Are Car owners being fleeced?

himanshugoswami · 9th May 2006, 11:58

Hi Folks,

Got this article from groups.yahoo.com/group/swift_india/

************************************************** *******
Veeresh Malik, Outlook Money | May 09, 2006

Motor vehicle tax or 'road tax' is collected from buyers directly by the
manufacturers or dealers. It is a vast sum of money -- for an upper-end
private car, it can run into a lakh. Collected on 'life basis,' the tax
is for 10 years or a 'fitness' period of 15 years. After that the car
has to be re-registered, and more tax paid. For commercial vehicles, it
is higher.

This tax is supposed to be based on the ex-factory manufacturing cost,
plus excise duty, sales tax/VAT. Manufacturers are, however, charging
buyers on the basis of ex-showroom cost, which is higher. It might still
be acceptable, if the higher tax was reaching the government. But is it?
Letters to manufacturers, as usual, elicit no response.

And the dealers are unwilling or unable to provide the ex-factory cost.

Meanwhile, an 'off-the-record' chat with an RTO official in Delhi
revealed that the rot is much deeper. An amount lower than what is paid
by the buyer reaches the RTOs. And often, the tax does not even reach
the RTO coffers. The game involves big players, so even manufacturers
keep quiet.

It is high time the payment of RTO tax was made directly by the buyer --
through a cheque or demand draft -- to the RTO or other government
treasury and a proper receipt issued.

In the interim, do take out the original purchase documents of your car
and re-confirm how much road tax was actually paid in your name, on what
basis and to whom

navin · 9th May 2006, 12:05

Can you name these big name players? Are they govt. agencies or insurance firms or the manufacturers themselves or private companies?

mohit · 9th May 2006, 12:06

The how in the world do RTOs issue reciepts for the amount? I have a RTO reciept for the raod tax paid for my car.

himanshugoswami · 9th May 2006, 12:17

Quote:

Originally Posted by navin

Can you name these big name players? Are they govt. agencies or insurance firms or the manufacturers themselves or private companies?

Navin, I have no idea dude. Like I said in my ost, I have just reproduced this article from the swift owners group, which in turn is a reproduction of an article from outook money.

Will ge hold of the copy of outlook money for more details

hrag · 9th May 2006, 12:40

Here's the article:
http://www.outlookmoney.com/scripts/...2%3A23%3A36+PM

pmbabu · 9th May 2006, 22:57

Sorry, but I am unable to buy into this because the RTO receipt shows the exact amount charged by the dealer..

Can the receipts be doctored too?

9th May 2006, 11:58	#1
himanshugoswami Senior - BHPian Join Date: Oct 2004 Location: !!!! Posts: 2,303 Thanked: 2,619 Times	Are Car owners being fleeced? Hi Folks, Got this article from groups.yahoo.com/group/swift_india/ ************************************************ ***** Veeresh Malik, Outlook Money \| May 09, 2006 Motor vehicle tax or 'road tax' is collected from buyers directly by the manufacturers or dealers. It is a vast sum of money -- for an upper-end private car, it can run into a lakh. Collected on 'life basis,' the tax is for 10 years or a 'fitness' period of 15 years. After that the car has to be re-registered, and more tax paid. For commercial vehicles, it is higher. This tax is supposed to be based on the ex-factory manufacturing cost, plus excise duty, sales tax/VAT. Manufacturers are, however, charging buyers on the basis of ex-showroom cost, which is higher. It might still be acceptable, if the higher tax was reaching the government. But is it? Letters to manufacturers, as usual, elicit no response. And the dealers are unwilling or unable to provide the ex-factory cost. Meanwhile, an 'off-the-record' chat with an RTO official in Delhi revealed that the rot is much deeper. An amount lower than what is paid by the buyer reaches the RTOs. And often, the tax does not even reach the RTO coffers. The game involves big players, so even manufacturers keep quiet. It is high time the payment of RTO tax was made directly by the buyer -- through a cheque or demand draft -- to the RTO or other government treasury and a proper receipt issued. In the interim, do take out the original purchase documents of your car and re-confirm how much road tax was actually paid in your name, on what basis and to whom
	() Thanks

9th May 2006, 12:05	#2
navin Team-BHP Support Join Date: Mar 2004 Location: Mumbai Posts: 25,196 Thanked: 9,292 Times	Can you name these big name players? Are they govt. agencies or insurance firms or the manufacturers themselves or private companies?
	() Thanks

9th May 2006, 12:06	#3
mohit BHPian Join Date: Sep 2004 Location: Toronto / Kurukshetra Posts: 677 Thanked: 168 Times	The how in the world do RTOs issue reciepts for the amount? I have a RTO reciept for the raod tax paid for my car.
	() Thanks

9th May 2006, 12:40	#5
hrag BANNED Join Date: Nov 2004 Location: Bangalore / Madras Posts: 1,982 Thanked: 31 Times	Here's the article: http://www.outlookmoney.com/scripts/...2%3A23%3A36+PM
	() Thanks

9th May 2006, 22:57	#6
pmbabu BHPian Join Date: Sep 2005 Location: On The Net Posts: 335 Thanked: 47 Times	Sorry, but I am unable to buy into this because the RTO receipt shows the exact amount charged by the dealer.. Can the receipts be doctored too?
	() Thanks