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Old 2nd November 2010, 16:51   #1
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Default Get ready to pay for "Free Service" and "Warranty"

Getting used to the wonderful idea of cheap all inclusive maintenance plans, and free services with your vehicle.
Well get what you can as the excise and indirect taxes dept is not very happy about customers getting good service

After-sales service on goods may no longer come free - The Economic Times

The indirect taxes dept wants that all freebies offered, for example "All care plan from chevy" and "extended warranty packages" which are offered at very low cost should be taxed.

So if your free service plan costs the company 50,000rs, be prepared to pay 16% excise on the same unless the MFR absorbs the cost.

If this plan comes into being, even Free services may not be free, with owners having to pay the tax amount.
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Old 2nd November 2010, 17:43   #2
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I think the manufacturers will jot down a solution for this , if anything like this will come into effect .
Already rising taxes and costs is putting a burden on the customers , more tax will add more miseries !

Last edited by fz_rider : 2nd November 2010 at 17:45. Reason: CORRECTION IN SPELLING
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Old 2nd November 2010, 18:38   #3
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Well, the Govt decided its right time to tax us because of growing optimism in the economy. Though I don't welcome this, do we've a choice?

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I think the manufacturers will jot down a solution for this
^^^ is bound to happen once the economy is sliding, which might take few more years to come in effect.

Except Sunlight everything is taxed in this country
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Old 2nd November 2010, 19:11   #4
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Taxing is fine, If India implements proper infrastructure and rule I am ready to pay more tax.

Regards,

Ravi.
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Old 2nd November 2010, 20:00   #5
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Quote:
Originally Posted by fz_rider View Post
Already rising taxes and costs is putting a burden on the customers , more tax will add more miseries !
Companies are already crying about rise in input cost and increasing the base price of the vehicles, I don't think they would be willing to absorb the cost. If anything, they would add this cost to the base price and still offer the all inclusive package. When a company offers 'All inclusive package', the customer would surely sit up and take note of it.

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Taxing is fine, If India implements proper infrastructure and rule I am ready to pay more tax.

Regards,

Ravi.

Wishful thinking!!
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Old 3rd November 2010, 10:46   #6
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Just another way for the Govt. to keep earning more and more, with giving back nothing back peanuts. Govt officials anyways get free services for their cars, dont they ?? So if the end users and companies are giving free services, than why the poke ?

Taxes, Taxes and more Taxes !

Taxes was one of the major reasons why we fought for Independence, didnt we ???
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Old 3rd November 2010, 11:35   #7
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Are these charges not included in the original price? If yes, then we are paying both Excise, VAT and Road Tax on them.
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Old 3rd November 2010, 11:54   #8
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Quote:
Originally Posted by dar3dev|l View Post
Just another way for the Govt. to keep earning more and more, with giving back nothing back peanuts. Govt officials anyways get free services for their cars, dont they ?? So if the end users and companies are giving free services, than why the poke ?

Taxes, Taxes and more Taxes !

Taxes was one of the major reasons why we fought for Independence, didnt we ???
It's never a "we".
Its always a few wise/intelligent/non-conformist.
And the rest just follow the crowd/herd.
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Old 3rd November 2010, 12:15   #9
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Quote:
Originally Posted by ravibhat View Post
Taxing is fine, If India implements proper infrastructure and rule I am ready to pay more tax.

Regards,

Ravi.
All the taxes we pay go into the pockets of a few politicians and bureaucrats under the guise of building infrastructure. That's what the whole set-up is for. And that makes it doubly hurtful. CWG is a great example.
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Old 3rd November 2010, 12:56   #10
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Considering that all these things are easily traceable via paper trail what choice does any car manufacturer/ dealer have in this matter? for that matter what choice do we as consumers have?

If we want these services I guess we shall have to budget for the same.

I wish they would implement a "One India One MRP price" diktat for vehicles as well as vehicle Fuels. I think that is only fair - why should there be different excise and road taxes structures across different states? and why should there be different prices for fuel in different states?

Considering that there is a Single MRP law for all other consumer products regardless of where they are sold in India, I think this is eminently unfair, to have to pay differing prices for cars and vehicles and fuel!!
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Old 3rd November 2010, 13:57   #11
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Quote:
Originally Posted by shankar.balan View Post
Considering that there is a Single MRP law for all other consumer products regardless of where they are sold in India, I think this is eminently unfair, to have to pay differing prices for cars and vehicles and fuel!!
I believe this was proposed by the Union Government way back in 2007 as Goods and Service Tax which was shot down by our state's Finance minister who feared that they would loose their main source of income.
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Old 3rd November 2010, 14:34   #12
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@DWind: you forgot to add patronage. Various lobbies campaign for a lower tax, and naturally they may be feeding some fish.

Also, Delhi enjoying the highest subsidies in the country maintains a low tax structure (due to the subsidies) and then feeds many nearby states under the table. Of late it seems that Haryana have given them a taste of their own medicine!
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