With tax holiday coming to end, Honda cars to cost more

askicode · 5th March 2007, 09:25

Source: The Hindu News Update Service

Car lovers who swear by the Honda badge will have to pay up to Rs 45,000 more, as Honda Siel Cars India Ltd is set to start charging central sales tax on its models since the tax holiday it enjoys in Uttar Pradesh is ending this month.

This will mean that the 'City', which is priced at Rs 6.75 lakh, can be costlier by Rs 20,250. 'Civic', priced at Rs 10.88 lakh, would be dearer by about Rs 32,644 and 'Accord', which is tagged at Rs 14.92 lakh, may cost Rs 44,760 more.

unknown_entity · 5th March 2007, 12:06

Quote:

Originally Posted by askicode

This will mean that the 'City', which is priced at Rs 6.75 lakh, can be costlier by Rs 20,250. 'Civic', priced at Rs 10.88 lakh, would be dearer by about Rs 32,644 and 'Accord', which is tagged at Rs 14.92 lakh, may cost Rs 44,760 more.

They'll probably get away with it too ...

mithun · 8th March 2007, 06:04

I'm wondering why there was tax sop for Honda in UP ? Is it because UP is one of most backward states in India ?

BUT, I've only heard about Govt. providing tax sops to attract investments especially in newly formed states like Jharkhand/Chattisgarh.

indian21r · 8th March 2007, 08:01

Mods why don't u merge this with the other thread that is existing.

iraghava · 8th March 2007, 11:56

Quote:

Originally Posted by mithun

I'm wondering why there was tax sop for Honda in UP ? Is it because UP is one of most backward states in India ?

AFAIK there was no savings of CST but rather of UPST (Uttar Pradesh Sales Tax) since cars were only cheap for UP customer & not for other states. Hence, there was a benefit of 4% for them.

This was given to Honda by the then UP CM Mayawati as a tax-sop to attract Honda's investment in Greater Noida. Also, this would mean that customers in UP would be paying up more rather than the customers of other states.

fb1 · 8th March 2007, 23:40

ouch ..... but i am still gonna pick up the civic

iraghava · 8th March 2007, 23:54

Well confirmed with my source today, there is no clear cut instruction on the price rise yet. The 4% increase as mentioned earlier is for UP only.

However, Honda is considering a rise in prices after March 15th but it is not confirmed as of yet.

5th March 2007, 09:25	#1
askicode BHPian Join Date: Mar 2006 Location: Bangalore Posts: 174 Thanked: 73 Times	With tax holiday coming to end, Honda cars to cost more Source: The Hindu News Update Service Car lovers who swear by the Honda badge will have to pay up to Rs 45,000 more, as Honda Siel Cars India Ltd is set to start charging central sales tax on its models since the tax holiday it enjoys in Uttar Pradesh is ending this month. This will mean that the 'City', which is priced at Rs 6.75 lakh, can be costlier by Rs 20,250. 'Civic', priced at Rs 10.88 lakh, would be dearer by about Rs 32,644 and 'Accord', which is tagged at Rs 14.92 lakh, may cost Rs 44,760 more.
	() Thanks

8th March 2007, 06:04	#3
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	I'm wondering why there was tax sop for Honda in UP ? Is it because UP is one of most backward states in India ? BUT, I've only heard about Govt. providing tax sops to attract investments especially in newly formed states like Jharkhand/Chattisgarh.
	() Thanks

8th March 2007, 08:01	#4
indian21r BHPian Join Date: Mar 2006 Location: Hyderabad Posts: 964 Thanked: 808 Times	Mods why don't u merge this with the other thread that is existing.
	() Thanks

8th March 2007, 23:40	#6
fb1 BHPian Join Date: Jun 2006 Location: Chennai Posts: 186 Thanked: 8 Times	ouch ..... but i am still gonna pick up the civic
	() Thanks

8th March 2007, 23:54	#7
iraghava Senior - BHPian Join Date: Oct 2005 Location: Bhaiyyaland Posts: 8,033 Thanked: 265 Times View My Garage	Well confirmed with my source today, there is no clear cut instruction on the price rise yet. The 4% increase as mentioned earlier is for UP only. However, Honda is considering a rise in prices after March 15th but it is not confirmed as of yet.
	() Thanks