The Revenue department today clarified that the cars including Maruti Suzuki SX4 and Toyota Corolla Altis will attract the lower excise duty of 27 percent and not 30 percent as compared ton SUV's.
"...it is clarified that the afore-cited motor vehicles (Maruti SX4, Honda Civic and Toyota Corolla Altis), which are known as sedans, will attract the excise duty of 27 per cent as applicable to large segment cars", CBEC said in a circular.
While increasing the excise duty on SUVs to 30 per cent in the last Budget, the government has defined three features of the SUVs -- engine capacity of over 1500 cc, length more than 4,000 mm and ground clearance of 170 mm and above.
Finance Minister P Chidambaram in his Budget speech had said: "SUVs occupy greater road and parking space and ought to bear a higher tax. I propose to increase the excise duty on SUVs from 27 percent to 30 percent. However, the increase will not apply to SUVs registered as taxis."
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