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Old 16th February 2017, 13:37   #1
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Default Mumbai police crackdown on out-of-state cars

Todays ToI is carrying a report stating that the Mumbai police have begun a crackdown on out of state registered high end cars being used in Mumbai. Apparently some Bollywood actor has been made to pay around 29 lacs to regularise his Range Rover. Interestingly the report mentions that if Maharashtra road tax is paid then the person can continue to use the out of state registered car. Can someone please enlighten how much the road tax is and whether its worth taking this route instead of paying the criminally high 20% registration charges in Mumbai.

http://timesofindia.indiatimes.com/c...w/57175602.cms
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Old 16th February 2017, 14:33   #2
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Default re: Mumbai police crackdown on out-of-state cars

I thought only Karnataka and Kerala were notorious for such antics.

This is outright gundagardi on the part of the local establishment. If you choose to keep your local taxes high, you are voluntarily giving up a competitive advantage to your competitors (DD/DN RTOs). Furthermore, if I own a business nearby Daman or Silvassa and the car is in the name of my company, they really should not be unnecessarily harassing me.

This seems to be a scheme to garner easy eyeballs and play to the lobbies in politically charged times. Apart from soft targets like TV or film people, the ones this is going to affect is Mumbai's business and industrial community. Certainly something the financial capital can do without.
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Old 16th February 2017, 14:50   #3
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Default re: Mumbai police crackdown on out-of-state cars

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Originally Posted by manishk123 View Post
Apparently some Bollywood actor has been made to pay around 29 lacs to regularise his Range Rover.
Danny Denzongpa's car!

http://www.mid-day.com/articles/dann...-news/17998159

Quote:
Veteran actor fined Rs 29 Lakh by Regional Transport Office (RTO) in Mumbai. Danny’s expensive Range Rover car was spotted by RTO officer by driving in Mumbai with Sikkim registration. The actor slapped by Rs 29 lakh fine for not paying Maharashtra road tax.
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Old 16th February 2017, 15:26   #4
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Default re: Mumbai police crackdown on out-of-state cars

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...Can someone please enlighten how much the road tax is and whether its worth taking this route instead of paying the criminally high 20% registration charges in Mumbai.
The road tax in Mumbai should work out to around between 10%-18% (depending on cost and fuel type) for cars registered in Mumbai (including 4.5% BMC tax). Picked the data from this website.

However, there is no difference between road tax and registration, except a 250 rupees registration charge to generate an MH number. Usually both are done together as at the point of paying the tax, the car's file is moved from previous RTO to new RTO, so registration is mandatory.

If you do pay the road tax then ensure you get the MH number as the police will never stop an MH registered car.
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Old 16th February 2017, 21:05   #5
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Default re: Mumbai police crackdown on out-of-state cars

I think its fair. Pay the road tax in the state where you use the car the most. In an ideal scenario the road tax pays for the upkeep of the roads, signals, etc. Its similar to the on its way out state Sales Tax or even your housing societies maintenance fees, you pay an amount that is required for the upkeep of YOUR building not the rate for a run down chawl under the pagdi system in another part of town.
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Old 16th February 2017, 23:17   #6
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Default re: Mumbai police crackdown on out-of-state cars

I guess it is high time the Central Government implement uniform tax system across states (centralizing the RTO). If the Road Tax, Vehicle Registration Fee etc. are made identical across all states, it will alleviate a lot of corrupt practices in the system.

Also, a vehicle registered in one State should have no hassles in travelling to any other States within India, something like make all registrations ‘All India Permit’, which would result in lesser policing and lesser bureaucracy making the whole system more efficient.
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Old 16th February 2017, 23:24   #7
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Default re: Mumbai police crackdown on out-of-state cars

India should really now do away with this extremely non-uniform road tax structure in different states. There should be one road tax structure that all cars in the country should abide by. Something like the GST.

Not sure if I am asking for too much or what would be good or bad effects of such a structure, but that would end this kind of sporadic harassment by the administration to some extent.
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Old 17th February 2017, 01:17   #8
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Default re: Mumbai police crackdown on out-of-state cars

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I think its fair. Pay the road tax in the state where you use the car the most.
Riddle me this...

I live in Faridabad (Haryana)
My factory is in Noida (UP)
I have to cross Delhi every day on my way to work. Twice a day. Seven days a week.

Which state's road tax should I pay? Delhi, Haryana or UP?

Fact is that govt rules allow me to buy with HR or UP registration depending on whether I am buying in my personal name or my company's name. This is totally my call and I am 100% within my rights to choose whatever way I want to go about it. Thereon, as it is a private vehicle, I am allowed to use it all over India.

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India should really now do away with this extremely non-uniform road tax structure in different states. There should be one road tax structure that all cars in the country should abide by. Something like the GST.
Totally agree. This has to be the way forward. Of course, our self serving local politicians and vested interests will never allow this to happen.
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Old 17th February 2017, 02:20   #9
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Default re: Mumbai police crackdown on out-of-state cars

Yes of course - but much the same with Sikkim reg'd cars operated in Mumbai? Does Danny drive all the way from Sikkim in that beauty every time he has a film role?

Worldwide, road tax / vehicle registration is a state subject in countries big enough to have more than a few states.

If the RTO people had a uniform rate and eliminated corruption this would not be a major issue, but when some small state has a pittance of say 8% as a road tax and neighbouring states have 17% people have every incentive to game the system by registering a 20+ lakh car in the smaller state, possibly with a fake address. [though in danny's defence he probably has a permanent address in sikkim as he's from there originally]
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Old 17th February 2017, 22:01   #10
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Default re: Mumbai police crackdown on out-of-state cars

Is it applicable for two wheeler as well? I am driving my bike in Pune with Chandigarh License plates. I ride with full riding gear which in pune is a rare sight to see and I think that is the reason I never got pulled over by cops. As far as I understand road tax is 7% of the depreciated value of the vehicle plus VAT, right?

PS: I have not paid Maharashtra tax. Do I need to pay it? I am going to be here for six months only.
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Old 18th February 2017, 02:44   #11
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Default re: Mumbai police crackdown on out-of-state cars

What the cops are doing is not completely legal, they first need to prove that the car has been in Mumbai for over a year only then are they justified to impose any tax or fine. Secondly, they are making cars re register in MH by paying a lifetime tax which is again unfair as someone might be returning back to his home state. What about cars that are genuinely on a visit and what about employees have shift base for a few months or a year to another state on projects?

The reality is, this is all a marketing gimmick for the upcoming elections. Catching celebrities cars makes headlines and that's exactly what they got. All this will simmer down next week once BMC elections are done but will continue to some extent until March 31st as it does every year to pump up the annual revenue.
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Old 18th February 2017, 07:32   #12
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Default re: Mumbai police crackdown on out-of-state cars

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Originally Posted by drive_angry View Post
Is it applicable for two wheeler as well? I am driving my bike in Pune with Chandigarh License plates. I ride with full riding gear which in pune is a rare sight to see and I think that is the reason I never got pulled over by cops. As far as I understand road tax is 7% of the depreciated value of the vehicle plus VAT, right?

PS: I have not paid Maharashtra tax. Do I need to pay it? I am going to be here for six months only.
If you are in town for 6 months you don't need to re-register your vehicle.

In any case re-registration would require you to get a NOC from the relevant RTO in Chandigarh and surrender your RC there.
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Old 18th February 2017, 10:01   #13
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Default re: Mumbai police crackdown on out-of-state cars

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Originally Posted by Sahil View Post
What the cops are doing is not completely legal, they first need to prove that the car has been in Mumbai for over a year only then are they justified to impose any tax or fine. Secondly, they are making cars re register in MH by paying a lifetime tax which is again unfair as someone might be returning back to his home state. What about cars that are genuinely on a visit and what about employees have shift base for a few months or a year to another state on projects?
MH is not as strict as South KA in this implementation. A friend owns a GJ-15 registered car, and stays a PG in Vasai. He has a job in Vasai but drives back every Friday to return on Monday and his family is in his hometown near Valsad.
He is challenged by the police many times, but as soon as he shows his permanent address he is let go.

Rahul
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Old 18th February 2017, 11:29   #14
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Default re: Mumbai police crackdown on out-of-state cars

One can spot a lot of Jharkhand registered luxury cars here in Mumbai including Navi Mumbai.

Last year one of my senior colleagues while negotiating discounts on Audi A4 was offered Jharkhand registration by the dealer to save money and you have to do nothing, all paper work is done by the dealer. There is a well established nexus.
I know a CEO of a well known company who is originally from Delhi, working in Mumbai got a new S class last month registered in Jharkhand.

So there may be genuine cases of neighboring states etc, but there are a lot others who do this to evade taxes and RTO is doing the right thing IMO.

Last edited by S.MJet : 18th February 2017 at 11:30.
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Old 18th February 2017, 18:31   #15
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Default re: Mumbai police crackdown on out-of-state cars

Given the new CCTV cameras at virtually every signal, it should be easy for the traffic police to demonstrate which cars with JH/CG/CH/UK et al plates are permanently in Mumbai and which are visiting for short durations. Yes, those with DN or DD plates can't be caught but cracking down on tax cheats has a value for all of us - if no one cheated, we could either get better government services or lower taxes.

The government should also crack down on dealers - a disproportionate share of Range Rovers are registered in vague states.
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