Discrepancy in Life time Road Tax % in Karnataka?

[kamalgaur]

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

[hondadude]

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

[manziee_crusier]

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?

[Chetan_Rao]

Originally Posted by manziee_crusier

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.