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Old 2nd April 2016, 13:08   #46
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Today's TOI.

Talks about double taxation.

Waseem
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Old 27th April 2016, 23:18   #47
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

Dear Friends,

I met a senior counsel this evening to explore the possibilities on filing a PIL on this.He said that prima facie we have a case here.

I will update you all on the next steps very soon.

Waseem.
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Old 28th April 2016, 12:04   #48
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

Tax on Tax is a way of life here, but things are really getting out of hand. The reason for Tax or Cess has evaporated and Taxes have become just extortionist money making schemes.

We pay Road Tax, Fuel Cess and VAT on vehicles. What do we get for that?
. Roads are rarely well maintained
. Major Highways and Bridges; supposed to be built/maintained with collected taxes; are built with private money and toll is charged.
. Road Taxes are calculated on the Value and not Size/Pollution of the vehicle. This is patently unfair as a small high value car - BMW Z4 does not require more space or road maintenance than larger lowe value car - Swift.

There is simply no rationale in taxes imposed, just what the market can bear.

In the same vein, I find no justification for "Service Tax". Every service has an Income Tax attached to it, so why add another Tax and its administrative costs?
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Old 17th June 2016, 22:24   #49
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

Dear Friends,

https://indiankanoon.org/doc/580827/

Our lawyer has sent me this link.Please go through this.

Waseem.
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Old 17th June 2016, 22:56   #50
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

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Originally Posted by SILVERWOOD View Post
Dear Friends,

https://indiankanoon.org/doc/580827/

Our lawyer has sent me this link.Please go through this.

Waseem.
It is quite lengthy, but I could figure out that it is a case of 2005 pertaining to TN. It looks like the court has decided in favour of the TN government on their decision to impose life tax and green tax on vehicles in TN.
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Old 23rd October 2016, 01:41   #51
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

Dear Friends,

We are all set to file a PIL by 15th Nov 2016.

We are challenging the very section which says that LTT should be calculated on the invoice which includes all taxes.

I will keep you all updated on the same.

Waseem
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Old 23rd October 2016, 13:07   #52
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

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Originally Posted by SILVERWOOD View Post

We are all set to file a PIL by 15th Nov 2016.

We are challenging the very section which says that LTT should be calculated on the invoice which includes all taxes.
Good Luck with this initiative. I hope some common sense prevails with these rules. Following 2-3 might be additional items for discussion during the debates:

1. State are collecting lifetime tax (25 years) upfront from Car owners. At the same time organisations like National Green Tribunal are banning more than 10 year told vehicles in different states. So, what happens to the remaining 15 year tax on tax that has already been paid to the government.

2. GST will probably subsume most taxes in India (including entertainment tax which by levied by states only, just like road tax) and GST will be charged by both states and centre. So, why hasn't it been subsumed under GST? Why does road tax have to be additional 8%-12% of the vehicle value, when government is already collecting 30%-50% tax on Vehicles already? Why can't there be a normal annual fee as road tax like Rs 5000 or Rs 10000 per year per car, and this concept of 8-12% upfront tax is just done away with.

3. Cars in India are are of low quality, low safety because of these high taxes. If taxes are lowered, stronger and safer cars would become more affordable to people. There would be less fatalities in road accidents. Sometimes, saving lives is more important than filling government coffers with high taxes. But government still loves to call bigger & safer SUVs as "demerit goods" and taxes them insanely.
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Old 23rd October 2016, 16:13   #53
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

I had brought this up to several car dealers over the last so many years of buying new cars!.
Each time I was sent off with the proverbial "flea in my ear"!

No such luck to expect "fairness" from the Government. Wherever possible they will hit us with taxes - and sadly, it is always the regular Joe who is forced to pay these taxes whereas the rogues and the scoundrels tend to avoid tax by a variety of means!
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Old 23rd October 2016, 16:43   #54
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

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Originally Posted by JoyPangli View Post

1. State are collecting lifetime tax (25 years) upfront from Car owners. At the same time organisations like National Green Tribunal are banning more than 10 year told vehicles in different states. So, what happens to the remaining 15 year tax on tax that has already been paid to the government.
LTT is valid for 15 years and not 25.

The car owners affected by NGT orders should approach the Govt and get their money back.Car owners of Totaled cars should also approach the Govt to get their money back as well if the car is totaled before 15 years.

Waseem.
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Old 23rd October 2016, 17:45   #55
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While I whole heartedly support this initiative, I would also like to highlight the plight of car owners (like me) moving/ transferring cars from one state to another. We end up paying double the tax amount and there is no support from the government to address this plight. I know that there is a separate thread around road tax payments of inter state transferred vehicles, but I think both the issues are tied at the hip and hence posting it here as well.
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Old 26th October 2016, 10:09   #56
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

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Originally Posted by SILVERWOOD View Post
LTT is valid for 15 years and not 25.

The car owners affected by NGT orders should approach the Govt and get their money back.Car owners of Totaled cars should also approach the Govt to get their money back as well if the car is totaled before 15 years.

Waseem.
The form for tax refund application can be downloaded here.
http://www.transportindia.org/pdfforms/form_dt.pdf

Rahul
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Old 28th November 2016, 23:23   #57
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

Dear Friends,

I am glad to inform you that we have received the first draft of the petition from our Legal Counsel.

I will keep you all updated on the same.

Waseem.
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Old 29th November 2016, 00:11   #58
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

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Originally Posted by SILVERWOOD View Post
Dear Friends,

I am glad to inform you that we have received the first draft of the petition from our Legal Counsel.

I will keep you all updated on the same.

Waseem.
Thank you, Waseem. You've been a crusader to get our plight addressed in our courts. Wishing you best of luck!
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Old 29th November 2016, 07:15   #59
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Default Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

Great job, Waseem.

The only fly in the ointment would be that the Government could raise taxes even further to safeguard their coffers. We have already seen it in the case of fuel. What's stopping them?
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Old 29th November 2016, 15:59   #60
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Post Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

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Originally Posted by reignofchaos View Post
Actually no state other than karnataka charges road tax on vat. On top of that, it has the highest road tax in india of 19.92% and the worst possible roads around. It's like a giant slap on the face of the car buyer. No wonder nobody wants to register their car in karnataka.
Agree with the tax rates!
And even the tolls charged by Karnataga government is a loot! Classic example - NICE Ring road where you pay close to 4 Rs. INR per km for a 4 wheeler!
The same is the case with public transport as well. Travel 5 kms in a local bus and you end up paying 14 INR!

But, with quality of roads, I don't think, any state can match Kerala's highways after the rains. It'll be downright pathetic! Add to that, the narrow width and city like traffic in all major highways!
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