[volkman10]

Post Budget Hyundai India increases prices of all its models,



http://auto.economictimes.indiatimes...k-80k/51212786

[Abhi99]

Thanks GTO for the wonderful thread.

My friend, who had booked a KUV100, with delivery due on 25th March - seems to be the first victim of this budget.

As soon as this budget was proposed, he got a call from the dealer stating - since there is a new duty that is proposed the final price would go up. My friend contested and iterated that if the budget is passed, the rise would be effective 1st of April. To this he got the funniest reply ever! He was told- 'Sir if the price goes up, they are effective immediately but if they come down they are effective from 1st April'.

Now, he has no option but to cough up whatever money they are asking for, which seems unfair. He had already booked the car and was waiting for the delivery. Had the car been readily available in stock, he would have taken the delivery as well. For no fault of his, he would be forced to pay some extra money.

[GTO]

@ Volkman, thanks for sharing! They are clearly absorbing some of the impact with the Santa Fe.

The Creta has a price hike of as much as 65,000. However, the twice-as-expensive Santa Fe sees an increase of 80,000. The 4% cess should have made the Santa Fe pricier by 1.2 lakhs (and that's not including the 1% TCS that the buyer will have to pay at the showroom).

[Rajeevraj]

Here is the impact on the Top 10 selling cars in India from Autocar

Edit: Tata and Honda also announces price hike.

Home-grown auto manufacturer, Tata Motors today announced its decision to hike prices of passenger vehicles in India by up to 35,000. The price hike comes on the back of policy changes announced by Finance Minister Arun Jaitley in the Union budget yesterday. The latest hike is in the range of 2,000 to 35,000 depending on vehicle type, segment, fuel type and variants. According to reports the changes in prices comes with immediate effect to offset the impact of infrastructure cess proposed in the Budget 2016-17

At the same time Honda Cars India too announced its plans to increase prices of cars up to 80,000.

Source:
Autocar
NDTV Auto

[adithya.kp]

I am surprised they havent absorbed in creta too. Considering they have already taken a couple of price hikes, this will be steep now. India is a price sensitive market.I think it will surely hurt numbers.
Luckily for me the dealer already invoiced it.

Originally Posted by GTO

@ Volkman, thanks for sharing! They are clearly absorbing some of the impact with the Santa Fe.

The Creta has a price hike of as much as 65,000. However, the twice-as-expensive Santa Fe sees an increase of 80,000. The 4% cess should have made the Santa Fe pricier by 1.2 lakhs (and that's not including the 1% TCS that the buyer will have to pay at the showroom).

[IndieGooner]

Talk about timing! I spent last weekend shuttling between Hyundai\Honda showrooms in town looking at Verna\City. Hyundai dealers do not have 2016 petrol models in stock and has already informed me of a 24k price rise for top end. Unless I can pick up a car from Honda dealer's current stock, I'll have to bite the bullet or go a variant lower

<Turns head towards 1.0 Ford Ecosport and >

[i74js]

Originally Posted by Abhi99

Thanks GTO for the wonderful thread.

My friend, who had booked a KUV100, with delivery due on 25th March - seems to be the first victim of this budget.

As soon as this budget was proposed, he got a call from the dealer stating - since there is a new duty that is proposed the final price would go up. My friend contested and iterated that if the budget is passed, the rise would be effective 1st of April. To this he got the funniest reply ever! He was told- 'Sir if the price goes up, they are effective immediately but if they come down they are effective from 1st April'.

Now, he has no option but to cough up whatever money they are asking for, which seems unfair. He had already booked the car and was waiting for the delivery. Had the car been readily available in stock, he would have taken the delivery as well. For no fault of his, he would be forced to pay some extra money.

Hi,

The hike is applicable for cars billed by the manufacturer after the budget. In your case as it seems that the car is not available with dealer / ready stock; it is expected that it will be billed by M & M to dealer after the cess announcement. It will be a pass through in this case and he will have to pay the additional sum.

For already available stocks with dealer, the hike can be contested.

Salaried class is very juicy class; juice can be extracted any number of times and at every possible intervention. Taxing EPF will hurt him more !

Couple of more EMIs....ask him to enjoy the car...life goes on !

Cheers !

[mrbaddy]

Originally Posted by GTO

• From June 2016 onward, an additional 1% tax will be collected at the source (i.e. dealership) on all cars costing over Rs. 10 lakh. This is TCS (tax collected at source). If you are a tax-paying citizen (which you should be), the 1% TCS shouldn't make much of a difference as it will be credited back to you at the time of filing your income taxes. Dealerships will collect the tax, deposit it with the government and hand over a TCS certificate to you. This practice widens the tax base as there are a lot of evaders who buy million rupee cars, but don't file their returns!

Another situation that needs clarity.

I want to buy a car for my wife in her name and she is a non working woman without any Taxable income. How can I get a refund for the TCS paid?

[timuseravan]

Originally Posted by Abhi99

Thanks GTO for the wonderful thread.

My friend, who had booked a KUV100, with delivery due on 25th March - seems to be the first victim of this budget.

As soon as this budget was proposed, he got a call from the dealer stating - since there is a new duty that is proposed the final price would go up. My friend contested and iterated that if the budget is passed, the rise would be effective 1st of April. To this he got the funniest reply ever! He was told- 'Sir if the price goes up, they are effective immediately but if they come down they are effective from 1st April'.

Now, he has no option but to cough up whatever money they are asking for, which seems unfair. He had already booked the car and was waiting for the delivery. Had the car been readily available in stock, he would have taken the delivery as well. For no fault of his, he would be forced to pay some extra money.

I am in the same boat. Unfortunately the hikes are effective from 1st March. Not much option but to pay up.

Originally Posted by mrbaddy

Another situation that needs clarity.

I want to buy a car for my wife in her name and she is a non working woman without any Taxable income. How can I get a refund for the TCS paid?

You will have to file returns stating 0 income and claim for refund for the TCS.

[i74js]

Originally Posted by IndieGooner

Talk about timing! I spent last weekend shuttling between Hyundai\Honda showrooms in town looking at Verna\City. Hyundai dealers do not have 2016 petrol models in stock and has already informed me of a 24k price rise for top end. Unless I can pick up a car from Honda dealer's current stock, I'll have to bite the bullet or go a variant lower

<Turns head towards 1.0 Ford Ecosport and >

I am not sure but if diesel motor is your choice, I would in any case rate 1.6 liter Verna above others.

Also it is quite possible that ready stocks are available and you might be saved from paying the cess as it is only applicable of fresh factory dispatches.

Cheers !

Originally Posted by timuseravan

You will have to file returns stating 0 income and claim for refund for the TCS.

That means it is necessary to have PAN; it is possible that a non working person may not have PAN.

Is there no provision for Gift among family members?

I think there should be a way out wherein the TCS can be attributed to the person paying for the car and it can be registered in the name of spouse as Gift.

Any thoughts?

[timuseravan]

Originally Posted by i74js

That means it is necessary to have PAN; it is possible that a non working person may not have PAN.

Is there no provision for Gift among family members?

I think there should be a way out wherein the TCS can be attributed to the person paying for the car and it can be registered in the name of spouse as Gift.

Any thoughts?

Agreed.
Frankly I am not sure if TCS is really needed. You need to submit PAN card at the time of booking. The IT department can easily track who has bought luxury cars via the PAN - so what is the need of TCS?
And is >10lakh really luxury now? Most top end variants of hatches cross that limit nowadays.

[ravelsnip@gmail]

Originally Posted by i74js

I am not sure but if diesel motor is your choice, I would in any case rate 1.6 liter Verna above others.

Also it is quite possible that ready stocks are available and you might be saved from paying the cess as it is only applicable of fresh factory dispatches.

Cheers !



That means it is necessary to have PAN; it is possible that a non working person may not have PAN.

Is there no provision for Gift among family members?

I think there should be a way out wherein the TCS can be attributed to the person paying for the car and it can be registered in the name of spouse as Gift.

Any thoughts?

Why all the hassle I don't understand? If you really want to gift, just buy the car on your name and let her use it rather than applying for a pan for her, filing tax with NIL income, paying fees to the chartered accountant, and waiting for a refund. All this just to buy a car?

[Chethan B G]

Originally Posted by GTO

The Price Impact:

Very comprehensive and clearly stated. Thanks!

Originally Posted by GTO

Logistical Challenges:

While I personally support the 1% 'luxury car TCS', I'm not entirely convinced if it's a good idea to deposit the advance tax with the dealer. It does raise a number of concerns.

TCS / TDS once collected, HAS to be deposited in the respective account in the following month. Failure to do so is equal to a criminal offense. Dealers will be very careful with this - One cannot rotate funds collected as TCS / TDS.

Once the dealer deposits TCS, even if the certificate is not issued, form 26AS can be downloaded at Link: http://incometaxindiaefiling.gov.in

Form 26AS will have all details pertaining to TCS / TDS deposits in our PAN account.

Originally Posted by timuseravan

Frankly I am not sure if TCS is really needed. You need to submit PAN card at the time of booking. The IT department can easily track who has bought luxury cars via the PAN - so what is the need of TCS?

If an individual delays in paying tax on the disclosed income, one has to pay interest.

At the same time, if an individual claims excess tax refund from the government, he/she gets interest from the date of submitting returns. That too, only if the refund amount is more than Rs.10,000/-

Just imagine the amount of interest the government earns on parked TCS.

[anu21v]

Originally Posted by mrbaddy

Another situation that needs clarity.

I want to buy a car for my wife in her name and she is a non working woman without any Taxable income. How can I get a refund for the TCS paid?

The moot question is why cant you buy in your name and give it to your wife. If she is not earning, then how does it matter whether the car is in her name or any other name... after all she cant take any kind of financial benefit like tax savings etc at all.

Does she want to drive the car or wants to have a car in her name . Just go ahead buy in your name and let your wife drive it.

[west]

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