No 2% Additional Tax for “Second Vehicle” if Previous Vehicle Sold Before Registration: Telangana HC

The Telangana High Court ruled that no additional tax is required for a second vehicle if the previous one was sold before the new registration. The case concerned an individual who had registered a second vehicle but was facing a demand for additional taxes, citing the previous vehicle’s registration. The Court clarified that as long as the previous vehicle was sold before registering the new one, no additional tax should be imposed. This ruling is significant for individuals who upgrade their vehicles and ensures that they are not unfairly taxed for transactions already concluded.