[ghodlur]

Originally Posted by dhanushmenon

If you buy the car at Gujarat and want to register out of Gujarat, the state government will charge some extra tax in the name of exit VAT. This is a fixed percentage of the cost of the car in CSD. (I don't remember the figure).
I hope this post was of help to all members and browsers who read through this thread.

Hi Dhanush,
Your thread has been an information mine and thanks very much for the same. Have few queries. One of my known acquaintance is planning to buy an Avventura in Ahmedabad through CSD since his uncle is in Navy. Now he wants to transport the car to Thane and register here. In this case as your post said he may be levied an Exit VAT.
1) Can the car be booked in Ahmedabad CSD but delivery taken through Mumbai CSD and registered? Or is it the case that he would get the necessary paperwork from CSD for buying a car from dealer.
2) In continuance to above query, can the paperwork from A'bad CSD be valid for purchases from dealer in Mumbai/Thane?
3) Are any purchases for defence personnel exempt from the usual LBT/octroi?

Thanks in advance.

[djay99]

I am planning to buy Vento TSI HL via CSD. Volkswagen India exec called me and said i can only buy via chennai dealership and not via hyderabad or bangalore dealer. Is this true?
Ex-showroom cost in Chennai for Vento TSI HL is 9,21,000.

[dhanushmenon]

Originally Posted by ghodlur

One of my known acquaintance is planning to buy an Avventura in Ahmedabad through CSD since his uncle is in Navy.

He cannot buy a car through his uncle. If his uncle is in the Navy, the car can be registered only in the name of his uncle. That is something which I would not recommend.

Originally Posted by ghodlur

Now he wants to transport the car to Thane and register here. In this case as your post said he may be levied an Exit VAT.

That is correct. Exit tax is levied by Gujarat

Originally Posted by ghodlur

1) Can the car be booked in Ahmedabad CSD but delivery taken through Mumbai CSD and registered? Or is it the case that he would get the necessary paperwork from CSD for buying a car from dealer.

The car can be booked at Ahmedabad. However, the delivery has to be taken there itself. If he wants to take delivery at Thane, the car booking has to be done at the local CSD Office. And further, the delivery through the local CSD authorised Mahindra dealer at Thane

Originally Posted by ghodlur

2) In continuance to above query, can the paperwork from A'bad CSD be valid for purchases from dealer in Mumbai/Thane?

Since the previous query itself returned a void result, this questions nullifies itself. The paper work will not be valid here.

Originally Posted by ghodlur

3) Are any purchases for defence personnel exempt from the usual LBT/octroi?

I am not aware of what the LBT is. However, the Octroi for state transfer is exempted. You would need to carry a certificate from the parent unit of the serving personnel to this effect.

Hope I was of some help.

Originally Posted by djay99

I am planning to buy Vento TSI HL via CSD. Volkswagen India exec called me and said I can only buy via chennai dealership and not via hyderabad or bangalore dealer. Is this true?

First you would need to find out whether Hyderabad or Bangalore CSD provides your choice of car or not. If they do provide, then you can take delivery from Hyderabad or Bangalore as your choice may be. Keep in mind that if you want to buy from Hyderabad, you would need to make the purchase order from Hyderabad CSD and similarly for Bangalore.

Else, If you are positioned at Chennai now, you can very well make the purchase from Hyd/ Blore and drive down to Chennai for registration.

[nik hill]

I am about to buy car from csd but the dealer is insisting on payment of logistic charges to him in addition to amount already paid to csd.
Please clarify the options available to me including the redressal mechanism.

[dhanushmenon]

Originally Posted by nik hill

I am about to buy car from csd but the dealer is insisting on payment of logistic charges to him in addition to amount already paid to csd.
Please clarify the options available to me including the redressal mechanism.

Yes. You will have to pay that amount.
Even if you buy a car from outside, you will have to pay handling charges to the dealer above the cost of the car. When I did my research before I bought the car, the handling charges/ logistic charges were ranging between Rs 5000- Rs 9000 from dealer to dealer. The best option is to weigh in all considerations and choose the lesser of all evils

[nik hill]

I checked up with area manager csd and he has clarified that no other charges are to be paid to the dealer.
He said that if the dealer insists on it lodge a complaint with us and we will take necessary action against the dealer.

[dhanushmenon]

Originally Posted by nik hill

I checked up with area manager csd and he has clarified that no other charges are to be paid to the dealer.
He said that if the dealer insists on it lodge a complaint with us and we will take necessary action against the dealer.

Good luck in that case.
I have bought two cars through CSD and both times, I had paid the handling charges to the dealer. I felt that it was a fair amount to be paid to him as he isn't getting as much profit from this deal that he garners from others. Moreover, it is always best to keep them in good books. The fate of your car mostly lies with them till the time you take delivery. Though you can do a lot of thorough PDI, but you can never know what they do behind the closed showroom shutter. They might even palm you off a bad lemon or replace parts.

For us, buying a car is a rarity but for them it's daily business.

However, please do update if you get any further headway in this issue. It would be of great help to others too who would be browsing this thread in future.

[nik hill]

An update from my end regarding handling or logistic charges. I politely but firmly told the dealer that these charges are illegal and i will not be paying it. Sent a similar mail to ford also and they confirmed that no charges are to be paid to the dealer.
The dealer also accepted it without any issues. So we just need to be aware of the correct rules and be assertive enough to say what is correct.

[dhanushmenon]

There has been an enhancement in the service criteria and engine capacity limits for purchase of four wheelers through CSD. This has been announced to take effect from immediate effect.

The most notable of them is that the engine capacity has been increased to 3000 cc from the erstwhile 2500 cc for officer catergory and 2000 cc from the erstwhile 1400 cc for ORs. Additionally, ORs can now buy car after 10 years of service while it was 15 years service earlier.

These are welcome changes bringing in accessibility to masses. Also, with the engine capacity pegged at 3000 cc, I really hope that the likes of Fortuners will come to the fray. I do really hope so.

Further details of enhancement as per photo attached below:

[Blue Bird]

A friend of mine was planning to purchase a car from Ahmedabad , however he informed me that the Excise exemption has been taken off and the car rates have increased since Jan 2015. Can you throw some light on this news/rumor?

[dhanushmenon]

Originally Posted by Blue Bird

A friend of mine was planning to purchase a car from Ahmedabad , however he informed me that the Excise exemption has been taken off and the car rates have increased since Jan 2015. Can you throw some light on this news/rumor?

I am not aware of the recent lifting of excise exemption. Even at the time when I was penning this article, (end of 2013), I would not have bought a car from Gujarat. That was because, at the time of purchase the price would've been competitive. However, the government of Gujarat charges some percentage of VAT (as per the cost of the vehicle) if it exits the state without registering. Therefore, that works out to be a losing game.

Back in 2010, buying from Ahmedabad was a good option. I don't think it is now.

[nik hill]

Originally Posted by Blue Bird

A friend of mine was planning to purchase a car from Ahmedabad , however he informed me that the Excise exemption has been taken off and the car rates have increased since Jan 2015. Can you throw some light on this news/rumor?

This is a fact and applicable to all cars irrespective of you are buying it from csd or otherwise or where you are buying it from. The government of India withdraw the additional excise benefits they had extended a year back to auto industry.

[shyampsunder]

Hmm looks like Defense personal will benefit immensely due to the age of turbo charging. Even a Q7 comes with a 3000 CC engine. The excise duty savings will be immense on such cars. Is CSD applicable for CBU cars?

[dhanushmenon]

Originally Posted by nik hill

This is a fact and applicable to all cars irrespective of you are buying it from csd or otherwise or where you are buying it from. The government of India withdraw the additional excise benefits they had extended a year back to auto industry.

Thanks nik hill. That info would be very useful for all in the forum.

Originally Posted by shyampsunder

Hmm looks like Defense personal will benefit immensely due to the age of turbo charging. Even a Q7 comes with a 3000 CC engine. The excise duty savings will be immense on such cars. Is CSD applicable for CBU cars?

It is not so simple as it seems shyampsunder. Many factors contribute to a car being available on CSD. Listing a few: -
1) The car should have enough demand amongst the defence personnel. That means, the car should sell in enough volumes initially and then only will it be considered for inclusion in CSD. (For eg: A Scorpio Vs a Yeti. Yeti was available in CSD for a little while and after that it was removed.)
2) The car manufacturer also has to show interest in the car being included into the CSD inventory. Luxury car manufacturers doesnt fall into this bracket as well.
Eg: VW cars again. Though there are VW cars available, the initiative from the manufacturer to include more cars over the years have been luke warm at best.
3) Most important factor: Price tag.
Defence personnel doesn't earn enough to afford a pointed triangle, the four circles or a bimmer. Therefore, even if these cars are included into the inventory, they wont sell. If you look at the cars in the CSD inventory, you would find majority are the common man's cars. The costliest in the list would be probably the XUV.
4) The increase has come through just a few weeks back. It will take time for the manufacturers to introduce these cars to the inventory. My feeling is that the first cars to get introduced would be the Fortuner and Endeavour. (Fortuner was available in CSD earlier, but was taken off the list when the limit of 2.5 litre engine was introduced in the criteria.)

(Even the Fortuners and Endeavours would be quite a stretch for a defence person)

[mithun_k_g]

Any idea if CSD purchase available in Karnataka? I have tried with few showrooms and they said that it is not there. any idea?