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Old 22nd September 2007, 17:10   #1
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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
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Old 22nd September 2007, 19:53   #2
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- 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.
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Old 22nd September 2007, 19:56   #3
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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)
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Old 23rd September 2007, 11:10   #4
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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
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Old 23rd September 2007, 17:21   #5
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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.
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Old 23rd September 2007, 22:05   #6
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Quote:
Originally Posted by Thad E Ginathom View Post
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.
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Old 24th September 2007, 10:08   #7
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Under normal circumstances, the seller ascertains that the tax refund is retained by them.
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Old 24th September 2007, 11:26   #8
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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.

Last edited by anandpadhye : 24th September 2007 at 11:27.
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Old 11th November 2010, 18:01   #9
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I had a car leased out to me from my office. Initially it was registered in the company's name. I got the registration refund from Pimpri Chinchwad RTO after registering the vehicle in my name. This took almost 1.5 years. However I do not know how they have calculated the refund amount. If I follow the formula given by anandpadhye, I should have got a larger refund.

Does anyone know how it is calculated in PCMC RTO or Maharashtra? I guess it could be different for different states, but should be uniform across RTOs of a state.
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Old 11th November 2010, 18:29   #10
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Which car is it and how much refund did you get?
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Old 7th April 2011, 16:08   #11
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Default Re: Transfering from Company registration to Individual registration

Quote:
Originally Posted by pjbiju View Post
I had a car leased out to me from my office. Initially it was registered in the company's name. I got the registration refund from Pimpri Chinchwad RTO after registering the vehicle in my name. This took almost 1.5 years. However I do not know how they have calculated the refund amount. If I follow the formula given by anandpadhye, I should have got a larger refund.

Does anyone know how it is calculated in PCMC RTO or Maharashtra? I guess it could be different for different states, but should be uniform across RTOs of a state.

Did you went via any RTO agent or you did it on your own? Also What are the form numbers which you submitted to RTO?
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Old 5th September 2016, 10:11   #12
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Default Re: Transfering from Company registration to Individual registration

Sorry for digging up an old thread but this seemed like the most appropriate place for my query.

I am looking to buy a used car in Mumbai and then transfer the registration to Goa. Have a couple of cars shortlisted and some of them are registered to Companies. So from what I understand (in case of a corporate registered car), once I buy it and transfer the registration to my name I can apply for a refund equal to the difference in corporate and individual road tax?

Second slightly related query - Are corporate used cars better maintained / a better buy? Can someone point me to any threads/articles regarding this? Because a quick search revealed nothing.

Thanks.
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