Maharashtra govt's unclear tax policy hit auto majors

Maharashtra state government’s recent change in the tax policy has hit many industries including auto majors in a big way. And now it seems the Detroit of India is loosing its sheen, reports CNBC-TV18’s Swati Khandelwal Jain. Maharashtra, regarded as India’s answer to Detroit, is losing favour with the auto industry. There has been no breakthrough on the crucial issue of VAT exemption even after several high profiles’ meeting with the state government. Earlier in the year, the Maharashtra government issued a notification that changed rules for VAT set off, which has led to deferment of refunds to auto companies. More over, companies now get an incentive only for vehicles sold in the state and not outside. The auto industry claims the new regulation has led to a 15-20% cut in sales every month.

Source : CBNC