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Automotive
Industry Focus

Automotive

Tax and advisory for OEMs, auto ancillaries, and EV manufacturers

50+

Automotive sector clients

GST Cess

Compensation cess advisory

EV/FAME

Incentive specialists

Tier 1/2

Ancillary supply chain

Sector Overview

How JCA Serves Automotive

India's automotive sector — spanning vehicle OEMs, auto ancillary manufacturers, EV companies, and dealerships — has unique tax considerations: GST compensation cess on vehicles, FAME II EV incentives, automobile-specific transfer pricing challenges, and the complex supply chain from raw material to OEM to dealer. Our automotive team advises the full value chain — from Tier-2 component suppliers to listed OEMs.

Key Challenges

Sector Issues We Resolve

Compensation cess disputes

Compensation cess disputes

Classification of vehicles as SUVs vs. other motor vehicles for 22% vs. 20% cess determination.

EV transition tax impact

EV transition tax impact

GST impact on hybrid vehicles at 48%, pure EVs at 5%, and the phased transition of the existing ICE fleet.

Dealer incentive GST

Dealer incentive GST

Target-based dealer incentives — whether taxable as secondary discounts requiring GST reversal by the dealer.

OEM-ancillary TP margins

OEM-ancillary TP margins

Thin-margin auto ancillary suppliers under AO scrutiny for below-benchmark operating margins in captive supply relationships.

FAQ

Common Questions

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