Issues - Octroi Tax in Mumbai

Venkat · 5th March 2008, 20:03

Note to Mods: I am not sure if this is the right place for this thread. You may move it as you feel best.

A recent news item was carried in the newspapers in Mumbai about Housing Societies being asked by the BMC to furnish details of cars registered outside Mumbai being parked in the Society. This information is being gathered with the view to catch evaders of Octroi who register cars with an address outside Mumbai and then use it in the city.

This gives rise to a couple of issues of under what conditions does this liability arise.

First off...let me clarify. I am not trying to find loopholes and avoid paying my taxes when due. In fact my last car, an OHC was Thane registration when I bought it. And I paid Octroi and had it registered in Mumbai when I took ownership.

But a few issues arise that need clarification and who else but this august forum do I have to turn to.

1. My current personal car is Pune registration ( MH 12 ). I have a flat in Pune and spend a few days each week there. The other half of the week I am in Mumbai.

2. My company has its HQ in Belapur. My company gives me a car with Panvel registration ( MH 43 ) and I live in Mumbai and my car is parked here.

In either case what is my liability towards BMC Octroi?

P. Venkatraman

Sahil · 5th March 2008, 20:12

They have been running these threat for quite a while now.
I was given a letter to pay some amount when they came to my society, i just torn it and never recieved any other letters thereafter.
Majority of the cars roaming on bombays streets are registered outside to save octroi.

Venkat · 6th March 2008, 12:45

I agree Sahil about many cars running in Mumbai with out of Mumbai number plates.

In my society I am on the Managing Comittee and a few months back we received a letter from the BMC requiring us to report all cars parked in the compound with out of Mumbai licence plates.

We deliberated over this and took a view that there was no legal provision that required us to furnish all sorts of sundry information to various legal authorities. We wrote back seeking clarification as to under what legal provision we were required to comply with this demand for information.

We are yet to get a response.

But it is my point of view that one must arrive at a legal understanding of the issue so that innocent motorists who are not legally sound do not get harassed.

Venkat

Quote:

Originally Posted by Sahil

They have been running these threat for quite a while now.
I was given a letter to pay some amount when they came to my society, i just torn it and never recieved any other letters thereafter.
Majority of the cars roaming on bombays streets are registered outside to save octroi.

LLL · 6th March 2008, 13:29

I have this whole issue with mumbai charging octroi. When we had moved to mumbai in 87, we paid octroi and when we moved back to delhi in 2000, we again paid octroi while shifting our stuff.

when you add all kinds of duties, sales taxes, VATs, service taxes and octroi, its not a surprise that goods in mumbai are so expensive. Seems like daylight robbery to me

NetfreakBombay · 6th March 2008, 14:00

Quote:

Originally Posted by LLL

we moved back to delhi in 2000, we again paid octroi while shifting our stuff.

Delhi had Octrai ?? I though this disease was limited to Mumbai.

Good news is, Govt is working towards abolishing octrai.

GTO - Touring · 6th March 2008, 15:46

Venkat, As long as you have a valid address in Pune which you visit frequently, I don't think you should have a problem.

Butttttttttttttttttttt octroi really is the most pointless tax there is!

LLL · 6th March 2008, 18:06

Quote:

Originally Posted by NetfreakBombay

Delhi had Octrai ?? I though this disease was limited to Mumbai.

Good news is, Govt is working towards abolishing octrai.

Had to pay octroi to take stuff out of mumbai.

NetfreakBombay · 6th March 2008, 21:07

Thats stragne...

I think Octroi should not apply if you are taking things "out" of mumbai.

LLL · 6th March 2008, 21:25

hmmmm....

did i get ripped off then?

wanderluster · 9th September 2008, 02:20

I am moving to Mumbai on work for around 2 yrs and will be taking my alto (HP registered in my father's name) to with me. I need insights on a few areas.

Will i need to pay any road tax/ octroi? where?
I want to eventually take the car back to HP so i don't want to change the registration. i that allowed?

Look forward to all your inputs. thanks.

NetfreakBombay · 9th September 2008, 12:33

You need not re-register your vehicle. You can pay Road tax in MH and continue with HR registration.

You will pay Octroi only if your address is in Mumbai District (OR Mumbai Suburb district). If you are living in Thane / Navi Mumbai then Octoi wont apply.

However, you can drive for 11 months without ANY paperwork. Just keep receipt of toll paid while entering Mumbai in vehicle.

So you need not be in any hurry for this.

Bass&Trouble · 9th September 2008, 12:45

Quote:

Originally Posted by LLL

Had to pay octroi to take stuff out of mumbai.

You don't have to pay octroi for taking goods out of Mumbai.

I think you just need to pay some amount as surety if you are temporarily taking goods out of Mumbai, but intend to bring it back later. In which case, the money is refunded after inspection of the goods. Did you want to bring the goods back into Mumbai?

cancerm · 9th September 2008, 13:07

Quote:

Originally Posted by LLL

Had to pay octroi to take stuff out of mumbai.

As far as I remember you only have to pay octroi if you are getting any stuff in mumbai that too within BMC Limits or else there are no octroi to be borne
This is what I know.

rgds

speedy · 9th September 2008, 14:12

@ Venkat my car is registered in Silvassa as my factory is there. As long as the address provided by you for registration is legitimate you have nothing to worry about. the car can stand in Mumbai and you just need to Keep Toll reciepts incase someone does ask (rarely).
Comming to the second part of BMC inquiring for cars in the society for outside registered Plates. this is to check for owners who have registered cars giving false addresses outside the octroi limit to save taxes. you need not worry about it as both your cars are legal.the first place they need to check this is the showrooms itself, where this sort of things happen.

@ LLL my friend you did get ripped off. did you drive your car into the city or it was brought by truck?? my Fiat sienna from my Delhi house was driven down and we did not have to pay any octroi at the check naka while comming in or while taking the car out of Bombay. we used the car with the DL plates for 3 or 4 years. the octroi would be applicable for the house hold articles that would be brought in by truck. As far as having to pay octroi for taking things out is concerned. Octroi is not applicable atall.

@ Wanderluster the car would be registered to your address in Delhi, so as long as you are taking the car back you do not need to register it in Bombay. if it does come by truck then Octroi is applicable, not if it is driven down.

@ NetfreakBombay refering to your post number #11. i have not heard of this, paying road tax in MH and running on HR plates. My car never went through this.
there is also no such condition that the car can be used for 11 months without paperwork. My car was used here for 3 or 4 yrs with no MH paperwork and also keeping any toll reciepts before it was sent back to Delhi.

@ Base&Trouble i agree you do have to pay a surety if you are taking things out of Bombay and are going to be brought back. in the case of LLL he was perminently shifting back so no surety was required. it was just a price payed for iggnorance, Daylight robbery if i may say so.

wanderluster · 3rd October 2008, 15:40

Ok. Just to clarify again, as i am in Mumbai now. I only need to pay road tax for bringing in the car to Mumbai for a 9-10 period - where? (i stay in Antophill, Wadala (E) and work in Lower Parel) and how much?

I see the cops often stop delhi registered cars - will the receipt from the RTO suffice in this case?

Thanks.

5th March 2008, 20:03	#1
Venkat BHPian Join Date: Apr 2006 Location: Mumbai Posts: 73 Thanked: 5 Times	Issues - Octroi Tax in Mumbai Note to Mods: I am not sure if this is the right place for this thread. You may move it as you feel best. A recent news item was carried in the newspapers in Mumbai about Housing Societies being asked by the BMC to furnish details of cars registered outside Mumbai being parked in the Society. This information is being gathered with the view to catch evaders of Octroi who register cars with an address outside Mumbai and then use it in the city. This gives rise to a couple of issues of under what conditions does this liability arise. First off...let me clarify. I am not trying to find loopholes and avoid paying my taxes when due. In fact my last car, an OHC was Thane registration when I bought it. And I paid Octroi and had it registered in Mumbai when I took ownership. But a few issues arise that need clarification and who else but this august forum do I have to turn to. 1. My current personal car is Pune registration ( MH 12 ). I have a flat in Pune and spend a few days each week there. The other half of the week I am in Mumbai. 2. My company has its HQ in Belapur. My company gives me a car with Panvel registration ( MH 43 ) and I live in Mumbai and my car is parked here. In either case what is my liability towards BMC Octroi? P. Venkatraman
	() Thanks

5th March 2008, 20:12	#2
Sahil Distinguished - BHPian Join Date: May 2004 Location: Bombay Posts: 6,292 Thanked: 7,605 Times	They have been running these threat for quite a while now. I was given a letter to pay some amount when they came to my society, i just torn it and never recieved any other letters thereafter. Majority of the cars roaming on bombays streets are registered outside to save octroi.
	() Thanks

6th March 2008, 13:29	#4
LLL BHPian Join Date: Mar 2005 Location: Delhi Posts: 635 Thanked: 2 Times	I have this whole issue with mumbai charging octroi. When we had moved to mumbai in 87, we paid octroi and when we moved back to delhi in 2000, we again paid octroi while shifting our stuff. when you add all kinds of duties, sales taxes, VATs, service taxes and octroi, its not a surprise that goods in mumbai are so expensive. Seems like daylight robbery to me
	() Thanks

6th March 2008, 15:46	#6
GTO - Touring BHPian Join Date: Aug 2004 Location: Mumbai Posts: 710 Thanked: 54 Times	Venkat, As long as you have a valid address in Pune which you visit frequently, I don't think you should have a problem. Butttttttttttttttttttt octroi really is the most pointless tax there is!
	() Thanks

6th March 2008, 21:07	#8
NetfreakBombay Senior - BHPian Join Date: Jan 2008 Location: Bombay Posts: 1,466 Thanked: 1,021 Times	Thats stragne... I think Octroi should not apply if you are taking things "out" of mumbai.
	() Thanks

6th March 2008, 21:25	#9
LLL BHPian Join Date: Mar 2005 Location: Delhi Posts: 635 Thanked: 2 Times	hmmmm.... did i get ripped off then?
	() Thanks

9th September 2008, 02:20	#10
wanderluster BHPian Join Date: Sep 2007 Location: Gurgaon Posts: 105 Thanked: 20 Times	Inter State transfer I am moving to Mumbai on work for around 2 yrs and will be taking my alto (HP registered in my father's name) to with me. I need insights on a few areas. Will i need to pay any road tax/ octroi? where? I want to eventually take the car back to HP so i don't want to change the registration. i that allowed? Look forward to all your inputs. thanks.
	() Thanks

9th September 2008, 12:33	#11
NetfreakBombay Senior - BHPian Join Date: Jan 2008 Location: Bombay Posts: 1,466 Thanked: 1,021 Times	You need not re-register your vehicle. You can pay Road tax in MH and continue with HR registration. You will pay Octroi only if your address is in Mumbai District (OR Mumbai Suburb district). If you are living in Thane / Navi Mumbai then Octoi wont apply. However, you can drive for 11 months without ANY paperwork. Just keep receipt of toll paid while entering Mumbai in vehicle. So you need not be in any hurry for this.
	() Thanks

9th September 2008, 14:12	#14
speedy Senior - BHPian Join Date: Jan 2006 Location: Mumbai Meri Jaan Posts: 6,197 Thanked: 1,023 Times View My Garage	@ Venkat my car is registered in Silvassa as my factory is there. As long as the address provided by you for registration is legitimate you have nothing to worry about. the car can stand in Mumbai and you just need to Keep Toll reciepts incase someone does ask (rarely). Comming to the second part of BMC inquiring for cars in the society for outside registered Plates. this is to check for owners who have registered cars giving false addresses outside the octroi limit to save taxes. you need not worry about it as both your cars are legal.the first place they need to check this is the showrooms itself, where this sort of things happen. @ LLL my friend you did get ripped off. did you drive your car into the city or it was brought by truck?? my Fiat sienna from my Delhi house was driven down and we did not have to pay any octroi at the check naka while comming in or while taking the car out of Bombay. we used the car with the DL plates for 3 or 4 years. the octroi would be applicable for the house hold articles that would be brought in by truck. As far as having to pay octroi for taking things out is concerned. Octroi is not applicable atall. @ Wanderluster the car would be registered to your address in Delhi, so as long as you are taking the car back you do not need to register it in Bombay. if it does come by truck then Octroi is applicable, not if it is driven down. @ NetfreakBombay refering to your post number #11. i have not heard of this, paying road tax in MH and running on HR plates. My car never went through this. there is also no such condition that the car can be used for 11 months without paperwork. My car was used here for 3 or 4 yrs with no MH paperwork and also keeping any toll reciepts before it was sent back to Delhi. @ Base&Trouble i agree you do have to pay a surety if you are taking things out of Bombay and are going to be brought back. in the case of LLL he was perminently shifting back so no surety was required. it was just a price payed for iggnorance, Daylight robbery if i may say so.
	() Thanks

3rd October 2008, 15:40	#15
wanderluster BHPian Join Date: Sep 2007 Location: Gurgaon Posts: 105 Thanked: 20 Times	Ok. Just to clarify again, as i am in Mumbai now. I only need to pay road tax for bringing in the car to Mumbai for a 9-10 period - where? (i stay in Antophill, Wadala (E) and work in Lower Parel) and how much? I see the cops often stop delhi registered cars - will the receipt from the RTO suffice in this case? Thanks.
	() Thanks