New Delhi, April 24 -- People buying luxury items such as wrist watches, art pieces, coins, stamps, sunglasses, handbags, sportswear and footwear priced above Rs.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.
The government has expanded the provision of TCS from motor vehicles (above Rs.10 lakh) to other luxurious items to widen the tax net and detect tax evaders. Besides, motor vehicles costing above Rs.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 piece such as antiques, painting, sculpture, collectibles (coin and ...