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Friends,
Good News for those who plan to buy a new sub-4m car in future. The cars with sub-4m length and less than 1.5L engine to cost less by at least 12-13% upon implementing the GST.
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Regards
Akash
Good News for those who plan to buy a new sub-4m car in future. The cars with sub-4m length and less than 1.5L engine to cost less by at least 12-13% upon implementing the GST.
"The automobile sector could benefit significantly from GST if the government accepts the recommendations of the GST panel and puts automobiles (except luxury cars) in the general category of standard goods and services with a rate of 17-18 per cent," said Sanjeev Prasad of Kotak Institutional Equities.
Small cars (length of less than 4 metres and engine size below 1500 cc) are currently taxed at 30.4 per cent, which includes an excise duty of 12.5 per cent, central sales tax of 2 per cent, national calamity contingent duty of 1 per cent and VAT of 12.5 per cent.
Once the GST comes into effect, manufacturers may have to pay a tax of 17 -18 per cent on small cars, which could bring down prices by 12 per cent to 13 per cent.
Small cars (length of less than 4 metres and engine size below 1500 cc) are currently taxed at 30.4 per cent, which includes an excise duty of 12.5 per cent, central sales tax of 2 per cent, national calamity contingent duty of 1 per cent and VAT of 12.5 per cent.
Once the GST comes into effect, manufacturers may have to pay a tax of 17 -18 per cent on small cars, which could bring down prices by 12 per cent to 13 per cent.
Regards
Akash