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Hi,


I have company leased car, financed by a financer. It is currently registered on company name. Now the lease is over and I have option to buy the car on my/third party name. I wish to know, if I get it transfered from company name to my name, will I get the difference in registration amount? i.e. company registratin charges are almost 35-40 thousand rupees more than individual registration.


Another thing to consider here is originally the car was on the nameof companyA, from whom my I [my company] brought it say companyB. While registering on the name of companyB by mistake we got it registered as companyBSisterConcern, and then we got it back on the name of companyB.And now I will be buying it on my own name/third party name. So after transfering on my name, will i get the difference in registratino cost? if not me, is my company eligible for the same? what is the process?


Thanks in advance.





Regards,


P

- Companies follow the indian accounting depreciation system, which is based on the Invoice value of the car, i dont think registration/other charges are included in the depreciation. Only depreciated value is transferred from one owner to another(companies). You will not get the difference. When you buy on book value, how can you expect the difference.

- You need the company to first get the "hypothecation" removed from the registration.

- Since it has changed so many owners, the registration will show that. So resale value in the second's market will be low comparitively.

I think you are talking about the road tax (life tax). You can apply for a refund, but it is a long, drawn out procedure and they usually screw you on it. (the RTO guys)

Hey thanks for your replies.

Yes im talking about registratino charges paid to RTO. That also is a big money approx Rs.30,000/- to Rs.40,000/-. Wish I could claim that, need to know the process. Thanks.

Regards,
Pravin

I didn't know company registration cost more, and a lot more, than registration by an individual.

But see this logic: your company is a legal entity. It is selling you a car. Why should you get a refund of anything that company paid?

If you buy a car off another individual, would you expect a refund of anything they had paid? The situation is the same.

Even if you own all the shares in that company, it is still not you.

Another aspect is tax. When a company buys a car, it gets some exemption in income tax. So govt charges the company on registration charges here. I don't think the excess amount company has paid would be refundable when it's selling the car.

Under normal circumstances, the seller ascertains that the tax refund is retained by them.

If one is using a company leased car and if he buys it from the company, the difference amount between corporate registration (14% of ex-showroom) and individual (7% of ex-showroom) can be claimed from RTO by the individual on pro-rata basis. e.g. if the car was in the company name for 3 years and then bought by the employee, then the amout refundable by RTO will be ((14% - 7%)*Ex-Showroom)*12/15 assuming the RTO tax was charged for 15 years of which only 3 years were used.

This was explained to me by the accounts guys in my company. In my case, it's a company leased car, meaning it was bought and registered in company's name, but company gave me the loan equal to the on-road price (option of 3 or 5 years tenure) and after I pay all my EMIs, the company will transfer the car in my name.

If your case is same, then this may apply. The best thing is to check with your accounts guys and they would also know some regular RTO agent(s) who do these transfers for them.

Keep us posted as my info is theory and I will know the reality only when my tenure is over (in 2009).

Hope this helps.

I had a car leased out to me from my office. Initially it was registered in the company's name. I got the registration refund from Pimpri Chinchwad RTO after registering the vehicle in my name. This took almost 1.5 years. However I do not know how they have calculated the refund amount. If I follow the formula given by anandpadhye, I should have got a larger refund.

Does anyone know how it is calculated in PCMC RTO or Maharashtra? I guess it could be different for different states, but should be uniform across RTOs of a state.

Which car is it and how much refund did you get?

Did you went via any RTO agent or you did it on your own? Also What are the form numbers which you submitted to RTO?

Sorry for digging up an old thread but this seemed like the most appropriate place for my query.

I am looking to buy a used car in Mumbai and then transfer the registration to Goa. Have a couple of cars shortlisted and some of them are registered to Companies. So from what I understand (in case of a corporate registered car), once I buy it and transfer the registration to my name I can apply for a refund equal to the difference in corporate and individual road tax?

Second slightly related query - Are corporate used cars better maintained / a better buy? Can someone point me to any threads/articles regarding this? Because a quick search revealed nothing.

Thanks.

Bumping up an old thread. Pjbiju, could you please share the numbers, if you remember, like how much was paid to RTO for company registration and how much did you get back as refund?

Sorry for responding late. I had to dig out all the old papers to get the numbers since this was sometime in 2009/2010.

My car was a Swfit VXi. The Ex-Showroom price was Rs. 423857. The RTO Tax paid for corporate registration was Rs. 50863. I eventually got a cheque for a refund of Rs. 17650 in the name of my company. And the company paid me the amount after they encashed the cheque. The refund was from the Pimpri Chinchwad RTO.

Appreciate going through all the trouble to get the numbers. I am not sure what were the road tax percentage for individual and company back in 2009/10 but I think you got some 30% back as refund.

From the numbers, it looks like you paid 12% tax on ex showroom for company registration while the tax to individual registration was 5 or 6% back then. Assuming the lease of 5 years, I think you used 1/3 of 12%. So remaining 2/3 was with RTO (2/3 of 50863 = 33908). Now for remaining 2/3 life the car was to be individual registered hence the tax has to be calculated at 6% rate. (423857 x 6% x 2/3 = 16957). Calculating the difference between the two (33908 - 16957) will give us a rough number of 16951. I think it is close to what you received back but I might be wrong in terms of lease duration.