Road Tax basics info- Help!

[Zappo]

Actually you guys may not entirely be correct. Unless I am way off the mark the state of West Bengal charges you RT for only 5 years at a time. It has to be renewed every 5 years. So there... if you wish to pay for 5 years at a time take a transfer to Kolkata.

[revved_up]

Hi Guys..

Just wanted to know.. if I buy a care in some other state(e.g Andhra) and get a temporary registration done. Now if I drive the car to bangalore, what is the process of getting it registered and what all taxes will I have to pay?

Any help will be greatly appreciated.

[BaCkSeAtDrIVeR]

Originally Posted by revved_up

Just wanted to know.. if I buy a care in some other state(e.g Andhra) and get a temporary registration done. Now if I drive the car to bangalore, what is the process of getting it registered and what all taxes will I have to pay?

Probably, "Entry Tax". This dates to the good old days of Sales Tax (now, we have VAT), when states used to compete amongst themselves in reducing sales tax so that things like this happen. So, states (like Kerala) with higher sales tax regime enacted laws which levied a tax, which is the difference between the tax rate in home state and the tax actually paid in the State of purchase as "entry tax".

I am not sure if Karnataka has entry tax. I started my reply with the word "probably".

Every other formality ought to be identical.

PS:- Are you buying some exotic which has no dealers in Karnataka?

[revved_up]

Originally Posted by BaCkSeAtDrIVeR

Probably, "Entry Tax". This dates to the good old days of Sales Tax (now, we have VAT), when states used to compete amongst themselves in reducing sales tax so that things like this happen. So, states (like Kerala) with higher sales tax regime enacted laws which levied a tax, which is the difference between the tax rate in home state and the tax actually paid in the State of purchase as "entry tax".

I am not sure if Karnataka has entry tax. I started my reply with the word "probably".

Every other formality ought to be identical.

PS:- Are you buying some exotic which has no dealers in Karnataka?

I think you can take out the word "probably" out of your post and replace it with surely because that is what RTO is telling.
A friend of mine had bought a swift diesel from another state with a temp registration since here there is a waiting of 4 months.
Now he is being asked to pay "Entry Tax" which is about 50k apart from the usual road tax and all. This makes the total amount to be around 1 lac.

Now paying this entry tax does not make any sense.. so he might end up selling the car.

Any other ideas anyone?

Originally Posted by BaCkSeAtDrIVeR

So, states (like Kerala) with higher sales tax regime enacted laws which levied a tax, which is the difference between the tax rate in home state and the tax actually paid in the State of purchase as "entry tax".

Moreover the tax being asked is not really the difference between the two "state" taxes, it is somewhere near 10-11% if I am not wrong.

[BaCkSeAtDrIVeR]

Originally Posted by Zappo

Actually you guys may not entirely be correct. Unless I am way off the mark the state of West Bengal charges you RT for only 5 years at a time. It has to be renewed every 5 years. So there... if you wish to pay for 5 years at a time take a transfer to Kolkata.

WB Does have a West Bengal Addl. Tax and One time Tax on Motor Vehicles Act, 1989. Unless I see the actual act (does not seem to available on line), I cannot say whether one time tax is compulsory or not.

Have a look at
1. Tax II. A.C. Tax & Audio / Video Fees III. New Regn Fees & Dealer Tax V. Goods Taxes (Other State Vehicle

The above link is googel's html rendering of a pdf file.

[sameer551]

How much road tax or registration One would have to pay if one opts for car from the other state. I mean if i buy a West bengal regiestered vehicle in delhi. What all extra amount will i've to pay in term of road tax or registration.

[ram_hyundai]

Originally Posted by tsk1979

Road tax is set by state govt.
For example in Punjab its 2%
Some cities levy 5% + congestion/parking charge of 5000, like Delhi.
So depending upon your city/State you will pay road tax. This is also called Registration amount.

here i am spending 6% of invoice price as road tax in kerela ,i feel its 7% in karnataka.there is one more catch to the whole thing.you can take an invoice after discounts and so you can save 6% of the discount amount also ,atleast in kerela its possible.you have to verify the same in other areas also.check whether road tax is a percentage of invoice prize or ex-showroom price.

[btirthankar]

Is it possible to buy Innova in Hyderabad and drive it down to Kolkata (I'll manage to) and get it registered there?

I dont want to pay road tax in AP and then again in WB.

I have to buy the new car here as I still be in Hyd for 2 months b4 getting transferred to Kolkata.

[BaCkSeAtDrIVeR]

@b thirthankar, you may be better off buying and registering in WB itself - there is something called "entry tax", which you will have to pay on vehicles purchased within past 1-2 years while registering / re-registering in WB. This is true for most states - not just WB. See my post above.

[suvi]

I am not sure of the entry tax (at least in Karnataka). You can drive upto 1 year without paying any tax. after that you need to pay the life time tax (10% of the current value of the car). you need not change the registration, though it is preferable (since you are paying such a huge amount in any case, as well pay a little more and do not attract attention of corrupt cops)

If you change the registration of your car (say from AP to KA), when you go back to AP, You do not have to pay the LTT again (within 15 years). You only need to pay for the re-registration of your car.

I envy Kerala/Punjab and other guys paying much lesser road tax.

[btirthankar]

Originally Posted by BaCkSeAtDrIVeR

@b thirthankar, you may be better off buying and registering in WB itself - there is something called "entry tax", which you will have to pay on vehicles purchased within past 1-2 years while registering / re-registering in WB. This is true for most states - not just WB. See my post above.

There are some issues here:

• I am getting higher dealer discount in Hyd than Kolkata
• Kol has 1 dealer and monopoly service and I'm not getting variant of my choice in confirmation.
• Kolkata-Hyderabad Price diff is 6K
• I need a car this month itself
• I am shifting to Kolkata after 2 months
• I travel entire country so it will be either AP or WB numbers which will be the odd ones out wherever I go.
• Hyd tax is lifetime 76K -15 years. Kol tax is 39K-5 years (Diff of 37K)
• Kol Road Tax will surely increase in the subsequent 5 years block. (say 60K)
• Hyd resale is higher too.
• I have time now (low work load in Hyd) to haggle with banks and on discount etc.

These are my opinions. I have not made the purchase.

comments welcome.

[rkg]

Originally Posted by ram_hyundai

here i am spending 6% of invoice price as road tax in kerela ,i feel its 7% in karnataka.there is one more catch to the whole thing.you can take an invoice after discounts and so you can save 6% of the discount amount also ,atleast in kerela its possible.you have to verify the same in other areas also.check whether road tax is a percentage of invoice prize or ex-showroom price.

it is 10% + 10 % cess on 10% road tax ( i.e; 1% extra) = total 11% for cars below 5 lakhs . above it is 13% ( i think so) and above 10 lakhs it works out 14% + 10% cess= 15.4% as Road tax in karnataka

[harry10]

Does anyone has any idea how much is the road tax in Faridabad and Delhi?

[AdvaithC]

Originally Posted by Zappo

A funny aside to this is suppose you buy your vehicle today and pay 1 lakh as the road tax. After 3 years you sell it off. The money is anyhow lost to you. Now after another 2 years the new owner of this vehicle decides to move out of the state. He can claim a refund on the remaining road tax. Go figure.

That makes sense. As long as the new owner is in the same state he is not getting any free money. If he is going to new state he will have to pay tax there which is balanced by the refund in the current state.