Applicable excise duty on Sedan cars like Maruti SX4, Honda
Civic, Toyota Corolla Altis
Circular No. 972/06/2013.CX
Date: 24/07/2013
Ques whether the excise duty of 30% is applicable on sedan cars likeMaruti SX4,
Honda Civic and Toyota Corolla Altis.
Ans In the Budget
2013-14, excise duty was increased from 27% to 30% on motor vehicles of engine
capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs)
including utility vehicles. In the Explanation appended at Sl. No. 284A
of the aforecited notification, it has been
mentioned that for the purposes of this entry, SUV includes
a motor vehicle of length exceeding 4000 mm and having
ground clearance of 170 mm and above. From this, it
may be seen that the higher excise duty of 30% is applicable on motor vehicles
which are popularly known as SUVs and which satisfy all the three conditions,
viz. (i) the engine capacity exceeds 1500 cc, (ii) the length exceeds 4000
mm; and (iii) the ground clearance is 170 mm and above. Maruti SX4,
Honda Civic and Toyota Corolla Altis are stated to satisfy all the
three conditions but, they are not popularly known as SUVs and neither are they
known so in trade parlance. They are reportedly known as sedans in trade and
common parlance.
In view of the above,
it is clarified that the aforecited motor vehicles, which are known
as sedans, will attract the excise duty of 27% as applicable to
large segment cars.[Sl.No. 284 (ii) of the Table in notification ibid]
Regards
CA. Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001
Mobile:- +91-9873082769
Website: www.caaga.co.in
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