Friday, August 31, 2012
By Manoj Kumawat
Fiat India in crisis, SC asks it to pay Rs 432 Cr tax
The miseries of Fiat India seem not to end. It has reeled long due not so exceptional sales of its two cars Fiat Punto and Fiat Linea and now it will be paying Rs 432 crore to the excise department. As per sources, Fiat has lost the case in the Supreme Court and following which the Italian car maker will be paying the amount to the excise department. Notably, the company has been charged by the company of selling the Fiat Uno cars below the cost price. The case relates to Fiat Uno cars sold between 1996 and 2001.
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As per the information available, the car maker has been charged to have sold the Uno model cars at much lesser price than the actual cost in order to take over the market and to evade the tax. This is like selling the cars at 100 percent loss. The decision is said to be a big blow to the car maker and now that the single bench of the Supreme Court has given its decision it is final and binding. However, the car maker could file an appeal in a double bench of the Supreme Court.
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The decision certainly is going to dampen the prospects of the car maker and if it gets publicized, it will be greatly a threat to the brand and sales are expected to go down. This is also expected to impact the future of Fiat India and its upcoming cars. It is believed that the Fiat will be launching an array of cars soon in order to expand its presence in India. The cars include Fiat 500, Fiat Bravo, Fiat Doblo, Fiat Freemont, 2013 Fiat Palio, Fiat Panda and Fiat Sedici. All these cars were scheduled to be launched this year but the recent economic loss to the company could result in the postpone of the Fiat car launches in India.