Karnataka proposes increasing tax on bikes costing over a lakh

tabrez · 17th March 2017, 17:40

Quote:

Originally Posted by akshayar640

I booked a new bike just last week and I am expecting delivery mid April. So, will the revised tax apply to me?

If the bike is invoiced post-application of the new tax rates, then yes. You will pay the then prevailing rates such that the OTR (On-the-Road) price will be higher than today's. The new rates will come into effect starting 1st April, 2017.

dailydriver · 18th March 2017, 15:59

Quote:

Originally Posted by akshayar640

I have a question to the informed. I booked a new bike just last week and I am expecting delivery mid April. So, will the revised tax apply to me?

Quote:

Originally Posted by tabrez

If the bike is invoiced post-application of the new tax rates, then yes. You will pay the then prevailing rates such that the OTR (On-the-Road) price will be higher than today's. The new rates will come into effect starting 1st April, 2017.

The rate prevailing on the day of payment of tax will be applicable, irrespective of when the bike has been invoiced.

Its implementation from 01/04/2017 is subject to a notification being issued by the competent authority. I doubt whether the Government will be able to do it before the budget is passed.

And to the best of my knowledge, the budget has only been presented, not passed. Hence, akshayar640 may very well end up paying only 12%.

gautam99 · 18th March 2017, 16:55

I was wanting to wait for the triumph bobber but now may rush to get a bonne before the deadline as even street twin price going up by nearly 50 to 60 k

dailydriver · 18th March 2017, 18:10

Quote:

Originally Posted by gautam99

I was wanting to wait for the triumph bobber but now may rush to get a bonne before the deadline as even street twin price going up by nearly 50 to 60 k

Thats a live example on how Government regulations affect our automobile experiences. Have a look at this thread:

https://www.team-bhp.com/forum/india...-good-bad.html (Government regulations on the automobile sector - Good or Bad?)

tabrez · 20th March 2017, 07:47

Quote:

Originally Posted by dailydriver

The rate prevailing on the day of payment of tax will be applicable, irrespective of when the bike has been invoiced.

Would there be a difference ? I mean don't we invoice the vehicle & immediately send it out for RTO registration so that the delivery can done (unless of course the customer want's to take up the hassle of registration).

Quote:

Originally Posted by dailydriver

Its implementation from 01/04/2017 is subject to a notification being issued by the competent authority. I doubt whether the Government will be able to do it before the budget is passed.

And to the best of my knowledge, the budget has only been presented, not passed. Hence, akshayar640 may very well end up paying only 12%.

You're absolutely right, dailydriver but I'm yet to see/read any objection against this move by the Government. If it's red-tape & governments inability to enforce this, then that's a different story but at this point in time, nothings really inhibiting them. I would be happy to see Akshay save up those extra 6% in terms of tax.

dailydriver · 20th March 2017, 09:02

Quote:

Originally Posted by tabrez

Would there be a difference ? I mean don't we invoice the vehicle & immediately send it out for RTO registration so that the delivery can done (unless of course the customer want's to take up the hassle of registration).

There will be a difference in case one wants to do what you have said in parenthesis.

Quote:

You're absolutely right, dailydriver but I'm yet to see/read any objection against this move by the Government. If it's red-tape & governments inability to enforce this, then that's a different story but at this point in time, nothings really inhibiting them. I would be happy to see Akshay save up those extra 6% in terms of tax.

I may be completely out of depth here, but my understanding is that an increase in tax rate would have to be done by amending the KMVT Act - (relevant portion appended to my opening post). This will require a proposal to be placed in legislature. Upon being approved, it will then have to get the assent of the Governor. So, time might still be on our side here

.

akshayar640 · 20th March 2017, 10:02

Quote:

Originally Posted by tabrez

I would be happy to see Akshay save up those extra 6% in terms of tax.

Yes indeed, I would be saving somewhere between 13-14k.

Also, I would like to update this group that I visited the showroom on Saturday and they said that my bike might get delivered by the end of this week. But the bike being the new Duke 390, the showroom is yet to get the RTO approval, which they are hoping to get sorted by 25th of March. But then, no one is really sure. I just have to wait and hope for the best I guess.

tabrez · 20th March 2017, 10:55

Quote:

Originally Posted by akshayar640

Also, I would like to update this group that I visited the showroom on Saturday and they said that my bike might get delivered by the end of this week.

Let me be the first to congratulate you & be prepared to be annoyed by a slew of questions from my side

on the Duke 390. I'm not aware of any other bhpian making the booking. So Akshay, your ownership thread would be eagerly awaited.

Between I might be going OT, but if you could kindly reveal details such as Bangalore OTR (On-the-road, alongside the split) & the showroom you're buying from on the other thread dedicated to MY'17 Duke 390, that would really help a whole bunch prospective 390-buyers stationed here in Bangalore.

akshayar640 · 20th March 2017, 11:24

Quote:

Originally Posted by tabrez

Let me be the first to congratulate you & be prepared to be annoyed by a slew of questions from my side

on the Duke 390. I'm not aware of any other bhpian making the booking.

Thank you so much. I would love to answer all the questions from the members of this forum regarding my experience. I was thinking of creating a thread once I get the delivery of the bike so that I can add a bunch of photos as well

. But, if you insist, I can create a thread now to share my experiences so far.

cool_dube · 1st April 2017, 13:13

Any latest updates on this front? Is the increased road tax applicable from today onward?

tharian · 1st April 2017, 13:21

Quote:

Originally Posted by cool_dube

Any latest updates on this front? Is the increased road tax applicable from today onward?

Yes, looks like it.
http://m.deccanherald.com/index.php?...t.html&secid=8

cool_dube · 1st April 2017, 14:57

Quote:

Originally Posted by tharian

Yes, looks like it.
http://m.deccanherald.com/index.php?...t.html&secid=8

And look at the roads we get in return

Blatant shamelessness!!

anilupadhya · 2nd April 2017, 11:22

Quote:

Originally Posted by tharian

Yes, looks like it.
http://m.deccanherald.com/index.php?...t.html&secid=8

It was announced during the budget. But the bill has not been passed in the houses yet I suppose.

The cap on movie ticket pricing has still not been implemented yet..

It might not be right to collect the additional tax..

Unable to view the DH article now. Has it been removed?

akshayar640 · 2nd April 2017, 16:38

Showrooms have increased the on-road price. The increase in tax has been implemented.

slicvic · 2nd April 2017, 18:53

Quote:

Originally Posted by akshayar640

Showrooms have increased the on-road price. The increase in tax has been implemented.

Check the tax receipt issued by the RTO and see if the increased amount matches the same.

Dealer may say increased tax, but pocket the difference too. They're known for it.

18th March 2017, 16:55	#18
gautam99 BHPian Join Date: Jul 2014 Location: Bangalore Posts: 133 Thanked: 59 Times	I was wanting to wait for the triumph bobber but now may rush to get a bonne before the deadline as even street twin price going up by nearly 50 to 60 k
	(1) Thanks

1st April 2017, 13:13	#25
cool_dube Senior - BHPian Join Date: Sep 2004 Location: Bangalore Posts: 2,649 Thanked: 4,538 Times	Re: Karnataka proposes increasing tax on bikes costing over a lakh Any latest updates on this front? Is the increased road tax applicable from today onward?
	() Thanks

2nd April 2017, 16:38	#29
akshayar640 Newbie Join Date: Mar 2017 Location: Bangalore Posts: 5 Thanked: 0 Times	Re: Karnataka proposes increasing tax on bikes costing over a lakh Showrooms have increased the on-road price. The increase in tax has been implemented.
	() Thanks