After government reduces corporate tax rate, Maruti Suzuki cuts prices of some models
New Delhi: Days after the Centre reduced the corporate tax rate, Maruti Suzuki India Limited on Wednesday reduced the price of selected models.
The price of some models has been reduced by Rs. 5,000 (on ex-showroom price).
The selected models include all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross.
The new prices will be applicable from Sept 25 across the country. This reduction of price will be over and above the current promotional offers for the company’s vehicle range.
"The company is optimistic that the price reduction will bring down the cost of acquisition especially for the entry-level customers. This announcement around the festive season will help boost customer sentiment and revive the market to create demand.," said Muruti.
The tax relief for domestic companies, effective from Apr 1, implies that the government has reduced the effective corporate tax from 30 per cent to 25.17%, which is inclusive of all cess and government charges for the domestic companies and is applicable only if they do not avail any other exemptions or incentives.
Therefore, the effective tax for the companies not availing any concessions or incentives will be 22%.
It means that companies opting for this tax slab will have to pay only Minimum Alternate Tax (MAT).
The MAT has also been slashed to 15 per cent from 18.5% for those who will opt to continue paying the surcharge and cess.
For the domestic companies formed after Oct 1 will have to pay tax at the 15 per cent rate, if they do not avail any incentives or concessions. Inclusive of surcharge and cess, the effective tax rate will be 17.01%.
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