![]() | #16 |
BHPian Join Date: Sep 2006 Location: Bangalore
Posts: 169
Thanked: 69 Times
| ![]() We were given multiple options 1. As is..the EMI increases due to GST and residual value ( inclusive of tax ) increases 2. Increase the tenure..EMI and Residual Value(RV) remains the same ( RV in this case is without GST ) 3. Keep the same EMI - but RV increases 4. Foreclosure ( at pre GST rates ) Has anyone done any comparative studies? which one has the least net impact? |
![]() |
|
![]() | #17 |
BHPian Join Date: Nov 2009 Location: Bangalore
Posts: 73
Thanked: 20 Times
| ![]() I had bought XUV using car lease 10 months ago. In our company as part of lease program we don't get petrol/diesel or driver salary benefits. Its just the monthly payment tax saving post adjustment of perquisite. The Car lease was never a very lucrative option but one which balanced tax saving and interest paid on car lease + residual value. We were given the option of either extending lease, wait and watch or do a foreclosure. I had done some rough calculations and with 43% increase the tax benefit is low. Also, with fore closure the exit is not too bad other than arranging a huge fund to pay the leasing company. Thanks, Sanjeev |
![]() | ![]() |
![]() | #18 | |
BHPian ![]() Join Date: Dec 2016 Location: noida
Posts: 136
Thanked: 216 Times
| ![]() Quote:
| |
![]() |
![]() | #19 |
Distinguished - BHPian ![]() ![]() Join Date: Jan 2008 Location: Gurgaon
Posts: 3,790
Thanked: 3,048 Times
| ![]() Query : As the lease plan operator is registered dealer her will get credit of 43% input on his purchase. So his principle lease value would become only base car value. Lease amount would also reduce proportionately. Adding GST to lease installment would be the future operating method. Does it make so much difference then? |
![]() |
![]() | #20 | |
Senior - BHPian ![]() Join Date: Jan 2014 Location: Bangalore
Posts: 1,457
Thanked: 2,990 Times
| ![]() Quote:
However, the confusion prevails only for Pre-GST Car Leases. In this case, the transaction was made were the car base value itself was considered higher and only a small amount of tax charged as VAT (14.5%). The base value included many of the taxes that used to happen at various levels but those in the end are not shown as taxes prior to GST. For these, I do not believe the Dealer would receive a credit of 43%. The situation looks blatantly unfair as the VAT was already paid to the Govt. Not sure why it takes so much time to get this issue sorted out. | |
![]() |
![]() | #21 |
BHPian ![]() | ![]() I got an email about 12500 rs increase in EMI of my 20L ex showroom Skoda Octavia. After Income tax benfit, i have to shell out 9K extra. Few friends who have taken AudiA4 and Santafe recently at 30L exshowroom, will be paying additional 19K before tax. Last edited by motor_breathing : 6th July 2017 at 14:58. Reason: correction |
![]() |
![]() | #22 |
Senior - BHPian ![]() | ![]() I assume GoI will look into this on priority along with other such GST anomalies and correct them with retrospective(?) effect. Don't forget, the entire tractor and HCV lease market will potentially collapse with catastrophic financial, social and political repercussions. LMVs are a fraction of lease arrangements! I advise lessees not to panic and foreclose or sell off at huge losses. Too many players are involved and it will be corrected. The stakes are too high. Last edited by itwasntme : 6th July 2017 at 16:55. Reason: Too much bold |
![]() | ![]() |
![]() | #23 |
BHPian ![]() Join Date: Dec 2016 Location: noida
Posts: 136
Thanked: 216 Times
| ![]() http://www.moneycontrol.com/news/bus...g-2320919.html There is some update on moneycontrol for double taxation on leasing |
![]() | ![]() |
|
![]() | #24 | |
BHPian ![]() Join Date: Aug 2009 Location: bangalore
Posts: 478
Thanked: 657 Times
| ![]() Quote:
Fingers crossed. | |
![]() | ![]() |
![]() | #25 |
BHPian ![]() Join Date: Jun 2008 Location: South Pole,Mars
Posts: 696
Thanked: 400 Times
| ![]() As per my company's leasing provider, they have formed a group along with other providers, and have formed a case. Based on this, they have a meeting coming up with government council on GST on 8th Aug 2017. Per leasing company, they have asked all of us to hold on to our decisions for a month or so. |
![]() | ![]() |
![]() | #26 |
BANNED ![]() Join Date: Sep 2004 Location: NCR
Posts: 3,186
Thanked: 1,328 Times
| ![]() What is still not clear to me that how does starting a fresh lease *now* compare to the pre-GST era? |
![]() |
![]() | #27 |
BHPian Join Date: Mar 2011 Location: Blr/Hyd
Posts: 203
Thanked: 115 Times
| ![]() I hope the govt sets the GST for existing lease to 12%. Earlier, it used to be 14.5%. At least 18% is acceptable. But just removing cess is not sufficient. That still means increase of 14% in monthly leases. Hope govt settles at 12% or 18%. Anything more is unfair. While 1-3% increase in taxes is acceptable, doubling of taxes is not. That too when you end up paying almost 30% tax on a vehicle where tax has already been paid! |
![]() |
![]() | #28 | |
Senior - BHPian ![]() Join Date: Jan 2014 Location: Bangalore
Posts: 1,457
Thanked: 2,990 Times
| ![]() Quote:
![]() | |
![]() |
![]() | #29 | |
BANNED Join Date: May 2016 Location: MH-12
Posts: 55
Thanked: 102 Times
Infractions: 0/1 (5) | ![]() Quote:
| |
![]() |
![]() | #30 |
BHPian ![]() Join Date: Dec 2007 Location: Hyderabad
Posts: 423
Thanked: 111 Times
| ![]() Sharing a recent article, hope this means there's some hope for us: http://www.moneycontrol.com/news/bus...g-2320919.html |
![]() |