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Old 17th February 2014, 13:39   #16
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Maruti has already announced that they will pass on the benefit to customers -http://timesofindia.indiatimes.com/b...w/30558995.cms

Hopefully other manufacturers do the same. A 6% cut on SUV's is big since most of them in any case cost in excess of 10 Lakhs
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Old 17th February 2014, 13:43   #17
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

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Originally Posted by eq24 View Post
I called up Ring Road Honda, who have allotted me delivery of the new City sometime next week. These guys are saying they have no clue.
4% of a 10lac car is a lot of money.
Do people on the forum know what is the usual recourse for such savings to be passed on.
When a price rise is in effect the action is immediate, just hoping the same swiftness is employed the other way as well.
This is an interesting one, I think Excise duty is applicable when the vehicle leaves factory gates, not when dealer raises your invoice, which would be your delivery date.

So will a manufacturer pass on the reduction to someone who is getting a delivery between today & when it is actually effective when signed by the President?
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Old 17th February 2014, 13:46   #18
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

All the premium SUVs such as the ML, XC60, X3 etc, will hopefully see a shedding of close to 3 Lacs on their ex-showroom price.
Yum!
Even the Fortuner should see a price lowering of atleast 1.5Lacs.

The Jeep Wrangler should be introduced sometime now!
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Old 17th February 2014, 13:52   #19
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Default re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Do not cheer too much. Why the SUV Excise Cut - they need these for the election. I am cynical, but then reality never hurts
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Old 17th February 2014, 13:58   #20
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

I am still of the opinion that the excise duty on the SUVs and Large Cars is very high at 24% when the small cars attract an excise duty of only 8%. Ok I can understand the fact that there should be encouragement for small and efficient cars in India but bigger cars attracting excise duty to the tune of 3 times than that of small cars seems illogical and deliberate.
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Old 17th February 2014, 13:58   #21
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

SIAM had put a lot of pressure. So PC had to relent.
Anyway, quite strange to read that Maruti is going to pass on benefit 'immediately'.
Any other manufacturer said that?
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Old 17th February 2014, 14:06   #22
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

As much as my auto enthusiast side gets excited at the possibility of buying a better car for my money, my average citizen side cringes at the move.

Auto industry has tremendous environmental impact and i am wonder how will our choked infrastructure cope with it. With more and more cars on the road most of the time your shiny new car will spend, will be in a traffic jam. Delhi is already ranked the most polluted city in the world. If you do not smoke it does not matter because if in Bangalore you travel in a auto probably you smoke a 100 cigarettes worth of fumes in an hour. Can the auto industry grow at 12-15 % forever which the industry guys want ?

Our finance minister went from 27-30 % excise duty on SUV and then he goes from 30-24%. What a turnaround. I wonder how much money Mahindra "donated" to the party fund.

Oh what the hell. Screw the pollution. Let those poor blokes in bikes ingest the fumes of my 140 hp SUV. While i sit inside with the AC in recirculation mode looking cool in my Ray-Ban reflectors.
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Old 17th February 2014, 14:33   #23
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Default re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Ouch!!
I booked a Figo TDCI on 12.02.2014 and received an e-mail confirmation that my vehicle has been despatched by Ford India on 15.02.2014. That's a direct hit of around 10-15k assuming that Ford passes on half the relief provided to its customers!
However, overall it should give a much needed impetus to the auto industry. So thumbs up for that.
But then again, Ouch!!
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Old 17th February 2014, 14:36   #24
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

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Originally Posted by jessie007 View Post
Reduction in excise duty on:

The cut in duty will be applicable around June 20, 2014, when the new government is likely to present the full year budget.
No, this would be with immediate effect. Only such decisions are taken ( regarding alteration in the tax structure) in a vote-on-account which cannot wait till the regular budget. The vote-on-account is meant to leave sufficient money at the disposal of the administration so that the government can run smoothly till the Finance Bill is passed.


Quote:
Originally Posted by gsurya View Post
This is an interesting one, I think Excise duty is applicable when the vehicle leaves factory gates, not when dealer raises your invoice, which would be your delivery date.

So will a manufacturer pass on the reduction to someone who is getting a delivery between today & when it is actually effective when signed by the President?
The Finance Bill requires the Presidential accent, but as far as I know the vote-on-account does not require the Presidential approval.

When the same FM raised the ED on SUV's last year he did not care for the auto industry and what the increase would mean for the industry. There were lot of protest from SIAM last year itself. But this year he reduces the ED on SUV by 6%, whereas he increased it by 3% last year.
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Old 17th February 2014, 15:01   #25
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Good move by the FM and I hope it continues with the full budget to be presented by new govt.

I expect that the loss in excise duties will be compensated by the increase volumes while the customers and the industry will benefit too.

However, instead of a 6% cut for SUVs 24% slab should have 6% and 30% should have had 4% cut instead.

There is a PIL being heard in the supreme court that is asking for a tax on diesel vehicles because of increased pollution and no less than Harish Salve is advocating it. maybe the govt should promote petrol vehicles by extending the cut to only these vehicles.

Last edited by rock75 : 17th February 2014 at 15:05.
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Old 17th February 2014, 15:19   #26
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

How much would this reduce the price of a 150CC (70K+) motorcycle ?
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Old 17th February 2014, 15:28   #27
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

This is good move. I think the calculation of excise is not as simple like 6 % of 10 lakhs = 60K. The excise duty is calculated on factory out price. Then Dealer Margin, VAT added to it. I think formula could be

(((Factory Price + Excise Duty) + Transportation ) + Dealer margin+) + VAT = Ex-Showroom Price

So, benefit is not straightforward 60,000 for 10 Lakh car. It would be lesser than this.

NB: This is result of my limited knowledge. Anyone can correct this, if this is wrong.
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Old 17th February 2014, 15:31   #28
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Default re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

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Originally Posted by sgiitk View Post
Do not cheer too much. Why the SUV Excise Cut - they need these for the election. I am cynical, but then reality never hurts
That would be the cynical thought but, to be even more cynical, the tax on SUVs doesn't matter because these cars are requisitioned and/or stolen for election duty. The question of paying market price doesn't arise.
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Old 17th February 2014, 15:31   #29
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Actually taxes etc add up to about 50% (or more) of the price we pay. so a 5% reduction in excise (on ex-factory) adds up to about half on the street price.
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Old 17th February 2014, 15:33   #30
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Can somebody confirm please : This duty cut is applicable from 1st April 2014 or with immediate effect? I am not sure about it. Please confirm. My friend want to buy vehicle immediately and he is happy if he can save some money
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