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Old 9th May 2006, 11:58   #1
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Default Are Car owners being fleeced?

Hi Folks,

Got this article from groups.yahoo.com/group/swift_india/

************************************************** *******
Veeresh Malik, Outlook Money | May 09, 2006

Motor vehicle tax or 'road tax' is collected from buyers directly by the
manufacturers or dealers. It is a vast sum of money -- for an upper-end
private car, it can run into a lakh. Collected on 'life basis,' the tax
is for 10 years or a 'fitness' period of 15 years. After that the car
has to be re-registered, and more tax paid. For commercial vehicles, it
is higher.

This tax is supposed to be based on the ex-factory manufacturing cost,
plus excise duty, sales tax/VAT. Manufacturers are, however, charging
buyers on the basis of ex-showroom cost, which is higher. It might still
be acceptable, if the higher tax was reaching the government. But is it?
Letters to manufacturers, as usual, elicit no response.

And the dealers are unwilling or unable to provide the ex-factory cost.

Meanwhile, an 'off-the-record' chat with an RTO official in Delhi
revealed that the rot is much deeper. An amount lower than what is paid
by the buyer reaches the RTOs. And often, the tax does not even reach
the RTO coffers. The game involves big players, so even manufacturers
keep quiet.

It is high time the payment of RTO tax was made directly by the buyer --
through a cheque or demand draft -- to the RTO or other government
treasury and a proper receipt issued.

In the interim, do take out the original purchase documents of your car
and re-confirm how much road tax was actually paid in your name, on what
basis and to whom
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Old 9th May 2006, 12:05   #2
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Can you name these big name players? Are they govt. agencies or insurance firms or the manufacturers themselves or private companies?
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Old 9th May 2006, 12:06   #3
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The how in the world do RTOs issue reciepts for the amount? I have a RTO reciept for the raod tax paid for my car.
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Old 9th May 2006, 12:17   #4
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Quote:
Originally Posted by navin
Can you name these big name players? Are they govt. agencies or insurance firms or the manufacturers themselves or private companies?

Navin, I have no idea dude. Like I said in my ost, I have just reproduced this article from the swift owners group, which in turn is a reproduction of an article from outook money.

Will ge hold of the copy of outlook money for more details
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Old 9th May 2006, 12:40   #5
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Here's the article:
http://www.outlookmoney.com/scripts/...2%3A23%3A36+PM
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Old 9th May 2006, 22:57   #6
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Sorry, but I am unable to buy into this because the RTO receipt shows the exact amount charged by the dealer..

Can the receipts be doctored too?
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