Prices Of Cars Over Rs 10 Lakh In India Increase By One Per Cent - Overdrive
n18

Prices of cars over Rs 10 lakh in India increase by one per cent

01 Jun 2016 / 2

As announced in the 2016 Union Budget, the one per cent luxury tax levied on vehicles costing over Rs 10 lakh will be applicable from today. This tax, which is to be collected by the dealer, will be added to the ex-showroom price of the vehicle. There will be also an additional 0.5 per cent Krishi Kalyan cess, aimed at collecting money for agricultural and farmer welfare. This cess takes the tax on services such as labour and insurance premium to 15 per cent from last year’s 14.5 per cent.

New-Toyota-Corolla-Altis

Auto manufacturers including Hyundai, Honda and Maruti Suzuki had already increased prices of their vehicles to offset the infrastructure cess that was levied in this year’s Union Budget. Now, all the manufacturers have revised prices of their vehicles that cost over Rs 10 lakh to include the luxury tax and will announce them shortly.

Also from OVERDRIVE on the 2016 Union Budget:

Honda Cars India raises prices to offset the impact of infrastructure cess

Auto Budget 2016: Multiple cess to make cars more expensive in India

Auto Budget 2016: Luxury cars and SUVs to become more expensive



To stay at the cutting edge of automotive news in India, follow Overdrive on Twitter (@odmag) or on Facebook (facebook.com/odmag). Or download our app from the iOS or Android app stores today.


Find your next car
OR
opinion
Shubhabrata Marmar
quote
23 Jun 2017
Income lax department
Should someone earning a living from a vehicle get priority at...
Bob Rupani
quote
15 Jun 2017
The lal batti and VIP culture
The government has banned the ‘lal batti’ or red beacon...