Team-BHP (https://www.team-bhp.com/forum/)

-   The Indian Car Scene (https://www.team-bhp.com/forum/indian-car-scene/)

-   -   PY registered cars in TN booked for road tax evasion (https://www.team-bhp.com/forum/indian-car-scene/149608-py-registered-cars-tn-booked-road-tax-evasion-3.html)

Everyone knows that dealerships play a big role in 'arranging' for these type of malpractices. Why not book such dealerships to send a message instead ? Our authorities always try to eradicate problems by addressing symptoms and never the root cause. I guess its easier to harass and generate revenue that not necessarily goes to govt alone.

You forgot the RTOs and agents in Pondicherry (and Jharkhand, north east etc) that are the main players in facilitating all this nonsense.

For example, just about every expensive commercial vehicle in the country comes with Sikkim / Nagaland etc registrations, and compared to the costs of those, even most luxury cars cost are a drop in the bucket.

One nation, one tax, one number plate.

We are able to get a GST rolled out. This should potentially be much simpler. This is primarily the greed / corruption of the RTOs and the local authorities.

Guess what, road tax and stamp duty are not under the purview of GST. 100% of the revenue in these accrues to the state. So no it is not much simpler.

What about the people who wanted a cost cut in the first place? aren't them to be blamed?

+1. Its the demand that creates the market.
I doubt if any dealerships will voluntarily provide services to register in the low tax states/UTs.

Yes they do.

Register in Pondi for 1.5 lakhs road tax.

After an year or 2, go to a known local RTO and get the car revalued , obviously for a lower amount.

Then pay the local road tax on the revalued amount.

Blame it on the astronomical tax rates. 20L tax on a sedan, no matter how much it costs, is daylight robbery. Legalized theft is still theft.


Tax is always calculated on the invoice price. Of course, it gets prorated depending on how old the car is.

Based on what I know being a resident of Pondicherry and moving across TN and KA know that many of the luxury car dealerships including your VW/Skoda Dealerships will never do it.
They will provide you a TR and the registration should be done at your own risk while there was an instance when a car dealership refused to sell me their flagship sedan even though I'm a resident of Pondy.
All that a dealerships does if at all they do sell you one is give you a TR based on your current address.

True, its the agents that are a menace while the RTO per so has no role in it.I know this for a fact and can vouch for the higher officials.

Even by taxations brackets here, 1.5L is the "taxes" you pay when you go through an agent.

There is a clear difference between evading tax and avoid tax. These people are evading tax by using fake addresses. They must be brought to justice.

Go and avoid tax by registering a house or a plot in your name and buy a car in that address. Wonder who advises these celebrities. :uncontrol

This issue was very prevalent in the late 90's. I remember there was a massive crack down on PY registered cars in TN sometime in 1997-99.

And in all probability you will see this issue waning away in the 1-2 months and the super rich will still get away with it. Even in Bangalore I see a lot of luxury cars with PY registration.

This is an artificial situation created by the Govt. You have a small town in the middle of a state and you call it a UT and give all sorts of tax sops right from condom to cars and the Govt expects that the situation shouldn't be exploited. I feel it's something like interstate commodity smuggling due to uneven tariffs. The Govt creates a situation and it's corrupt machinery abetts it and then catch a few cases at frequent intervals and cry foul and then everything is forgotten for some time. Why create uneven tariffs in one country and then cry foul.

Any CA / lawyer can help you register a business in Pondicherry and you can register your car in the name of that business.

Of course the compliance requirements might drive you nuts going forward but that might be where the CA continues to earn his salary from you.

Of course, do this if and only if you're a millionaire with a minimum of 3 or 4 S class, Lambo etc in your garage.

I think people who get transferred to states, like PY, should have an easy job of getting their tax refund! glad step is being taken, but would be better if system worked both ways as efficiently.

Tax is calculated on the Original Invoice, RTO cannot *revalue* the car.

Personally, I am glad this crackdown is happening in Tamil Nadu & Kerala also. It was always the case in Karnataka. When I got my car, the dealer offered this PY thing. I flatly refused as I know that some PY luxury cars were already facing issues in TN.