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Old 25th October 2009, 02:34   #61
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I sold a car last year which was registered in my company's name(proprietorship). The monies realized from the sale went towards purchase of another car. Now my accountant tells me that I am liable to pay sales tax on the sale. Is this correct, I have asked around but no one is clear what happens in case of Proprietorship companies. Does anyone have any idea regarding this, please advise asap as i plan to sell another vehicle soon.
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Old 26th October 2009, 21:36   #62
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The time between the two ads was less than a month.

Is there any foulplay here? Or is the car changing hand between the dealers?

PS: The right ad came first. I believe the real value for this car is around 1.5 lakh.
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Last edited by ramzsys : 26th October 2009 at 21:42.
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Old 27th October 2009, 17:05   #63
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Originally Posted by mkh View Post
Called him up: he has agreed to transfer, also he has agreed to give me a copy of the papers( which i seem to have lost) and i will send them by registered post to the RTO in any case right away!!
Thanks
Glad it worked out for you, Mkh. Do keep on following up with him until the transfer has gone through.

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Originally Posted by khoj View Post
I sold a car last year which was registered in my company's name(proprietorship). The monies realized from the sale went towards purchase of another car. Now my accountant tells me that I am liable to pay sales tax on the sale. Is this correct
IIRC, whenever a company registered car is sold, sales tax on the depreciated value of the car is applicable. Do double-check and update us though, I'm not 100% sure myself.

BTW, isn't it the buyer who always pays the sales tax?

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Is there any foulplay here? Or is the car changing hand between the dealers?
Or it could be the two different dealers advertising the same car? Or two similar (but different) cars in the market?
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Old 27th October 2009, 18:51   #64
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OT:
Quote:
Originally Posted by ramzsys View Post
The time between the two ads was less than a month.

Is there any foulplay here? Or is the car changing hand between the dealers?

PS: The right ad came first. I believe the real value for this car is around 1.5 lakh.
I would say it is worth around 1 lakh in the current market.
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Old 28th October 2009, 14:13   #65
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Default Transfer of ownership to a different state

@GTO, thanks a million for this invaluable article!
I have a small query here:
My car which is registered in Delhi is being sold to a person based in Himachal Pradesh. Is the procedure for transferring the registration of the vehicle from one state to another the same as what you've mentioned in the article? Are there any additional steps/documents required?
Also, are three originals of the completed form28: application for noc sufficient for the buyer for transferring the vehicle, or do i have to obtain the NOC from delhi RTO and deliver the same to the buyer before he can obtain a transfer to his name?
Some people are saying that the RTO at the buyer's end will ask for the NOC before transferring the vehicle. If this is true, how will obtain the NOC?
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Old 30th October 2009, 14:29   #66
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In addition to my above query, I'd also like to know whether Form No. 29 is required even if the car is not under a finance hypothecation or hire purchase? The Form requires the signature of the Financier to give his consent.
Also once I've provided these required documents to the buyer, does he have to submit the same to the RTO in his state or to the Delhi RTO.
Guys, I'd really appreciate some advice here as the sale is looming and I have to return to Delhi immediately after that. I shall be going back to HP only in march after this, and don't want the car transfer to keep hanging in the meantime.
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Old 30th October 2009, 19:47   #67
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Originally Posted by jerry can View Post
do i have to obtain the NOC from delhi RTO
Quote:
Some people are saying that the RTO at the buyer's end will ask for the NOC before transferring the vehicle. If this is true, how will obtain the NOC?
The NOC will be required by both RTOs, and is issued by the Delhi RTO.

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In addition to my above query, I'd also like to know whether Form No. 29 is required even if the car is not under a finance hypothecation or hire purchase?
Yes, Form no. 29 is still required.

Quote:
Also once I've provided these required documents to the buyer, does he have to submit the same to the RTO in his state or to the Delhi RTO.
He has to submit the same to his RTO.
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Old 30th October 2009, 21:34   #68
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Hey thanks GTO. This clears things up.
So in effect I shall provide him the:
Form No. 28 (3 originals), Form No. 29, Form No. 30, Delivery report copy, RC, Tax documents, etc. immediately.
Then i obtain the NOC from Delhi RTO and send it to him. Once he receives the NOC only then he can submit the papers at his RTO, for the transfer.
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Old 11th November 2009, 11:41   #69
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Quote:
Originally Posted by GTO View Post
Step THREE : Payments & Documentation

To hand over to the buyer:

1. Form No.28 - Application for N.O.C. and grant of certificate, if the buyer falls in another RTOís jurisdiction (3 Originals). Format attached.
To retain with yourself:

1. Form No.28 (Copy).
I am confused on this one, why do you have to give three originals of form 28 to the buyer and retain a copy. Isn't it the responsibility of seller to procure the NOC and supply it to the buyer? And in that case he would submit the form 28 in triplicate to his RTO and get an NOC and then give it to the buyer.

Also please clarify about the affidavit, is it required in all the states? If yes could you attach a standard format for affidavit for benefit of everyone?
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Old 4th December 2009, 02:32   #70
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Default What to use as evidence of payment of road tax?

My car is now sold. As discussed a couple of posts ago, the car was sold to a buyer in another state (Himachal) and was originally registered in Delhi.
In order to facilitate the transfer of the vehicle to the buyer's state i now have to obtain an NOC from the Delhi RTO. This requires the following to be submitted at the Delhi RTO zonal office where the car was originally registered:
  1. [FONT=Verdana][SIZE=2]
  2. [FONT=Verdana][SIZE=2]Application on form 28 (in Triplicate/Quadruplicate) [/SIZE][/FONT]
  3. Attested copy of the registration certificate.
  4. [FONT=Verdana][SIZE=2]Evidence of payment of road tax up-to-date. [/SIZE][/FONT]
  5. [FONT=Verdana][SIZE=2]Or no road tax dues certificate from the tax-collection authority.[/SIZE][/FONT]
  6. Valid PUC/ Valid Insurance. [/SIZE][/FONT]
Now I have discovered what seems to be a serious problem. In all the documents that I posses from the date of purchase (the car was bought new 6 years ago), there is no receipt or document pertaining to the payment of road tax! The amount that i paid as road tax (OTT) is mentioned in the invoice, but there is no other receipt for the same. The RC smart card also mentions tax as OTT (One Time Tax), but that's it! Now what can I present as evidence of payment of road tax?
I really don't know what to do.. Can anyone please help me with this?
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Old 15th December 2009, 13:59   #71
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Hi, I have a question regarding the transfer of insurance.
I had sold my car some time back and the buyer has successfully registered the car in his name and this has been endorsed on the RC book as well. However now I have to initiate the change in transfer of ownership.

Now the problem is that Maruti is asking me to bring a 'Transfer of Ownership of Insurance' form from the RTO since they don't have it. I checked on the RTO website and there is no such form there. Also nothing like that is document on this thread. What is this about?

They say that I, the seller, have to submit the RC photocopy, the original insurance photocopy and the transfer of ownership form, and then Maruti will be able to update their records and transfer the ownership. I have broken my leg and I cannot run around to the RTO at this point. Does someone have an online/soft copy of this document that I can print and submit?
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Old 15th December 2009, 17:55   #72
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Quote:
Originally Posted by herculesksp View Post
Hi, I have a question regarding the transfer of insurance.
I had sold my car some time back and the buyer has successfully registered the car in his name and this has been endorsed on the RC book as well. However now I have to initiate the change in transfer of ownership.

Now the problem is that Maruti is asking me to bring a 'Transfer of Ownership of Insurance' form from the RTO since they don't have it. I checked on the RTO website and there is no such form there. Also nothing like that is document on this thread. What is this about?

They say that I, the seller, have to submit the RC photocopy, the original insurance photocopy and the transfer of ownership form, and then Maruti will be able to update their records and transfer the ownership. I have broken my leg and I cannot run around to the RTO at this point. Does someone have an online/soft copy of this document that I can print and submit?
You can ask for form no. 29 to any motor training guy's in your area, they have them with them.
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Old 16th December 2009, 07:09   #73
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Default not transferring insurance when selling the car

Hi,

What do I need to do when selling my car? I am keeping the insurance so I can use the NCB on my new car. Other than the different forms from the RTO, is there anything else I need to do as far as the insurance is concerned. The new owners of my car as taxi drivers.... Is there anything I need to do to cover my ... err... back side?

Mods: I couldn't find a similar topic... Please move it to one if necessary.
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Old 16th December 2009, 08:43   #74
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What do you mean by keeping the insurance? for new car's insurance you need only NCB letter from the existing insurer.

You need to inform to insurance company that you have sold the car and you need NCB letter for the same. You also need to submit the proof of sale.

What do you mean by "my ... err... back side"
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Old 16th December 2009, 08:59   #75
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So the new owner can continue to use the policy that I have taken? I thought I'll have to cancel this insurance in order to avail the NCB. The policy on my old car lasts till June next year. Please clarify if insurance agencies will allow me to only take on the NCB without having to cancel the policy. So is it ok to sign the document saying that the insurance is also being transferred with the car?

By covering back side I mean that in case of any accident in future/ vehicle used for illegal activities, etc how can I be sure that I will no longer be associated with the vehicle? Will the delivery notice and a copy of the RC book in the new owners name suffice? I've also asked the new owner for a copy of identify proof.

Do clarify.
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