Transfering from Company registration to Individual registration - Team-BHP

joshi_pravin · 22nd September 2007, 17:10

Hi,

I have company leased car, financed by a financer. It is currently registered on company name. Now the lease is over and I have option to buy the car on my/third party name. I wish to know, if I get it transfered from company name to my name, will I get the difference in registration amount? i.e. company registratin charges are almost 35-40 thousand rupees more than individual registration.

Another thing to consider here is originally the car was on the nameof companyA, from whom my I [my company] brought it say companyB. While registering on the name of companyB by mistake we got it registered as companyBSisterConcern, and then we got it back on the name of companyB.And now I will be buying it on my own name/third party name. So after transfering on my name, will i get the difference in registratino cost? if not me, is my company eligible for the same? what is the process?

Thanks in advance.

Regards,

P

dadu · 22nd September 2007, 19:53

- Companies follow the indian accounting depreciation system, which is based on the Invoice value of the car, i dont think registration/other charges are included in the depreciation. Only depreciated value is transferred from one owner to another(companies). You will not get the difference. When you buy on book value, how can you expect the difference.

- You need the company to first get the "hypothecation" removed from the registration.

- Since it has changed so many owners, the registration will show that. So resale value in the second's market will be low comparitively.

jyobeb · 22nd September 2007, 19:56

I think you are talking about the road tax (life tax). You can apply for a refund, but it is a long, drawn out procedure and they usually screw you on it. (the RTO guys)

joshi_pravin · 23rd September 2007, 11:10

Hey thanks for your replies.

Yes im talking about registratino charges paid to RTO. That also is a big money approx Rs.30,000/- to Rs.40,000/-. Wish I could claim that, need to know the process. Thanks.

Regards,
Pravin

Thad E Ginathom · 23rd September 2007, 17:21

I didn't know company registration cost more, and a lot more, than registration by an individual.

But see this logic: your company is a legal entity. It is selling you a car. Why should you get a refund of anything that company paid?

If you buy a car off another individual, would you expect a refund of anything they had paid? The situation is the same.

Even if you own all the shares in that company, it is still not you.

yeis · 23rd September 2007, 22:05

Quote:

Originally Posted by Thad E Ginathom

But see this logic: your company is a legal entity. It is selling you a car. Why should you get a refund of anything that company paid?

Another aspect is tax. When a company buys a car, it gets some exemption in income tax. So govt charges the company on registration charges here. I don't think the excess amount company has paid would be refundable when it's selling the car.

GTO · 24th September 2007, 10:08

Under normal circumstances, the seller ascertains that the tax refund is retained by them.

anandpadhye · 24th September 2007, 11:26

If one is using a company leased car and if he buys it from the company, the difference amount between corporate registration (14% of ex-showroom) and individual (7% of ex-showroom) can be claimed from RTO by the individual on pro-rata basis. e.g. if the car was in the company name for 3 years and then bought by the employee, then the amout refundable by RTO will be ((14% - 7%)*Ex-Showroom)*12/15 assuming the RTO tax was charged for 15 years of which only 3 years were used.

This was explained to me by the accounts guys in my company. In my case, it's a company leased car, meaning it was bought and registered in company's name, but company gave me the loan equal to the on-road price (option of 3 or 5 years tenure) and after I pay all my EMIs, the company will transfer the car in my name.

If your case is same, then this may apply. The best thing is to check with your accounts guys and they would also know some regular RTO agent(s) who do these transfers for them.

Keep us posted as my info is theory and I will know the reality only when my tenure is over (in 2009).

Hope this helps.

22nd September 2007, 17:10	#1 (permalink)
joshi_pravin Newbie Join Date: Sep 2007 Location: thane Posts: 3	Transfering from Company registration to Individual registration Hi, I have company leased car, financed by a financer. It is currently registered on company name. Now the lease is over and I have option to buy the car on my/third party name. I wish to know, if I get it transfered from company name to my name, will I get the difference in registration amount? i.e. company registratin charges are almost 35-40 thousand rupees more than individual registration. Another thing to consider here is originally the car was on the nameof companyA, from whom my I [my company] brought it say companyB. While registering on the name of companyB by mistake we got it registered as companyBSisterConcern, and then we got it back on the name of companyB.And now I will be buying it on my own name/third party name. So after transfering on my name, will i get the difference in registratino cost? if not me, is my company eligible for the same? what is the process? Thanks in advance. Regards, P

22nd September 2007, 19:56	#3 (permalink)
jyobeb BHPian Join Date: Jul 2004 Location: Madurai Posts: 353	I think you are talking about the road tax (life tax). You can apply for a refund, but it is a long, drawn out procedure and they usually screw you on it. (the RTO guys) __________________ Live Life King Size!

24th September 2007, 10:08	#7 (permalink)
GTO Super-Admin Join Date: Feb 2004 Location: Bombay Posts: 12,190 View My Garage	Under normal circumstances, the seller ascertains that the tax refund is retained by them. __________________ GTO Change the way you think, and watch the world change around you. Please don't PM for support. Use the Contact Form instead. Please read the NEW Team-BHP FAQ section for all your queries.

24th September 2007, 11:26	#8 (permalink)
anandpadhye BHPian Join Date: Apr 2007 Location: Pune Posts: 636	If one is using a company leased car and if he buys it from the company, the difference amount between corporate registration (14% of ex-showroom) and individual (7% of ex-showroom) can be claimed from RTO by the individual on pro-rata basis. e.g. if the car was in the company name for 3 years and then bought by the employee, then the amout refundable by RTO will be ((14% - 7%)Ex-Showroom)12/15 assuming the RTO tax was charged for 15 years of which only 3 years were used. This was explained to me by the accounts guys in my company. In my case, it's a company leased car, meaning it was bought and registered in company's name, but company gave me the loan equal to the on-road price (option of 3 or 5 years tenure) and after I pay all my EMIs, the company will transfer the car in my name. If your case is same, then this may apply. The best thing is to check with your accounts guys and they would also know some regular RTO agent(s) who do these transfers for them. Keep us posted as my info is theory and I will know the reality only when my tenure is over (in 2009). Hope this helps. __________________ Aerodynamically speaking, a bumble bee should not be able to fly, but it does not know this, so it flies. Last edited by anandpadhye : 24th September 2007 at 11:27.

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22nd September 2007, 19:53	#2 (permalink)
dadu Senior - BHPian Join Date: May 2007 Location: Bangalore Posts: 2,089 View My Garage	- Companies follow the indian accounting depreciation system, which is based on the Invoice value of the car, i dont think registration/other charges are included in the depreciation. Only depreciated value is transferred from one owner to another(companies). You will not get the difference. When you buy on book value, how can you expect the difference. - You need the company to first get the "hypothecation" removed from the registration. - Since it has changed so many owners, the registration will show that. So resale value in the second's market will be low comparitively.

23rd September 2007, 11:10	#4 (permalink)
joshi_pravin Newbie Join Date: Sep 2007 Location: thane Posts: 3	Hey thanks for your replies. Yes im talking about registratino charges paid to RTO. That also is a big money approx Rs.30,000/- to Rs.40,000/-. Wish I could claim that, need to know the process. Thanks. Regards, Pravin

23rd September 2007, 17:21	#5 (permalink)
Thad E Ginathom BHPian Join Date: Jun 2007 Location: Chennai Posts: 976	I didn't know company registration cost more, and a lot more, than registration by an individual. But see this logic: your company is a legal entity. It is selling you a car. Why should you get a refund of anything that company paid? If you buy a car off another individual, would you expect a refund of anything they had paid? The situation is the same. Even if you own all the shares in that company, it is still not you.