Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.

We won't support this browser soon. For a better experience, we recommend using another browser. Learn More

Ad

Fiat case resolved; Excise Duty to be paid on final sale price

July 11, 2014, 12:21 PM IST by Pratheek Kunder
Fiat case resolved; Excise Duty to be paid on final sale price

The entire Indian manufacturing industry has heard about the famous Fiat India case that happened two years ago. The Italian manufacturer was asked to cough around Rs 400 crore as excise duty by the Supreme Court. 

Fiat along with its partner Premier Automobiles was importing completely-knocked-down (CKD) kits of its popular Uno hatchback cars, and selling them in the market at much below its cost price. This was done to penetrate the Indian market, at a time when only few companies like Maruti Suzuki and Tata were doing business in India. After the excise department discovered that the Uno's wholesale price declared by the company was less than the production cost, it charged Fiat and Premier to pay duty on the cost price. But the company contested the charge, arguing that since their selling price was lesser than the cost price, its assessable value was also lower.

Finance Minister, Arun Jaitley, who announced the Union Budget 2014, yesterday announced that the excise duty would be levied on the final sale price.  This is a major relief to auto manufacturers, who sometimes sell their products at a discounted price due to market competitiveness and other commercial considerations. The industry was not quite happy about the way Fiat India litigation turned out to be, but with this new announcement in place, there is a positive vibe in the industry.

  • FaceBook Logo
  • Twitter Logo
  • Email Logo
Show CommentsHide Comments
bell icon
Never miss an update
Receive latest updates from CarWale
Ad
  • Upcoming Cars

Tata Nexon EVTata Nexon EV

28th Jan 2020

15L - ₹ 17L
Mercedes-Benz GLE NewMercedes-Benz GLE New

29th Jan 2020

65L - ₹ 80L
Land Rover New Range Rover EvoqueLand Rover New Range Rover Evoque

30th Jan 2020

53L - ₹ 70L
Lexus LC 500hLexus LC 500h

31st Jan 2020

1.60Cr - ₹ 2Cr
Kia CarnivalKia Carnival

5th Feb 2020

25L - ₹ 27L
All Upcoming Cars
Buying a new Car?Leave a missed call1800 2090 230(Toll free)

Select your city to avail offers

Currently available only in