VAT increase in Jan to 20% ??

dhall_gagan · 21st December 2009, 16:14

Hi Guys,

I am planning to buy Skoda Laura in Jan, so called up a guy for TD.
He said, sir the VAT will be increase to 20%, thus increasing the on-road price by 80k ???

.

Is there any truth in it or just a sales gimmick

sdp1975 · 21st December 2009, 16:15

Sales gimmick. There's nothing in the papers on a VAT hike.

BaCkSeAtDrIVeR · 21st December 2009, 16:31

Tax rate changes happen in April, after the budget, not before.

Now that you have a taste of skoda sales, search this forum for others' experiences on Skoda.

shiva_cool87 · 21st December 2009, 16:34

lol !! Skoda never ceases to amaze me

..... Its just a sales gimmick and don't fall for it !

.anshuman · 21st December 2009, 16:41

Its not only with Skoda, Most car dealerships are advertising Buy before price hike in Jan. Its just another trick to clear stocks of 2009 made cars.

longhorn · 21st December 2009, 16:48

Lol these guys are amazing. Is he the Finance Minister's cousin or what to state that VAT will be 20% from Jan. It's a pure marketing gimmick. You looking out for a Skoda ? Better safe than sorry. That's all I got to tell you.

Caramelo · 21st December 2009, 16:58

VAT if increased will be increased for everything! and not just on cars! dude it doesn't work that way! it will affect the economy so badly!! believe me government of India is not in a position to do that!!

. that is just a sales gimmick!!

Sudan_NFS · 21st December 2009, 17:08

I think there is a replacement for VAT and some other tax and will be made to one tax that too 10-12 yet to be decided by government in 2010.
How come a sales guys can give such a false statements and except a customer to fall for his lies.

sanjayc · 21st December 2009, 17:23

+
GST is on the way (long way though) to supercede all VAT shat etc...

Edit : GCS - Goods & Services Tax - to replace VAT/Service Tax etc...works already underway as parts of tax reform. May be introduced in the upcoming budget, but since all states should also fall in line, will take some time before being implemented fully.

Plenty of info avlbl..just google "gst india".

krreddy · 21st December 2009, 17:46

One of the sales women said the same thing. She said there would be a price hike in Life Tax from 9% to 12% (Individual) and from 12% to 15% (corporate)...

dhall_gagan · 22nd December 2009, 11:41

... thanx a lot guys.. for the quick responses...
I have heard that Skoda has some Awesome A.S.S

...
but y I am going for it is that one of my friends happen to know the GM of Continental motors

.. and has just upgraded from Octavia to Superb...so he has asked to be assured of the service

s3va · 22nd December 2009, 11:58

Quote:

Originally Posted by BaCkSeAtDrIVeR

Tax rate changes happen in April, after the budget, not before.

Now that you have a taste of skoda sales, search this forum for others' experiences on Skoda.

Absolutely !

Cheap tricks ! Remember Sales guys are taught to sell refrigerator to an eskimo !

Let me wear the helmet before the sales guys here start throwing bricks at me !

ranjitss · 22nd December 2009, 14:15

Car prices will hike due to rising input costs and unfavourable exchange rate. The price rise may be in the range of 2-3% and the reasons cited for this hike are higher inputs, exchange rates and investments.

Please have a look at this thread
http://www.team-bhp.com/forum/indian...ry-2010-a.html

akhilesh51 · 22nd December 2009, 15:35

VAT hike to 20% is load of rubbish. VAT is a state government tax and is changed only in Financial budget session of any particular state. I don't see any state holding budget sessions in January. More like March / April.

On the other hand, it is true that price hike by most auto majors is imminent in January (for reasons totally unrelated to VAT). This is a regular thing in industry. Every year major to minor corrections in carried out by auto majors in January to counter increased production costs.

Why in January ? Quite Simple. Auto majors usually have stocks of previous year manufactured vehicles (considering plant is operation even as on 31st December) which are difficult to sell in new year. Now, If two vehicle of same variant are selling side by side but new year model having higher price tag, it is easier to liquidate older stock.

Overall, Auto majors have to carry out price corrections once a year and that would happen. So, it just makes sense to do it in January and achieve two goals from a single shot.

Further in 2010, there is an impending BS IV norms which would increase cost of production of cars. Add to it, slew of new cars replacing old counterparts after Auto Expo, a second hike or a major hike in car prices is imminent in first few months of 2010.

vvrchandra · 22nd December 2009, 15:42

Quote:

Originally Posted by krreddy

One of the sales women said the same thing. She said there would be a price hike in Life Tax from 9% to 12% (Individual) and from 12% to 15% (corporate)...

Life Tax hike is expected in AP and is in pending because of the current political fall out. It might be increased to 12% for all cases or from 9% to 12% for individuals (first time buyers) and from existing 12% to 15% for other cases like company resitrations, 2nd vehicles etc. Probably this might become effective from Jan 2010.

21st December 2009, 16:14	#1
dhall_gagan BHPian Join Date: Feb 2006 Location: Delhi Posts: 166 Thanked: 14 Times View My Garage	VAT increase in Jan to 20% ?? Hi Guys, I am planning to buy Skoda Laura in Jan, so called up a guy for TD. He said, sir the VAT will be increase to 20%, thus increasing the on-road price by 80k ??? . Is there any truth in it or just a sales gimmick
	() Thanks

21st December 2009, 16:15	#2
sdp1975 Senior - BHPian Join Date: Aug 2009 Location: Bangalore Posts: 1,700 Thanked: 1,273 Times View My Garage	Sales gimmick. There's nothing in the papers on a VAT hike.
	() Thanks

21st December 2009, 16:31	#3
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	Tax rate changes happen in April, after the budget, not before. Now that you have a taste of skoda sales, search this forum for others' experiences on Skoda.
	() Thanks

21st December 2009, 16:34	#4
shiva_cool87 BHPian Join Date: Feb 2006 Location: Bangalore Posts: 138 Thanked: 0 Times	lol !! Skoda never ceases to amaze me ..... Its just a sales gimmick and don't fall for it !
	() Thanks

21st December 2009, 16:41	#5
.anshuman Distinguished - BHPian Join Date: Dec 2004 Location: Good-Gaon Posts: 7,763 Thanked: 11,064 Times View My Garage	Its not only with Skoda, Most car dealerships are advertising Buy before price hike in Jan. Its just another trick to clear stocks of 2009 made cars.
	() Thanks

21st December 2009, 16:48	#6
longhorn Senior - BHPian Join Date: Nov 2009 Location: Chennai Posts: 1,526 Thanked: 1,568 Times View My Garage	Lol these guys are amazing. Is he the Finance Minister's cousin or what to state that VAT will be 20% from Jan. It's a pure marketing gimmick. You looking out for a Skoda ? Better safe than sorry. That's all I got to tell you.
	() Thanks

21st December 2009, 16:58	#7
Caramelo BHPian Join Date: Nov 2008 Location: ahmedabad Posts: 769 Thanked: 16 Times	VAT if increased will be increased for everything! and not just on cars! dude it doesn't work that way! it will affect the economy so badly!! believe me government of India is not in a position to do that!! . that is just a sales gimmick!! Last edited by Caramelo : 21st December 2009 at 17:00.
	() Thanks

21st December 2009, 17:08	#8
Sudan_NFS BHPian Join Date: Aug 2009 Location: chennai Posts: 759 Thanked: 16 Times	I think there is a replacement for VAT and some other tax and will be made to one tax that too 10-12 yet to be decided by government in 2010. How come a sales guys can give such a false statements and except a customer to fall for his lies.
	() Thanks

21st December 2009, 17:23	#9
sanjayc BHPian Join Date: Nov 2009 Location: Chennai Posts: 952 Thanked: 8 Times	+ GST is on the way (long way though) to supercede all VAT shat etc... Edit : GCS - Goods & Services Tax - to replace VAT/Service Tax etc...works already underway as parts of tax reform. May be introduced in the upcoming budget, but since all states should also fall in line, will take some time before being implemented fully. Plenty of info avlbl..just google "gst india". Last edited by sanjayc : 21st December 2009 at 17:28.
	() Thanks

21st December 2009, 17:46	#10
krreddy BHPian Join Date: Oct 2009 Location: Hyderabad Posts: 121 Thanked: 25 Times	One of the sales women said the same thing. She said there would be a price hike in Life Tax from 9% to 12% (Individual) and from 12% to 15% (corporate)...
	() Thanks

22nd December 2009, 11:41	#11
dhall_gagan BHPian Join Date: Feb 2006 Location: Delhi Posts: 166 Thanked: 14 Times View My Garage	... thanx a lot guys.. for the quick responses... I have heard that Skoda has some Awesome A.S.S... but y I am going for it is that one of my friends happen to know the GM of Continental motors.. and has just upgraded from Octavia to Superb...so he has asked to be assured of the service
	() Thanks

22nd December 2009, 14:15	#13
ranjitss BHPian Join Date: Dec 2009 Location: Pune Posts: 86 Thanked: 0 Times	Car prices will hike due to rising input costs and unfavourable exchange rate. The price rise may be in the range of 2-3% and the reasons cited for this hike are higher inputs, exchange rates and investments. Please have a look at this thread http://www.team-bhp.com/forum/indian...ry-2010-a.html
	() Thanks

22nd December 2009, 15:35	#14
akhilesh51 BHPian Join Date: Jan 2009 Location: Jaipur, RAJ Posts: 631 Thanked: 339 Times	VAT hike to 20% is load of rubbish. VAT is a state government tax and is changed only in Financial budget session of any particular state. I don't see any state holding budget sessions in January. More like March / April. On the other hand, it is true that price hike by most auto majors is imminent in January (for reasons totally unrelated to VAT). This is a regular thing in industry. Every year major to minor corrections in carried out by auto majors in January to counter increased production costs. Why in January ? Quite Simple. Auto majors usually have stocks of previous year manufactured vehicles (considering plant is operation even as on 31st December) which are difficult to sell in new year. Now, If two vehicle of same variant are selling side by side but new year model having higher price tag, it is easier to liquidate older stock. Overall, Auto majors have to carry out price corrections once a year and that would happen. So, it just makes sense to do it in January and achieve two goals from a single shot. Further in 2010, there is an impending BS IV norms which would increase cost of production of cars. Add to it, slew of new cars replacing old counterparts after Auto Expo, a second hike or a major hike in car prices is imminent in first few months of 2010.
	() Thanks