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Old 28th October 2013, 17:18   #31
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Default Re: Road tax in case of discounts

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Originally Posted by KPS View Post

To sum up, in Karnataka the road tax is on the listed price only.

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Umm, not sure of this. I recently bought an i10 in Bangalore and Road Tax was paid on the ex showroom price, net of discounts. Even items like loyalty bonus and the additional discounts I extracted through some haggling were excluded from the amount on which road tax was paid. Looks like there is a high level of discretion on this !
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Old 28th October 2013, 17:30   #32
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Default Re: Road tax in case of discounts

I think I mentioned this elsewhere but VW Palace cross in Bangalore reduced the ex-showroom price to 9.98L so that road tax was calculated on 9.98L and not on 10.13L. Anything above 9.99 means the road tax goes by 4% in KA so that's a good 40K saving.

Other dealer was offering 40K higher price and giving some discount on that.
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Old 29th October 2013, 11:42   #33
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Default Re: Road tax in case of discounts

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Originally Posted by kaks15 View Post
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.
Motor Vehicles Act or Central Motor Vehicles Act is what you should be looking for and most RTO authorities and many dealers have these in stock.
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Old 29th October 2013, 12:00   #34
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Default Re: Road tax in case of discounts

The tax amount , at least in Karnataka , as per rules, is on the final price paid by the customer.

The problem is that most RTOs insist on computing on the 'listed' price . The ARTOs have their own revenue targets and promotions to meet and they conveniently choose to flout the rules, assuming that they're aware of them fully.The lower level clerks simply follow the diktats of their seniors.

The RTOs know that most customers wouldn't know the rules , and even if they knew, get into an argument or take resort to legal measures.
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Old 18th November 2013, 13:52   #35
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Default Re: Road tax in case of discounts

Has anyone got there car registered in Delhi on the discounted price? I have to get my 3 series registered and will save some money if this is possible. Its apparently possible in neighboring Gurgaon.
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Old 15th May 2018, 13:35   #36
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Default Re: Road tax in case of discounts

Bumping an old thread. What is the amount on which the Road Tax is calculated? Shouldn't it be the invoice amount? So, if the billed amount indicates the discount, then the road tax will be calculated on the discounted price, else the road tax will be calculated on the higher price?
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Old 15th May 2018, 13:48   #37
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Default Re: Road tax in case of discounts

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Originally Posted by ank.nsit View Post
Bumping an old thread. What is the amount on which the Road Tax is calculated? Shouldn't it be the invoice amount? So, if the billed amount indicates the discount, then the road tax will be calculated on the discounted price, else the road tax will be calculated on the higher price?
Depends from state to state. In Mumbai the dealers refuse to show full discount amount in the invoice and give it as a debit note later. This is done apparently because they want to avoid scrutiny of under invoicing. However, it is unfair on the customer.
Whereas in some other states they don't care and do it on the discounted invoice.
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Old 15th May 2018, 14:26   #38
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Default Re: Road tax in case of discounts

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Originally Posted by ank.nsit View Post
Bumping an old thread. What is the amount on which the Road Tax is calculated? Shouldn't it be the invoice amount? So, if the billed amount indicates the discount, then the road tax will be calculated on the discounted price, else the road tax will be calculated on the higher price?
Ideally, your manufacturer level discounts - exchange bonus, loyalty bonus, corporate discounts are calculated on the invoice. However, these are not much and dealer level discounts are given out only off-invoice (debit notes).

This is very dealers specific and if you can convince your dealer to give you a lower invoice, nothing like it.

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Originally Posted by Sahil View Post
Depends from state to state. In Mumbai the dealers refuse to show full discount amount in the invoice and give it as a debit note later.
Whereas in some other states they don't care and do it on the discounted invoice.
Very true. In my case, I had a 2015 make car that I registered in 2016. So the lower invoice figure though scrutinised, was let go by the RTO. The inspector personally insisted to call the dealer to verify the details like owner name, make, year of manufacturing and the price.

I know cases where dealers will give you 2 invoices, one for your use and one for the RTO. They will even make it a point to advise you of it so that you know what person to call in the dealership incase it comes up for scrutiny. Thanks to easy of RTO affairs today (most are online), I'd advice @ank.nsit to get the car from any dealer who will give you a lower invoice amount. A friend has got a 5er from Chennai and registered in Mumbai and I know that the Bombay dealer has sold cars 2 at times even 3 states away.

However, a blatant case of under-invoicing will usually be scrutinised hard. eg. a Merc being invoiced for 1/2 or less of its new car price. Most RTOs today will have list of cars as well as their prices. In my case, my car was rare enough to have not been seen more than twice in the whole of RTO history (now 4). I was even questioned on the aftermarket stickers that I had put on ..
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Old 16th May 2018, 13:03   #39
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Default Re: Road tax in case of discounts

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Originally Posted by ank.nsit View Post
Bumping an old thread. What is the amount on which the Road Tax is calculated? Shouldn't it be the invoice amount? So, if the billed amount indicates the discount, then the road tax will be calculated on the discounted price, else the road tax will be calculated on the higher price?
This ambiguity has been at least removed in case of merchandise. If you pay attention while buying clothes, shoes etc from stores or on-line during sale period, the discount offered in on the basic and then VAT(earlier) and now GST is charged on the retail price and not the discounted price.

I had once argued with the RTO officer regarding tax calculation on the invoice price but, his counter argument was, what if, I won a car in the lottery and it was invoiced at no cost to me. So, should the RTO get zero money in this case. Though not convinced, I gave up.
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Old 17th May 2018, 18:06   #40
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Default Re: Road tax in case of discounts

According to the Jeep dealer in TVM, the local RTO has started adding the TCS to the ex showroom price before calculating road tax. Isn't that kind of strange?
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Old 20th May 2018, 11:55   #41
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Default Re: Road tax in case of discounts

The Hyderabad High Court has ruled that the lifetime tax paid on a new car can only be calculated on the basis of actual invoice value and not on the ex-showroom price in case of dealers offering discounts



Source : https://auto.ndtv.com/news/court-rul...&category=News




Quote:
The counsel for the revenue department had argued that discount that was offered to the customer by the dealer was 'unethical and immoral' and was tantamount to fraud on the state exchequer as the state was being deprived of the tax collected on the difference between actual and ex-showroom price.

Discount is 'unethical and immoral'
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Old 26th May 2018, 14:00   #42
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Default Re: Road tax in case of discounts

I have an opinion. The road tax should be fixed and independent of the price and variants of the car. For a car of the same size, I should be paying a fixed cost to use the road.
If my car has more factory fitted goodies it should not increase the road tax component. Same as if you buy a lower variant car and get loads of accessories fitted, you don't have to pay road tax on the cost of accessories.

One method of implementing this can be to calculate road tax as a percentage of the average of the ex-showroom cost of the car across variants.

Last edited by car-dent : 26th May 2018 at 14:05. Reason: Grammar and spelling.
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Old 26th May 2018, 15:47   #43
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Default Re: Road tax in case of discounts

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Originally Posted by car-dent View Post
I have an opinion. The road tax should be fixed and independent of the price and variants of the car. For a car of the same size, I should be paying a fixed cost to use the road.
If my car has more factory fitted goodies it should not increase the road tax component. Same as if you buy a lower variant car and get loads of accessories fitted, you don't have to pay road tax on the cost of accessories.

One method of implementing this can be to calculate road tax as a percentage of the average of the ex-showroom cost of the car across variants.
GoI has recently announced its proposal of uniform road tax with 3 slab rates. Have included below, the excerpts of the proposal . Invoice price denotes list price plus GST only, as applicable to that model and variant. This doesn't cover the extra accessories installed.

Centre has pitched three tax brackets corresponding to price of the vehicle to be levied as road tax. Vehicles below Rs 10 lakh will fall under 8 percent tax bracket, those between Rs 10 to Rs 20 lakh will attract 10 percent tax and those buying car worth more than Rs 20 lakh will pay tax of 12 percent.

Deducting discounts from invoice price, will result in subjectivity and tax evasion, albeit genuine discounts are also ignored, considering it ss misuse.
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