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    Excise Duty in India

    Uploaded by

    Komma Ramesh
    Excise duty rates on cars in India vary based on engine size and length. Small cars under 4 meters with engines under 1200cc have a 12% duty, while larger cars over 4 meters or with engines over 1500cc have higher duties of 24-30%. SUVs specifically over 4 meters long, with engines over 1500cc and ground clearance over 170mm have the highest duty of 30%. The rates are set nationally by the central government and apply uniformly across India.

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    Excise Duty in India

    Uploaded by

    Komma Ramesh
    263 views3 pages
    Excise duty rates on cars in India vary based on engine size and length. Small cars under 4 meters with engines under 1200cc have a 12% duty, while larger cars over 4 meters or with engines over 1500cc have higher duties of 24-30%. SUVs specifically over 4 meters long, with engines over 1500cc and ground clearance over 170mm have the highest duty of 30%. The rates are set nationally by the central government and apply uniformly across India.

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    CAR EXCISE DUTY TAX IN IDIA

    Original Title

    EXCISE DUTY IN INDIA

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    Excise duty rates on cars in India vary based on engine size and length. Small cars under 4 meters with engines under 1200cc have a 12% duty, while larger cars over 4 meters or with engines over 1500cc have higher duties of 24-30%. SUVs specifically over 4 meters long, with engines over 1500cc and ground clearance over 170mm have the highest duty of 30%. The rates are set nationally by the central government and apply uniformly across India.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    263 views3 pages

    Excise Duty in India

    Uploaded by

    Komma Ramesh
    Excise duty rates on cars in India vary based on engine size and length. Small cars under 4 meters with engines under 1200cc have a 12% duty, while larger cars over 4 meters or with engines over 1500cc have higher duties of 24-30%. SUVs specifically over 4 meters long, with engines over 1500cc and ground clearance over 170mm have the highest duty of 30%. The rates are set nationally by the central government and apply uniformly across India.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Excise Duty on Cars in India

    Excise Duty is levied at the time of manufacture of any product in India. Excise Duty on Cars is
    also levied at the time of manufacturing. The rate of excise duty on cars is decided by the
    Central Govt and is the same across India.

    The rate of excise duty on cars is different for different categories of cars and depends on their
    size and engine.

    Rate of Excise Duty on Cars

    The different excise duty rates on manufacture of cars are mentioned below.

    Condition 1 Less than 4 Metre More than 4 Metre and


    and
    In case of Petrol In case of Petrol
    In case of Petrol Cars Cars Cars More than 1500 cc
    Less than 1200 cc Less than 1200 cc More than 1500 cc AND
    Condition 2 OR OR OR Ground Clearance
    In case of Diesel Cars In case of Diesel In case of Diesel more than 170 mm
    Less than 1500 cc Cars Less than 1500 Cars i.e. SUV’s
    cc More than 1500 cc
    Toyota Fortuner,
    Maruti Alto, Honda City, Honda Accord,
    Example Hyundai i10 etc Hyundai Accent etc Hyundai Sonata etc Ford Endeavour
    etc
    Applicable Amended by Amended by Amended by Inserted by
    from Budget 2012 Budget 2012 Budget 2012 Budget 2013
    Excise Duty
    12% 24% 27% 30%
    on such Cars

    Both Condition 1 and Condition 2 are required to be satisfied for the Rate to be applicable. In
    case any of the above condition is not satisfied the corresponding rate would not be applicable

    4 Metre Condition
    One condition that decides the rate of excise duty on cars is its size. If the length of the car is
    less than 4 metres, the excise duty levied is 12%. But as soon as the length increases to more
    than 4 metre, the excise duty doubles to 24%.
    To avail this duty benefit to small cars, many car manufacturers have started reducing the length of their
    Cars to less than 4 metre. For eg: Maruti reduced to size of its Swift Dezire to less than 4 metres.
    Moreover, cars like Honda Amaze, Mahindra Quanto, Ford Ecosport have been launched with length
    less than 4 metre keeping in view the excise duty benefit given to small cars.
    Excise Duty on SUV Cars

    While presenting the Budget 2013, Chidambaram increased the rate of excise duty on SUV’s
    from 27% to 30%. The definition of SUV’s was given as those cars which are more than 4
    metres in length, have an engine of more than 1500 cc and have a ground clearance of more
    than 170mm.

    Although this definition was given for implement a higher rate of excise on SUV’s some sedans
    like Maruti SX4 and Toyota Corolla Altis also incidentally fall in this range. To prevent such
    sedans falling in this range the govt has issued a circular stating that 30% excise duty should
    not be levied on these cars. These cars are popularly known as sedans in common parlance as
    well as trade parlance, and therefore 27% excise duty will be levied on such cars. (Refer:
    Circular No. 972/06/2013.CX)

    Excise Duty on Other Vehicles

    Rate of Excise
    Particulars
    Duty
    Ambulance 12%
    Two & Three Wheel Electric Motor Vehicles
    6%
    (i.e. Vehicles run solely on Electricity)
    Hybrid Vehicles 12%
    Three wheelers
    12%
    (Run on fuels other than electricity)
    Cars for Physically Handicapped 6%

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