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December 7th, 2008 admin Leave a comment Go to comments

Auto Parts Cos Content With Budget 2010-11

The Union Budget 2010-11 has brought good news for the auto component sector in India with certain key measures being presented by the Union finance minister (FM), Pranab Mukherjee. Small-scale auto parts companies as well as Auto Components Manufacturers Association (ACMA) expressed contentment after the FM announced a mild rollback of excise duty and chose not to hike the service tax, which was one of the major concerns that had made the sector apprehensive before the Budget announcement. Respite for SME auto units The move to retain the tax on services at 10% as undertaken by theFM has come as a relief for small-scale auto parts companies, which feared that the government will raise the tax rate. Mr Mukherjee's announcement of an increase in the excise duty by 2% also failed to dent the positive spirit upheld by small-scale auto parts firms as well as key industry representatives. "Rollback in some fiscal benefits,which were extended as part of the stimulus measures, was expected, but a marginal hike of 2% in excise duty was a real surprise as we were anticipating the government to initiate higher tax rate. To this extent it has come as a relief," said V Sarda, proprietor of a Ford dealership store in Nanded, Maharashtra. Besides, the move to raise personal income tax slabs limits in the Budget has made the auto sector hopeful of witnessing higher vehicle sales in the coming days. "Raising the personal income tax slabs limits will leave tax payers with more disposable income, thereby enabling potential consumers to buy more bikes and cars. This would lead to increased sales, thereby subsequently also benefiting SME auto parts units," said A Kumar, manager of Gupta Auto dealers, a small-sized auto parts dealer store in Kolkata. Given that there is no increase in service tax and auto players can absorb the hike in excise duty, the Union Budget 2010-11 does hold good for the auto component sector. For more detail on Auto Parts Manufacturers log on to http://www.bizxchange.in/

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David Parks is a well known author and has written articles on Auto Electrical System and Entrepreneurs Success Stories, suppliers, Manufactures and many other subjects.

Scale Auto