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Old 28th February 2006, 17:31   #46
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Guys... taking a break from the car story I wanted to point elsewhere related to this budget. Have you noticed that
  • Service tax now stands to be levied at 12% from the earlier 10%
  • ATM operations now are covered under Service tax.
Now that second point and its ramifications look worrisome to me. Are we saying that when we withdraw Rs.1000 from the ATM we loose Rs.120 from the amount withdrawn?!! Thats murder man! Also, since car sales are covered under the service tax... if you buy a 4L car you will pay 2% more on the cost... how much that amounts to? I think Rs.8000 Does not that neutralize the reduction in excise to some extent?
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Old 28th February 2006, 17:42   #47
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Quote:
Originally Posted by Zappo
[*]ATM operations now are covered under Service tax.Now that second point and its ramifications look worrisome to me. Are we saying that when we withdraw Rs.1000 from the ATM we loose Rs.120 from the amount withdrawn?!! Thats murder man! Also, since car sales are covered under the service tax... if you buy a 4L car you will pay 2% more on the cost... how much that amounts to? I think Rs.8000 Does not that neutralize the reduction in excise to some extent?
Zappo, Withdrawl from ATM is not taxed. Buying and maintaining of ATMs is taxed.
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Old 28th February 2006, 17:47   #48
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Quote:
Originally Posted by Zappo
Guys... taking a break from the car story I wanted to point elsewhere related to this budget. Have you noticed that
  • Service tax now stands to be levied at 12% from the earlier 10%
  • ATM operations now are covered under Service tax.
Now that second point and its ramifications look worrisome to me. Are we saying that when we withdraw Rs.1000 from the ATM we loose Rs.120 from the amount withdrawn?!! Thats murder man! Also, since car sales are covered under the service tax... if you buy a 4L car you will pay 2% more on the cost... how much that amounts to? I think Rs.8000 Does not that neutralize the reduction in excise to some extent?
Surely there'll be some other % applicable to ATM ops. Or maybe there could be cut-off for withdrawals in a day , beyond which the tax would be applicable .. disclaimer --> am just guessing .. haven't read any details.

Is there service tax on cars ? I thought it was VAT, which has probably not changed.

'Registrations' was mentioned in the list of additions to the service tax net. Would this include car registrations, real estate registrations ?
The big impact could be on real estate. An additional 2% on a 50 L property means another lakh.
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Old 28th February 2006, 17:53   #49
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Originally Posted by Zappo
for that matter what about the WagonR? Is it below 1200cc? I thought it was 1200+odd change kinds...
Wagon R is 1061 cc.

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Old 28th February 2006, 18:27   #50
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Originally Posted by satish_appasani
Zappo, Withdrawl from ATM is not taxed. Buying and maintaining of ATMs is taxed.
Hmmm... some clarifications are definitely needed as the budget document is not very clear on what ATM operations mean. Tomorrow's papers will hopefully carry some clarifications in the matter. Anyhow if ATM ops get in the service tax net under any guise rest assured the banks will find a way out to levy that back on us.
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Old 28th February 2006, 18:36   #51
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Originally Posted by shuvc
Is there service tax on cars ? I thought it was VAT, which has probably not changed.

'Registrations' was mentioned in the list of additions to the service tax net. Would this include car registrations, real estate registrations ?
The big impact could be on real estate. An additional 2% on a 50 L property means another lakh.
Cars per se may not carry service tax, but any sale transaction is treated as a service to us and hence a service tax is leviable. So I am guessing that dealers do pass it on to us. If not directly on the bill they probably have it covered in their fat margins (the one they use to pass on those hefty dealer discounts in off-seasons). So if that tax gets increased it will again reflect back on the price of the car I guess. Also, if the govt says registration rest assured they do it on purpose. They deliberately leave those legalise so as to bring in (or out if required) whatever they wish as per their convenience. So "any" registration can actually now be covered under that rule.
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Old 1st March 2006, 22:34   #52
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I want to move away from cars here. I want to know how much money has the PM and the FM allocated for Mumbai? If i remember correctly, the PM had come on a visit to Mumbai few months back and made grand statements on how he would personally take interest in making Mumbai another Shanghai and the govt would allocate huge sums of money to improve infrastructure of the city. Has the PM walked the talk and if not why is the congress govt in Maharashtra sitting quiet?

40% of taxes the govt gets comes from Mumbai and they are raping and murdering the city. If mumbai dies, so will India. Why can't these economic geniuses get something as basic as that? I hear there are threats of power cuts in Mumbai now : govt. is recommending that theatres and cable tv shouldn't work between 6 to 9 pm everyday to save power! And then we hear the govt making grand statements about 8% growth and India Shining. And yes, my final question, what measures has Vilasrao Deshmukh govt taken so that July 26 is not repeated this year. It's barely 3.5 months to go for monsoons. And from what I know the congress govt did nothing for 9 months with regards to ensuring that the july 26 problem doesn't repeat in 2006.

Last edited by amit : 1st March 2006 at 22:37.
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Old 2nd March 2006, 15:40   #53
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Originally Posted by Steeroid
Thats the end of the Indica's Xeta run, then. Tata, Xeta!
tata is not willing say tata to xeta, xeta's price has now been reduced by 20k.
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