Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)!

KK_HakunaMatata · 12th December 2016, 19:09

Quote:

Originally Posted by SILVERWOOD

Dear Friends,

Please help.I need historic data of Road Tax and VAT for last 15 years.(For Karnataka State)

This information is required for our PIL on Road Tax on VAT.My email id is waseemmemonbt@gmail.com

Needless to say, it is urgent.

Waseem.....

At least the total VAT collected data would be available in the Karnataka State Budget documents. Will check once am at home. Now on mobile.

Is this what you are looking for, or something else?

KK

SILVERWOOD · 7th January 2017, 21:55

Dear Friends,

I need couple of Car invoices and road tax receipts paid for the same car.

Please email the same to waseemmemonbt@gmail.com and needless to say, it is urgent.

Waseem

samaspire · 8th January 2017, 00:38

Quote:

Originally Posted by SILVERWOOD

Dear Friends,

I need couple of Car invoices and road tax receipts paid for the same car.

Please email the same to waseemmemonbt@gmail.com and needless to say, it is urgent.

Waseem

Mailed. See if it helps in any small way.

- Sam

SILVERWOOD · 17th January 2017, 15:23

Dear Friends,

I am glad to inform you all that we have filed the PIL today in the Honorable High Court Of Karnataka.

Our PIL No. is WP 2253/2017 and the first hearing could be after 25th Jan 2017.

I will keep you all updated on the same.

All the best guys.

Waseem

SILVERWOOD · 25th January 2017, 12:05

Details on the HC Website.

SILVERWOOD · 27th January 2017, 20:25

Dear Friends,

We have moved our Petition (2253/2017) today and it should listed on Monday for the first hearing.(Preliminary hearing)

I will come back tomorrow with more details.

Waseem

SILVERWOOD · 28th January 2017, 19:43

Dear Friends,

The Writ petition in W.P. 2253 of 2017 (Dove Drive Without Borders v. State of Karnataka and Anr.) is listed on 30 January 2017 (Monday) before Court Hall 1 of the Hon'ble High Court of Karnataka at List No.1, Sl. No. 27.

I will keep you updated about the proceedings.

Waseem Memon

SILVERWOOD · 30th January 2017, 16:42

Dear Friends,

The Writ petition in W.P. 2253 of 2017 (Dove Drive Without Borders v. State of Karnataka and Anr.) was heard today at Court Hall 1 of the Hon'ble High Court of Karnataka.

Notice is issued to the respondents and they have been asked to file Objections.

I will keep you all updated once the Objections are filed and our PIL is listed for next hearing.

Waseem

SILVERWOOD · 31st January 2017, 10:48

Media has covered it well.

glenmz · 31st January 2017, 10:50

Quote:

Originally Posted by SILVERWOOD

Media has covered it well.

Thanks Waseem for taking this up; Really looking forward to the day when court sets this practice straight.

Aroy · 1st February 2017, 10:25

An excellent start. If nothing else comes out of this, at least the public will become more aware of the cascading taxes imposed on us.

Time was when road tax was just that. You paid it monthly. quarterly or annually where ever you drove the car.

y2ksrs · 1st February 2017, 10:31

Will any judgement on this by the Honorable Karnataka High Court be effective on other states too? TN too charges road tax on the cost of the vehicle which loosely translates to the ex showroom price. Can any order passed by the Honorable Karnataka High Court be used as a means for fighting against this practice in TN too?

KK_HakunaMatata · 1st February 2017, 10:43

Quote:

Originally Posted by y2ksrs

Will any judgement on this by the Honorable Karnataka High Court be effective on other states too? TN too charges road tax on the cost of the vehicle which loosely translates to the ex showroom price. Can any order passed by the Honorable Karnataka High Court be used as a means for fighting against this practice in TN too?

I think the judgement will not have automatic applicability in other States (since the current petition is specific to the Karnataka MV Act), but it will surely have a persuasive value and based on this judgement other States might also take up the issue.

KK

avinash_clt · 17th April 2017, 19:01

In the earlier pages of this thread, I came to read that KA is the only place where road tax is calculated on ex-showroom price (tax on tax case) and not on ex-factory or before state VAT prices. However, for all our vehicles in Kerala, the road tax was indeed calculated on the invoice value of the vehicle - effectively the ex-showroom price.

For an intermediate period, in one of the KL state budgets (2014 or 2015, I can't recall nor find the correct document), it was changed that the road tax would be calculated on the amount without the state VAT component. However there was soon a circular which reversed this, i.e to continue charging road tax on the ex-showroom price of the vehicle itself. The circular had also clarified that discounts offered by the dealer will not be factored into LTT calculation. I will get back to this thread once I find these documentations again. I had to read through all these while trying to understand the cost of re-registration LTT for our Superb (MH to KL).

Secondly coming to the question on what basis road tax should be calculated on: Ideally a road tax is intended for the upkeep of the roads and general traffic infrastructure. Hence in my opinion it should not be based on the value of the vehicle. The tax component based on value of vehicle is already included in the central excise duties, Octroi and state VAT.

Road tax rather should be based on weight of the vehicle, fuel type/emissions as these directly influence the cost of upkeep / development of traffic infrastructure as well as environment/public health. And why should it be mandatory that one has to pay LTT, why not annual road taxes? I came to be familiar with such practice of road taxes here in the Netherlands and I find them to be more logical. Here it is a quarterly road tax, based on vehicle weight primarily & fuel type (diesel vs petrol vs hybrid vs pure electric etc). So one would be paying less road tax for a BMW 2.0L diesel than a Scropio 2.2L, and logically so, as the heavier and less efficient Scorpio cost the exchequer more towards upkeep of roads.

So, IMHO, if road taxes are being calculated and levied based on the value of a vehicle, it is not really a 'road' tax alone anymore. If the objective is also for making vehicle affordable to everyone across the income strata, there should be differential VAT component based on ex-factory price of the car (incentives here based on size, efficiency and emissions are also welcome), than different road taxation based on value of the car (which invariably is compounding on excise duties/octroi/state VAT etc).

And last but not the least, good luck and all the best wishes to you Sir Waseem.

SILVERWOOD · 24th April 2017, 23:54

Dear Friends,

Our PIL on LTT on VAT was listed today at Court Hall No 1. The counsel for the State sought for an additional time of 6 weeks to file their statement of objections to the writ petition. The Court has granted the State a period of two weeks after court vacations within which their Statement of Objections are to be filed.

Please note that the High Court of Karnataka has its summer vacations for a period of about 4 weeks in the month of May and the aforesaid period of two weeks would commence only thereafter.

I will keep you all updated once the objections are filed.

Waseem.

7th January 2017, 21:55	#62
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Dear Friends, I need couple of Car invoices and road tax receipts paid for the same car. Please email the same to waseemmemonbt@gmail.com and needless to say, it is urgent. Waseem
	(1) Thanks

17th January 2017, 15:23	#64
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Dear Friends, I am glad to inform you all that we have filed the PIL today in the Honorable High Court Of Karnataka. Our PIL No. is WP 2253/2017 and the first hearing could be after 25th Jan 2017. I will keep you all updated on the same. All the best guys. Waseem
	(23) Thanks

25th January 2017, 12:05	#65
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Details on the HC Website. Attached Thumbnails
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27th January 2017, 20:25	#66
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Dear Friends, We have moved our Petition (2253/2017) today and it should listed on Monday for the first hearing.(Preliminary hearing) I will come back tomorrow with more details. Waseem
	(6) Thanks

28th January 2017, 19:43	#67
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Dear Friends, The Writ petition in W.P. 2253 of 2017 (Dove Drive Without Borders v. State of Karnataka and Anr.) is listed on 30 January 2017 (Monday) before Court Hall 1 of the Hon'ble High Court of Karnataka at List No.1, Sl. No. 27. I will keep you updated about the proceedings. Waseem Memon
	(11) Thanks

30th January 2017, 16:42	#68
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Dear Friends, The Writ petition in W.P. 2253 of 2017 (Dove Drive Without Borders v. State of Karnataka and Anr.) was heard today at Court Hall 1 of the Hon'ble High Court of Karnataka. Notice is issued to the respondents and they have been asked to file Objections. I will keep you all updated once the Objections are filed and our PIL is listed for next hearing. Waseem Last edited by SILVERWOOD : 30th January 2017 at 17:08.
	(17) Thanks

31st January 2017, 10:48	#69
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Media has covered it well. Attached Thumbnails Attached Images
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1st February 2017, 10:25	#71
Aroy Senior - BHPian Join Date: Aug 2010 Location: Delhi Posts: 2,582 Thanked: 2,738 Times View My Garage	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! An excellent start. If nothing else comes out of this, at least the public will become more aware of the cascading taxes imposed on us. Time was when road tax was just that. You paid it monthly. quarterly or annually where ever you drove the car.
	() Thanks

1st February 2017, 10:31	#72
y2ksrs BHPian Join Date: Sep 2011 Location: Chennai Posts: 277 Thanked: 185 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Will any judgement on this by the Honorable Karnataka High Court be effective on other states too? TN too charges road tax on the cost of the vehicle which loosely translates to the ex showroom price. Can any order passed by the Honorable Karnataka High Court be used as a means for fighting against this practice in TN too?
	() Thanks

17th April 2017, 19:01	#74
avinash_clt BHPian Join Date: Feb 2012 Location: EU/KL-11 Posts: 382 Thanked: 1,245 Times View My Garage	Road tax in Kerala ; Should road tax be based on vehicle value? In the earlier pages of this thread, I came to read that KA is the only place where road tax is calculated on ex-showroom price (tax on tax case) and not on ex-factory or before state VAT prices. However, for all our vehicles in Kerala, the road tax was indeed calculated on the invoice value of the vehicle - effectively the ex-showroom price. For an intermediate period, in one of the KL state budgets (2014 or 2015, I can't recall nor find the correct document), it was changed that the road tax would be calculated on the amount without the state VAT component. However there was soon a circular which reversed this, i.e to continue charging road tax on the ex-showroom price of the vehicle itself. The circular had also clarified that discounts offered by the dealer will not be factored into LTT calculation. I will get back to this thread once I find these documentations again. I had to read through all these while trying to understand the cost of re-registration LTT for our Superb (MH to KL). Secondly coming to the question on what basis road tax should be calculated on: Ideally a road tax is intended for the upkeep of the roads and general traffic infrastructure. Hence in my opinion it should not be based on the value of the vehicle. The tax component based on value of vehicle is already included in the central excise duties, Octroi and state VAT. Road tax rather should be based on weight of the vehicle, fuel type/emissions as these directly influence the cost of upkeep / development of traffic infrastructure as well as environment/public health. And why should it be mandatory that one has to pay LTT, why not annual road taxes? I came to be familiar with such practice of road taxes here in the Netherlands and I find them to be more logical. Here it is a quarterly road tax, based on vehicle weight primarily & fuel type (diesel vs petrol vs hybrid vs pure electric etc). So one would be paying less road tax for a BMW 2.0L diesel than a Scropio 2.2L, and logically so, as the heavier and less efficient Scorpio cost the exchequer more towards upkeep of roads. So, IMHO, if road taxes are being calculated and levied based on the value of a vehicle, it is not really a 'road' tax alone anymore. If the objective is also for making vehicle affordable to everyone across the income strata, there should be differential VAT component based on ex-factory price of the car (incentives here based on size, efficiency and emissions are also welcome), than different road taxation based on value of the car (which invariably is compounding on excise duties/octroi/state VAT etc). And last but not the least, good luck and all the best wishes to you Sir Waseem.
	(1) Thanks

24th April 2017, 23:54	#75
SILVERWOOD Senior - BHPian Join Date: Oct 2009 Location: BANG-A-LURE. Posts: 1,197 Thanked: 4,657 Times	Re: Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! Dear Friends, Our PIL on LTT on VAT was listed today at Court Hall No 1. The counsel for the State sought for an additional time of 6 weeks to file their statement of objections to the writ petition. The Court has granted the State a period of two weeks after court vacations within which their Statement of Objections are to be filed. Please note that the High Court of Karnataka has its summer vacations for a period of about 4 weeks in the month of May and the aforesaid period of two weeks would commence only thereafter. I will keep you all updated once the objections are filed. Waseem.
	(18) Thanks