![]() | #136 |
BHPian ![]() Join Date: Jun 2008 Location: bangalore
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| ![]() Has anyone filed a case against this illegal double taxation ? Let me know I am willing to join Last edited by Eddy : 18th December 2017 at 15:32. Reason: Correcting typo. |
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![]() | #137 |
Senior - BHPian ![]() Join Date: Sep 2009 Location: Bangalore
Posts: 1,507
Thanked: 2,507 Times
| ![]() Does car lease still make any financial sense? I have a company leased plan option in my company and I was quite keen before GST kicked in. Now that the GST rates on the monthly emi have been reduced, is it viable considering the offset on income tax? |
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![]() | #138 | |
Senior - BHPian ![]() Join Date: Jan 2014 Location: Bangalore
Posts: 1,452
Thanked: 2,978 Times
| ![]() Quote:
If you take a Car Lease today, it is still viable and would work almost on par with how the scheme was earlier. But now the disclaimer to note is we have a crazy Govt. and they may add more tax any day and the tax gets applied to pre-existing leases as well. ![]() If you are buying a small car then its a safe bet as the impact in that bracket has been in the tolerable limits and may remain untouched for the near future. | |
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![]() | #139 |
Newbie Join Date: Apr 2016 Location: Bangalore
Posts: 7
Thanked: 11 Times
| ![]() Will the car under Car Lease be considered as "Used Car" during buyback or will have to pay the GST as a new car? |
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![]() | #140 |
BHPian Join Date: Jul 2015 Location: Hyderabad
Posts: 49
Thanked: 65 Times
| ![]() I had the same question as well. All lease vehicles have some residual value (20% usually) which we have to pay in the end to close the lease and transfer the car in our name. Now, wondering what rates will apply for this residual value paid in the end. Will it be treated like a second hand sale? |
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![]() | #141 |
BHPian | ![]() Is there any update on this topic? Earlier there was a news that some people have gathered together and filed a case (followup in telegram group). But since then never heard back on this topic. Anyone aware of the development, please throw some light on this. Last edited by dextor : 11th May 2018 at 14:51. Reason: spellings |
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![]() | #142 | |
BHPian ![]() Join Date: Oct 2009 Location: Bangalore
Posts: 328
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| ![]() Quote:
To make perspective more clear, I was seeing a revision of 1.06 Lacs on Creta (ex-showoom 15,00,000) which is approx 2500 INR per month. VAT regime RV value @ 21% :15,00,000 *.21 = 3,15,000 VAT @ 14.5% : 3,15,000 * .145 = 45675 Total RV to be paid = 360,675 GST Regime RV value @ 21% :15,00,000 *.21 = 3,15,000 GST @ 48% : 3,15,000 * .145 = 1.51.200 Total RV to be paid = 466,200 | |
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![]() | #143 |
BHPian ![]() Join Date: Dec 2007 Location: Hyderabad
Posts: 423
Thanked: 111 Times
| ![]() Unless you're thinking of sub 4m, my advice would be to just avoid. Like others said above, you never know what new form of ingenious tax would be applied in the future. What was done to us (ones with existing lease) was borderline illegal, but nobody cares because our strength is too low to be a potent votebank. |
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![]() | #144 | |
Senior - BHPian ![]() Join Date: Jan 2014 Location: Bangalore
Posts: 1,452
Thanked: 2,978 Times
| ![]() Quote:
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![]() | #145 |
BHPian ![]() | ![]() All, Do leasing companies lease out car to individuals? If yes which would be a good leasing company? My company does not have a car lease policy. Mods:- Merge this thread in an appropriate one if posting location is incorrect. Regards Nikhil |
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![]() | #146 |
BHPian Join Date: Sep 2010 Location: Bangalore
Posts: 96
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| ![]() That isn't quite right. The base value of 15L would be lesser in the GST regime since it doesnt include any tax. In GST ex factory price = ex showroom price |
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![]() | #147 | |
BHPian ![]() Join Date: Oct 2009 Location: Bangalore
Posts: 328
Thanked: 429 Times
| ![]() Quote:
They calculate 14.5% or 29/44/48% (depending on car size and fuel type) on ex show room price and hence the difference in RV. What you are saying is correct for EMIs but not on RV. PS - this is based on actual calculator output of 2 regimes reapectively. | |
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![]() | #148 | ||
BHPian Join Date: Sep 2017 Location: Delhi
Posts: 56
Thanked: 53 Times
| ![]() Quote:
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Is the lease calculator you mention a given leasing company's official one? If so, I'd request you to reach out to leasing company's representative/coordinator for a clarification on the "double taxation on RV" aspect. If this is one of the myriad calculators available on web, there's a good chance it is wrong. Last edited by actinium15 : 30th June 2018 at 21:05. Reason: (added clarification) | ||
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![]() | #149 | |
BHPian ![]() Join Date: Oct 2009 Location: Bangalore
Posts: 328
Thanked: 429 Times
| ![]() Quote:
Previously also during VAT rule - VAT of 14.5% was added to RV (21% of ex show room ). Now, the thing is, outstanding amout at beginning of the lease term (1st month) is stripped of GST value from ex show room price now and previously VAT also used to be stripped BUT it is mandatory that RV has to be 21% so the % reduction of principle amount will not be as steep now as during VAT times but at the end it is anyway going to come at 21% of RV (44th month) and paying GST on it is not double taxation. | |
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![]() | #150 | |||
BHPian Join Date: Sep 2017 Location: Delhi
Posts: 56
Thanked: 53 Times
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For what its worth, I fortunately had the Post GST XLSx prepared by LeasePlan for Maruti Ignis in the month of Aug '17 lying around. LeasePlan provided both pre GST and post GST calculations (since they were in touch for past few months prior to Aug '17 as well). In the Pre GST calculation, they did compute RV as 29% of the full Ex-Showroom price... Pre GST: ![]() But in the calculation provided in Aug '17, they listed 29% of base-price (ex-showroom minus GST) as RV (excluding all taxes). Post GST: ![]() Here's the quote I generated a few minutes ago for Ignis on LeasePlan portal (salaryplan.co.in) illustrating that LeasePlan calculates RV (Estimated Market Value, excluding all taxes) at 29% of base-price, not ex-showroom price. ![]() Based on above, the calculation you shared earlier... Quote:
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Last edited by actinium15 : 1st July 2018 at 01:42. | |||
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