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Old 13th June 2009, 13:00   #1
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Default Octroi Rules

Hello Fellow BHPians - Need your expert advice on this issue.

I have a new car I got about six months ago that I registered in Kalyan, but presently staying in Thane. I paid octroi in Kalyan. Recently i got a notice from Thane Municipal Corp to shell out 20k for octroi in thane. Is this valid? I live in both places. Thanks for any information you can arm me with.

I wasnt sure which forum to ask this in - this seemed to be most relevant. Mods please move to appropriate forum in case I am wrong.

Thank you.
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Old 13th June 2009, 19:44   #2
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I am not well informed about the laws, but I think the following threads might be useful to you.

http://www.team-bhp.com/forum/indian...ghlight=Octroi (Moving car between states - Road tax, refund etc???)

http://www.team-bhp.com/forum/indian...ghlight=Octroi (Lets know the law (Motor Vehicles Act))
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Old 13th June 2009, 20:07   #3
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This is news to me. I know that for personal cars if you move between states then after a period of around 6 months or so you are needed to pay the local levies and get the car regularized for running within that state. However, within the same state can the Municipal corporations play the game of one-upmanship with each other?

I have a suspicion it is not really very sound in law. As long as you bought the car in Kalyan and provided a valid address there I think it should be acceptable. Today people are not living in self-sufficient societies like in old ages where a person probably never needed to venture out beyond 5kms from his village.

As a pointer check out what happens if your Thane registered vehicle is caught in Mumbai? Do they ask you to pay the Mumbai octroi? I do not know what the rules are in Maharashtra but when I was there this was a regular practice not only for cars but many other things (invoiced ex-Thane).

Also, is the octroi in Kalyan less than that in Thane? Normally, in Mumbai they used to create trouble at times as Thane octroi used to be less than that in Mumbai and hence people used to buy the vehicles from Thane. But in such cases also they can only ask you to pay the difference I guess and not the full amount. Now I find it hard to believe that the difference in the octroi between Thane and Kalyan for your car could be as high as 20000 rupees.

EDIT: My guess is the wise charlies at TMC are trying to extort money here and that too in a very shady way. They expect you to visit the Municipality and then they will tell you stories and after some negotiations and pleadings will agree at a lesser rate albeit off the records (of course) and 'regularize' your car.

Something similar happens in the IT depts as well as many of my friends have experienced. If you have a good amount due as refund they sit on it till the end expecting you to reach out to get the money released after paying a fat kharchapani to the babus there. And in case you do not show the hurry they are caught in a bind as the audit catches hold of them for the dues not refunded. So they play the next trick in the book. They delieberately print the A/c No. wrongly (one digit here or there) so that you return back to them with the cheque for rectification. And then the cycle begins.

Last edited by Zappo : 13th June 2009 at 20:16.
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Old 13th June 2009, 23:00   #4
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Thanks Folks for the response.

I agree Zappo that this a very shady affair with the octroi folks. I did my homework and have made up my mind to give these folks hell.

UPDATE: I got another circular asking for 10 times penalty + octroi. I was ing after seeing this. Seems like I will be having an interesting week after all!
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Old 14th June 2009, 09:34   #5
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Is your kalyan Address a genuine address? How about Thane Address. What is the address on your D/L.

IMO if you have both legal addresses than there should not be a problem you have to prove your Kalyan address.

How did TMC reach you on your Thane address. Have they started checking all residential properties for all cars parked?

All the Best.
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Old 14th June 2009, 09:46   #6
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Octroi in Mumbai may soon be a thing of the past, have heard that the legislation for doing away with Octroi has been tabled and approved, any further information on this anyone ?
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Old 14th June 2009, 10:13   #7
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Abolishing Octroi in Mumbai & around Mumbai will not be easy as the income from these are very High. Infact the people working with BMC donot want it abolished due to vested interests. Mira Bhayander Octroi was abolished last year but is still being collected.
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Old 14th June 2009, 11:25   #8
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Yes Kiren - Both my addresses are very genuine. I live in both places during the week. While, I am not trying to find loopholes in the system - I guess they should have better mechanisms to track offenders down than just making random society visits.

Octroi should ideally be a thing of the past - its one of the "great" unconstitutional british legacies we inherited. We are probably the only state in the country and the world still levying Octroi!
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Old 3rd February 2010, 08:34   #9
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Ok. So I am in the same boat too.

I live in Thane for last few years. I have registered my car on this address. I also have the Octroi Receipt.

On Monday I received a notice from Thane Municipal Corporation asking me to pay Octroi charges otherwise 10x penalty blah blah...

I would like to know my options in this case. What have I done wrong?

My D/L has the same address (if that helps).

Last edited by Rock 'n' rollz : 3rd February 2010 at 08:35.
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Old 3rd February 2010, 09:46   #10
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Quote:
Originally Posted by Rock 'n' rollz View Post
notice from Thane Municipal Corporation asking me to pay Octroi charges otherwise 10x penalty blah blah...
How come TMC ask for Octroi now ? You lived in Thane, and have address proof.

I am assuming that you registered car in Thane. That means you would have already paid Octroi at time of buying the car.
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Old 3rd February 2010, 09:58   #11
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Quote:
Originally Posted by NetfreakBombay View Post
How come TMC ask for Octroi now ? You lived in Thane, and have address proof.

I am assuming that you registered car in Thane. That means you would have already paid Octroi at time of buying the car.
Exactly... My car is registered in Thane and I have a receipt of Octroi paid at Vitawa Octroi Naka when I bought the car.

It clearly looks like a case of "Car"uption. [Sometimes I wish I was a lawyer.]
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Old 29th March 2010, 16:17   #12
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Guys i got used car ( MH02) first owner jad registered on his mumbai adress.
when i transfered ownership, it was registered on my thane adress. It was done through a RTO agent.

Now I had to pay Rs 6875 ( 5.5 % of IDV) as octrai charges after my society recieved a notice.

Is this right ?
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Old 30th March 2010, 10:39   #13
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Quote:
Originally Posted by karizma_devil View Post
Guys i got used car ( MH02) first owner jad registered on his mumbai adress.
when i transfered ownership, it was registered on my thane adress. It was done through a RTO agent.

Now I had to pay Rs 6875 ( 5.5 % of IDV) as octrai charges after my society recieved a notice.

Is this right ?
If the Thane Muncipal Corporation has indeed started charging octroi, then yes, you will have to pay octroi taxes. However, a good number of Mumbai car owners run MH-04 Thane plates (registered to bogus addresses) with the sole purpose of saving on octroi.

When did Thane implement an octroi charge? I am a little confused here. What I would do in your case is wait for a notice to come my way (if at all) and only then pay. Just the fact that you were able to transfer registration without the RTO asking for an octroi receipt indicates a lack of consistency.
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Old 30th March 2010, 13:46   #14
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Quote:
Originally Posted by GTO View Post
If the Thane Muncipal Corporation has indeed started charging octroi, then yes, you will have to pay octroi taxes. However, a good number of Mumbai car owners run MH-04 Thane plates (registered to bogus addresses) with the sole purpose of saving on octroi.

When did Thane implement an octroi charge? I am a little confused here. What I would do in your case is wait for a notice to come my way (if at all) and only then pay. Just the fact that you were able to transfer registration without the RTO asking for an octroi receipt indicates a lack of consistency.
Thane Municipal Corp has been charging Octroi for a very long time. The present rate is around 4.5% which a few years back was very less as compared to Mumbai octroi, hence most of the vehicles in Mumbai had Thane registrations. Now it is the other way around. TMC levies more octroi than Mumbai. For a vehicle transfer within Thane there would be no charges applicable but for vehicle transferred from Mumbai to Thane the difference in the octroi would be applicable to the Thane buyer.
In fact when I sold my Santro to my colleague who stays in Navi Mumbai he was not asked to pay anything since there is no octroi in Navi Mumbai only cess of 1% which is way less than what Thane guys pay.
For detailed clarification, I would suggest to visit Thane RTO near Thane jail and get more details.
I remember TMC had started an initiative of sending notices to all Co-op soc asking them to identify outstation registered vehicles and pay the fines. One smooth way of increasing the coffers.
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Old 16th February 2011, 19:17   #15
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Default Re: Octroi Rules

Hi all, ignited an old thread!

is anyone aware of the Octroi situation at Mira Bhayander (MBMC) ?
As per earlier news, since April10 the Octroi was abolished in Mira-Bhayander, Jalgaon, Nanded-Waghala regions and replaced with 'account based cess'.

I had purchased vehicle in June10 and the dealer had confirmed that my (residence) area at MBMC does not have Octroi and all was smooth till now. Y'day I received a notice from MBMC, that since April10 a Local Body Tax (LBT) @ 3% is levied - which I have not paid and have to pay along with penalty of 2% per month !!

I Googled, but couldnt find any concrete info. Any information would be really appreciated.

thanks,

Pranav
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