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Old 8th June 2017, 22:04   #286
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Originally Posted by Turbanator View Post
I think BMW EcoPlus mode does exactly same and even display extended mileage that you got due to driving in that mode but they never termed it hybrid.
Nope. The EcoPlus mode is like the Eco mode in any other luxury sedan. It basically dulls the throttle response, makes the gear upshift early, reduces the amount of electrical assistance of the steering wheel, and reduces other electronic functions such as heated mirrors etc; to make the drive more economical. It's more of an electronic assistance to force you to drive in a more economical manner than an actual hybrid assistance or brake regeneration system. Therefore, the 'bonus miles' gained are thus not miles that the system has added on, like other hybrid or brake generation systems, but rather miles added on due to the fuel you saved by driving as if you're carrying precious, breakable cargo.
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Old 8th June 2017, 22:09   #287
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Originally Posted by sgiitk View Post
Basically they have clamped down on the so called hybrids which were obviously not. Like cars with auto start-stop and the like. Position regarding true hybrids and electrics is not clear If they want to start phasing out the IC engine within a decade, then some sops are necessary.

I meant the re think they were going to do about the only hybrid cars tax rates .
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Old 9th June 2017, 12:56   #288
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Default Re: GST effect on car prices?

My wife was supposed to take delivery of a small car this month via the Company lease. Now the finance company urged us not to buy it now as it will prove too costly when it comes to the repayment as their computation is as follows

Pre- July - Purchase of car
Ex show room price of the car
Less : 14% VAT
On this Net balance the Loan interest is computed

On repayment
The EMI includes 14% VAT added to each installment

-----

Post July
- On repayment
The EMI includes 29% VAT on each installment
So we end up paying more because the Principal was computed by doing a Less 14% VAT
but recovery time they are adding back 29% VAT

This bumps up the EMI by almost 3k per month.

However if we purchase Post July
29% vs 29% gets offset .

Does this make sense ??
I guess it would apply to everyone who is on a car lease depending on the GST slab your car falls into.
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Old 9th June 2017, 15:51   #289
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Default Re: GST effect on car prices?

Here is the difference between Current Taxation(considering VAT of 14.5%) and GST.

Name:  GSTPrices.png
Views: 8750
Size:  5.5 KB

For Petrol Cars < 4M

GST effect on car prices?-petrol-4.png

For Diesel Cars < 4M

GST effect on car prices?-dieselcars-upto-4m.png

For Sedans

GST effect on car prices?-sedans.png

For Luxury Cars

GST effect on car prices?-luxurycars.png

FOR SUVs

GST effect on car prices?-suv.png

The actual CST is 2%. As per my understanding, the Haryana and TN govt charges 1% CST to Maruthi and Hyundai, though I am not sure how can a State Government give exemption on CST.

For the benefit of others who are planning to purchase a car soon, I have attached an excel sheet wherein base price of the car can be modified to calculate the difference in prices.

GST Impact on Cars.xlsx

Note: The Numbers shown here are just my analysis(as per my understanding of current tax system). The final figures may or may not reflect the same.

Last edited by Aditya : 10th June 2017 at 07:49.
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Old 9th June 2017, 15:51   #290
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Default Re: GST effect on car prices?

Quote:
Originally Posted by Fillmore View Post

Post July
- On repayment
The EMI includes 29% VAT on each installment
You mean 29% GST I guess. Post July there will be nothing with the name "VAT".
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Old 9th June 2017, 16:49   #291
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Default Re: GST effect on car prices?

Quote:
Originally Posted by anandpadhye View Post
You mean 29% GST I guess. Post July there will be nothing with the name "VAT".
Thats correct , I meant 29% GST.
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Old 9th June 2017, 16:52   #292
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Quote:
Originally Posted by Nikhs View Post
Here is the difference between Current Taxation(considering VAT of 14.5%) and GST.
I thought Car's ex-showroom price is a function of Cost + Dealer margins. So if this is true then your model wont give a true picture since you are considering the ex-showroom price which includes dealer margins as well. This means you are levying GST on dealer margins as well to arrive at the net reduction in ex-showroom, which should not be the case.

Experts pls comment?

Last edited by Rehaan : 9th June 2017 at 17:38. Reason: Shortening quote :)
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Old 9th June 2017, 16:58   #293
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Quote:
Originally Posted by Fillmore View Post
Thats correct , I meant 29% GST.

Does this mean that there be increased emi on all existing car lease emis? This would be huge increase for all existing lease holders and especially on the residual value.
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Old 9th June 2017, 17:07   #294
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Default Re: GST effect on car prices?

Quote:
Originally Posted by JKBKS View Post
I thought Car's ex-showroom price is a function of Cost + Dealer margins. So if this is true then your model wont give a true picture since you are considering the ex-showroom price which includes dealer margins as well.
The Ex-Showroom prices quoted here are indicative to compare current net taxes(the way taxes are charged) vs GST. I haven't considered dealer margin, transportation charges etc.,
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Old 9th June 2017, 17:48   #295
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Default Re: GST effect on car prices?

Quote:
Originally Posted by Nikhs View Post
Here is the difference between Current Taxation(considering VAT of 14.5%) and GST.
Note: The Numbers shown here are just my analysis(as per my understanding of current tax system). The final figures may or may not reflect the same.
Looks like you have calculated cess on base price.

4% Infra Cess is always calculated on top of Base price + excise duty.

So for SUV's its 4% of 1040000 (800000 + 240000), which is 41600
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Old 9th June 2017, 18:29   #296
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Originally Posted by harishhm74 View Post
Does this mean that there be increased emi on all existing car lease emis? This would be huge increase for all existing lease holders and especially on the residual value.
I don't know if this would apply when you go for direct financing. But this is how it will be computed is what I was told in case you go in for a Company/Corporate car lease where the vehicle is registered in the company's name.
And later transferred to your name at the end of the Lease tenure.
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Old 9th June 2017, 23:37   #297
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Default Re: GST effect on car prices?

SIAM has requested for a GST review on hybrid cars.
SIAM has requested that for all vehicles falling under the 28% GST bracket, their hybrid version should be levied a 10% lower GST rate of 18%, without any cess

Link below:
http://www.thehindu.com/business/Ind...le18951315.ece

In the author's own words, Without such differential, “it will be impossible to make a small hybrid electric car, commercial vehicle or two/three wheeler viable.”
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Old 10th June 2017, 06:02   #298
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Default Re: GST effect on car prices?

Quote:
Originally Posted by Nikhs View Post
The actual CST is 2%. As per my understanding, the Haryana and TN govt charges 1% CST to Maruthi and Hyundai, though I am not sure how can a State Government give exemption on CST.
Both, Haryana and Tamil Nadu Governments levy and collect 2% Central Sales Tax. A State Government can give a manufacturing entity subsidies and other incentives through a "Package Scheme of Incentives", through their respective Sales Tax laws.

I also understand that the excise on cars measuring under 4 metres is 12.36%. A rough calculation with a Ford Aspire tax invoice in hand told me that the current tax structure had 29.62% of its share in the price of the car, with road tax excluded.
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Old 10th June 2017, 07:24   #299
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Default Re: GST effect on car prices?

Quote:
I guess it would apply to everyone who is on a car lease depending on the GST slab your car falls into.
I guess there is indeed some issue, have a look here:


Under the proposed framework for GST on services, the transfer of “right to use motor vehicles“ and sale of such vehicles after the lease period is complete will be liable to the rate applicable on automobile sector along with the cess.

For mid-segment and large cars, this will be 43% (28%+15%). Currently, lease transaction and sale of vehicle after the lease period are subject to 12.5% value added tax. Leases are subject to service tax of 15% if the vehicle's ownership is not transferred. Thus, for leases that are already running, the total tax bill will rise by as much as 30.5 percentage points, raising the prospect of double taxation of all vehicles leased in the pre-GST era.

http://epaperbeta.timesofindia.com/A...10062017001071
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Old 10th June 2017, 09:27   #300
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Default Re: GST effect on car prices?

Rumour is that GST implementation has been put off till September. What happens now!!!!
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