 "Atul Auto dips on disappointing April sales")
Atul Auto has dipped 8% to Rs 484 on the BSE in intra-day trade after the company’s vehicle sales more than halved at 1,242 units in month of April 2016, as higher value added tax (VAT) impacted sales in the state of Gujarat. The company engaged in the business of automobile products had sold 2,502 units in the same month last year.
“With effect from 1st April, 2016, Government of Gujarat in its Budget for 2016-17 has increased VAT on motor vehicles sold to dealers from 15% to 20%, whereas sales made by dealers to customers attract VAT @15%. This resulted into a tax anomaly resulting into increased 5% burden of VAT,” Atul Auto said in a statement.
Therefore despite pending orders, dealers have suspended taking delivery of vehicles from 1st April, 2016. This has impacted company’s sales in Gujarat resulting into this decrease. This scenario may continue till resolution of above situation, it added.
At 10:52 am, the stock was down 7% at Rs 489 on the BSE as compared to 0.56% rise in the benchmark S&P BSE Sensex. A combined 122,348 shares changed hands on the counter on the BSE and NSE so far.
“With effect from 1st April, 2016, Government of Gujarat in its Budget for 2016-17 has increased VAT on motor vehicles sold to dealers from 15% to 20%, whereas sales made by dealers to customers attract VAT @15%. This resulted into a tax anomaly resulting into increased 5% burden of VAT,” Atul Auto said in a statement.
Therefore despite pending orders, dealers have suspended taking delivery of vehicles from 1st April, 2016. This has impacted company’s sales in Gujarat resulting into this decrease. This scenario may continue till resolution of above situation, it added.
At 10:52 am, the stock was down 7% at Rs 489 on the BSE as compared to 0.56% rise in the benchmark S&P BSE Sensex. A combined 122,348 shares changed hands on the counter on the BSE and NSE so far.
