Atul Auto has reported 50.36% drop in sales for the month of April 2016 at 1,242 units as compared to 2,502 units sold in April 2015.
The company has stated that with effect from April 01, 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 attracts VAT at rate of 15%. This resulted into a tax anomaly resulting into increased 5% burden of VAT. Therefore despite pending orders, Dealers have suspended taking delivery of Vehicles from April 01, 2016. This has impacted the company’s sales in Gujarat resulting into this decrease.
Atul Auto is a leading manufacturer of 3-Wheeled Commercial Vehicles in the state of Gujarat, presently engaged in the manufacturing of Three Wheelers like 6-seater Auto Rickshaws, Pick-Up Vans and Chassis of Passenger Vehicles.
