Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: VAT Audit :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: cpt :: empanelment :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS
 
 
« Budget Extravaganza »
 With demonetisation inducing tax compliance will PM Modi cut tax rates in Budget 2017?
 State plan budget utilisation in Odisha
 Maharashtra wants budget advanced to February
 Coastal economic zones may get 10-year tax exemption in next Budget
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget
 Cabinet’s formal nod to be sought for Budget on Feb. 1

Auto companies worry over levy on diesel vehicles: Budget 2011
February, 19th 2011

Automobile companies are keeping their fingers crossed over the possibility of the government introducing differential taxation for diesel vehicles in this Budget, as recommended by the Kirit Parikh Committee report.

Particularly concerned are MNCs that have invested heavily in building diesel engine plants in India and say higher taxes or levies on diesel vehicles would hit demand and could impact future investment plans in India.

Take Ford India, which pumped in a substantial part of its overall $500 million investment in India into its 250,000-unit diesel engine plant. The company is all set to 'grow' its Indian capacity for both domestic sales and exports in the next four months. But that decision could take a hit if the government slaps differential taxes on diesel vehicles.

"A decision like that could potentially impact future investment for both domestic and export capacity," said Ford India MD Michael Boneham.

Others like Toyota India, which has just rolled out its Etios small car in India, are "not making any investments on diesel just yet," said Sandeep Singh, deputy MD, Toyota India. "We have plans but we have not taken a firm decision yet," he added.

The Kirit Parikh Committee's recommendations-which suggested an additional excise duty of around Rs 80,000 on diesel cars to neutralize the fuel price differential-was greeted with howls of protest from the automobile industry when first announced more than a year ago. Given that many of the best-selling small cars today are diesel, the industry is antsy that a diesel tax will derail demand. "Nearly every company have made or are planning huge investments in diesel capacity," said Singh. "If the price of the vehicle goes up, it will impact sales at a time when companies are squeezed under rising input costs."

Rajesh Jejurikar, COO, automotive division, M&M , feels diesel tax, if it comes, will be a double whammy for his range which already attracts an additional surcharge. "We already pay a surcharge of Rs 15,000 because our engines are bigger than 2-litre capacity," he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions