transportation, supply (dealership) or driving school.



A few days ago, a CA did a price structure break-up of the Toyota Fortuner. In that, he explained how the government pockets most of the money when you buy a new car like Toyota Fortuner. Here is new information available that shares how you can save 51% on the tax that you pay for…