[jods]

Originally Posted by Behemoth

The exact text from the FM's Budget speech are:
"Large cars currently attract excise duty depending on their engine capacity
and length. In keeping with the increase proposed in the standard rate, I propose
to enhance the duty from 22 per cent to 24 per cent. In the case of cars that attract
a mixed rate of duty of 22 per cent + Rs 15000 per vehicle, I propose to increase
the duty and switch over to an ad valorem rate of 27 per cent."

This would result in an across the board hike of almost 2% for all cars. Some cars ( mostly SUVs), will see a hike from the current 22% + 15000 INR slab to a value based 27%. Which means a 22 Lac Fortuner would see a price hike of nearly 1 Lac Rupees.

Regards,
Behemoth

This is better! So I guess I did save some money. The ex showroom price of Skoda Rapid is 919,000 which gives a pre excise price of Rs 734,959. A 27% duty would mean the new ex showroom price of 933,397, a saving of Rs 15,000!

[sandsun7]

Originally Posted by jods

This is better! So I guess I did save some money. The ex showroom price of Skoda Rapid is 919,000 which gives a pre excise price of Rs 734,959. A 27% duty would mean the new ex showroom price of 933,397, a saving of Rs 15,000!

You would have saved around 2% which translates roughly into Rs. 18,380 (considering your the earlier ex showroom price was 9,19,000 and after 2% hike, 9,37,380)
Also the road tax would be subsequently up by 2% as it is calculated as a percentage of the ex showroom price!
Moral: a purchase decision taken at the right time saves a lot of money!

[wilful]

Originally Posted by vinit.merchant

Edit: if even the diesel prices go untouched, god help people who want to sell their petrol cars. It will be a feast for petrol used car buyers and now, will make even more sense than buying new.

Couple of years from now, assuming govt uses the same approach, spotting a petrol sedan would be like finding diamonds in the coal mine.

I fear this is going to be true.
Already I reckon about 90% of auto-rickshaws are diesel - those noisy rattley contraptions.
Some years ago a contractor doing some work for my company then used to ride around on a diesel Bullet m/bike. I just wonder if we will be seeing something in the way of diesel 2 wheelers if this is going to continue. And then what? A nation of only diesel vehicles? How will they tax Peter then, to pay Paul?

[GenuineOptimist]

Skoda rapid with engine capacity of 1600 cc would come under the 24% excise duty slab, not 27%

This is not correct.. For length > 4000 and CC > 1500, the duty increases from 22%+15k to 27%.

Here is the explantory notes from Central Excise department after Budget. Available at http://indiabudget.nic.in/ub2012-13/...xplanatory.pdf

87.2. Excise duty on petrol/LPG or CNG driven cars, with length not exceeding 4000mm and engine capacity not exceeding 1200 cc is being increased from 10% to 12% and on diesel driven vehicles having length not exceeding 4000mm and engine capacity not exceeding 1500 cc from 10% to 12%. [S.No. 285 of Notification No.12/2012-CE dated the 17th March 2012 refers]

87.3. Excise duty on petrol driven cars with length exceeding 4000mm and engine capacity under 1200 cc is being increased from 22% to 24% and on petrol driven vehicles having length exceeding 4000mm and engine capacity exceeding 1500 cc from 22% + Rs.15,000 to 27% [S.No. 284 of Notification No. 12/2012-CE dated the 17th March 2012 and clause 141 read with the Seventh schedule refers]

87.4. Excise duty on diesel driven cars with length exceeding 4000mm and engine capacity under 1500 cc is being increased from 22% to 24% and on diesel driven vehicles having length exceeding 4000mm and engine capacity exceeding 1500 cc from 22% + Rs.15,000 to 27 [S.No. 284 of Notification No. 12/2012-CE dated the 17th March 2012 and clause 141 read with the Seventh schedule refers]

[drmohitg]

I am really surprised with the budget. There were very strong rumors about exclusive increase in Excise duty of around 6% only on diesel cars. I fail to understand the logic behind increasing the duty across the segment. May be the rich Auto companies forced this decision? I still believe the Govt cannot afford to touch the diesel prices by much as a fuel since the partnership with the allies is already fragile. God knows whats going through there mind. Why are they hell bent on increasing the losses of the oil companies?

[tanwaramit]

Originally Posted by Behemoth

This would result in an across the board hike of almost 2% for all cars. Some cars ( mostly SUVs), will see a hike from the current 22% + 15000 INR slab to a value based 27%. Which means a 22 Lac Fortuner would see a price hike of nearly 1 Lac Rupees.

Regards,
Behemoth

Even if you consider the excise duty at Ex Showroom price, at 22L, isnt 2% hike equal to 44k? way below the 1L mark.

Now consider, the excise is levied before Ex-Showroom Price

[Yeldo]

From what I hear the Finance Minister in his speech mentioned cars on two instances:

"Large cars currently attract excise duty depending on their engine capacity and length. In keeping with the increase proposed in the standard rate, I propose to enhance the duty from 22 per cent to 24 per cent. In the case of cars that attract a mixed rate of duty of 22 per cent + `15000 per vehicle, I propose to increase the duty and switch over to an ad valorem rate of 27 per cent."

"Completely Built Units of large cars/ MUVs/ SUVs having engine capacity above a prescribed threshold and whose value exceeds US dollar 40,000 per vehicle are permitted for import without type approval. Basic customs duty on such vehicles is being enhanced from 60 per cent to 75 per cent ad valorem."

Hence all large cars are going to cost more. Any CBU shall cost more whether it is a car, an MUV or an SUV.

So,
1) Jairam Ramesh did not find a taker for his "Tax Audis & BMWs Campaign".
2) The motor industry lobby succeeded in warding off special tax on Diesel cars.

Looking forward to the fine print of the Budget to get more specific details.

Oh, BTW, the "walk" between different excise/ customs slabs might be now really long.

[Behemoth]

Originally Posted by tanwaramit

Even if you consider the excise duty at Ex Showroom price, at 22L, isnt 2% hike equal to 44k? way below the 1L mark.

Now consider, the excise is levied before Ex-Showroom Price

In my knowledge, The Fortuner is in the 22% + 15K INR slab, which translates to approx. 22.7%. This goes up to 27% ad valorem, which would translate into a 4.3% increase on the price. Excise is levied on the MRP (ex-showroom price) of the product for consumer sale products and would translate into almost a 80-90K increase. It only remains to be seen how much they pass on to the customer and how much they absorb. In the case of the Fortuner, as demand is so high, they would most likely pass it on entirely.
Any financial gurus who can confirm the taxation policy?

Regards,
Behemoth

[mohandas]

What will be the duty increase for the following cars:
i. ANHC
ii) Etios (P)
iii) Nissan Sunny (P)

All three are > 4000 mm but engine wise < 1500 cc
Will those attract 24% or 27% ?

Originally Posted by GenuineOptimist

87.3. Excise duty on petrol driven cars with length exceeding 4000mm and engine capacity under 1200 cc is being increased from 22% to 24% and on petrol driven vehicles having length exceeding 4000mm and engine capacity exceeding 1500 cc from 22% + Rs.15,000 to 27% [S.No. 284 of Notification No. 12/2012-CE dated the 17th March 2012 and clause 141 read with the Seventh schedule refers]

[jods]

Originally Posted by tanwaramit

Even if you consider the excise duty at Ex Showroom price, at 22L, isnt 2% hike equal to 44k? way below the 1L mark.

Now consider, the excise is levied before Ex-Showroom Price

It should be higher -

Old Exshowroom price - INR 22,00,000
Old Ex showroom Less Excise (22% and INR 15,000) - 17,90,983
New Excise Duty (27%) - 4,83,566
New Ex showroom price - 22,74,549

An increase of 74,549 and a corresponding increasing in road tax!

[Warwithwheels]

Guys, There's an excellent web cast organised by MMA on Budget 2012 this evening. It should help us to understand what this Budget really means to a common man. Take a look at this link

https://www.facebook.com/mmachennai?...13744815318364

[veyron_head]

What is a 'large' car? What is the CC requirement for a car to be called as 'large'?

[lohithrao]

D-control of diesel is on the way, so gala time for diesel owners going to end? also read maruti, M&M to hike prices..

[avira_tk]

Good that diesel vehicles haven't been targetted using the subsidies-abused-by-the-rich line. A hike in excise duties was on expected lines. The government allies are opposing any hikes in diesel and rail fares, popularity of diesel vehicles will go through the roof. Petrol prices are headed up again, in which case it will make no sense to buy a petrol unless fuel bills are paid for, or resale does not matter at all to you.

[sandsun7]

Originally Posted by veyron_head

What is a 'large' car? What is the CC requirement for a car to be called as 'large'?

Post no: 19 by GenuineOptimist clarifies the doubts regarding the excise duty slabs for cars. Please do refer that post! Even I carried a few misconceptions regarding the same, before I saw that post.