Road tax is a necessary charge that must be paid by anyone purchasing a car. The road tax is a statewide tax; hence each state's government is in charge of enforcing it at the appropriate level. Each state has its own regulations and legislation governing road tax. Because each state collects a different percentage of taxes, the overall amount of tax differs from state to state. According to the Central Motor Vehicles Act, if a vehicle is held for more than a year, the entire road tax must be paid in advance.
Who Collects Road Taxes?
No matter if they are used for personal or professional purposes, road tax is required for all two-wheelers, four-wheelers, and other forms of transportation. The organization or person who collects the road tax is:
• The state legislature imposes the yearly or life-time motor vehicle tax, the tax on people and goods, the state valuation tax, and the toll tax.
• Depending on the brand and model of the car, the central government's Customs and Excise Department is in responsibility of collection import taxes, central excise tax, central sales tax, GST, and any other supplemental surcharges that may be necessary.
Why Is There a State Highway Tax?
With the exception of the nation's expressways, which have been the obligation of the Indian government, about 80% of India's roadways are constructed and maintained by state governments. The road fee is imposed by the state legislature because each state shares the cost of building these routes.
Who Must Pay The Road Tax?
Road tax, which is determined by the motor's "ex-showroom price," must be paid when an automobile is purchased. When calculating the amount of road tax due, the following criteria are taken into account:
• The car's seating capacity
• The power of the vehicle's engine
• How old the motor is
• The complete weight of the vehicle
When Must Road Taxes Be Paid?
When registering their vehicles, consumers are required to pay road taxes. Depending on the many requirements set forth by the various state governments, the road tax settlement may be completed annually or all at once.
If you buy a car and pay lifetime road tax in your present state, then move to another state and want to use that automobile there, you must re-register the car and pay the road tax. If you're just going to another state, then don't need to pay any additional road tax.
Where Road Taxes Must Be Paid?
To pay their road tax, drivers need go to the Regional Transport Office (RTO) that is closest to them.
Ways to Pay Road Tax
Offline Approach
The dealership where the vehicle was bought or the car dealer is normally responsible for paying the initial installment of a vehicle's road tax. Once their initial payment has run out, vehicle owners must go to an RTO nearby, fill out the road tax form, and then pay the tax in cash or by demand draught.
Road tax payment requires the vehicle's valid insurance records, as well as proof of address and a sales invoice.
Online Approach
By visiting the website of the transport department of the state where they purchased their vehicle, individuals have the option of paying their road tax electronically. When paying the road tax online, the owner of the vehicle must enter both the registration number and the model number. The choice of the tax payment method must be made next, followed by the completion of the payment procedure.
Recovering Your Road Tax
If a car owner wants to get rid of a car that is under 15 years old, they must first go to the RTO in the state where the car was registered to have the register for that car cancelled. However, if the vehicle has been transferred across jurisdictions, the refund can only be collected by visiting the RTO in the state where the initial registration was done. To cancel the registration at the RTO, you must also present the required documents and an irremovable mark of the chassis/engine identification.
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