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Old 16th March 2012, 13:39   #16
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Originally Posted by rambo1o1 View Post
So now the ex-showroom prices of cars will go up or will it be increase in road tax??I am not well versed with these things!
Actually both, duty increase will increase the ex-showroom price and that will increase the road tax and its a % of Ex-s only.

Last edited by asdon : 16th March 2012 at 13:50. Reason: typing error
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Old 16th March 2012, 13:43   #17
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Here are the highlights of the Union Budget that will affect the Auto Sector: Source NDTV Profit Read more at- Budget 2012: Pranab Mukherjee's Union Budget 2012-13, Live Budget Speech | Budget Highlights, News, Stocks, Analysis at NDTV


* Basic Excise duty hiked to 12 per cent from 10 per cent Budget 2012.
* Excise duty on large cars from 22 per cent to 24 per cent.
* Large cars to attract upto 27 per cent duty, MUVs, SUVs enhanced
* Cars to attract ad valorem rate of 27 per cent
* Customs duty on bicycles and parts increased
* Standard excise duty rate raised from 10 per cent to 12 per cent, to add additional revenue of Rs 18,650 crore
* LNG exempt from customs duty


What Now?

Auto companies are planning to pass on hike in excise duty and raise prices. A price hike is likely, they say.


Maruti: Will pass on hike; price revisions to be announced soon
GM: Will pass on excise increase to consumer; Likely to see prices increasing from Rs 5000 – Rs 40,000
TVS: Will announce price revisions tomorrow; Have no choice but to pass on excise hike
Toyota: Not good for industry, additional burden on customer now will lead to sales slowdown
M&M: Relieved there’s no extra tax announced for on diesel vehicles. On the whole, Budget has been along expected lines as far as excise hike is concerned.

What was Expected:

Extension of 200% accelerated deduction for R&D expenses (expiring on 31 March 2012) for a longer term.
Introduction of specific tax breaks for R&D service providers
Excise duty hike for FY13 – negative
Hike in duty on diesel cars – negative
Diesel subsidy: fix amount per litre to cut subsidy outgo
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Old 16th March 2012, 13:44   #18
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Default Re: Union Budget 2012 and impact on us

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Originally Posted by rambo1o1 View Post
Has duty on large cars been increased to to 27% or 24%?? some news channels are saying 24% others 27%.And what does large cars mean??Only SUV's?? or all cars with engines bigger than 1500cc??
Large cars again are classified into 2 categories: Cars less than 2000cc will now have 24% excise duty and cars above 2000 cc will have 27% excise duty. Earlier, cars larger than 2000cc had to pay additonal 15,000 over and above the 22% excise duty. This has been done with and has been rationalized as 27% flat.

Quote:
Originally Posted by rambo1o1 View Post
So now the ex-showroom prices of cars will go up or will it be increase in road tax??I am not well versed with these things!
Adson has answered this..

EDIT: The impact of increase in standard excise duty might have a direct impact on all small cars! The prices might go up by 2% as per reports.

Last edited by sandsun7 : 16th March 2012 at 14:04.
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Old 16th March 2012, 14:08   #19
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Whether additional taxes on diesel cars or not.. every car buyer will have to pay atleast 2% extra excise duty if he buys a small car or large car. Requesting fellow BHPians to explain what is meant by 'ad valorem'... Thanks in advance

Last edited by Bottom Torque : 16th March 2012 at 14:09.
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Old 16th March 2012, 14:34   #20
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An ad valorem tax (Latin for "according to value") is a tax based on the value of real estate or personal property. It is more common than a specific duty, a tax based on the quantity of an item, such as cents per kilogram, regardless of price.
An ad valorem tax is typically imposed at the time of a transaction (a sales tax or value-added tax [VAT]), but it may be imposed on an annual basis (real or personal property tax) or in connection with another significant event (inheritance tax, surrendering citizenship,[1] or tariffs). In some countries stamp duty is imposed as an ad valorem tax.

Source - http://en.wikipedia.org/wiki/Ad_valorem_tax

Last edited by asdon : 16th March 2012 at 14:36.
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Old 16th March 2012, 14:39   #21
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Originally Posted by asdon View Post
"An ad valorem tax ([COLOR=#0000ff]Latin[/COLOR] for "according to value") is a [COLOR=#0000ff]tax[/COLOR] based on the value of [COLOR=#0000ff]real estate[/COLOR] or [COLOR=#0000ff]personal property[/COLOR]. It is more common than a specific duty, a tax based on the quantity of an item, such as cents per kilogram, regardless of price.
An ad valorem tax is typically imposed at the time of a transaction (a [COLOR=#0000ff]sales tax[/COLOR] or [COLOR=#0000ff]value-added tax[/COLOR] [VAT]), but it may be imposed on an annual basis (real or personal [COLOR=#0000ff]property tax[/COLOR]) or in connection with another significant event ([COLOR=#0000ff]inheritance tax[/COLOR], surrendering citizenship,[COLOR=#0000ff][1][/COLOR] or [COLOR=#0000ff]tariffs[/COLOR]). In some countries [COLOR=#0000ff]stamp duty[/COLOR] is imposed as an ad valorem tax."

Ad valorem tax - Wikipedia, the free encyclopedia

But is this mentioned in the Budget?
As per the NDTV profit report quoted by girishglg (Post #17), in the budget highlights it has been mentioned, "Cars to attract ad valorem rate of 27 per cent"
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Old 16th March 2012, 15:17   #22
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Guys, There's an excellent web cast organised by MMA on Budget 2012 this evening. It should help to understand what this Budget really means to a common man. Take a look at this link

https://www.facebook.com/mmachennai?...13744815318364
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Old 16th March 2012, 15:40   #23
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On the personal income tax slab rates, I see the minimum tax exemption has been hiked to 2 lakhs from 1.8 lakhs. Also, regarding the slabs what was it earlier? Income over 10 lakhs have always been taxed at 30%, isnt it not? Can someone clarify?

Also, No increase in the investment limit for tax exemption as expected?
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Old 16th March 2012, 15:58   #24
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Stop worrying about what it does for me, my car price and my petrol bill - UPA's current budget seems headed the way of its past efforts - sending the country down a path of economic slowdown. Worry about that. If the economy grows well and the government encourages it, then all other miracles can happen!!
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Old 16th March 2012, 16:24   #25
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Originally Posted by bala80 View Post
On the personal income tax slab rates, I see the minimum tax exemption has been hiked to 2 lakhs from 1.8 lakhs. Also, regarding the slabs what was it earlier? Income over 10 lakhs have always been taxed at 30%, isnt it not? Can someone clarify?

Also, No increase in the investment limit for tax exemption as expected?
The interesting point to note is that people with more than 8 lacs taxable income will save significantly more tax than those who are in the lower segments.

Isn't this an indication of the concentration on nurturing consumerism? If more money is unlocked for the middle-of-the-middle class, we might 'save' and that too in secure instruments, but the high-of-the-middle class is more likely to go out an spend - jewellery, restaurants (most of those have their excise duty hiked as well).

PS: This is just a thought, I am not against this even if it was actually the case. Would love to be in the highest income bracket myself, sooner the better
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Old 16th March 2012, 16:33   #26
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Default Re: Union Budget 2012 and impact on us

General Excise hike of 10% going to 12% was expected. I think they had reduced the excise on cars a bit at the time they went to 8%. Rest of it is a non-event - a little tinkering here and a little there. However, with the UPA the devil is in the fine print, so let us wait a day.
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Old 16th March 2012, 16:38   #27
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Default Re: Union Budget 2012 and impact on us

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Originally Posted by AbhiJ View Post
Also, I think the excise increase for diesel vehicles has not been implemented. Good news for the diesel car buyers.
Buddy...I doubt that it will be good news... It could be clear sign that diesel will de-regularized.
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Old 16th March 2012, 18:42   #28
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Budget Highlights:
  • Budget identifies five objectives relating to growth recovery, private investment, supply bottlenecks, malnutrition and governance matters
  • GDP growth to be 7.6 per cent (+ 0.25 percent) during 2012-13
  • Amendment to the FRBM Act proposed as part of Finance Bill. New concepts of “Effective Revenue Deficit” and “Medium Term Expenditure Framework” introduced
  • Central subsidies to be kept under 2 per cent of GDP; to be further brought down to 1.75 per cent of GDP over the next 3 years.
  • Proposed: Mobile based fertilizer management system; LPG transparency portal; scaling up and rolling out of Aadhar enabled payment for government schemes in at least 50 districts.
  • Rs. 30,000 crore to be raised through disinvestment
  • Efforts to reach broadbased consensus on FDI in multi-brand retail
  • Rajiv Gandhi Equity Saving Scheme: to allow income tax deduction to retail investors on investing in equities
  • Rs. 15,888 crore to be provided for capitalization of public sector banks and
    financial institutions
  • A central “Know Your Customer” depository to be developed
  • Swabhimaan: remaining habitations to be covered; to be extended to more habitations; ultra small branches to be set up in Swabhimaanhabitations
  • Investment in 12th Plan in infrastructure to go uptoRs. 50,00,000 crore; half of this is expected from private sector
  • Tax Free Bonds of Rs. 60,000 crore to be allowed for financial infrastructure projects
  • Allocation of Road Transport and Highways Ministry enhanced by 14 per cent to Rs. 25,360 crore
  • Financial package of Rs. 3,884 crore for waiver of loans to handloom weavers and their cooperative societies; mega handloom clusters in Andhra, Jharkhand; weaver service centres in Mizoram, Nagaland and Jharkhand ; powerloom mega cluster in Maharashtra; Rs. 500 crorepilot schemes for geo-textiles in NorthEastern region
  • Rs. 5,000 crore India Opportunities Venture Fund to help small enterprises
  • Allocation to agriculture enhanced; RKVY gets Rs. 9,217 crore; BGREI gets Rs. 1,000 crore; Rs.2242 crore project to improve dairy productivity; Rs.500 crore for coastal aquaculture
  • Various other agricultural activities merged into 5 missions
  • Target for agricultural credit raised to Rs. 5,75,000 crore
  • Interest subvention for short-term crop loans to farmers at 7 per cent interest continues; additional 3 per cent for prompt paying farmers
  • Rs. 200 crore for awards to incentivise agricultural research
  • Provisions under rural housing fund increased to Rs. 4,000 crore from Rs. 3,000 crore
  • Interest subvention of 1 percent on housing loans uptoRs. 15 lakh extended for one more year
  • AIBP allocation raised by 13 per cent to Rs. 14,242 crore
  • National Mission on Food Processing to be started in cooperation with State Governments
  • Scheduled Caste Sub Plan allocation increases by 18 per cent to Rs. 37,113 crore; Tribal Sub Plan by 17.6 per cent to Rs. 21,710 crore
  • Multi-sectoralprogramme to address maternal and child malnutrition in 200 high burden districts
  • 58 per cent rise in allocation to ICDS, at Rs. 15,850 crore
  • Rural drinking water and sanitation gets 27 per cent rise in allocation to Rs. 14,000 crore; PMGSY gets 20 per cent rise to Rs. 24,000 crore
  • Projects covering length of 8800 km to be awarded under NHDP against 7,300 km during 2011-12
  • RTE-SSA gets Rs. 25,555 crore allocation, showing an increase of 21 per cent;6000 schools to be set up at block level as model schools in the 12th Plan; Credit Guarantee Fund to be set up for better flow of credit to students
  • National Urban Health Mission is being launched
  • 34 per cent increase in allocation to National Rural Livelihood Mission, to Rs.3915 crore
  • Rs. 1000 crore allocated for National Skill Development Fund
  • Bharat Livelihood Foundation to be established to support livelihood interventions particularly in tribal areas
  • Widow pension and disability pension raised from Rs. 200 to Rs. 300 per month
  • Grant on death of primary breadwinner of a BPL family in the age group 18-64 years doubled to Rs. 20,000
  • Defence services get Rs. 193407 crore; any further requirement to be met
  • 4000 residential quarters to be constructed for Central Armed Police Forces
  • UID-Aadhar to get adequate funds for enrolment of 40 crore persons, in addition to the 20 crore persons already enrolled
  • White Paper on Black Money to be laid in the current session of Parliament
  • Tax proposals mark progress in the direction of movement towards DTC and GST
  • Income tax exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit of 20 per cent tax slab raised from Rs.8 lakh to Rs.10 lakh
  • Interest from savings bank accounts deductible upto Rs.10,000; deduction of upto Rs.5,000 for preventive health check-up
  • Senior citizens without business income exempt from advance tax
  • Investment linked deduction of capital expenditure enhanced for certain businesses; new sectors eligible for investment linked deduction
  • Turnover limit for compulsory tax audit for SMEs raised from Rs.60 lakh to Rs.1 crore
  • STT on cash delivery reduced by 20 per cent to 0.1%
  • General Anti Avoidance Rule being introduced to counter aggressive tax avoidance
  • A number of measures proposed to deter generation and use of unaccounted money
  • All services to attract service tax except those in the negative list
  • Central Excise and Service Tax being harmonized
  • Standard rate of excise duty raised from 10 per cent to 12 per cent; service tax rates raised from 10 per cent to 12 per cent; no change in peak customs duty of 10 per cent on non agricultural goods
  • Relief in indirect taxes to sectors under stress; agriculture, infrastructure, mining, railways, roads, civil aviation, manufacturing, health and nutrition, and environment get duty relief
  • Certain cigarettes and bidis attract higher excise duty; large cars attract higher customs duty
  • Excise imposed on unbranded jewellery also; measures to minimize impact on small artisans and goldsmiths; branded silver jewelleryexempted from excise duty
  • Net gain of Rs.41,440 crore due to taxation proposals
  • Total expenditure budgeted at Rs. 14,90,925 crore; plan expenditure at Rs. 5,21,025 crore – 18 per cent higher than 2011-12 budget; non plan expenditure at Rs. 9,69,900 crore
  • Fiscal deficit targeted at 5.1 per cent of GDP, as against 5.9 per cent in revised estimates for 2011-12
  • Central Government debt at 45.5 per cent of GDP as compared to Thirteenth Finance Commission target of 50.5 per cent
  • Medium-term Expenditure Framework Statement to be introduced; will set forth 3-year rolling target for expenditure indicators

    Source

Last edited by Warwithwheels : 16th March 2012 at 18:52.
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Old 16th March 2012, 18:49   #29
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Actually if you observe there is no change in Income tax lower limit change, earlier it was 1.8L and you could save another 20K via Infra bond, now they have done away with infra bond and raised it to 2L, so justing fooling people. There were so many hipes that Limit will change to 3 Lakh, 80C investment cap may go upto 1.5L to 2L. Home loan interest option may rise from 1.5L to 2.5L, nothing happened, now I don't know if these were (-)ve Media campaign by spreading these news or actually UPA is brainless
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Old 16th March 2012, 18:54   #30
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Quote:
Originally Posted by asdon View Post
Actually if you observe there is no change in Income tax lower limit change, earlier it was 1.8L and you could save another 20K via Infra bond, now they have done away with infra bond and raised it to 2L, so justing fooling people. There were so many hipes that Limit will change to 3 Lakh, 80C investment cap may go upto 1.5L to 2L. Home loan interest option may rise from 1.5L to 2.5L, nothing happened, now I don't know if these were (-)ve Media campaign by spreading these news or actually UPA is brainless
Not really! Earlier you had to invest 20K out of your pocket to be eligible for the benefit. Under the proposed system, the benefit will automatically accrue to you.

Another thing to note is there is no special slab for women. The basic exemptions of Rs. 2,00,000 is common for all.

Last edited by Warwithwheels : 16th March 2012 at 18:57.
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