Finance Ministry has told automobile sector to reduce royalty payment to their parent company instead of seeking cut in GST rate. Ministry Official has said that there is complete ‘policy certainty’, and tax rates on automobiles are lower in GST rather than earlier tax regime of excise duty and VAT. This statement came after Toyota company official has said that the firm is halting its expansion in India since the tax rates are high and it is becoming difficult to expand business.
After Toyota’s tax crib, govt says GST is fair, auto makers must cut royalty to parent firms
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