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Old 25th September 2013, 12:34   #16
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Default Re: Road tax in case of discounts

Don't know if this is the accepted practice but when I bought the Vento, they offered me a 'corporate discount' but told me that it would be refunded to me after charging me the official ex-showroom price and tax on that.

So basically, I paid the listed price of 9.21L ex-showroom and whatever the tax was at the time, then the car was registered and delivered, and two weeks later VW Pune gave me a cheque for the corporate discount amount.
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Old 25th September 2013, 13:50   #17
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Default Re: Road tax in case of discounts

I think in Delhi , or at least with me , i paid on the listed price and not on discounted.
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Old 25th September 2013, 16:34   #18
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Originally Posted by drmohitg View Post
This is just becoming more confusing with again different members vouching for both the points above. Can we safely assume then that the enforcement of this law depends upon state to state, just like so many other motor vehicle laws in our country?
In the case of both my cars, I have had RTO tax receipts for the exact amounts given to me by the respective dealers which were exactly equal to the amount charged to me by the dealers. If the tax computation was done on discounted price, I would have saved a bundle on my Linea Tjet as I took the car under a 2 lakh discount last year. But as expected, road tax was computed on listed ex showroom price and not the discounted one.

In fact, you can check and pay the road tax amount for any car in Delhi on the Delhi governments transport dept website. Check it out. Dealers can't fool you then.
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Old 25th September 2013, 17:17   #19
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Default Re: Road tax in case of discounts

Road tax falls under the purview of state governments, and rules vary across states.

My car was first registered in MP in 2006, paid tax on discounted price. Transferred registration to Karnataka in 2010, paid tax on actual listed price on the invoice. I specifically checked with the RTO before handing over payment, and he said dealer-level discounts are not eligible for tax adjustments, unless such discounts are intimated to the RTO by the manufacturer itself. All discounts on invoices are treated as dealer discounts and ineligible for RTO consideration.

This appears to make sense too, as no dealer will give you an invoice for a consolidated discounted price. They will always mention the ex-showroom, discounts and net payable.
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Old 25th September 2013, 20:22   #20
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Default Re: Road tax in case of discounts

Also discussed in http://www.team-bhp.com/forum/indian...w-vehicle.html (Bangalore Road Tax calculation for new vehicle)

The Karnataka MV act clearly states that the tax is based as a percentage of the ' cost of the vehicle', so it must be on the discounted price. I'm sure that if one persists and follows up with the RTO and shows them the rules, they will agree to calculating based on this method.

It makes quite a difference, say on a discount of 1L, it will work out to 15K assuming a 15% tax.

Last edited by sdp1975 : 25th September 2013 at 20:24.
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Old 25th September 2013, 20:58   #21
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Default Re: Road tax in case of discounts

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Originally Posted by sdp1975 View Post
The Karnataka MV act clearly states that the tax is based as a percentage of the ' cost of the vehicle', so it must be on the discounted price.
Wouldn't the cost be the cost price (i.e. invoiced cost, or cost to manufacture), as opposed to the sale price which includes discounts?
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Old 25th September 2013, 23:44   #22
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Default Re: Road tax in case of discounts

Quote:
Originally Posted by sdp1975 View Post
Also discussed in http://www.team-bhp.com/forum/indian...w-vehicle.html (Bangalore Road Tax calculation for new vehicle)

The Karnataka MV act clearly states that the tax is based as a percentage of the ' cost of the vehicle', so it must be on the discounted price. I'm sure that if one persists and follows up with the RTO and shows them the rules, they will agree to calculating based on this method.

It makes quite a difference, say on a discount of 1L, it will work out to 15K assuming a 15% tax.
Do the rules specify what 'cost of the vehicle' is defined as? It won't be correct to assume that it means 'net cost to customer'. It can easily mean 'cost ex-showroom'.
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Old 26th September 2013, 11:27   #23
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Default Re: Road tax in case of discounts

What is the 'cost' of anything ? It's the price you pay for what you buy, and you get a bill in return for what you paid.

'Cost of vehicle' would mean the cost price paid by the customer to the dealer - that would be the price after the discounts. The invoiced price ( ie the bill presented to the customer ) should reflect the price after the dealer has applied all discounts. The cost to manufacturer is an entirely different matter.

In fact , one can take the bill and present it to the RTO for tax purposes - the RTO will have to accept the bill and apply the appropriate tax rate based on the bill value.
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Old 27th September 2013, 19:25   #24
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Default Re: Road tax in case of discounts

Road tax as a percentage of price of the vehicle is simply the said percentage of the Invoice value.

Discounts are always on 'on-road' cost of the vehicle.

Invoice value is reduced in case of discount. As a percentage, the sales tax, road tax and insurance are reduced.
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Old 27th September 2013, 21:33   #25
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Default Re: Road tax in case of discounts

If you go by the book, "Road Tax is calculated on the list price (without any discounts, concessions, or additions)" and it applies to all states across the country.

In practice though, some enterprising dealers/agents tend to evade this by not showing the discount/concession in the invoice rather just reducing the ex-showroom price. Now, RTO does have a list of all vehicles and there ex-showroom prices but it is very difficult to monitor.

Last edited by mobike008 : 28th September 2013 at 10:45. Reason: Lets avoid indirect references to bribing
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Old 28th September 2013, 08:12   #26
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Default Re: Road tax in case of discounts

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Originally Posted by bblost View Post
I paid road tax on the "ex-showroom - discounts price" on my new Chevy.
Are you sure about that? This was not the case when I had bought my Figo in 2012. Thank You.
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Old 28th September 2013, 08:38   #27
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Default Re: Road tax in case of discounts

I had personally been to the RTO in order to pay road tax for my car and though we had got a 40k discount on the invoice price of the car clearly mentioned, the officer there, a humble lady took the price without discount, then added local taxes etc, and calculated road tax for the non discounted price only. In fact I had made my own calculation taking the discounted price however she refused that and did the calculations for me.
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Old 19th October 2013, 14:22   #28
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Default Re: Road tax in case of discounts

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Originally Posted by bblost View Post
I paid road tax on the "ex-showroom - discounts price" on my new Chevy.
Just wanted a small clarification. The road tax was calculated on the amount (ex-showroom - discounts price) after adding VAT to this or excluding the VAT?
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Old 26th October 2013, 20:04   #29
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Default Re: Road tax in case of discounts

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Originally Posted by drmohitg View Post
Just wanted a small clarification. The road tax was calculated on the amount (ex-showroom - discounts price) after adding VAT to this or excluding the VAT?
Very sorry about the delayed response.

The bill I have simply says, Rs xxx including VAT.

This price is the Ex Showroom price of the car as per the website minus the discounts they gave me.
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Old 28th October 2013, 14:19   #30
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Default Re: Road tax in case of discounts

Quote:
Originally Posted by akhilesh51 View Post
If you go by the book, "Road Tax is calculated on the list price (without any discounts, concessions, or additions)" and it applies to all states across the country.

In practice though, some enterprising dealers/agents tend to evade this by not showing the discount/concession in the invoice rather just reducing the ex-showroom price. Now, RTO does have a list of all vehicles and there ex-showroom prices but it is very difficult to monitor.
Which book? Is their any legal document regarding this, any reference per say?
The reason I ask is while buying my vehicle I was told that it varies from RTO in different states as each one has its own dictates.
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