We all know that paying road tax is mandatory in India for both two-wheeler and four-wheeler owners. You need to start paying the road tax as soon as you buy a new or old vehicle and get it registered at the RTO office. You can choose to pay the road tax on a yearly basis or you can pay it as a lifetime tax.
But what happens when you move from one state to another and your vehicle has to be transferred to the new location? Do you get a refund of the road tax which you paid as a lifetime tax? What is the process of obtaining a refund of this tax? We’ll answer your queries related to road tax right here!
What is road tax?
It’s the tax which you pay to the government and local authorities for using the roads in a particular state. This tax is levied by the Central Government, State Government, and local authorities and is applicable to both private and commercial vehicles.
If you use the vehicle in a state other than where it was actually registered, you need to pay an entry tax and also the road tax applicable in the current residing state. The road tax varies from one state to another and has to be paid at the RTO office in your area.
How is road tax calculated?
Road tax is calculated as a percentage of the ex-showroom price of the vehicle and takes into account the age of the vehicle, seating capacity, and weight of the vehicle. At the time of registration, the road tax is calculated inclusive of the excise duty, VAT, and sales tax.
Generally, the road tax is lower for petrol vehicles than for diesel vehicles. For older vehicles, again, the taxes may vary from one state to another. Some states also have a green tax, mostly on commercial vehicles which are older than 15 years. If you use a car for more than a year in a state then you need to pay a lifetime road tax.
How to get refund for your lifetime road tax?
In case you have paid a lifetime road tax in one of the Indian states and have moved from that state, you can get a refund of the amount by following these simple steps:
- Download Form No. 16 from the official RTO website.
- Fill in all the relevant fields in the form.
- Attach the following documents to your form:
– RC copy of the vehicle with the new registration number.
– RC copy with the old registration number.
– Insurance certificate with the new registration number.
– Photo ID proof and proof of address.
– Copy of the state transfer NOC.
– Original road tax paid receipt.
– Copy of the new road tax paid.
You will also need a letter requesting a refund along with a bank cheque providing details about the account to which the amount needs to be refunded.
All these documents need to be mailed to the RTO office in which the vehicle was registered originally. These documents will then be sent to the new RTO office and once the verification process is over, you can expect to get a refund in the next six months. Remember that the road tax refunded will be determined on a pro rata basis.
Now that you know how to get your lifetime road tax sorted when you move states, how about making sure that your car is secure? Is your Car Insurance in order?