[xjosephjacob]

What's fascinating about this whole episode is the chain reaction it sparkled. One news about a relatively unknown person spending 46 lacs on a registration, and suddenly thousands (including me) are googling him.

Was it worth 46 lacs ? Who knows. But he definitely got people talking- and that might have been the whole point !

A few of our emotions at play could include:

Shock- 'What ? 46 lakhs just for a numbers ? That's more than price of a luxury car !"

Possibly the most common reaction- Indians I know are sensitive to large sums being spent on "non-essential" things

Curiosity: "Who is this guy ?" or "What does he do ?" or "How can he afford this?"

So we start Googling his name, finding out the company that he heads etc. That's indirect win for him- more eyeballs, more searches, and name recall.

Speculation: "Must be black money" or "Maybe it's a PR stunt" or "Tax evasion tactic?"

Some of us just love to theorize

Intrigue: "Is he using this for advertising his company?" or "Can this be claimed as an expense"

These are Deep thinkers who try to rationalize the spend by connecting it to a larger picture

Mixed Emotions: Admiration, Skepticism and Reflection: "One day I'll do this" or "These guys live in another world"

Yes, the daily dosage of motivation common man needs

[AtheK]

Originally Posted by TorquePull

Does he get to keep the number for life? Or it will go to the next owner when he sells the car?

Yes he can transfer it to his next car if he wants.

[volkman10]

Venu Gopalakrishnan, Kerala CEO Pays Rs 46 Lakh for fancy number plate for his Lamborghini Urus.

Gopalakrishnan’s new number plate closely resembles '007', which is a favorite among car enthusiasts. The number '007' is a popular pop culture reference to James Bond.

Gopalakrishnan is the founder and CEO of Kochi-based IT firm Litmus 7 Systems Consulting Pvt. Ltd.





Link:

[StarrySky]

Originally Posted by TorquePull

Does he get to keep the number for life? Or it will go to the next owner when he sells the car?

Originally Posted by AtheK

Yes he can transfer it to his next car if he wants.

In Kerala Motor Vehicle Rules Section 95 (14) it is said that the number is NOT transferable. I don't know if any central government rules override this provision.

[AtheK]

Originally Posted by StarrySky

In Kerala Motor Vehicle Rules Section 95 (14) it is said that the number is NOT transferable. I don't know if any central government rules override this provision.

It is definitely possible check this

Now maybe Kerala does not allow it, but VIP numbers can be transferred and 0007 is a VIP number.

[dhanushs]

Apparently spending money on fancy number plates can help save tax for your business. One of the rules I guess is to use it for branding and PR purpose.

This guy apparently has done it well.

[A.K]

Originally Posted by dhanushs

Apparently spending money on fancy number plates can help save tax for your business. One of the rules I guess is to use it for branding and PR purpose.

This guy apparently has done it well.

This is not true. The only way that it will help "save" tax is that the cost of the plate and registration will be added to the value of the car and the depreciation on the asset will be claimed inclusive of the plate cost. This is, obviously, assuming that the car is registered to a company and not to the owner in personal capacity.

[Doppelkuplung]

Kerala does not allow plate transfer. The amount can be booked as expense and depreciated as company car (This is why most fancy numbers are of business people and not salaried. Politicians are not included due to obvious reasons) The whole point of this VIP number is to grab attention and this episode is a perfect example.

[SR5471]

Too much disposable income can lead to interesting purchases. The Urus looks stunning in that colour. He won't need that number plate to get noticed anywhere he goes.

[freelancer6202]

All our vehicles (bikes and cars) since 1987 (FIAT - MIR 8000) are registered with 8000 plate. My father considered 8000 as his lucky number. After him me and my brother are keeping the tradition. We usually have to pay a modest sum of around 50-60k depending on the series. It's a craze that is difficult to understand and even more difficult to answer at times. He certainly has the money to splurge then why not.

[kiku007]

Originally Posted by dhanushs

Apparently spending money on fancy number plates can help save tax for your business. One of the rules I guess is to use it for branding and PR purpose.

This guy apparently has done it well.

Originally Posted by A.K

This is not true. The only way that it will help "save" tax is that the cost of the plate and registration will be added to the value of the car and the depreciation on the asset will be claimed inclusive of the plate cost. This is, obviously, assuming that the car is registered to a company and not to the owner in personal capacity.

You are right about depreciation benefits. I'm not aware of the nuances in the Indian tax code, but allow me to explain how @dhanushs post is true in Australia.

Depreciation Tax Benefits:

• Businesses need investments and inputs.
• IF one can prove that a motor vehicle is one of the inputs to the operation of the business, then the business can claim depreciation benefits on the asset cost, AND also claim operational expenses incurred to operate the motor vehicle for the business.

Tax deductible business expenses:

• This is actual expenses incurred in the operation of the business. This is not about depreciation.
• The cost incurred in the wrapping of the M2 is an expense towards promoting the business (The company name is part of the wrap).
• Without the company name, the wrapping cost is a non-deductible expense. With the company name, the wrap is a tax deductible expense.

I have no idea on the intent of the Lambo owner's tax planning goals. Looking at the publicity and chatter he has received, I suppose he can convince the Tax department he spent almost 5 million rupees in promoting his IT Consultancy Services company.

To all the cynics, I have a question though. Would you rather want such people to have CH, HR plates or pay their dues to their home state government and enjoy their new toy with a fancy number? Whatever floats his boat.

P.S: Often times I hear people say, "That's a tax write off, got this for tax benefits." etc. and I try to explain that wise people don't spend $70 ONLY to save $30. If one has $70 but desires a $100 product, then tax planning can be applied to achieve the goal with just $70. That's how it works.

This is not tax advice!!