Road Tax Basics

easyrider · 18th July 2007, 11:12

I am in confusion about road tax. The car dealer quoted road tax amount, is it something that government decides. How is the total Road Tax amount calculated?. Do we get receipt from govt (thru dealer) for the Road Tax collected?.
What happens when we sell the car after some years?. We are loosing the road tax, or the new owner should refund us?.

Please clarify.

Thanks, Ashok.

tsk1979 · 18th July 2007, 15:43

Road tax is set by state govt.
For example in Punjab its 2%
Some cities levy 5% + congestion/parking charge of 5000, like Delhi.
So depending upon your city/State you will pay road tax. This is also called Registration amount.

easyrider · 18th July 2007, 17:13

I am buying Scorpio SLX with ex-Showroom price around 845000, for which the road tax is mentioned around a 1 lakh.
When I asked the dealer, he says it is the govt defined rate of12.5% .

BaCkSeAtDrIVeR · 18th July 2007, 20:40

6% in kerala, from 1st April, 2007. That is for 15 years. If you transfer to another state, or dismantle your vehicle before 15 years, you can get a refund.

hondadude · 18th July 2007, 23:34

Quote:

Originally Posted by easyrider

I am buying Scorpio SLX with ex-Showroom price around 845000, for which the road tax is mentioned around a 1 lakh.
When I asked the dealer, he says it is the govt defined rate of12.5% .

Yup. Karnataka has a high road tax. For the roads that we get in return, its a shame.

amohit · 26th July 2007, 18:08

Check this out
New Page 1

mithun · 30th July 2007, 08:00

Quote:

Originally Posted by BaCkSeAtDrIVeR

6% in kerala, from 1st April, 2007. That is for 15 years. If you transfer to another state, or dismantle your vehicle before 15 years, you can get a refund.

Well I think that's a tough job !

Similar Discussion : http://www.team-bhp.com/forum/indian...ax-refund.html

dadu · 30th July 2007, 13:54

Quote:

Originally Posted by easyrider

I am buying Scorpio SLX with ex-Showroom price around 845000, for which the road tax is mentioned around a 1 lakh.
When I asked the dealer, he says it is the govt defined rate of12.5% .

As per the RTO link you should be paying 10%, if your vehicles cost is less than 10 lakhs.

ad75 · 30th July 2007, 14:30

the road tax is a % of the ex showroom price of the vehicle.they call it life tax, life of a vehicle defined by them is 15 years.refund happens if you transfer your vehicle to another state.but refund is a very tedious process though.

Zappo · 30th July 2007, 14:32

Quote:

Originally Posted by easyrider

How is the total Road Tax amount calculated?. Do we get receipt from govt (thru dealer) for the Road Tax collected?.
What happens when we sell the car after some years?. We are loosing the road tax, or the new owner should refund us?.

Road Tax amount varies from state to state and hence the final cost of the car as well. A state like Karnataka charges exhorbitant road tax while somewhere like Meghalaya you may get off the hook by paying a really negligible amount.

You may or may not get a reciept (again depending on the state) but most states issue a temporary number for your vehicle that its supposed to sport till the final registration is done. That is your "reciept", in a way.

When you sell the car you do not get any refund from either the government or the buyer. Government does not recognize you (or any one else) as the payer. It associates the tax with the vehicle. As long as the vehicle is plying in the state the tax remains with the government and keeps getting reduced with time. A funny aside to this is suppose you buy your vehicle today and pay 1 lakh as the road tax. After 3 years you sell it off. The money is anyhow lost to you. Now after another 2 years the new owner of this vehicle decides to move out of the state. He can claim a refund on the remaining road tax. Go figure.

Edit: I know a whole host of people who can easily buy a new car whenever they wish but always buy a pre-owned vehicle. I guess now you know why.

dadu · 31st August 2007, 17:18

In bangalore you can pay the Karnataka Road Tax /traffic challan at the Bangaloreone centres.(dont know the paperwork required though).

Goodbye touts

pshyamsundar · 7th February 2008, 20:05

Hi All,

Was just curious to know if road tax can be paid only for 5 years for privately owned cars. We all generally tend to change the cars in 3 - 5 years. So why waste money paying life time tax.

I am not sure if that is possible. But if that is possible please post.

mithun · 14th February 2008, 15:52

Not possible in India !

spadival · 14th February 2008, 16:10

Only if you are a central Govt employee or work in the Armed forces.

BaCkSeAtDrIVeR · 14th February 2008, 19:39

Road tax is a State subject - the taxes are decided and levied by the respective state governments where the vehicle is registered.

All state governments have made it compulsory to pay "life time" tax at the time of registration itself. "Life time" is life time of the registration, which is 15 years.

You really do not have an option here.

18th July 2007, 11:12	#1
easyrider BHPian Join Date: Aug 2006 Location: Bangalore Posts: 35 Thanked: 11 Times	Road Tax Basics I am in confusion about road tax. The car dealer quoted road tax amount, is it something that government decides. How is the total Road Tax amount calculated?. Do we get receipt from govt (thru dealer) for the Road Tax collected?. What happens when we sell the car after some years?. We are loosing the road tax, or the new owner should refund us?. Please clarify. Thanks, Ashok.
	() Thanks

18th July 2007, 15:43	#2
tsk1979 Team-BHP Support Join Date: Feb 2005 Location: San Jose, CA Posts: 23,717 Thanked: 22,823 Times View My Garage	Road tax is set by state govt. For example in Punjab its 2% Some cities levy 5% + congestion/parking charge of 5000, like Delhi. So depending upon your city/State you will pay road tax. This is also called Registration amount.
	() Thanks

18th July 2007, 17:13	#3
easyrider BHPian Join Date: Aug 2006 Location: Bangalore Posts: 35 Thanked: 11 Times	Is Road Tax in Bangalore more? I am buying Scorpio SLX with ex-Showroom price around 845000, for which the road tax is mentioned around a 1 lakh. When I asked the dealer, he says it is the govt defined rate of12.5% .
	() Thanks

18th July 2007, 20:40	#4
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	6% in kerala, from 1st April, 2007. That is for 15 years. If you transfer to another state, or dismantle your vehicle before 15 years, you can get a refund.
	() Thanks

26th July 2007, 18:08	#6
amohit BHPian Join Date: Jul 2007 Location: Bangalore Posts: 451 Thanked: 52 Times	Check this out New Page 1
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30th July 2007, 14:30	#9
ad75 BHPian Join Date: Feb 2007 Location: Noida Posts: 271 Thanked: 25 Times View My Garage	the road tax is a % of the ex showroom price of the vehicle.they call it life tax, life of a vehicle defined by them is 15 years.refund happens if you transfer your vehicle to another state.but refund is a very tedious process though.
	() Thanks

31st August 2007, 17:18	#11
dadu Senior - BHPian Join Date: May 2007 Location: Bangalore Posts: 3,803 Thanked: 462 Times View My Garage	In bangalore you can pay the Karnataka Road Tax /traffic challan at the Bangaloreone centres.(dont know the paperwork required though). Goodbye touts
	() Thanks

7th February 2008, 20:05	#12
pshyamsundar BHPian Join Date: Apr 2006 Location: Bangalore Posts: 130 Thanked: 0 Times	Road Tax for 5 Years Hi All, Was just curious to know if road tax can be paid only for 5 years for privately owned cars. We all generally tend to change the cars in 3 - 5 years. So why waste money paying life time tax. I am not sure if that is possible. But if that is possible please post.
	() Thanks

14th February 2008, 15:52	#13
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	Not possible in India !
	() Thanks

14th February 2008, 16:10	#14
spadival Senior - BHPian Join Date: Oct 2004 Location: Melbourne, AU Posts: 1,773 Thanked: 26 Times View My Garage	Only if you are a central Govt employee or work in the Armed forces.
	() Thanks

14th February 2008, 19:39	#15
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	Road tax is a State subject - the taxes are decided and levied by the respective state governments where the vehicle is registered. All state governments have made it compulsory to pay "life time" tax at the time of registration itself. "Life time" is life time of the registration, which is 15 years. You really do not have an option here.
	() Thanks