Rules & regulations for road tax in India
In India, road tax is vital for funding infrastructure projects, including road maintenance and construction. It’s collected by both State and Central Governments and varies across regions. When purchasing a vehicle, individuals must pay road tax as mandated by the Motor Vehicle Taxation Act. This tax is crucial for ensuring the upkeep of India’s extensive road network, which spans over five million kilometres. By fulfilling road tax obligations, citizens contribute to maintaining safe and efficient transportation systems.
So, let’s examine the rules, regulations, and more concerning road tax in India.
What is road tax?
Road Tax is a mandatory fee paid by vehicle owners, playing a vital role in India’s transportation system. Usually charged on an annual basis, this tax provides essential funding for maintaining and enhancing the country’s roads.
Who is subject to road tax in India?
Road tax applies to various types of vehicles, including motorcycles, cars, and other vehicles, regardless of whether they are used for personal or business purposes. This tax is imposed by both state and central governments, each having its own set of taxes and regulations.
State governments typically impose yearly or lifetime motor vehicle taxes, as well as taxes on passengers and goods, state VAT (Value Added Tax), and tolls. These taxes contribute to funding state infrastructure projects, such as road maintenance and development.
On the other hand, the central government imposes customs duties, central excise taxes, central sales taxes, GST (Goods and Services Tax), and other additional charges based on the vehicle’s model and type. These central levies contribute to national revenue and may vary depending on the vehicle’s specifications and usage.
Therefore, individuals who own or use vehicles in India, regardless of whether they are for personal or business use, are required to pay road tax as determined by both state and central governments.
When is road tax paid in India?
Road tax is paid during vehicle registration, with options available depending on the state. Payment can be made in full upfront or in instalments on an annual basis. In the event of relocating to a different state, vehicle re-registration is required, necessitating payment of road tax once more.
However, for temporary visits to another state, only toll taxes are typically due.
How to pay road tax in India?
Road tax payments can be facilitated both offline and online, each method offering its own set of steps:
Step 1: Offline road tax payment
You can pay road tax offline at the Regional Transport Office (RTO) during vehicle registration. Alternatively, if the dealer handles registration for you, they can also collect the road tax on your behalf at the RTO.
Step 2: Online road tax payment via Parivahan website
Another convenient option is to pay road tax online through the Parivahan website. Here’s how:
- Visit the Parivahan website.
- Navigate to the “Online Services” section in the main menu and select “Vehicles Related Services.”
- Choose your state and corresponding RTO. For instance, if your state is Telangana, you would choose Telangana and locate the corresponding Telangana RTO code during the process.
- Enter your vehicle’s registration number and other required details for verification.
- Once verified, proceed to make your road tax payment securely online.
Documents required for online road tax payment
To complete the road tax payment process, you will need the following documents:
- Vehicle registration certificate.
- Original invoice of the vehicle purchase.
- Updated insurance documents.
- Residential address proof.
- Owner’s identity proof.
Form KMVT14 if the vehicle is from a different state.
NOC from the original RTO if you’ve changed your residential state.
Obtaining a road tax refund in India
If your vehicle incurs irreversible damage, you have the option to request registration cancellation and receive a refund for the remaining years of road tax. Alternatively, when you re-register your vehicle in another state and fulfil the necessary tax obligations, you are eligible to seek a refund from the state where the vehicle was previously registered.
Additionally, to request a road tax refund, visit your original local RTO with the following documents:
- Owner’s request letter for the refund.
- Chassis number impression of the vehicle.
- Copies of the original and new RC/Smart Card.
- Copies of the vehicle’s insurance certificate.
- No Objection Certificate.
- Road tax receipt from the new state.
- Road tax receipt from the previous state.
- Proof of address in the current state.
What are the consequences of failing to pay road tax in India?
Indeed, there are consequences for failing to pay road tax on time in India. Penalties for non-payment can vary depending on the state regulations and may amount to a full year’s worth of tax. For instance, in Tamil Nadu, a recent ruling stipulates that if the road tax remains unpaid after 45 days, a penalty equivalent to 100% of the pending tax amount can be imposed. These penalties serve as a deterrent and underscore the importance of adhering to road tax obligations promptly.
It is crucial for vehicle owners to stay informed about the tax deadlines and regulations applicable in their respective states to avoid such penalties and ensure compliance with the law.
Also, the road tax regulations in India exhibit significant variations across different states, reflecting the diverse approaches adopted by each region to manage vehicular movement and finance road infrastructure.
Conclusion
In summary, road tax is vital for funding infrastructure projects in India collected by both state and central governments. It’s mandatory for all vehicles and payable at registration, with options for quarterly, half-yearly, or yearly instalments. Non-payment can lead to penalties. Regulations vary across states, emphasising the need for compliance to avoid penalties.
