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Old 8th January 2015, 16:19   #46
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Correct me If I'm wrong:

Excise Duty Hike cannot be collected by the Dealers for the Vehicles manufactured up to 31st December, 2014. It's applicable to only 2015 Models.

What happens to the Vehicles manufactured in 2014, but invoiced in 2015 ? When there is a general increase in Price, then the Price prevailing at the time of Delivery is applicable. But here the story is different - It's hike in Excise Duty. And the Dealer is not registered under the Excise Act. Excise Duty is paid at the Factory of the respective Companies.
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Old 12th January 2015, 01:46   #47
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Since excise duty benefited cars under 4 meters, and that benefit is now gone, isn't it possible that upcoming compact sedans such as the Figo sedan can now be launched without being squeezed under 4 meters? Though it wouldn't be 'compact' anymore, the entry level sedan segment sorely needs a good looking car IMO.
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Old 12th January 2015, 10:14   #48
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To the best of my understanding the the sub 4 meter excise benefit is not over. It still exists.
The difference is now in excise duty which was reduced by the previous government and was subsequently extended by the present government.
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Old 12th January 2015, 11:02   #49
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Quote:
Originally Posted by ContessMan View Post
Since excise duty benefited cars under 4 meters, and that benefit is now gone, isn't it possible that upcoming compact sedans such as the Figo sedan can now be launched without being squeezed under 4 meters? Though it wouldn't be 'compact' anymore, the entry level sedan segment sorely needs a good looking car IMO.
AFAIK the excise duty benefit that was extended to across the industry has been withdrawn now. The benefit that existed for under 4m cars still holds.
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Old 21st January 2015, 10:42   #50
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Hi all

What are the chances of an excise duty reduction again in the forthcoming budget.

Should we accept the fact that the present prices are here to stsy and make the purchase
OR
wait for the budget to come expecting a reduction in prices.

Kindly share your opinions plz.
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Old 21st January 2015, 14:54   #51
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Quote:
Originally Posted by FidoDido View Post
Should we accept the fact that the present prices are here to stsy and make the purchase
OR
wait for the budget to come expecting a reduction in prices.
Kindly share your opinions plz.
If everyone starts waiting, you will get a discount due to unsold inventory piling up. :-)

If the car you are planning to buy has a waiting period greater than 1.5 months, you could go ahead and book now. If you see an excise reduction when the budget comes out in Feb end, cancel or renegotiate the price.
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Old 21st January 2015, 14:56   #52
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Thanks for the idea.

What are the chances of an excise duty reduction
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Old 21st January 2015, 15:12   #53
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Quote:
Originally Posted by jaaz View Post
Correct me If I'm wrong:

Excise Duty Hike cannot be collected by the Dealers for the Vehicles manufactured up to 31st December, 2014. It's applicable to only 2015 Models.

What happens to the Vehicles manufactured in 2014, but invoiced in 2015 ? When there is a general increase in Price, then the Price prevailing at the time of Delivery is applicable. But here the story is different - It's hike in Excise Duty. And the Dealer is not registered under the Excise Act. Excise Duty is paid at the Factory of the respective Companies.
The dealers will charge the new ex showroom price only (after excise hike) even on pre-2015 vehicles. Of course he may offer higher discount on such vehicles. But otherwise the difference is a gain for the dealer. Similarly incase of excise duty reduction, the dealer is at the loosing end as the ex showroom price goes down (typically many manufacturer protect dealers from such loss arising out of duty reduction)

Also Excise duty is levied on invoicing at the factory. So even if a vehicle manufactured in 2014 by a company is invoiced to the dealer post excise duty hike, the duty prevailing at the time of invoicing out of the factory is charged.
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Old 21st January 2015, 15:42   #54
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Quote:
What are the chances of an excise duty reduction again in the forthcoming budget.

Should we accept the fact that the present prices are here to stsy and make the purchase
different excise rates involves lot of changes at Manufacturer's / Resellers end and Government will not like to change so fast , if they were in two minds they could have extended lower duties till Feb/ March . I dont see any popssibilties of reduction in duties anytime soon

Last edited by Turbanator : 21st January 2015 at 15:46.
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