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Old 1st July 2018, 15:28   #151
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Default Re: Effect of GST on Car Leasing

What I have seen from the calculation sheet provided by Clix for one of my friend who pre-closed recently is that GST is not charged on buyback or residual value.
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Old 4th July 2018, 22:35   #152
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Default Re: Effect of GST on Car Leasing

Came to know form some one that the court case on the GST on lease car has reached Delhi High court and next hearing is on 27th Jul.
I am not sure how true it is but if someone is aware, please confirm.

Last edited by dextor : 4th July 2018 at 22:35. Reason: Missed some detail
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Old 5th July 2018, 07:16   #153
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Originally Posted by XUVwanderer View Post
What I have seen from the calculation sheet provided by Clix for one of my friend who pre-closed recently is that GST is not charged on buyback or residual value.
Not correct. Clix is charging full GST including compensatory cess on the asset buyback value and residual value. I checked my own.

Last edited by Behemoth : 5th July 2018 at 07:25.
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Old 5th July 2018, 12:04   #154
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Default Re: Effect of GST on Car Leasing

Orix is charging the full GST applicable with cess after abatement on the RV.

For taxation purposes, should this not be considered the same as a second hand car sale? The applicable rate for used car from what i know is only 12% or 18% depending on the type of car. Can someone clarify how taxation on RV for a leased car is different from that of a used car sale?
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Old 8th July 2018, 19:58   #155
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Default Re: Effect of GST on Car Leasing

Quote:
Originally Posted by dextor View Post
Came to know form some one that the court case on the GST on lease car has reached Delhi High court and next hearing is on 27th Jul.
I am not sure how true it is but if someone is aware, please confirm.
Yes, thats true. I am one of the petitioner in the case. I was also follwing up with tax research unit in MoF but they were not supportive inspite aceepting the fact that what is being done is wrong. Next hearing is on 27th july. Court has already given instruction that if we win the case government has to refund all the extra money collected with interest. Court instructed govt lawyer to file reply in 4 weeks and we were supposed to file rejoinder in 4 weeks but govt has not replied yet and next hearing is almost on way. Govt is not replying as they are in fault here and want to delay the case.
Lets see what happens in next hearing.
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Old 30th July 2018, 23:34   #156
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Default Re: Effect of GST on Car Leasing

Hi,

Is there any positive update for us on the case? Do hope the courts see the double taxation aspect and reverse the decision.

Not only that, the interim waiver applies only for three years. What happens to those who have taken the cars for five years!

Best regards,
Siddharth
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Old 25th October 2018, 12:36   #157
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Default Re: Effect of GST on Car Leasing

Hello Everyone,

Iam wondering with the advent of GST is it still worth going for a leased car ? A person i know took car on lease 4 years back, its coming to an end now, and there has been substantial increase in rent right from the time GST came into the picture, as mentioned by him.

Iam no expert here, but what do the expert voices say? If you are already under a lease plan, is it worth continuing ? Does the buyout option actually benefit?

The entire leasing process personally confuses me a lot.

Any voices with personal experiences do respond.

Regards,
Devyaani.
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Old 5th November 2018, 17:00   #158
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Default Re: Effect of GST on Car Leasing

I am suffering because of the change to GST. I had taken an XUV 500 through CLC in OCt 2016 and have to pay 48 % tax !

Now I need to quit my job and have to foreclose the lease. Kotak Prime wants me to pay full GST without the 35 % discount. The reason they give is that the reduction is given if no input credit has been availed for VAT and Service tax, and since the leasing company Kotak has availed this benefit, I have to pay full GST.
How is this fair ?
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Old 19th November 2018, 19:01   #159
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Default Re: Effect of GST on Car Leasing

Can someone share updates on this ongoing case. Looks like since July nothing has moved.
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Old 11th February 2019, 14:13   #160
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Default Re: Effect of GST on Car Leasing

Is this going to affect Leasing? I am not able to understand completely.
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Old 11th May 2019, 09:33   #161
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Default Re: Effect of GST on Car Leasing

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Originally Posted by Anuruddhs View Post
Yes, thats true. I am one of the petitioner in the case.

Next hearing is on 27th July. Lets see what happens in next hearing.
Hi - Has there been any update on this case? Please let the community know.
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Old 12th June 2019, 18:29   #162
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Default Re: Effect of GST on Car Leasing

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Originally Posted by rovingeye View Post
Hi - Has there been any update on this case? Please let the community know.
Case is still ongoing in Delhi high court, They have send some lame documents to make fool in last hearing which we need to oppose and file reply before August. Also GST council member called last week and asked us to send our issue as they might take it in July budget. Wait is only option and we will keep pursuing the case.
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Old 1st August 2019, 20:17   #163
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Default Re: Effect of GST on Car Leasing

I took Celerio zxi amt on lease in 2016 (pre-gst). With the advent of GST, I had my EMI shot up by 2k and RV by 20k approx. This for a engine with 1000cc. Now I am done with the lease, and paid all my dues including RV. Planning to buy another car (<1200cc engine) from the same company approved lease company. Is this deal still attractive method to save on tax ( and also cater to car enthusiasts)?
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Old 12th August 2019, 16:07   #164
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Default Re: Effect of GST on Car Leasing

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Originally Posted by spr1ngleo View Post
I took Celerio zxi amt on lease in 2016 (pre-gst). With the advent of GST, I had my EMI shot up by 2k and RV by 20k approx. This for a engine with 1000cc. Now I am done with the lease, and paid all my dues including RV. Planning to buy another car (<1200cc engine) from the same company approved lease company. Is this deal still attractive method to save on tax ( and also cater to car enthusiasts)?
You have to figure it out based on GST on car you plan to buy and/or plan to retain/sell thae car after lease and/or fuel/maintenence/driver limits in your organisation/your consumption.

Just the lease is no longer as benefitial as earlier for mid/high end cars, considering the GST on interest and leasing charges is same as GST on car (upto 53%). So a 12.5% interest and 2% leasing charges become ~22% effectively. Also there is monthly perquisite plus another ~7% of perquiste tax if you decide to buy the car in your own name after lease period end. This kills all ~30% tax saving and you might be a second owner.

However if you were to buy a car in any case and/or you plan to sell the car immediately after lease end and/or these fuel/maint/driver limits in your org are good enough to cover your expenses, go for it (0% effecive rate under lease is still better than ~8% interest rate from bank)
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Old 18th August 2019, 00:42   #165
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Default Re: Effect of GST on Car Leasing

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Originally Posted by anubhav22 View Post
You have to figure it out based on GST on car you plan to buy and/or plan to retain/sell thae car after lease and/or fuel/maintenence/driver limits in your organisation/your consumption.

Just the lease is no longer as benefitial as earlier for mid/high end cars, considering the GST on interest and leasing charges is same as GST on car (upto 53%). So a 12.5% interest and 2% leasing charges become ~22% effectively. Also there is monthly perquisite plus another ~7% of perquiste tax if you decide to buy the car in your own name after lease period end. This kills all ~30% tax saving and you might be a second owner.

However if you were to buy a car in any case and/or you plan to sell the car immediately after lease end and/or these fuel/maint/driver limits in your org are good enough to cover your expenses, go for it (0% effecive rate under lease is still better than ~8% interest rate from bank)

Thank you. I am eyeing at Nexon petrol XT+. Not sure if that's really a high end car. Driver salary of 18k, fuel reimbursement of 15k, an EMI of 26k, at 18% residual value. I will buy back the car at end of 36 months, and plan to keep it for its lifetime. Your opinion please?

TIA.
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