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Old 28th February 2010, 14:44   #1
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Default Discrepancy in Life time Road Tax % in Karnataka?

Hi,

The last post I put up was deleted by the Admin so I hope this won't happen again.

I've done a whole lot of research (even if I say so myself) on the cars, charges and other aspects.

Going by what I found on www.cardekho.com regarding Registration/RoadTax charges, I could see that the cars below 10 lakh were charged 13% of ex-showroom and cars above 10 lakh were charged 16% of ex-showroom.

Now, when I spoke to my Honda dealer, they came back with charges that said 14.3% for cars below 10 lakh and 17.6% for cars above 10 lakh.

Now, if you notice, the 14.3% and 17.6% are exactly 10% higher than the supposed 13% and 16%. When I asked the dealer about it, they told me that the 13% and 16% was the year before last, however, last year it got bumped up to 14.3% and 17.6%.

I wasn't very convinced - the dealer has been acting very high-handed and aggressive and I'm not used to getting pushed around any more.

So I went online, and found this -

Karnataka Budget Speech 2009-10
Karnataka Budget Speech 2009-10#

I put in "life" in the search box and came across these 2 points under 276 and 277 on pages 73 and 74 -

Motor Vehicle Taxes

276. Because of the significant slowdown witnessed all over the country in motor vehicle markets in the later half of the year 2008-09, the collection of Motor Vehicle Taxes is expected to be about Rs.1875 crore, which is less than this year's target of Rs.2218 crore. In view of the significant decrease made recently in petrol and diesel prices there is a possibility of improvement in the situation in motor vehicle markets. For the year 2009-10, collection of motor vehicle taxes is estimated to be Rs.2063 crore.

277. In this background, there is no proposal for any increase in motor vehicle tax rate. However, from the point of view of environment protection it appears to be appropriate to give significant exemption on the life-time tax in respect of electricity driven vehicles. It is proposed to decrease the taxes in respect of electricity-run motorcars, vans and two-wheelers from 8 to 12% to 4% on their selling prices. This will give a big boost to the use of environment-friendly transport vehicles.

So, now my question is,

- What's the real deal?
- What's the correct rate as of now, 28-Feb-10?
- Is it 13% or 14.3%?
- Is the additional 1.3% explainable by a Govt-related charge?
- Or is it tweaking at the Dealer's end?


Can't wait to get to the bottom of this with everyone's inputs.


Warm regards,

Kamal Gaur
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Old 28th February 2010, 15:06   #2
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13 and 16 are correct. However there is a CESS of 10% on them so effectively, it is 14.3 (13 + 10% of 13) and 17.6.

If you are interested in more details, go to http://rto.kar.nic.in/.

Click on "RTO services" in the left Panel and select "Fees, Taxes and Fine". Once you navigate to that page, click on the link "Taxation schedule" to get the lifetime tax rates and click on "CESS on tax" to see the CESS that is applicable

Last edited by hondadude : 28th February 2010 at 15:09.
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Old 26th January 2011, 13:11   #3
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

Same confusion here also.Concorde is almost charging 15.5 percentage as Road tax.They don't have any explanation for the 15.5 percentage and I am trying to convince those guys with all proofs.What a fate of customers getting looted!.

One more confusion is the exact amount is 14.3 % of ex-showroom price or exshownroom-discount price?
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Old 7th January 2012, 13:50   #4
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

Quote:
Originally Posted by manziee_crusier View Post
Same confusion here also.Concorde is almost charging 15.5 percentage as Road tax.They don't have any explanation for the 15.5 percentage and I am trying to convince those guys with all proofs.What a fate of customers getting looted!.

One more confusion is the exact amount is 14.3 % of ex-showroom price or exshownroom-discount price?
1. There's a 10% cess on Road Tax, so 15.4% is actually (14% tax + 1.4% cess)

2. Road Tax is calculated on actual ex-showroom price, as declared by the manufacturer. Any discounts are invalid in this calculation.
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Old 31st July 2012, 12:47   #5
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

Another view on this topic from a reader's blog :

Quote:
...people talked about it being 13% + 10% cess on tax = 14.3% tax total. I also read the same initially, but then found out that the tax is rather 14% (as mentioned in the addendum) and cess 11% (not updated on site but checked with RTO official on phone).

So, if you are here to find out the road tax in karnataka, hit here:

http://rto.kar.nic.in/KMVTA%202010.pdf
Source

cya
R
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Old 10th August 2012, 15:09   #6
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

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Originally Posted by Chetan_Rao View Post
2. Road Tax is calculated on actual ex-showroom price, as declared by the manufacturer. Any discounts are invalid in this calculation.
Hi Everybody,

Whoever is reading this thread, I found this topic somehow with a lot of search and found unexpectedly.

I was checking the prices of Volkswagen vento and the highline diesel price ex-showroom was above Rs. 10 Lakh. And the road tax in Karnataka for cars above Rs. 10 Lakh is 17% and 10% cess which comes to 18.7%. I read in multiple posts in team-bhp.com that volkswagen dealers are giving corporate discounts. So as my next purchase would be through my wife's corporate scheme I went and inquired about the prices. I was hoping that the discounts would be on the ex-showroom and if the ex-showroom price could be somehow brought below Rs. 10 Lakh the road tax would be lesser at 15.4% (14% + 10% cess) which would mean that the overall on-road price will come down by close to 80-90K.

I visited the dealer and to my dismay the dealer informed that the discounts are not on the ex-showroom price. It would be on the on-road price. And he also mentioned that he would have to necessarily invoice the car at the ex-showroom price which is in the price list and then give discounts on the overall on-road price while accepting payment. I argued with him that it is ridiculous. The dealer told that "I know and I had similar inquiries from lot of prospective customers but that is the state of the affairs". And he also mentioned that the discounts are applicable on ex-show room price in some other states and thus reducing the overall Road tax as well. And also he told that the automobile dealers' association or some similar body is fighting a case against Karnataka government in the court for almost 6 years on this with no result.

Somebody please share more info on this. Why should the dealer invoice for the ex-show room price when he is giving discount from his own margin. That is ridiculous in my opinion. When the dealer is charging us lesser price all the taxes should come down. I'm guessing the VAT which dealer has to pay to the government on the selling price should also come down as the dealer is giving discount on his selling price and the VAT is calculated on the selling price.

Isn't this cheating on government's part? I think Volkswagen should know this and change the ex-showroom price for Karnataka at least so that customers don't pay unnecessary road tax. I hope VW is reading this and change the ex-show room price of Highline diesel. I am not taking anybody's case here but I read in one of the posts that somebody paid a road tax of 3% on vento highline diesel in Chandigarh and 1st year insurance was waived off by dealer and paid only 10.3L for the car. whereas somebody in Karnataka would be paying 12.2L including all the discounts and insurance waive off etc. How is this Rs. 1.9Lakh difference justified. I understand the differences in tax structure but 19% difference in overall cost of ownership is absurd and looting.

Thanks
Sreekanth
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Old 14th April 2014, 18:17   #7
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

Does anyone know clearly what is the current road tax for vehicles above 10 lakhs in Karnataka as of now ?
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Old 14th April 2014, 18:27   #8
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

It is 17% according to the following document.

http://rto.kar.nic.in/KMVTA%202010.pdf
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Old 14th April 2014, 18:37   #9
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

Quote:
Originally Posted by akula.sreekanth View Post
Why should the dealer invoice for the ex-show room price when he is giving discount from his own margin. When the dealer is charging us lesser price all the taxes should come down. I'm guessing the VAT which dealer has to pay to the government on the selling price should also come down as the dealer is giving discount on his selling price and the VAT is calculated on the selling price.
See this thread: http://www.team-bhp.com/forum/indian...ore-taxes.html (Honda Jazz discounts leave CBEC fuming, demand of 164 crore in taxes)

Basically, the IT Department's stance is that a discount does not reduce the value of a car, only its purchase price. On that basis, they tax you on the non-discounted price.

I think this is being done to ensure that there is no tax evasion done under the guise of a discount (e.g. showroom sells a 30 lakh Merc to a builder with a 27 lakh discount, and hence tax paid is only on 3 lakh. Conversely, the builder sells a 60 lakh flat at a 27 lakh discount to the showroom owner, and tax is paid on only 33 lakh. Now, the government has been cheated out of tax on 54 lakh).

I'm not taking sides with the IT Department here, just explaining how I understand it.
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Old 20th July 2014, 14:50   #10
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

How about cars older than 15 years? I have a '95 Premier Padmini that I am thinking of registering here at Bangalore.

TIA.
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Old 22nd September 2014, 18:29   #11
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

Happened to see a news in Amrita TV today where in it was shown that Karnataka Transport minister has agreed to Kerala Transport commissioner that they will stop taxing outside vehicles . Not sure how far they will keep this word but then atleast 2 governments have started talking on this taxation issue
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Old 22nd September 2014, 23:37   #12
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

Quote:
Originally Posted by joecherian View Post
Happened to see a news in Amrita TV today where in it was shown that Karnataka Transport minister has agreed to Kerala Transport commissioner that they will stop taxing outside vehicles . Not sure how far they will keep this word but then atleast 2 governments have started talking on this taxation issue
The logic is that Kerala transport commissioner has told their KA counterparts that they can expect similar treatment for KA vehicles entering Kerala especially during the sabarimala season.

Verbal agreement does not mean a thing, an ordinance or a notification should be released in this context by the Karnataka officials, The RTO officials will state the exact same thing if you are caught till such time its officially declared
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Old 22nd September 2014, 23:59   #13
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

Quote:
Originally Posted by Knight Rider View Post
The logic is that Kerala transport commissioner has told their KA counterparts that they can expect similar treatment for KA vehicles entering Kerala especially during the sabarimala season.

Verbal agreement does not mean a thing, an ordinance or a notification should be released in this context by the Karnataka officials, The RTO officials will state the exact same thing if you are caught till such time its officially declared
Do not think this logic is correct. I at least know more than Dozen of people who have Kerala registration and staying and working here in Bangalore for more than 5 years and don't want to register in Karnataka. So i assume that our traffic police are targeting only such people.

But I am firmly against Road Tax laws currently applicable and needs a re-look seriously.
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Old 23rd September 2014, 00:40   #14
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

In case of BMW they do invoice at a lower ex-showroom price. X1 is invoiced anywhere between 23-24 lakhs ex-showroom and you then get discount on registration.
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Old 18th October 2015, 22:47   #15
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Default Re: Discrepancy in Life time Road Tax % in Karnataka?

I'm buying a car with an invoice price of 503,128 in Karnataka. Is the current road tax rate still 15.4% including cess?
According to this rate the tax should be 77,482.
But my quotation has road tax as 79,287. I'm trying to figure out how that figure has been worked out.
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