Luxury car tax evasion is one of the significant loss of tax to the state exchequer.Approximate loss may exceed 200 Cr or more Rupees.
It is true that every citizen has a right to get his/her vehicle registered elsewhere in the country where he normally resides or carry on his/her business,provided the owner shall produce sufficent adress proof ,mentioned in the Central Motor Vehicles Rules 1989.The place where the vehicle is registered is treated as the place where the vehicle normally kept for use.The owner shall remit the road tax of the home state at the notified rat,at the time of rgistration.The owner of the vehicle is at the liberty to use the vehicle anywhere in the country without any restriction.Private vehicles need not pay any tax ,fees or cess in any state except the compounding fees for any of the offence/s booked under motor vehicles act and rules.
The concept of place of use or kept for use ,is changed when the vehicle is kept for use or normally use in any other state,other than where the vehicle is registered .In such condition the owner is bound to pay the road tax of the concerned state also.
As per Section 3 of Kerala Motor Vehicles Taxation Act 1976, when a vehicle normally used or intend to use or kept for use in the state of Kerala,then it attract payment of road tax due to the state.The liability to pay tax is upon the owner or possessor of the vehicle.
Unfortunately large share of vehicles registered in other state,especially in pondicherry are not paying tax due the state
even though these vehicles are using or kept for use in the state.
This kind of loss,especially for new vehicles, accrues huge loss
of revenue to the state.One of the major source of revenue of the MVD is collection of road tax.Hence the MVD has started a special drive to collect maximum tax from luxury cars registered in other states and found using in this state.
Re Registration of other state vehicles in Kerala
Vehicles registered in other state can be re registered in the home state .While doing such re registration, a new registration mark will be assigned in the place of old registration mark.But road tax has to be paid as pe the schedule of taxation act, for the remaining period of registration.For Re Registration of vehicles brought from other states ,No objection Certificate( N O C ) has to be obtained from the first registering authority .The old Registration Certificate has to be surrendered with the new registering authority and new Registration Certificate will be issued.The vehicle shall be produced for physical verification before the new registering authority to get new number.This procedure is shortly known as Assigment of Registration Mark.
Balance Tax Schedule
The taxation criteria adopted by the state of kerala is based on purchase value of the vehicle.The Road tax vary up to 20 % percentage of purchase value entered in the Invoice.The road tax rate is 6% for vehicles having invoice value below 5 laks,8 % upto 10 Lakhs ,15 % for vehicles with purchase value up to 20 Lakhs and 20 % for purchase value above 20 Lakhs. The balance tax payable to the state of kerala is calculated on the basis of age of the vehicle,based on date of registration by the First Registering Authority.
Refund of Tax
The concept of Motor vehicles taxation is compensatory in nature i.e tax for use of road.If NOC is issued in respect of a vehicle to other state it means that vehicle stopped use of road of that particular state and permanently shifted to use on new state.Taxation Acts and Rules of all the states contains provision for refund of tax,for the remaining period,in case of One time Tax, if NOC is issued to other state.
It is true that every citizen has a right to get his/her vehicle registered elsewhere in the country where he normally resides or carry on his/her business,provided the owner shall produce sufficent adress proof ,mentioned in the Central Motor Vehicles Rules 1989.The place where the vehicle is registered is treated as the place where the vehicle normally kept for use.The owner shall remit the road tax of the home state at the notified rat,at the time of rgistration.The owner of the vehicle is at the liberty to use the vehicle anywhere in the country without any restriction.Private vehicles need not pay any tax ,fees or cess in any state except the compounding fees for any of the offence/s booked under motor vehicles act and rules.
Vehicles used or kept for use in Kerala
The concept of place of use or kept for use ,is changed when the vehicle is kept for use or normally use in any other state,other than where the vehicle is registered .In such condition the owner is bound to pay the road tax of the concerned state also.As per Section 3 of Kerala Motor Vehicles Taxation Act 1976, when a vehicle normally used or intend to use or kept for use in the state of Kerala,then it attract payment of road tax due to the state.The liability to pay tax is upon the owner or possessor of the vehicle.
Unfortunately large share of vehicles registered in other state,especially in pondicherry are not paying tax due the state
even though these vehicles are using or kept for use in the state.
This kind of loss,especially for new vehicles, accrues huge loss
of revenue to the state.One of the major source of revenue of the MVD is collection of road tax.Hence the MVD has started a special drive to collect maximum tax from luxury cars registered in other states and found using in this state.
Re Registration of other state vehicles in Kerala
Vehicles registered in other state can be re registered in the home state .While doing such re registration, a new registration mark will be assigned in the place of old registration mark.But road tax has to be paid as pe the schedule of taxation act, for the remaining period of registration.For Re Registration of vehicles brought from other states ,No objection Certificate( N O C ) has to be obtained from the first registering authority .The old Registration Certificate has to be surrendered with the new registering authority and new Registration Certificate will be issued.The vehicle shall be produced for physical verification before the new registering authority to get new number.This procedure is shortly known as Assigment of Registration Mark.
Balance Tax Schedule
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| ( Balance Tax Calculation Schedule) |
Refund of Tax
The concept of Motor vehicles taxation is compensatory in nature i.e tax for use of road.If NOC is issued in respect of a vehicle to other state it means that vehicle stopped use of road of that particular state and permanently shifted to use on new state.Taxation Acts and Rules of all the states contains provision for refund of tax,for the remaining period,in case of One time Tax, if NOC is issued to other state.
Procedure adopted for calculation of balance tax
- The invoice price will be taken as the vehicle price.If the applicant failed to produce the invoice of the vehicle,price of similar vehicle will be taken.
- All taxes , cess collected in the invoice will be added to calculate the base price of the vehicle.
- The percentage of depreciation,@mentioned above, will be deducted from the vehicle price.
- Road tax of your vehicle will be @20 % of the balance price.
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