![]() | #46 |
Distinguished - BHPian ![]() Join Date: Apr 2007 Location: Pune
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| ![]() What is the tax implication on a new lease agreement? Say if I take a car on lease today? I will get a quote from Magma but wondering what's the way to verify the quote... |
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![]() | #47 |
BHPian ![]() Join Date: Nov 2011 Location: chennai
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| ![]() Has anybody got a quote after GST for vehicle lease. Can you please share/confirm the specifics, is the leasing amount arrived at after after deducting the GST+Cess from ex-showroom price?. Iam yet to get a quote from my company, they are saying kotak has asked to wait till august 2nd week. Thanks |
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![]() | #48 | |
BHPian ![]() Join Date: Jul 2016 Location: All Over!
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| ![]() Quote:
e.g - Ex-showroom price of Crysta - Rs 20,28,000 Vehicle basic cost - Rs 14,18,182 GST at 43% - Rs 6,09,818 (Set-off passed on every month) Cheers, Amey | |
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![]() | #49 | |
Distinguished - BHPian ![]() Join Date: Apr 2007 Location: Pune
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| ![]() Quote:
Interest rate Monthly EMI Tenure Residual value? For reference, I got a quote from Magma: Ex-showroom: 19,99,900 Interest rate 13.5% Tenure 36 months Monthly EMI: 54398 GST+Cess on EMI: 23391 Monthly lease rental: 77791 Residual value: 18% (as per today's tax structure, this will attract 43% GST) | |
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![]() | #50 | |
BHPian ![]() Join Date: Jul 2016 Location: All Over!
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| ![]() Quote:
Just to brief you, we have a 60 months tenure with 15% RV policy. HINT: Interest rates mentioned by you are high and should be negotiated with Car Leasing suppliers w.r.t base rates provided by banks. ![]() Cheers, Amey | |
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![]() | #51 | |
BHPian Join Date: Jul 2007 Location: Hyderabad
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| ![]() Quote:
e.g. For a 10 lakhs car with 29% GST, the base price will be 775194. So, residual value ( @15%) will be 775194 * 0.15 = 116276. And on this amount 29% GST is added back. So, total residual value = 116276 + 116276 * 0.29 = 149997. This is same as 15% of your Ex Show price in the end. So, no extra tax on tax. This is applicable to ORIX. Not sure about others like Kotak Lease. This was the method to calculate EMI and residual value pre GST as well with VAT, albeit with a different rate and base price. | |
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![]() | #52 | |
Distinguished - BHPian ![]() Join Date: Apr 2007 Location: Pune
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Forget car leasing, just consider a regular car loan for the same amount: 1999900 @9.25% interest rate, the 36 month EMI comes to 63829 @13.5% interest rate, the 36 month EMI comes to 67867 This is no big deal. The real problem is the monthly GST that gets applied to lease rentals! Which does not apply to regular car loan EMIs!! In your case, you mentioned you are getting a set-off for this GST part and hence I got interested... Last edited by anandpadhye : 28th July 2017 at 16:18. | |
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![]() | #53 | |
BHPian ![]() Join Date: Jul 2016 Location: All Over!
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Coming back to GST set-off, I mentioned set-off of GST applied on ex showroom price of car. The GST applied on monthly lease rentals invoices cannot be set-off. Cheers, Amey | |
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![]() | #54 |
BHPian ![]() Join Date: May 2016 Location: Bangalore
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| ![]() While the new contracts are getting GST input credits, Those who have started the leasing before July are the worst hit with the GST due to double taxation. I guess the 5th August meeting is supposed to have some resolution on this. |
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![]() | #55 | |
BHPian ![]() Join Date: Apr 2016 Location: Nagpur
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| ![]() Some good news for leased car owners: Govt seems to have read their plight post GST. Excerpt from TOI news: Quote:
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![]() | #56 | ||
Senior - BHPian ![]() Join Date: Feb 2017 Location: KA - IND
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![]() | #57 | ||
BHPian Join Date: Dec 2009 Location: Bangalore
Posts: 379
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![]() | #58 |
BANNED Join Date: May 2016 Location: MH-12
Posts: 55
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Infractions: 0/1 (5) | ![]() Hello, I checked the decisions in the 20th GST council meeting. Unfortunately, there is no word on 'Leased Car'. ![]() http://www.cbec.gov.in/resources//ht...il-meeting.pdf I am losing my hopes now. If anyone gets any update from your employer, please plan to post it here. Unfortunately, my employer is not proactive in giving the updates. |
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![]() | #59 | |
BHPian ![]() Join Date: Jun 2006 Location: San Francisco/Nagoya
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| ![]() This really blows. Is there was a list of the items that were supposed to be tabled for the Aug 5th discussion according to TOI, but can't find on cbec website. The lack of transparency is mind boggling. They (govt) are more interested in 'tax and spend' and increasing cess but no relief for people who have already paid the excise duty while leasing the car and now in addition we pay GST + cess. ![]() I plan to send an email to Mr. Arun Jaitley's office for whatever it is worth. Quote:
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![]() | #60 |
BHPian ![]() Join Date: Oct 2009 Location: Bangalore
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| ![]() Read in TOI today that GST council has decided to increase the Cess on luxury cars & SUV ( i.e. cars above 4m length and > 1500 CC engine) from 15% to 25%. What this means is that 43% of GST amount on "Lease cars" will further increase to "53%". ![]() I am really not sure what the GST council is thinking but this is a retrograde step for Automobile Industry and brutal for Lease Vehicles purchased before 1st July 2017 ![]() http://timesofindia.indiatimes.com/b...w/59946949.cms Source : TOI Last edited by Cooltronics : 7th August 2017 at 12:07. |
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