Value added tax is a tax that is charged on most goods and services sold in a country. It is usually charged at each stage of production or distribution of goods and services.
As per the Income Tax Act, 1961, car insurance falls under the category of value added tax (VAT) in India. The VAT rate varies from state to state. In some states, the VAT rate for car insurance is as high as 45%.
The value added tax or VAT as it is commonly known is a tax levied on the sale of goods and services in India. It is a type of sales tax that varies by region within India. The VAT rate in India ranges from 0% to 28%.
This question was asked by many people, but the answer remains unclear. While some say that there is no vat on car insurance, others say that it depends on whether the vehicle is registered or not. In this article, we will try to understand how different types of vehicles are taxed and how much they are taxed.