Budget FY23: FADA seeks GST cut on two-wheeler, used car segments


New Delhi, Jan 17 | The Federation of Automobile Dealers Associations (FADA) has urged the Centre to reduce GST on two-wheelers to boost sales volume.

As part of its pre-Budget recommendations, the association sought GST rates at 18 per cent.

“It is noteworthy that two-wheeler is used not as a luxury, but as a necessity to travel distances by lower class and rural segments for their daily working needs. Hence the rationale of 28 per cent GST plus 2 per cent cess which is for luxury or ‘sin products’ does not hold good for the two-wheeler category,” the federation said.

According to FADA, reduction in GST rate will somewhat counter the continuous price hike in the two-wheeler segment and create fresh demand.

For the used car segment, the federation urged the Centre to reduce GST rate to flat 5 per cent from the present 12 per cent and 18 per cent for two different categories of vehicles.

“Reduction in GST will help the industry shift from unorganised segment to organised segment, thus bringing in more business under the ambit of GST helping in putting brake on tax leakages,” it added.

Besides, the association seeks reduction in corporate tax to 25 per cent for ‘LLP’, proprietary and partnership firms in line with private limited companies.

“This (reduction) will help boost morale and sentiment of the traders which employ five million people, out of which 2.5 million employees are in direct employment,” it said.

Further, FADA asked the Centre to introduce benefits of claiming depreciation on vehicles for individuals paying income tax.

“The vehicles depreciates for both corporates as well as individuals, and it would hence be judicial that the salaried class should also get the same benefit,” it said.

Source: IANS

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Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

The benchmark Indices Nifty started on the positive side after continuous sell off in last week and has managed to settle at 15842.30 with 60 point gain or 0.38 percent. However Nifty has failed to regain 16000 levels prior to LIC listing.

While Bank nifty has managed to settle at 33597.60 levels after gaining 1.44 percent. On the sectoral front, Nifty PSU Bank, Nifty Realty and Auto have contributed 2-3 percent gain on closing basis. On the flip side Nifty IT and FMCG ended with losses of 0.75 percent and 0.35 respectively. In Nifty, EICHERMOT, APOLLOHOSP and UPL were the top gainers while ULTRACEMCO, SHREECEM and ASIANPAINT were the prime laggards.

Technically, after forming the bearish candle on the weekly chart, the index has formed a Doji candlestick on the daily chart which shows indecisiveness among the trades. Moreover, the index has also faced a resistance from falling trend lines and showed profit booking from higher levels. However, Fibonacci retrenchment also has support around 15650 levels.

Traders may find buying opportunities for short term as if 15650 levels is protected. In the hourly chart, with support of the middle Bollinger band short term upside movement is expected. Stock specific action would drive the market in coming days too.

On the derivatives front, the highest call OI is at 16000 strike price followed by 16200 strike prices while on the put side, highest OI is at 15500 strike price. INDIA VIX closed at 24.53 with gain of 4.43 percent intraday indicating volatility is going to remain till weekly expiry . On the other hand, Bank nifty has support at 32600 levels while resistance is placed at 34500 levels.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India



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