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Old 28th April 2009, 13:14   #1
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Default Annual Road Tax

Dear Guys,

What is this funda about paying very nominal annual road tax instead of life time tax for central/public sector employees who have a transferrable job. One of my wife's colleague purchased a Dzire LDI here in Bangalore and instead of approximately Rs.70000 life time tax they had to pay around Rs.800 per year.

I cant believe this. Can any of you guys throw some knowledge on this?
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Old 28th April 2009, 13:25   #2
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Yes, central government employees with transferable jobs and defence personnel are exempt from paying Life Time Tax. They can pay annual tax (like all of us used to be able to do earlier) every year in which state they are.
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Old 28th April 2009, 13:44   #3
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Originally Posted by hrag View Post
Yes, central government employees with transferable jobs and defence personnel are exempt from paying Life Time Tax. They can pay annual tax (like all of us used to be able to do earlier) every year in which state they are.
hrag,

I can understand this concept. How many years is lifetime for a vehicle? If it is 15 years my lifetime tax should be annual tax x 15 years. That does not seem to be case here.
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Old 28th April 2009, 17:34   #4
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Originally Posted by kreddy View Post
hrag,

I can understand this concept. How many years is lifetime for a vehicle? If it is 15 years my lifetime tax should be annual tax x 15 years. That does not seem to be case here.
well everything in life is not fair.
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Old 28th April 2009, 17:36   #5
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Lifetime is not 15 years. Lifetime is lifetime. If you look at your RC / tax token (or receipt), you will see an end date for the registration alone. There is no end date for LTT.

However, when you apply for a refund from home state after paying tax elsewhere, the tenure is taken as 15 years for the purpose of calculation of refund amount.
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Old 28th April 2009, 18:13   #6
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It's a strange rule that the babu's made for themselves. The annual road tax comes to Rs.850 irrespective of the vehicle cost. So it may be a tata nano or a ferrari, the tax amount remains the same. Guess its also true as these central govt employees who have a transferable job(only for them) move around to different jobs in different states, making it difficult to pay and repay the LTT. One more thing, this is not available for state govt. officers( cause in one state; no question of transfer).

And once a car has been started on annual road tax, the rto's just continue on it. No check if the person is retired or has left govt service.

This is great for petrolheads who are about to get married. Choose a partner working for the central govt. double benefit. You can buy an expensive car, and save a lot on the road tax.
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Old 22nd July 2009, 13:32   #7
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Can Bank employees (SBI, Bank of India) etc also falls under Central Government Staff Category?

My brother is working for bank and if I wish to buy car on his name, whether Tax Exemption Benefit I can get ? Someone please confirm.


Why don't we all write to Ministry of Surface Transport, New Delhi about Road Tax concern. I beleive Mr. KamalNath is very active persoan and he will soon take congizance of issue and will do something in this regard.

Ministry of Road Transport & Highways

or we can drop a letter to following address


Ministry of Road Transport & Highways
Transport Bhavan
1, Parliament Street
New Delhi-110001


I had written to Ministry some 8 months back through website feedback. After one month I got written reply from Transport Secretory of Ministry replying that Road Tax is of State Matter.

Last edited by anujmishra : 22nd July 2009 at 13:44.
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Old 4th June 2010, 09:17   #8
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Default Life Time or Yearly Road Tax?

Dear All,

I have a question related to Road Tax.

When a central government employee buys a vehicle in his / her name, they are exempted from pay life time road tax, instead they pay yearly tax. RTO asks for letter issued from the employer stating that the person is in a transferable job.

Say if the employee retires from service in 2011. Can he still continue paying year tax or should he pay Life Time?

Thanks in advance.
Rupa
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Old 5th June 2010, 07:58   #9
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Can someone please throw some light on the above question?
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Old 5th June 2010, 09:25   #10
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Do you mean to say you have to produce that letter every year while paying yearly tax?
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Old 5th June 2010, 09:38   #11
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Well looking at the heading I thought annual taxation like countrie abroad was getting introduced. I wish they do and they do it as per the CC of the car you are driving. This also helps in keeping law and order and you have to clear all traffic challans before you get the tax done. And each year they issue a different sticker so any vehicles without it has to pay massive fines.
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Old 5th June 2010, 10:26   #12
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Quote:
Originally Posted by rupa_upadhyay View Post
Dear All,

I have a question related to Road Tax.

When a central government employee buys a vehicle in his / her name, they are exempted from pay life time road tax, instead they pay yearly tax. RTO asks for letter issued from the employer stating that the person is in a transferable job.

Say if the employee retires from service in 2011. Can he still continue paying year tax or should he pay Life Time?

Thanks in advance.
Rupa
Every year they have produce letter from office stating that he/she still working in that organization and is liable to serve anywhere in India

This is totally fair because in many GOI department's transfers are routine every three/four years.

When you compare this with various facilities private companies offer to their employees to avoid Tax this annual tax is definitely fair and legal ( like - buy car in spouse name/company name show it as leased one and deduct the EMI paid from IT calculations, Food coupons which were used for everything except food etc)

Last edited by rkg : 5th June 2010 at 10:28.
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Old 13th October 2010, 13:15   #13
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Apologies for bumping the thread, but had a very related question.

Is this applicable for Delhi as well?
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Old 13th October 2010, 13:37   #14
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Originally Posted by BuRnT RuBbEr View Post
Apologies for bumping the thread, but had a very related question.

Is this applicable for Delhi as well?

Well, since this thread has already been bumped.

I had purchased an SX4 here in Bangalore in the year 2009 on my Dad's name & I am only paying Annual Road Tax. By the way, my Dad works at SBI.

I don't think this is dependent on the city/state. It should be an all India Policy.
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