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Old 19th December 2016, 08:21   #31
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The Vat will go to the state where the car is invoiced. In Karnataka this is the procedure.
Exshowroom includes Vat and that goes to the state.
You have to declare as to which state or city you will be registering the car.
The RTO then calculates the cost of transport i.e. Tolls, fuel etc.
Insurance needs to be done before you move the car.
Then there is a temporary registration at a local RTO.
The total cost i.e. Exshowroom price + temporary registration cost + cost of transport + insurance are all added up.
There is a 1% fee levied on this total cost.

Hope this helps.
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Old 19th December 2016, 10:45   #32
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Default Re: Buy car in state or out of state (Major price difference)

Hi team

Can anyone please enlighten me regarding a basic query. I am interested in buying a Volkswagen Polo or Hyundai i20 shortly. I am a Doctor working in a particular hospital in Mumbai and my native is Belgaum, Karnataka. I was just checking out the prices, say for Polo Allstar edition and there is a whopping difference of upto 1 lac if you buy it in Mumbai as compared to my hometown Belgaum. Now the thing is that, my only valid address in Mumbai would be the accommodation provided to me by my organisation or my hospital address. I intend to buy a car in Mumbai here and get the registration done in Belgaum ( if it's allowed legally ) as it will be mostly used by parents out there in Karnataka. Can I take an official letter from my organisation saying that I am an employee there and use it for buying a car here in Mumbai ? I think I will have to pay the road tax/entry tax for Karnataka, so altogether I might end up saving atleast 40000-50000 rs, is my understanding right ?? I would like to know if is this whole process is legal in the first place.

Last edited by vivek95 : 19th December 2016 at 10:48. Reason: Spellcheck
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Old 19th December 2016, 11:34   #33
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Default Re: Buy car in state or out of state (Major price difference)

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Originally Posted by vivek95 View Post
Hi team

Can anyone please enlighten me regarding a basic query. I am interested in buying a Volkswagen Polo or Hyundai i20 shortly. I am a Doctor working in a particular hospital in Mumbai and my native is Belgaum, Karnataka. I was just checking out the prices, say for Polo Allstar edition and there is a whopping difference of upto 1 lac if you buy it in Mumbai as compared to my hometown Belgaum. Now the thing is that, my only valid address in Mumbai would be the accommodation provided to me by my organisation or my hospital address. I intend to buy a car in Mumbai here and get the registration done in Belgaum ( if it's allowed legally ) as it will be mostly used by parents out there in Karnataka. Can I take an official letter from my organisation saying that I am an employee there and use it for buying a car here in Mumbai ? I think I will have to pay the road tax/entry tax for Karnataka, so altogether I might end up saving atleast 40000-50000 rs, is my understanding right ?? I would like to know if is this whole process is legal in the first place.

Just to make it simple for you, if you buy the car from Volkswagen Belgaum, they will be selling you car at Maharashtra Prices. So, ask them to send prices of both the states. You'll be saving on Ex-Showroom prices, road tax will be saved if you register it in Maharashtra (You'll need valid Address Proof). While this procedure is safe, you must make sure while registering the car you have an personal address proof or of a relative which can be used to register the car from that state.

In 2nd Case, you can buy the car from Pune/Mumbai or even Kolhapur for that matter & register it at Belgaum for an additional money (Road Tax). The difference between the 2 states (MH & KA) is roughly around 50k.
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Old 19th December 2016, 15:12   #34
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Default Re: Buy car in state or out of state (Major price difference)

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Originally Posted by CarguyNish View Post
Just to make it simple for you, if you buy the car from Volkswagen Belgaum, they will be selling you car at Maharashtra Prices.

In 2nd Case, you can buy the car from Pune/Mumbai or even Kolhapur for that matter & register it at Belgaum for an additional money (Road Tax). The difference between the 2 states (MH & KA) is roughly around 50k.
Thank you so much for the prompt response 50K is a huge amount, so I will see if it's possible to buy the car from Maharashtra itself, legally ofcourse. No wonder I see people in Belgaum doing jugaads and purchasing vehicles from neighbouring Maharashtra or Goa. Kolhapur is extremely convenient for me to buy and drive the new vehicle to Belgaum, but as of now I don't have a valid address proof of Kolhapur district. I will see what finally works out and will update on this thread post my purchase.
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Old 19th December 2016, 15:18   #35
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Default Re: Buy car in state or out of state (Major price difference)

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Originally Posted by vivek95 View Post
No wonder I see people in Belgaum doing jugaads and purchasing vehicles from neighbouring Maharashtra or Goa. Kolhapur is extremely convenient for me to buy and drive the new vehicle to Belgaum, but as of now I don't have a valid address proof of Kolhapur district. I will see what finally works out and will update on this thread post my purchase.
You can ask the dealers (VW Belgaum & VW Kolhapur) to send you the price list. If they are the same, you can buy one from Belgaum itself.

Address proof is required for registration purpose only. Even if don't have one, you can still buy the car from Outside (Here Kolhapur/Goa) provided the price difference is significantly cheaper.
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Old 5th January 2017, 10:11   #36
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Default Re: Buy car in state or out of state (Major price difference)

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Originally Posted by CarguyNish View Post
You can ask the dealers (VW Belgaum & VW Kolhapur) to send you the price list. If they are the same, you can buy one from Belgaum itself.

Address proof is required for registration purpose only. Even if don't have one, you can still buy the car from Outside (Here Kolhapur/Goa) provided the price difference is significantly cheaper.
Hi. I finally visited VW Belgaum and checked out the Polo petrol. There's about Rs.30000 difference in the prices for Karnataka as compared to Maharashtra. But the best part is, I will be getting the car here at MH price itself, VW has this provision for the border region. I took the TD, checked out the new silk blue Polo and absolutely loved it. Checked out i20 and Swift next day, will sort out the final dilemma between Polo and Swift ( i20 petrol is expensive and I am not keen about some hyped features or gizmos, so almost dropped i20 )and do the booking after 15th Jan. Most likely I will go for Silk blue Polo 1.2MPI Comfortline.

Thanks for your inputs
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Old 5th January 2017, 10:43   #37
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Default Re: Buy car in state or out of state (Major price difference)

My friend who is a resident of Mangalore bought his Honda City Sv Ivtech from Goa and saved decent amount. The vehicle was driven by him from Goa to Mangalore with temporary registration and subsequently registered at Mangalore. Traditionally it is safe to assume that the prices in Goa will be always lesser as compared to rest of India.
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Old 13th March 2017, 02:37   #38
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Default Re: Buy car in state or out of state (Major price difference)

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It should be possible , this happens all the time in this part - someone buys a car from Punjab or Haryana and get registers in Chandigarh or the other way .

Yes you should be concerned on VAT - we need to pay difference between VAT applicable in state of purchase and place where we are getting this registered , in case its higher in state of purchase then where you are getting registered you wont have to pay - this is way it works here but get this important VAT issue re-checked . I think some kind of additional form needs to be collected from Excise/ Sales Tax department - they do charge a nominal fee 500-1000 to issue such things here .
Is it still the same now? I was planning to buy Volkswagen Polo from Delhi and register it in Punjab. There is not much price difference but the dealer in Punjab is incompetent.
When I asked the dealer in Punjab he stated that there would be an entry tax of 2% as I was getting it from another state. Is that true?
The dealer in Delhi said he would hand me over the file and I could register it anywhere in India and there was no such tax applicable.
I even checked the dealership in Chandigarh but they are in the process of winding up.
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Old 13th March 2017, 08:05   #39
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Default Re: Buy car in state or out of state (Major price difference)

Folks

A General query. Will there be any benefits in terms of cost saving if I buy a car in TN/Puducherry with temporary registration, drive to Bangalore for permanent registration.
Any idea as to what is the process ?
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Old 13th March 2017, 08:25   #40
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Default Re: Buy car in state or out of state (Major price difference)

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Folks

A General query. Will there be any benefits in terms of cost saving if I buy a car in TN/Puducherry with temporary registration, drive to Bangalore for permanent registration.
Any idea as to what is the process ?
I purchased an X3 from Kerala and got it registered in Tamilnadu. Both states have the same VAT structure. But I ended up paying 2.35% of the vehicle's exshowroom price as TN entry tax. This is because TN commercial tax department calculates the entry tax as follows:

Entry tax = Tamilnadu VAT applicable (14.5% on the exshowroom price paid plus any transportation charges involved) - VAT already paid in Kerala

Effectively we end up paying VAT on VAT that results in the additional 2% entry tax despite the fact that both states have sane VAT %.
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Old 13th March 2017, 08:27   #41
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Default Re: Buy car in state or out of state (Major price difference)

Quote:
that there would be an entry tax of 2% as I was getting it from another state
In Punjab and Chandigarh, VAT is higher than Delhi, so this will be recovered by either as entry tax or you will have to pay to RTO while doing registration.

Quote:
checked the dealership in Chandigarh but they are in the process of winding up.
But why do you want to buy a Car which you can't get service at your place? It's not something you will buy and then keep at the house and forget, its meant to be driven and will need service or any other support. You should reconsider your choice in my opinion. If you must buy, you can get it registered at Delhi and drive in Punjab/ Chandigarh without any concerns. Just ensure all papers are in order. You may be asked to show papers more often if you are in Chandigarh which holds goods for Punjab numbers also.

Quote:
I buy a car in TN/Puducherry with temporary registration, drive to Bangalore for permanent registration
Why & how will you save? When you plan to get Banglore registration done, why complicate and buy from outside state, unless there is an appreciable difference in VAT and Banglore does not ask for differences or Car dealer at TN is giving you cheaper, it won't make a sense.

Last edited by Turbanator : 13th March 2017 at 08:29.
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Old 13th July 2017, 16:07   #42
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Default Can i Buy a Car in Chennai and register it in UP?

Hi Team,

We need to buy a car in Chennai. It to be bought in our Pvt. Ltd. company name and used by a person living in chennai. Our company does not have any chennai address, so we want to register it in UP where our company is registered.

Is it possible to buy a Car from chennai and ask the dealer to provide temporary registration and then get permanent registration done at UP? (We can get that done without bringing the car to RTO. Its UP, and we know someone in RTO) I called a few Chennai Hyundai Dealers and they were not willing to do so. Is it really not possible or they are just not willing to understand? Is an address proof for TN necessary for temporary registration as well?

The Only other option we will have is to buy a car in UP itself and then Transport it to Chennai via Packers and Movers.

Any Advice?
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Old 13th July 2017, 16:14   #43
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Default Re: Can i Buy a Car in Chennai and register it in UP?

An address proof is indeed necessary. Please see here for more details.
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Old 13th July 2017, 16:17   #44
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You will definitely need an address to register the car. You can buy in UP and send it across but not sure how the RTO in Chennai will treat a long term UP car running in Chennai. One year is all that they will probably allow and then it will be back to square one on re registering it in Chennai and for that you will need an address.
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Old 13th July 2017, 16:54   #45
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Exclamation Re: Can i Buy a Car in Chennai and register it in UP?

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Originally Posted by Arjun Reddy View Post
You will definitely need an address to register the car. You can buy in UP and send it across but not sure how the RTO in Chennai will treat a long term UP car running in Chennai. One year is all that they will probably allow and then it will be back to square one on re registering it in Chennai and for that you will need an address.
We plan to keep it in Chennai for short term only. May be an Year or so. That is also one of the reasons that we want to register it in UP only.

Chennai People, Does anyone know any Hyundai dealer who can help us in this matter? Thanks.

Last edited by car-dent : 13th July 2017 at 16:58.
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