[matizcrazy]

"This Govt loathes coolness. So they will make you Bhartiya instead.lol "

I feel proud that our traditional name Bharat is being used more these days. So many nations use their traditional names rather than loathe them for the sake of ' coolness'.

[Turbanator]

Originally Posted by SS-Traveller

Assuming one bought a 10L-rupee (ex-showroom) petrol car.
- pay according to the formula (Car Value*1.25*2)/15 every 2 years?

Not sure if this is actually meant for 14/ 15 Years, else the 1,25 factor would not have been there. Maybe in times to come, they can improve. Currently, looks like it will be starting with 2 Years only.

Friends in the Armed Forces appear confused too - their cars are registered in states like JH, where taxes are among the lowest. Would it be worth their while (and money) to change to BH-reg?

Not many get JH, usually, the value is less than 20 lac, so people tend to stick with their home town or at least that's what I have seen. In any case, RTO or otherwise Police, do not mess with these guys.

[SS-Traveller]

Originally Posted by Turbanator

Not sure if this is actually meant for 14/ 15 Years, else the 1,25 factor would not have been there. Maybe in times to come, they can improve. Currently, looks like it will be starting with 2 Years only.

If the formula applies to 2 years, then it works out to a whopping Rs.1,66,667 as tax for 2 years, or over 8% per year. The Bangalore RTO tax of 17% for 15 years will look pretty cheap in comparison!

Not many get JH, usually, the value is less than 20 lac, so people tend to stick with their home town or at least that's what I have seen. In any case, RTO or otherwise Police, do not mess with these guys.

I think they know all the States where taxes are the least, including MZ, JH, DD, PY etc. - and some of my enthusiast fauji friends are even willing to take delivery from the CSD in that State / UT, and drive down a thousand km (or a few thousand) to wherever they are posted.

[Turbanator]

Originally Posted by SS-Traveller

If the formula applies to 2 years, then it works out to a whopping Rs.1,66,667 as tax for 2 years, or over 8% per year. The Bangalore RTO tax of 17% for 15 years will look pretty cheap in comparison

No, no. Dr., Looks you are out of touch with Maths for a while

If the Petrol vehicle cost is between 10 -20 Lac, say 10,50 Lac, RTO will be 10% of the invoice price minus the GST. If it's an SUV, it can be basic 7 lac as the GST is 50%. So the Tax will be Rs 70,000 X 1,25 X 2/ 15 = Rs 11,666 Per 2 Year.

Most states, except Chandigarh & Punjab, charge RTO on Full MRP. As per this BH series, RTO will be only on Basic price (Pre GST) that itself is a good saving.

I think they know all the States where taxes are the least,.

Can be, most get registered here in Chandigarh/ Punjab as the RTO are lowest as well on basic, as pointed above.

[girishv]

Originally Posted by SS-Traveller

- pay according to the formula (Car Value*1.25*2)/15 every 2 years? or
- pay according to the formula (Car Value*1.25*2)/15 in 7 instalments of 2 years

There is a small typo in your calculation, the first part is not car value, but the tax. For a 10l car, it should be car value * 0.08

So, for a 10 l car, the first time tax will be something like

7.2 * 0.08*1.25*2/15 ~ 10,000

7.2 l is the invoice price before GST at 28%
0.08 - 8% tax

[texens]

Created this spreadsheet (link) to compute the MV Tax per annum. Just enter the invoice price (excluding GST) and select Fuel Type from drop down. Please let me know in case of any inaccuracies.

[AnnaRocks]

Originally Posted by texens

Created this spreadsheet (link) to compute the MV Tax per annum. Just enter the invoice price (excluding GST) and select Fuel Type from drop down. Please let me know in case of any inaccuracies.

Hey thanks for this. I calculated the cases for diff ex-showroom prices in this sheet. If your calculation of that 1.25 factor applying for every time we pay the tax and not just the first time, then there won't be much of a difference from the current tax that we are paying. The 8,10 and 12 percent slabs given for petrol would actually mean 10,12.5 and 15 percent effectively and even higher for diesel. The 20 lakhs plus ones might save some amount in some states.

This calculation is also possible, as it is difficult to believe that the govt. for once wants people to save money than to pay more tax.

[texens]

Originally Posted by AnnaRocks

If your calculation of that 1.25 factor applying for every time we pay the tax and not just the first time, then there won't be much of a difference from the current tax that we are paying.

The gazette notification says that 14th year onwards, the tax charged would be half of the calculation. And the calculation still contains the 1.25 multiplier - and hence, I get the impression that the 1.25 premium is here to stay. We'll find out in another 2 weeks I guess

Originally Posted by AnnaRocks

The 8,10 and 12 percent slabs given for petrol would actually mean 10,12.5 and 15 percent effectively and even higher for diesel. The 20 lakhs plus ones might save some amount in some states.

Effective Tax |0 - 10L |10L - 20L |> 20L
Electric |7.5 |10 |12.5
Petrol |10 |12.5 |15
Diesel |12.5 |15 |17.5

[sarba]

Originally Posted by texens

Effective Tax |0 - 10L |10L - 20L |> 20L
Electric |7.5 |10 |12.5
Petrol |10 |12.5 |15
Diesel |12.5 |15 |17.5

I think the biggest change is that now calculation would based on pre-GST price Vs post-GST. In fact, for some cars pre-GST price will push them to the lower bracket giving even more savings. In states like Karnataka this is significant.

Example, pre-GST price of Compass Limited edition model would be ~18.5L (assuming 28% GST + 15% cess in the 26.4L ex-showroom). However, Model S would be in higher bracket.

It would be interesting to see if the pricing strategy of variants in 20~30L segment change in September.

[sid_deb]

This is excellent news for NCR people.

Firstly, we don't need to pay road tax on diesel vehicles for 15 years and yet drive it for 10 years. Secondly with a BH registration plate, implementation of NGT rule is next to impossible.

[Bhargav7]

Originally Posted by texens

Created this spreadsheet (link) to compute the MV Tax per annum. Just enter the invoice price (excluding GST) and select Fuel Type from drop down. Please let me know in case of any inaccuracies.

Thanks for the excel template. However, I think we have to include the GST as well while calculating the Road tax. The gazette notification mentions that the tax should be calculated on the invoice price. Invoice price, in common parlance, includes the GST as well. Since the gazette does not specifically mention about the GST exclusion, we have to include it in our computations.

[swami]

Originally Posted by Bhargav7

Thanks for the excel template. However, I think we have to include the GST as well while calculating the Road tax. The gazette notification mentions that the tax should be calculated on the invoice price. Invoice price, in common parlance, includes the GST as well. Since the gazette does not specifically mention about the GST exclusion, we have to include it in our computations.

The notification mentions that GST is to be excluded. Extract below:

51 B. Principle for motor vehicle tax.—(1) In case of fully built non-transport vehicles, the motor vehicle tax shall be calculated electronically through the portal on the basis of invoice price excluding Goods and Services Tax (GST).

For high end vehicles, this is the biggest benefit from a financial perspective. Look forward to hearing the experiences of the first few who help our bureaucracy navigate this change. This will be on par with beta-testing of vehicles by users

[swami]

Financially there will be two factors at play. I am curious how the market will respond to this:

1. Perceived reduction in road tax - Paying "just" 2 years of road tax upfront will significantly reduce the on road price at the time of purchase. Ofcourse, we will have to pay every couple of years and also may be subject to the vagaries of Govt finances - this will not play out immediately. Hence, people will feel car prices have "dropped".
2. Real reduction in road tax - Exclusion of GST from invoice price will result in actual savings

We as car buyers are conditioned to having a budget that relates to the on-road price. Will the above perceived / real reduction in road tax result in people shifting up from their current intended category of purchase? Topic for a T-BHP poll?

[itwasntme]

One interesting 'drawback' is that for those taking a normal retail car loan, I'm assuming that only the initial 2 years tax will be financed.

The balance installments well need to be self funded as and when due, or will the financier enter into a arrangement to inspect and finance the tax component every 2 years?

[das_ren_auto]

Originally Posted by matizcrazy

I feel proud that our traditional name Bharat is being used more these days. of ' coolness'.

There is nothing traditional in it. Article 1 in the Constitution states that India, that is Bharat, shall be a Union of States