[Excelsior]

Had a discussion today with MG Dealer, ORR, Blr As expected, he tried to convince me to take the KA number. I then showed him the excel I created on the substantial benefit of BH registration and he was left speechless.
He then sheepishly admitted that a lot of his customers are deferring delivery for the BH number, hurting the sales.

[Sahil]

Not sure if this is answered here but what happens when one wants to sell a BH registered car?
If it can only be transferred/sold to someone eligible who works in a company that has 4 offices across the nation or is a govt employee, it will drastically reduce the pool of buyers and there by affecting the resale value a lot.

[itwasntme]

Originally Posted by Sahil

... it will drastically reduce the pool of buyers and there by affecting the resale value a lot.

Excellent point, and logically this should be the case. Interesting times ahead, as the used car market has to factor in the inevitable differences in resale between a BH reg vs a state-specific reg.

Another issue is how will banks finance say a 5 year loan with an initial 2 year BH reg? Their title over the asset will be deficient once the initial tax expires.

[CircleOfLife]

Originally Posted by itwasntme

Another issue is how will banks finance say a 5 year loan with an initial 2 year BH reg? Their title over the asset will be deficient once the initial tax expires.

As for defence and government officials most of which will be compliant to laws. There can definitely be some odd cases where there is default. Private sector is where there could be more challenges.

Bank which finance total on road pricing will not offer these services to BH registered vehicles initially. There could be provisions later on based on how these laws are tweaked further depending on learning’s.

There is another interesting aspect what how will banks resell defaulted BH registered vehicle?

These are unknown issues which will get clarified with time. Issue at hand is to get the ball rolling with various state governments.

[xavierk]

Originally Posted by Sahil

Not sure if this is answered here but what happens when one wants to sell a BH registered car?
If it can only be transferred/sold to someone eligible who works in a company that has 4 offices across the nation or is a govt employee, it will drastically reduce the pool of buyers and there by affecting the resale value a lot.

The rule applies for purchase of new vehicle. it says nothing about second owner and if it says noting I assume anyone can buy a secondhand BH car.

[Sahil]

Originally Posted by xavierk

if it says noting I assume anyone can buy a secondhand BH car.

I would assume not. But hope there is clarity on this soon so people can make an informed decision rather than repent it when selling their cars.

[Everlearner]

Originally Posted by Sahil

Not sure if this is answered here but what happens when one wants to sell a BH registered car?
If it can only be transferred/sold to someone eligible who works in a company that has 4 offices across the nation or is a govt employee, it will drastically reduce the pool of buyers and there by affecting the resale value a lot.

I think it's only a matter of time before govt opens this up for everyone. Unless one is planning to sell the car in 2-3 years, this should not be a worry. Even if not, I'm inclined to believe there will be enough buyers in used car market who are eligible and interested in BH cars.

Originally Posted by itwasntme

Another issue is how will banks finance say a 5 year loan with an initial 2 year BH reg? Their title over the asset will be deficient once the initial tax expires.

They will surely come up with a solution. End of the day, Banks want to lend and make money.

[pk1972]

Finally some encouraging news!

Got an update from MB dealer that KA will start BH registration this month. The online integration work with Vahan portal is in progress and once ready will start in KA. RTO will issue a circular to dealers on documentation required for BH and dealers can register online.

[vamship]

Originally Posted by pk1972

Finally some encouraging news!

Got an update from MB dealer that KA will start BH registration this month. The online integration work with Vahan portal is in progress and once ready will start in KA. RTO will issue a circular to dealers on documentation required for BH and dealers can register online.

I too just got info from SA of KHT Motors, Bangalore that BH registration will start from 20th of October in Karnataka.

Hopefully he is right and it gets implemented without a lot of hassle.

[mAndArk]

Originally Posted by vamship

I too just got info from SA of KHT Motors, Bangalore that BH registration will start from 20th of October in Karnataka.

Hopefully he is right and it gets implemented without a lot of hassle.

Is this KHT Jeep near EGL, Domlur? Last spoke to them on Sunday and haven't received any such update yet

Can you share the SA name and number please?

[blackstallion27]

I have obtained a BH Number for vehcile being delivered today with an outstation address (Delivered in Delhi (Durga Mahindra) with UP address). What I understand is as follows:

1. Everything is done at the dealers end and the hard copy goes to RTO with whom the dealer is linked for approval and then payment is made.

2. Since local address is not mandatory, the concept of Temporary Registration is not required and may not be implemented.

3. As of now the tax calculation is not in accordance with the notification, I plan to sort it out later.

Hope this helps!

[varkey]

I think there are two aspects with respect to the implementation of the BH series when it comes to reduction in the net tax out go.

1. One part of the savings that come with BH series is due to considering the pre-GST price of the vehicle instead of the ex-Showroom price which can include upto 50% in taxes and cess. If we exclude the GST + cess, the reduced price might put your vehicle in a lower tax slab as well, further reducing the net tax out go.
   
   This however does not appear to be implemented even in those states where people have got BH series registration done so far. Till now I have seen only one registration in Chandigarh, which was done with tax + cess excluded, but Chandigarh, Punjab, Gujarat & Jharkhand considers the pre-tax price anyway even for normal registration, so its not really out of the norm. And those who got it registered in Delhi, Goa etc were taxed at the full ex showroom price.
   
   So this is something that we need clarified and made applicable in all states implementing BH series.
   
2. The other part of the savings is definitely the lower tax rate applicable for BH series for example in KA, KL and few other states. If #1 is not available, there may not be much of a savings after considering the 25% markup for BH series, but then the deferred payment over 15 years itself can be beneficial.
   

I guess these are things that we learn as more and more states implement it, but just something to keep in mind.

[abhishek_hch]

Originally Posted by varkey

Till now I have seen only one registration in Chandigarh, which was done with tax + cess excluded, but Chandigarh, Punjab, Gujarat & Jharkhand considers the pre-tax price anyway even for normal registration, so its not really out of the norm.

Not true for Jharkhand anymore - the state charges Road Tax on full Ex Showroom price now.

[Excelsior]

Originally Posted by varkey

I think there are two aspects with respect to the implementation of the BH series when it comes to reduction in the net tax out go.

1. One part of the savings that come with BH series is due to considering the pre-GST price of the vehicle instead of the ex-Showroom price which can include upto 50% in taxes and cess. If we exclude the GST + cess, the reduced price might put your vehicle in a lower tax slab as well, further reducing the net tax out go.
   
   This however does not appear to be implemented even in those states where people have got BH series registration done so far. Till now I have seen only one registration in Chandigarh, which was done with tax + cess excluded, but Chandigarh, Punjab, Gujarat & Jharkhand considers the pre-tax price anyway even for normal registration, so its not really out of the norm. And those who got it registered in Delhi, Goa etc were taxed at the full ex showroom price.
   
   So this is something that we need clarified and made applicable in all states implementing BH series.
   
2. The other part of the savings is definitely the lower tax rate applicable for BH series for example in KA, KL and few other states. If #1 is not available, there may not be much of a savings after considering the 25% markup for BH series, but then the deferred payment over 15 years itself can be beneficial.
   

I guess these are things that we learn as more and more states implement it, but just something to keep in mind.

There's one more thing to consider and it's that you don't pay the money in one go. The time value of deferred payment is substantial and more than compensates for 1.25 factor.

[hemanthbs]

Originally Posted by pk1972

Finally some encouraging news!

Got an update from MB dealer that KA will start BH registration this month.

Finally, some good news coming our way, my SA is still not sure. He is still saying it will happen in 2022 for sure.