Go Back   Team-BHP > BHP India > The Indian Car Scene

Thread Tools Search this Thread
Old 20th October 2014, 18:10   #1
Team-BHP Support
Join Date: Feb 2004
Location: Mumbai
Posts: 6,337
Thanked: 16,867 Times
Default Maruti Suzuki to pay Rs. 150 crore extra as additional excise duty

Maruti Suzuki, India's largest carmaker in terms of sales has been asked to pay an amount of Rs. 150 crore as excise duty by the Customs Excise and Service Tax Appellate Tribunal. This amount will have to be paid by 14 December 2014 failing which, the company could have to pay interest and a penalty which could amount to a sum in excess of Rs. 800 crore. The case has been running for a long time and if Maruti pays the amount in time, the recovery of balance excise duty, interest and penalty shall be stayed until the final disposal of the appeal. The tribunal found Maruti guilty of producing cars at a higher price than it was claiming in its excise returns to the government. The amount of Rs. 150 crore was determined as the excise duty the company ought to have paid the government over the past five years.

The tribunal claims that Maruti dealers run promotional schemes including offering of discounts. These schemes or promotional expenses are adjusted by the company from the dealers through the margins offered on the automobiles to them.

Maruti Suzuki had claimed that the promotional schemes were offered by dealers after the cars were sold to them. The tribunal did not accept this argument and has held that since the dealers and Maruti enter into written agreements under which the former promise to conduct such road shows, these are taxable as part of the cost of the cars sold by the company. Dealers are known to recover the costs of these campaigns from customers by terming them as handling charges.

Source: Financial Express
Aditya is online now   (3) Thanks Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Soft Drinks, no extra service but extra charge. bblost Shifting gears 58 21st February 2011 16:03
Excise Duty Cuts for small cars: Advantage Customer Or Manufacturer?! MaserQ The Indian Car Scene 18 17th July 2008 18:41
Excise duty cut ??? ironwalah The Indian Car Scene 23 20th March 2007 15:16
Criteria for excise & other duty cuts cartech The Indian Car Scene 1 24th January 2007 11:59
Excise Duty- Airbags LLL The Indian Car Scene 6 3rd April 2006 21:07

All times are GMT +5.5. The time now is 06:52.

Copyright 2000 - 2016, Team-BHP.com
Proudly powered by E2E Networks