With a network of 5,897,671 kilometres, India has emerged as the second-largest road network in the world. The road tax in India is compulsory for the individual who owns a vehicle. Basically, the road tax is a state-level tax, which the government imposes on the vehicle owners, however, the tax varies from one state to another.
According to the Central Motor Vehicles Act, if a car is used for more than a year, then the owner is liable to pay the whole amount of road tax. The road tax in India is a one-time payment. In this article, you will know the rules and regulations of road tax in India.
The road tax is imposed on every vehicle plying on the road.
Two-wheeler and four-wheeler owners are liable to pay the road tax, which includes private and commercial vehicles.
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In India, around 70 per cent to 80 per cent roads in the state are built by the State Government. So, the State Government imposes the road tax on the vehicle owners.
Individuals who own a vehicle is liable to pay Vahan tax, which is based on the ex-showroom price of the vehicle. The road tax is calculated on the following factors:
At the time of registration of the vehicle, an individual is required to pay road tax. The road tax is based on the various criteria and every State Government has different rates for the citizens. For instance, if you buy a car in Maharashtra, you pay a lifetime road tax. But if you plan to shift in Goa, then you will be required to re-register your vehicle in Goa again.
The road tax is paid at the Regional Transport Office. You can visit the RTO office and fill the form, the details will be regarding your along with other basic details. Pay the amount and get the Challan for the payment.
To pay road tax online, an individual need to visit the Transport Department website of the state, where the vehicle is purchased. Enter the Vehicle Registration Number and the Chassis Number. After filling all the details, select the mode of payment and complete the payment process.
If an individual has registered a vehicle in a new state, then the tax refund can be applied. The following are the documents and forms to be submitted for the tax refund as follows:
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