[sahil624]

Originally Posted by earthian

Thanks for that informative post. You may like to mention about the TDS that is added to your payout. It is not a cost and is refundable or rather adjustable against your total tax liabilities; but it is an amount payable when you purchase a vehicle of more than Rs 10 lacs sale price or when making a cash payment of Rs 2 lacs ( Not sure, i think that was the provision).

TDS is calculated at 1% of the sale price.

Correction: It is TCS (Tax Collected at Source) and it is 0.75% now of the Ex Showroom price of the vehicle. The amendment is applicable from 14-05-2020.

https://www.google.com/amp/s/www.fin.../1958106/lite/

[whitecloud]

Quite an informative thread but there are certain states like Punjab which levy road tax on the Pre GST price of the vehicle .Any discount provided by the dealer / manufacturer on which GST is not paid is also included in the price for road tax .
Example :
I had bought a creta in 2019 where a discount of Rs 80000/ - was agreed to .The same was adjusted by reducing the Pre GST price by Rs 54000.However, the state transport department charged the road tax on full Pre GST price.
Secondly ,when the discounts are offered by way of reduction of the Pre GST price , the final price for calculation of the TCS and insurance amount payble also get reduced .Hence one must be vigilant to this modus operandi of dealers where they issue quotation on full price for TCS & insurance and insist on its payment before PDI.

Example :
Dealer quote could be like this
Ex showroom price : Rs 1088000
Insurance etc : Rs 50000
Handling charges : Rs 6000
TCS : Rs 10880
Total Amount :Rs 1154880
Less discount : Rs 80000
Net price payble : Rs 1074880 ( Rtgs or chq amount paid of this amount)

In the billing ,it will be like this :
EX showroom price : Rs 1008000
Insurance etc : Rs 46000
Handling : 6000
TCS : 10080
Total amt payble : Rs 1070080
See the difference in the total amount payble .

[das_ren_auto]

Originally Posted by sahil624

I think the 3 year Bundled plan (3 year Third party + 3 years OD) can be opted only till 31st July 2020. After that, as per IRDA new rules, one needs to renew the Own Damage on an annual basis.

Good from customer point of view. If we are not happy with the services of a an insurance provider, we can change it after one year. In case of three years contract, we are forced to use the service for 3 years even if the service is not up to the mark. Definitely a good move by IRDA.

[MS_Auto]

This is a very informative thread.

Would request users to also contribute their experiences here in regards to Adapted vehicles or vehicles for disabled.

I am looking forward to the below information in case someone who has been thru the exercise and can enlighten us:
1. Can you avail GST concessions for vehicles greater than 1500 cc or greater than 4m in length. If yes, what is the applicable GST? (I ask this question since on the department of Heavy Industries website, you can come across users who have received concession certificates issued for vehicles like the Crysta or Harrier.)
2. What does the breakup of On-Road Pricing for an adapted vehicle look like? Request you to cover the Base price of the vehicle; applicable rate of GST considering different types of vehicles; insurance for adapted vehicles; Taxes and Registration etc.

[GTO]

Thanks to Gagan Modi for sending this information in. Heartfelt gratitude for sharing it with other enthusiasts via this Team-BHP page!

I seek to add the following viewpoints:

1. Delivery and Handling Charges: Time and again, the same is marked as illegal. Please refer to

> https://indiankanoon.org/doc/14247221/

> https://www.mid-day.com/articles/sou...uyers/18680187

> https://timesofindia.indiatimes.com/...w/48832904.cms

In fact there are no handling/logistic charges being charged in Kerala by any dealer of any brand as the RTO Office considers any such logistics/handling changes beyond ex-showroom price as illegal.

As referred in the Judgement passed on 21st April 2017 by the State Consumer Redressal commission, basis excerpts:

Now coming to the merit of the this case, admittedly, in the invoice dated 08/04/2014 Ex.C-7 amount of Rs.5,000/- has been charged as logistic charges besides the other amounts for insurance, registration and extended warranty. Opposite party No.1, a car dealer, has charged Rs.5,000/- as logistic charges without any basis. Even in the reply, it has not been mentioned how they have calculated the transportation of vehicle charges called as logistic charges. It has also not been mentioned in the reply from which place the delivery was taken by the dealer from the manufacturer. The manufacturers park their vehicles in yards which they hire at various places in the country so that delivery of the vehicle to the dealers can be made from nearest places immediately. There are no averments in the reply nor any document has been annexed with the reply to show that the dealer, opposite party No.1, had paid any logistics charges for the vehicle in question. The reply is completely vague; rather it is silent about material aspects. The charges in the invoice look like Government levy. It is the duty of the dealer to inform and explain to the consumer that in addition to the price of the vehicle quoted, he will have to pay the other charges like handling, loading, unloading and logistics charges. It is not the stand of opposite party No.1 in its reply that consumer was informed and explained about the additional charges. The Law Officer appearing on behalf of opposite party No.1 failed to show any provisions of the Motor Vehicles Act, 1988 and the Rules framed thereunder and of Sales of Goods Act that such charges could be recovered from the buyer. The dealer cannot charge logistic charges unless is authorised under the provisions of law. Charging of logistic charges in an arbitrary manner clearly amounts to adoption of unfair trade practice and the charges have been charged in an unauthorized and illegal manner rather it can be said that overcharging is nothing but hidden charges.


Adding on my comment:

I have personally seen it in dealer margin sheets of Maruti. Cant agree that logistic charges (like Rs 6000 to 6500) pre-hand are added basis margins on different models.
_______________________________


2. Also, the discount point mentioned in the article:

Discounts are applied on the ex-showroom price in all states / UT except Punjab, Chandigarh & Jharkhand, but RTO does not factor in discounts while calculating road tax. This is to avoid under-invoicing and thus tax loss.

While in Chandigarh, Punjab, Gujarat & Jharkhand - RTO calculates road taxes of the car before GST.

Customer can even buy a car on temporary registration, and entire consumer offer will be passed to him.

[sahil624]

Originally Posted by das_ren_auto

Good from customer point of view. If we are not happy with the services of a an insurance provider, we can change it after one year. In case of three years contract, we are forced to use the service for 3 years even if the service is not up to the mark. Definitely a good move by IRDA.

Yes this is true. However, there was definitely some cost benefit for the customers which they won’t be able to avail now.

[Guite]

There are so many added cost in terms of taxes and insurance that when a buyer pays Rs 10 lakh (total cost to buyer) for a car, the actual cost to manufacture/ dealer would barely be 6 lakh. It would be safe to assume the actual cost of manufacturing that car is less than half of what we pay for. So it seems like so little value for so much money.

[ishan12]

Originally Posted by blackwasp

Ex-showroom Price:

One of the positives of the new GST regime has been the simplification of taxes. Prior to GST, the ex-showroom cost was made up of ex-factory vehicle cost, excise duty, cess (if any),

Thanks for the detailed analysis.
I had a doubt on the total tax part. Isn't cess calculated on the Tax (GST) amount and not the actual showroom price. If this is the case, then the total tax will not come out to be as high as 29, 31, 43%.

[sv97]

The taxes mentioned in the above posts are the ones which were applicable just after GST was implemented.

http://www.siam.in/cpage.aspx?mpgid=...8&pgidtrail=85

Kindly refer to this link for the correct and updated taxes.

[Dry Ice]

On the topic of on-road cost and taxes, cross-posting from a different thread.

Originally Posted by Drlmtukkar

I've done some math n the figure is mindboggling.
I am planning of buying the over priced Crysta n did some calculations for myself.

Now the on road price for the ZX manual turns out to be Rs.27lakhs.
So I earn Rs. 36lakhs, pay Rs.9 lakhs as IT, then I end up having Rs27 lakhs ro pay for my crysta. At this stage I've paid 30% tax.

Next the exshowroom price of this car is Rs.21 lakhs of which 50% is tax( sales tax, GST etc etc tax) ie Rs.10.5lakhs.

Road tax amounts to Rs 4.5lakhs.

So in the end for a vehicle with its On- road price being Rs.27lakhs.

Total taxes paid are- Income tax-Rs.9 lakhs + all other indirect taxes Rs.10.5 lakhs + Road tax Rs 4.5lakhs. Totally amounting to Rs 24 lakhs.................Please note this amount does not include taxes paid by the component suppliers and insurance GST( both together I guess they would contribute to 5% or more of the total cost of vehicle).

So in the end after earning Rs.36 lakhs I pay Rs.24lakhs in taxes and then buy a car whose actual worth is Rs.12Lakhs. We are paying taxes to the tune of anywhere between 66.66% to 72% .Shockked:

We are been looted in broad day light by the government.

[YakubKC]

Can someone help me understand why the ex showroom price is different across different states? I recently got quotes for the Vento from Karnataka and Kerala and the ex showroom prices differed by approximately Rs. 20,000. Is this expected or is it because the dealership is trying to make some profit?

[Dry Ice]

Originally Posted by YakubKC

Can someone help me understand why the ex showroom price is different across different states? I recently got quotes for the Vento from Karnataka and Kerala and the ex showroom prices differed by approximately Rs. 20,000. Is this expected or is it because the dealership is trying to make some profit?

Ex-showroom comprises of ex-factory cost + taxes (excise, gst) on the ex-factory cost + shipping expenses. The tax component, as well as shipping charges are different for each state. So it is perfectly OK for the ex-showroom cost to differ across states.

Best to check the manufacturer website for the exact ex-showroom amount for a location and then match it with the dealer quote. If it doesn't match, you can ask the dealer/company about the discrepancy.

[Dry Ice]

Originally Posted by ph03n!x

With India, the tax structure is not making it easier. Case in point - the Mahindra Thar. The top end Automatic Diesel Convertible top that I bought.
Attachment 2097252
As you can see,

• The vehicle itself costs 9.22 lakhs
• It incurs 28% GST
• There is also a 20% cess

These take the ex-showroom to 13.65 lakhs.

Cross posting from a different thread as it feels relevant here too.



Thanks for sharing pho3n!x

[avira_tk]

Originally Posted by YakubKC

Can someone help me understand why the ex showroom price is different across different states? I recently got quotes for the Vento from Karnataka and Kerala and the ex showroom prices differed by approximately Rs. 20,000. Is this expected or is it because the dealership is trying to make some profit?

Kerala effects a flood cess, so that'll add 1%in taxes on the top of the price. Recent launches all mention except kerala as the ex showroom price. Road taxes could be lower on new cars compared to karnataka, at least that was the case until recently.

[ark704]

I was going through the following articles and found that the Road Tax and Insurances are being charged on ex-showroom prices. We are paying TAX on TAX. Why RTO & Insurance companies are charging on ex-showroom prices?

https://www.financialexpress.com/aut...buyer/1171205/
https://taxguru.in/wp-content/upload...High-Court.pdf