Mumbai Octroi on used car

[deesapa]

2 questions regarding Mumbai Octroi on used car

1. How is Octroi assessed on buying a Thane passing used car . Is it 4.5 % of original invoice value or 4.5 % of current used car value paid.

2. What is the common practice, who bears this Octroi cost, is it buyer or seller ?

Thanks

[autozealot]

Hi,

Let me give it a try....


1. How is Octroi assessed on buying a Thane passing used car . Is it 4.5 % of original invoice value or 4.5 % of current used car value paid

Its on the book value as per RTO/BMC

2. What is the common practice, who bears this Octroi cost, is it buyer or seller ?

In most cases its the buyer, but mainly depends upon the mutual understanding between both parties


az

[khanak]

Are you sure you have to pay Octroi on a used car? Unless you are getting it re-registered within Mumbai city limits, Im sure you could just drive it in with no problems.

Im not sure about this though.

[deesapa]

I believe I will need to register in Mumbai or will need to pay Mumbai octroi to avoid any future headaches of being questioned by police/RTO.

Let me know if my understanding is incorrect.

Thanks

[khanak]

If the car is MH registered there usually isnt a problem. Thane registered cars rarely get stopped in Mumbai.

[RishiSuri]

I drove for 1 year in Mumbai with my Delhi registration and never paid octroi, I was once stopped at a toll while coming back from Nashik so since there was a bag (with very few clothes) they let me go without any objection. i asked what u checking they said octroi.. and thats it.


The traffic police never stopped me

[Ram]

Unlike in communist countries, it is not illegal in India to have multiple places of residence and multiple places of work.

I own MH01, MH04 and MH12 cars, with genuine addresses where these cars are registered. These cars are parked and driven in both Mumbai and Pune without issues. I guess, you're legally OK as long as you can furnish proof of address that matches the registration of your car.

We have heard of KA police harassing drivers of TN-registered vehicles.
I believe this is unconstitutional and you can drag the police to court with help of a lawyer. However, if they suspect your strong intention to do so, they won't harrass you in the first place.

[khanak]

Originally Posted by khanak

If the car is MH registered there usually isnt a problem. Thane registered cars rarely get stopped in Mumbai.

Something I just remembered and contradicts what I said above. Around a year ago RTO officials would come around housing socieites and look for cars with out of Mumbai registrations and fine the owner if they werent able to explain why the car was registered outside the Octroi limits. I dont see this being as much of a problem for a used car though.

[GTO]

Originally Posted by deesapa

2 questions regarding Mumbai Octroi on used car

1. How is Octroi assessed on buying a Thane passing used car . Is it 4.5 % of original invoice value or 4.5 % of current used car value paid.

2. What is the common practice, who bears this Octroi cost, is it buyer or seller ?

Thanks

Simple Answers:

1. It is on the current book value.

2. It depends from deal to deal. But generally, the car would be priced lower vis a vis an identical Mumbai car.

If you do have a *genuine* address in Thane, Pune etc. you can transfer the car to that address and pay zero octroi. However, if you wish to transfer the car to your mumbai address, you will have to pay the applicable octroi rate.

[Firebird]

Originally Posted by deesapa

I believe I will need to register in Mumbai or will need to pay Mumbai octroi to avoid any future headaches of being questioned by police/RTO.

Let me know if my understanding is incorrect.

Thanks

You are right. The car gets registered with Mumbai RTO as per the residence proof. The MH-04 number still remains. You get a receipt of the registration and a receipt of octroi paid. This you have to keep with you along with RC and insurance papers.

In case you are questioned you can always show this.

[deesapa]

Thank you all for your replies. In my case I don't have a non Mumbai address so will need to register in Mumbai and pay Octroi when I buy the used car.

GTO - Just to confirm so I am looking at paying 4.5 % of used car value as Octroi. Also is there any guideline or reference sheet that RTO use to confirm used car value.

[Edsel Rulez!]

I wish to highlight a special case. What does one do if an MH02 car was sold and transferred to an MH04 address after getting NOC, but a subsequent (third) buyer lives in the MH02 jurisdiction? I suppose an NOC has to be obtained from the Thane RTO, but is there any need to pay Octroi again on the book value? After all, the car was bought at Mumbai city rates, which presumably includes the Octroi.

[harsha.cs1]

Originally Posted by Edsel Rulez!

I wish to highlight a special case. What does one do if an MH02 car was sold and transferred to an MH04 address after getting NOC, but a subsequent (third) buyer lives in the MH02 jurisdiction? I suppose an NOC has to be obtained from the Thane RTO, but is there any need to pay Octroi again on the book value? After all, the car was bought at Mumbai city rates, which presumably includes the Octroi.

hi, i guess you'd have found the answer to this by now. Once the octroi has been paid on the vehicle, it has been taken care of and you need not pay it again, unless the second owner had obtained refund of the octroi initially paid. in any case i think this would be reflected in the R.C. book and so would the initial payment of octroi. If not, i hope you would be having a challan for the initial payment of octroi. so that should take care of all your concerns.
Regards,
Harsha

[Edsel Rulez!]

Thanks, Harsha. That was helpful.

[nicejits]

IF car is not registered in Mumbai ( MH-01,MH-02,MH-03) and your are planning to registered in mumbai .. then Octroi will be 4.5 % of current used car value paid.