[volkman10]

Stand-by for a great surprise, tax based on GC and what not.

Council rate panel to clarify several tax related issues in December 17 meeting.

SUVs to see levy of 22% compensation cess if engine capacity is 1,500cc, length >4,000 mm.




Link

[Cresterk]

I wonder why they are so obsessed with ground clearance as if we have smooth roads with scientific speedbreakers. My i20 has 170mm ground clearance and a VW Virtus has 179 mm. Wonder what they will be classified as now.

Also current taxation is 28% GST + 22% cess already on SUVs excluding the RTO charges which are paid separately. Wonder what is going to be changed.

[DicKy]

Originally Posted by volkman10

Stand-by for a great surprise, tax based on GC and what not.
SUVs to see levy of 22% compensation cess if engine capacity is 1,500cc, length >4,000 mm.

Reminds me of the time when the Corolla and SX4 were taxed more as they became SUVs by meeting the criteria. Can understand their thinking on the engine size and length, however flawed it is, but ground clearance?

Even small hatchbacks get 170mm+ ground clearance not out of the desire to show echuveeness, but for the pathetic infrastructure. Ofcourse, Mahindra has shown us the jugaad way to circumvent these stupid rules.

[nagr22]

Originally Posted by volkman10

SUVs to see levy of 22% compensation cess if engine capacity is 1,500cc, length >4,000 mm.

Attachment 2389773


Link

Do whats next, increase the height of speed breakers throughout the country? How much more mindless can a government get?

[CEF_Beasts]

Originally Posted by DicKy

Ofcourse, Mahindra has shown us the jugaad way to circumvent these stupid rules.

Toyota has also done it with the Crysta as well, I wonder what will they with the HyCross. I bet that are going under-quote the figure now.

[Cresterk]

Originally Posted by nagr22

Do whats next, increase the height of speed breakers throughout the country? How much more mindless can a government get?

Would be a great way to extort money from people. Raise the size of speedbreakers. Charge more money for ground clearance

[SideView]

Originally Posted by volkman10

Stand-by for a great surprise, tax based on GC and what not.

This is getting ridiculous if true.

I was hoping they will do away with the stupid 4m rule (preventing good global products launching here without jugaad) and here they are adding more stupidity on top.

I hope the manufacturers atleast lobby against this.

[JoaTMoN]

Originally Posted by volkman10

Stand-by for a great surprise, tax based on GC and what not.

SUVs to see levy of 22% compensation cess if engine capacity is 1,500cc, length >4,000 mm.

No wonder why manufacturers are neglecting India. Every decision the government makes is becoming more and more absurd. What's worse is, despite the heavy cost we pay upfront, we still have to put up with terrible roads, and wherever they give better roads, we are expected to pay more for using them. Why?

[volkman10]

The GST council defines criteria for highest 22% cess on SUVs.

Looks like ALL four of the criteria need to be true:

1. it is popularly known as SUV
2. has engine capacity exceeding 1500 cc
3. length exceeding 4000 mm
4. ground clearance of 170 mm or above

Now the upcoming Jiminy (true SUV) could land as a non-SUV while sedans could fall under the SUV category.


Link

[aa1997]

Originally Posted by volkman10

The GST council defines criteria for highest 22% cess on SUVs.

Looks like ALL four of the criteria need to be true:

1. it is popularly known as SUV
2. has engine capacity exceeding 1500 cc
3. length exceeding 4000 mm
4. ground clearance of 170 mm or above

Now the upcoming Jiminy (true SUV) could land as a non-SUV while sedans could fall under the SUV category.


Link

News articles are mentioning MUVs will be treated as a different class. Also we have to see if any cars will actually benefit from this clarification. With so many price hikes any reduction is welcome, VW has unsold cars built in June and ready to sell at old prices but still want to increase prices from January.

[thanixravindran]

Originally Posted by volkman10

The GST council defines criteria for highest 22% cess on SUVs.

Looks like ALL four of the criteria need to be true:

1. it is popularly known as SUV
2. has engine capacity exceeding 1500 cc
3. length exceeding 4000 mm
4. ground clearance of 170 mm or above

Point 1 is hilarious. When you are defining criteria for taxation, can't you define measurable one? Most times it is designed with enough vagueness to harass the tax payer. No wonder our litigation saga keeps growing given how poorly the laws are written.

[DicKy]

One more sore point is that after stifling the sub 4m market engine options, now they are going after bigger cars too. Wait for a slew of sub 1.5l petrol engines that are being offered in the Chinese market by most companies to make it here. So, by the criteria, if MG stop using SUV in their marketing and decrease ground clearance by some jugaad, the Hector petrol is NOT an SUV?

Originally Posted by aa1997

News articles are mentioning MUVs will be treated as a different class.

Maybe they will be. The Corolla and SX4 were classified into SUVs in the early 2010s, but the government revised the ruling saying that they were sedans and thus wouldn't be taxed as SUVs.

Originally Posted by thanixravindran

Point 1 is hilarious. When you are defining criteria for taxation, can't you define measurable one?

One good thing is companies would stop misusing 'SUV' in their marketing material.

[Heisenberg_ad]

Here are the revised rates.

[Black_Star]

Originally Posted by Heisenberg_ad

Here are the revised rates.

Hybrids be like

But still how will hybrids like Hycross and Hyryder be taxed? 50% or 43%?

[SedateGuy]

Originally Posted by Heisenberg_ad

Here are the revised rates.

This table is not entirely accurate, not all greater than 4m SUVs attract the maximum slab. The engine too has to be more than 1500cc inorder to attract the maximum slab