All motor vehicles, including two-wheelers, four-wheelers, and goods-carrying vehicles used for both personal and professional reasons, are subject to the road tax, which is a state-level levy. Road tax is an obligatory fee that buyers of vehicles for usage on public roads must pay.
According to Section 39 of the Motor Car Taxation Act of 1988, customers who purchase a new vehicle must pay a set sum as road tax. The State Municipal Corporation, which is in charge of creating and maintaining the state's road network, is the main reason why the state government is involved in the collection of road taxes.
The only roads that the Central Government constructs and maintains are our national highways (NH).
Toll Tax and Vehicle Tax
The terms "road tax" and "toll tax" are not interchangeable. Road taxes are levied for using the roads in the state where the vehicle is registered, whereas toll taxes are levied for the momentary use of particular bridges or national highways in other states.
And unlike road tax, toll tax is gathered at toll booths. For example, in Delhi, an interstate journey lasting 90 days is considered temporary. The word "Temporary Movement" might mean various aspects in various states.
When to pay Vehicle Tax?
When a vehicle is registered at the appropriate Regional Transport Office (RTO), the road tax, commonly known as the motor vehicle (MV) tax, is paid. The road tax can be paid online through the Ministry of Road Transport and Highways' official website for a number of states, including (Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Punjab, and Rajasthan).
Customers from other Indian states can pay the tax online by going to the state where the vehicle is registered transport department's official website. For instance, you can visit the website of the Tamil Nadu Transport Department to pay the road tax for a vehicle that is registered there.
When registering the vehicle with the appropriate state RTO, the appropriate road taxes are paid. The buyer receives the receipt after the payment is complete, and the dealer or showroom often collects the tax on their behalf.
Motor vehicle tax for non-transportation cars is a one-time payment that is good for 15 years. Owners of non-transport vehicles must pay the tax for the next five years when their registration is renewed after 15 years. For transport vehicles, the tax is paid every three months or as specified in the relevant state's motor vehicle act. The Motor Vehicles Act of 1988 defines a transport vehicle as a public service vehicle, cargo carriage, school bus, or private service vehicle.
How to calculate the tax amount?
Since each state in India has its own state motor vehicle statute that governs how the tax amount is determined, the amount of road tax that is applicable to a specific vehicle varies from state to state. The motor vehicle tax is computed based on a number of variables, such as engine and seating capacity, vehicle cost, burdened weight, and unladen weight.
How to Make an Online Vehicle Tax Payment?
b. Enter your "Vehicle Registration Number"
c. Click on "Proceed"
d. Click on "Online Services"
e. Select "Pay Vehicle Tax"
f. Enter last 5 Digit of Chassis No. and click on "Validate Regn_no/Chasi_no"
g. Click on ‘Generate OTP’
h. Enter the OTP received on registered mobile number and Submit
i. Update "Insurance Details"
j. Review the Fee Panel and Proceed
k. Pay the Fees, as shown
l. Payment Receipt Generated
m. After this, the application will be moved to RTO for further processing
Refund on Road Tax
When you relocate to a new state, you will have to renew your registration with the new state RTO, pay the road tax, and get a NOC from your old RTO. However, if you move or dispose of your vehicle, the existing RTO may grant you a refund. The following paperwork is required when requesting a refund:
Request letter for refund
A smart card (original or notarized copy)
Pollution and insurance documents
NOC from current RTO
Receipt of original road tax
Proof of migration
RTO Form 16 and DT
CRTI Intimation (only applicable in Karnataka)
To request a road tax refund, vehicle owners must go in person to the present RTO with the necessary documentation.
If road taxes are not paid within the allotted time, defaulters will be assessed a fine. Charges are determined as follows:
For first-time offenders, the vehicle's tax is payable for two quarters.
Serial violators will face fines that cannot be less than the annual tax on a car, and they may even reach twice that amount.
Fines cannot be lower than Rs. 300 and may also include a one-time annual tax. This fine can go up to twice the annual tax amount for repeat offenders and cannot be less than Rs. 500.
To conclude, Road tax is based on a number of parameters, such as usage and vehicle type. Because they fall under a different classification than private-use vehicles, commercial transport vehicles may be subject to a higher state road tax. If you are simply visiting a state, there is no road tax. Only those who purchase new vehicles are required to pay road tax to the appropriate state government. The present RTO must be visited in order to receive a NOC if you are moving, nevertheless.