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Old 14th April 2008, 15:15   #1
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On-Road Price Difference in Gurgaon/Bangalore

Few days ago piyuspande bought a 1.6 palio for 4.3lacs (Someone even got it for 4.17 last year). Its something bangalore-mind can't believe. So I talked to gurgaon-fiat-dealer. I am shocked to learn the price.
Ex-showroom price for 1.1 & 1.6 palio stile is 3.7 & 4.3 in gurgaon. This is just 3k more in bangalore.
Insurance+Life Time Road Tax+Registration is just 30k in Gurgaon but its around 70k in bangalore. Just Double.
Insurance is same everywhere around 14k. That means, Roadtax is 15k in gurgaon but 50k in bangalore.
Is Haryana govt far better than karnataka govt???
Why can't we have same tax across India???
Seniors please enlighten me.

Manas
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Old 14th April 2008, 16:08   #2
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It used to be better, road tax was 1% till 31st Dec08, now it is 2% i believe. I guess from other posts that roadtax is like 8-12% in Bangalore/Chennai/Hyderabad. For a 5Lakh car, this equal to 40-50K extra.
Well I guess you can regiester a car in GGN and keep it in other state for long.

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Originally Posted by manasingh View Post
Few days ago piyuspande bought a 1.6 palio for 4.3lacs (Someone even got it for 4.17 last year).

Manas
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Old 14th April 2008, 16:43   #3
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Quote:
Originally Posted by strips007 View Post
It used to be better, road tax was 1% till 31st Dec08, now it is 2% i believe. I guess from other posts that roadtax is like 8-12% in Bangalore/Chennai/Hyderabad. For a 5Lakh car, this equal to 40-50K extra.
Well I guess you can regiester a car in GGN and keep it in other state for long.

Legally speaking, that's not true. 3 yrs ago when I moved to Hyd from Ggn I had to pay road-tax there (6% for a then 3 yr old car = ~Rs21K). And they are quite strict about it. After you re-register your car in another state you are entitled to claim road-tax refund from the state where you were previously registered.
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Old 14th April 2008, 18:51   #4
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HI MANASINGH,

Karanataka road tax is the highest in the country.We pay around 11% for the cars under 10L and around 15% for 10L and above cars.I don't know the exact rates but is similar to what i mentioned above.One thing is sure that we are the most unlucky guys when we go to buy a car in India because we pay the highest road tax in India and we wont get good roads to drive .
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Old 14th April 2008, 19:32   #5
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Quote:
Originally Posted by manasingh View Post
Few days ago piyuspande bought a 1.6 palio for 4.3lacs (Someone even got it for 4.17 last year). Its something bangalore-mind can't believe. So I talked to gurgaon-fiat-dealer. I am shocked to learn the price.
Ex-showroom price for 1.1 & 1.6 palio stile is 3.7 & 4.3 in gurgaon. This is just 3k more in bangalore.
Insurance+Life Time Road Tax+Registration is just 30k in Gurgaon but its around 70k in bangalore. Just Double.
Insurance is same everywhere around 14k. That means, Roadtax is 15k in gurgaon but 50k in bangalore.
Is Haryana govt far better than karnataka govt???
Why can't we have same tax across India???
Seniors please enlighten me.

Manas
Well, one thing for sure. Gurgaon roads are way better than what Bangalore roads can offer. May be, they are making the road users pay for the additional cost for improving the roads.

It is a state level tax, so the individual states have jurisdiction over it. Similar to a situation with fuel prices, in which case, the supply of fuel to north india comes from the western coast (read mumbai), but consumers in Delhi pay far lower prices for fuel as compared to consumers in Mumbai (the difference is close to Rs. 5.00). This is all due to the higher tax and levies imposed by the State Govt, in this case, Maharashtra Govt as compared to the Delhi Govt. May be, the cost goes down once the fuel travels up north.
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Old 14th April 2008, 20:22   #6
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Quote:
Originally Posted by stable rock View Post
HI MANASINGH,

Karanataka road tax is the highest in the country.We pay around 11% for the cars under 10L and around 15% for 10L and above cars.I don't know the exact rates but is similar to what i mentioned above.One thing is sure that we are the most unlucky guys when we go to buy a car in India because we pay the highest road tax in India and we wont get good roads to drive .
Add to this is we pay higher for fuel also. Normal petrol itself is Rs 52.xx in Bangalore
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Old 14th April 2008, 21:52   #7
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Oh my God! You pay Rs. 52.xx for normal petrol? In Delhi, we pay about Rs. 48.xx for premium petrol. And, we have wide, smooth roads here and in the NCR region. I'm not sure about Haryana, but Delhi charges about 4% road tax for vehicles (I don't have the proper break-up right now). MUL cars come to us much quicker because their factory is just around the bend. And, the Himalayas are just 8 hours away!

But then, perhaps, Bangaloreans make much more money than Delhiites do.
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Old 14th April 2008, 22:28   #8
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normal petrol in Bangalore is 52.86 per litre. premium petrol is around 54.xx

rates in delhi are less because it was UT for long.even after it became state the rates almost remained same. where as in states both CST and state ST will be levied on petroleum products. Petroleum products are the only category not under VAT. if it is braught under VAT state and central govt revenue will fall drastically.further there is no possibility of tax evasion in these products even if it is ST and CST
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Old 14th April 2008, 22:40   #9
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May be it was 3% 3 yrs back, but I paid around 10K for SX4-zxi By the way did you paid this yourself on the counter or used an agent, that may explain the difference.

Quote:
Originally Posted by asr245 View Post
Legally speaking, that's not true. 3 yrs ago when I moved to Hyd from Ggn I had to pay road-tax there (6% for a then 3 yr old car = ~Rs21K). And they are quite strict about it. After you re-register your car in another state you are entitled to claim road-tax refund from the state where you were previously registered.
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Old 14th April 2008, 23:23   #10
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Quote:
Originally Posted by kkdelhi View Post
Oh my God! You pay Rs. 52.xx for normal petrol? In Delhi, we pay about Rs. 48.xx for premium petrol. And, we have wide, smooth roads here and in the NCR region. I'm not sure about Haryana, but Delhi charges about 4% road tax for vehicles (I don't have the proper break-up right now). MUL cars come to us much quicker because their factory is just around the bend. And, the Himalayas are just 8 hours away!

But then, perhaps, Bangaloreans make much more money than Delhiites do.
No offense, but all the tax collected across the country goes to Delhi first and gets re-distributed to the states (after delhi takes its cut). So Delhi will have wide roads (to accommodate the wide cars of VVVVIP's), lower fuel surcharge (because some bloke in Banglore/Mumbai/Chennai/Kolkatta will pay yours along with his), better infrastructure and stadiums (British commonwealth games financed by India's 'common' wealth) and what not while Mumbai (which actually generates 35% of total tax collected), Banglore and Hyderabad have to beg delhi to throw some money their way so that they can also build drains and tracks for trains.
No wonder things are better in Delhi compared to rest of India.

PS: I am not complaining, just stating facts.

PPS: I am still looking for a reason why Himalayas are only 8 hr drive away from Delhi while us poor blokes from south have to drive 80 hrs.

PPPS and this is on topic, Road Tax and fuel surcharge are state subjects and a source of revenue for government. It is levied according to the government needs and to finance most of its populist hare-brained schemes.

Last edited by Mayavi : 14th April 2008 at 23:26.
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Old 14th April 2008, 23:24   #11
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Also petrol is around 45.90 in GGN and one rupee less in Delhi, I dont know how to edit my last post
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Old 15th April 2008, 00:16   #12
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Quote:
Originally Posted by Mayavi View Post
No offense,

PS: I am not complaining, just stating facts.
Your facts are so way wrong its not funny. Plus, you are talking of Gurgaon, which is Haryana government and not Delhi. Mate, if I'd be in bengalooru, paying for the kinda roads there, and the kinda rate/quality of fuel, I'd feel the same too - ruins the fun of what is otherwise a fantastic city.

And gurgaon's big roads are typical of the social divide. There is one gurgaon we all see - the expressway, the malls. And then the villages/back roads where you see a different gurgaon. Both are gaons though when it comes to electricity, or lack thereof.
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Old 15th April 2008, 01:05   #13
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Your facts are so way wrong its not funny. Plus, you are talking of Gurgaon, which is Haryana government and not Delhi.
err... KKdelhi talked about cheaper fuel in delhi and good roads in NCR and I am talking about cheaper fuel and smooth roads in delhi, so I dont know where you got Gurgoan from. May be Gurgaon too has smoother roads, but I wasn't talking about them. Any it may seem funny to you but it is not wrong, fact is that New Delhi is capital unless it has been changed in the last two months and all the tax goes to Center before it goes back to states as development grants.

Anyway, I only mentioned it in jest and do not intent to throw this thread off-track.
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Old 15th April 2008, 01:07   #14
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Quote:
Originally Posted by Mayavi View Post
No offense, but all the tax collected across the country goes to Delhi first and gets re-distributed to the states (after delhi takes its cut). So Delhi will have wide roads (to accommodate the wide cars of VVVVIP's), lower fuel surcharge (because some bloke in Banglore/Mumbai/Chennai/Kolkatta will pay yours along with his)
Actually that's completely wrong. Petroleum products are levied Central taxes after which they are available to all the states at the same prices (barring the transportation cost from refinery to retail outlet) and then the states decide what tax they want to charge on them in name of whatever new fleecing scheme that they can justify.

That is the reason Petrol costs Rs.3 more in UP then in Delhi or Rs. 5 or so more in Mumbai & that is also why at every airport the price of ATF is different. Please do not misguide the users. Final taxes on Petroleum products are still very much a state subject.
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Old 15th April 2008, 01:27   #15
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ishan ji, please read my PPPS. Let me reproduce it here for your convenience

Quote:
PPPS and this is on topic, Road Tax and fuel surcharge are state subjects and a source of revenue for government. It is levied according to the government needs and to finance most of its populist hare-brained schemes.
So the Central tax which you mentioned will go to the Center (DELHI) and state tax over and above central tax will go to state.


Btw, I am not misguiding any users.. ask yourselves, if Banglore, Mum and Chennai need the extra tax on Fuel to fund the hare brained schemes they come up with, why doesn't Delhi charge it? It has its own share of hare brained schemes as well. The answer is that it doesn't need the money from Fuel surcharge as it has other soruces. Now ask yourselves, what other sources of income does a small city like Delhi has that it can build a multi-billion dollar metro and swanky new stadiums? Then ask yourselves how come Mumbai (which generates almost 35% of taxes) doesn't have a decent Metro or had to wait for 2 years to build a 1500 cr drainage system. Because delhi is the AUTHORITY which sanctions projects in all states including Delhi(it sanctioned 2K crores for Hyd metro yesterday)!!! While this isn't completely wrong (if mum keeps all its taxes, who will fund Kashmir?), there are some complaints about the way Delhi distributes funds and it has mostly to do with politics and the party in power in that state.

If you still do not understand it, imagine a family in which Husband, Wife work but all their pay checks go to the Wife. So Wife doesn't have to ask anyone to buy what she likes while husband has to appeal for funds for a new ICE set up. Kapisch?

Anyway, my last post on this subject... I request mods to delete my off-topic posts. I sense that more and more delhites are gonna hit this thread to beat me up.

Last edited by Mayavi : 15th April 2008 at 01:38.
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