E-Paper
Automobile dealers not to participate
WITH LAST year?s bitter experiences still fresh in their minds, the automobile dealers of the city have refused to attend the Saifai Mahotsava this year. The dealers have made it clear to the concerned authorities that if they were not briefed about the rules and regulations in advance, they would prefer not to participate in the Mahotsava.
WITH LAST year’s bitter experiences still fresh in their minds, the automobile dealers of the city have refused to attend the Saifai Mahotsava this year.
The dealers have made it clear to the concerned authorities that if they were not briefed about the rules and regulations in advance, they would prefer not to participate in the Mahotsava.
The automobile dealers are skeptical primarily on two accounts- the complexities added by the trade tax department and the 150 per cent hike in rates stipulated for the pandals at the Mahotsava venue.
Last year, the dealers had sold 5,000 four-wheelers and 50,000 two-wheelers worth Rs 400 crores during the Mahotsava. They were also given an exemption of Rs 52 crore by the trade tax department.
Accounting for the sale of 1111 four-wheelers and 650 two-wheelers, the city dealers had got tax exemption worth Rs 5.5 crore.
Recalling the problems faced by dealers during the last Mahotsava, Managing director of Kailash Motors, Dr Ishwar Chandra Gupta said that the dealers expected sale of vehicles akin to the Gwalior Fair because of the tax exemptions.
The major dealers from all over the State had put up their stalls and shifted large stock to Saifai. But at the last minute, the trade tax department added a new condition that only dealers getting vehicles financed from banks in Saifai would be eligible for the tax rebate, he added.
Dr Gupta further said that there were only two banks in Saifai, which according to the rules could not finance vehicles to non-Saifai residents. The consumers were left with no option but to buy vehicles in cash and this marred their business prospects, he said.
“Adding to our woes, the department officials also conducted raids on stalls, asking the dealers to furnish details of the vehicles sold,” Gupta informed.
Puneet Khanna of Khanna Hyundai said that the dealers had to bear huge expenses in setting up stalls and shifting of the stock. On that all they were subjected to harassment by the local toughs.
“Keeping all this in mind, the dealers are finding the Mahostava no more a lucrative venture and would not go there this time,” added Khanna.
Similar sentiments were expressed by Anuj Agnihotri of Society Motors, who said that the pandal rates had been hiked from the earlier Rs 2 lakh to Rs 5 lakh.
Ranjeev Khanna of Hero Honda, Vikas Gupta of TVS and Vijay Garg of Maruti cars too said that they were unlikely to participate in the Mahotsava.
Last Saturday, the dealers had met commissioner trade tax, Rajnish Gupta and asked him to make all the rules clear before hand.
