[rohitsaxena]

Originally Posted by The Rainmaker

I'm a little confused with this system. Although some elements are clear but still if someone more knowledgeable on this subject can clarify the following:

1. Isn't a one time tax (15 years) cheaper than paying every 2 years or yearly?

Absolute value of Tax paid yearly or paid one time for 15 years is all same, If rate of taxation is same, say 10% of vehicle price. Total tax paid will remain same if paid one time for entire 15 years or paid yearly. consider time value of money and reduced one time load for payment of entire 15 years tax in one go, staggered payment done yearly/bi-yearly is more economic.

Originally Posted by The Rainmaker

2. In case of selling a car or buying a pre-owned car, who gets to benefit and who loses out?

Doesn't cause any extra loss or benefit to anyone as car selling/buying price always considers the road tax paid/remaining to be paid.

Originally Posted by The Rainmaker

3. What's the procedure for extending the road worthiness after 15 years (in case of a petrol vehicle). Currently one can extend it twice for 5 years each for a total of 10 years more on top of the initial 15 years.

Existing laws apply. Beyond 15 years road tax is not charged, instead green tax and homologation fee is charged which are for a block of 5 years.

Originally Posted by The Rainmaker

4. Some cars I'm planning to keep for as long as I'm alive, while others I might flip every couple of years and this doesn't really tell me in which scenario would I benefit or lose as compared to the current policy in place. Anyone care to elaborate on short term vs long term vehicle ownership benefits/downsides under this BH registration policy?

Shall appreciate all your replies

Please check responses to queries 1 and 2 (you may also check my comment 4 comments earlier than yours.)

[varkey]

Originally Posted by The Rainmaker

1. Isn't a one time tax (15 years) cheaper than paying every 2 years or yearly

Originally Posted by rohitsaxena

Absolute value of Tax paid yearly or paid one time for 15 years is all same, If rate of taxation is same, say 10% of vehicle price. Total tax paid will remain same if paid one time for entire 15 years or paid yearly. consider time value of money and reduced one time load for payment of entire 15 years tax in one go, staggered payment done yearly/bi-yearly is more economic.

Isn't there a 25% markup on the taxable value for BH? So even with same rate of tax, the BH tax amount would be 25% more. But as you rightly said due to time value of money, the bi-annual payment would any-day be economical, even if you calculate, the 25% markup would only come to approx 3% of reducing interest rate, which is less than inflation.

To answer the original question, for those in some of the northern states, the state tax rates are much lower than BH. In those states, you would need to assess the pros/cons, probability of moving to another state, time value of money and others and then decide. But for those in southern states like KL, KA etc, BH is any-day cheaper than state registration.

Originally Posted by rohitsaxena

Doesn't cause any extra loss or benefit to anyone as car selling/buying price always considers the road tax paid/remaining to be paid.

The gazette notification isn't very clear on this front and hasn't made any BH specific amendments to the rules concerning transfer of registration, so the individual states have the potential to make up rules as they go. So yeah there is no real benefit or loss but then again depends on the rules on transfer. If the RTOs allow transfer to any individual, then people might be interested in a BH vehicle cause of easy movement, but then for somebody who has no intention to ever move to another state, BH will offer no additional value, and they would need to pay bi-annual tax so maybe hesitant to opt for a BH series vehicle or might need to reduce the price.

Either way, I think at this point there is not much clarity on this front but no one can actually deny transfer of registration, it might have some additional hassle or uncertainty which can affect the sale process.

Originally Posted by rohitsaxena

Existing laws apply. Beyond 15 years road tax is not charged, instead green tax and homologation fee is charged which are for a block of 5 years.

The amended rule is below, which means post year 14, the tax would need to be paid annually which would be half of the bi-annual tax. This can be higher than the state green tax and other fees, can even be in addition to the green tax/fees.

> Provided that on and after fourteenth year from the date of first registration, the motor vehicle tax (Rounded to next integer) shall be levied annually which will be half of the tax as mentioned in sub-rule (3).”

But then again, I am pretty sure the rules for BH would further evolve over the next 15 years, so too early to comment.

[rohitsaxena]

Originally Posted by varkey

Isn't there a 25% markup on the taxable value for BH? So even with same rate of tax, the BH tax amount would be 25% more. But as you rightly said due to time value of money, the bi-annual payment would any-day be economical, even if you calculate, the 25% markup would only come to approx 3% of reducing interest rate, which is less than inflation.

That 25% markup is on ex-factory minus GST price. A lot of states are charging road tax on actual ex-showroom price, so for those states it is actually 3% lesser even post 25% mark up.

Originally Posted by varkey

To answer the original question, for those in some of the northern states, the state tax rates are much lower than BH. In those states, you would need to assess the pros/cons, probability of moving to another state, time value of money and others and then decide. But for those in southern states like KL, KA etc, BH is any-day cheaper than state registration.

True, BH mark may not be beneficial for everyone, only those who think that during the ownership of vehicle they may shift states, and even if it is slightly costlier but saves hassle of refund and reregistration then some may still opt. People from southern states may simply want to opt for economic benefit.

Originally Posted by varkey

The gazette notification isn't very clear on this front and hasn't made any BH specific amendments to the rules concerning transfer of registration, so the individual states have the potential to make up rules as they go. So yeah there is no real benefit or loss but then again depends on the rules on transfer. If the RTOs allow transfer to any individual, then people might be interested in a BH vehicle cause of easy movement, but then for somebody who has no intention to ever move to another state, BH will offer no additional value, and they would need to pay bi-annual tax so maybe hesitant to opt for a BH series vehicle or might need to reduce the price.


Either way, I think at this point there is not much clarity on this front but no one can actually deny transfer of registration, it might have some additional hassle or uncertainty which can affect the sale process.

There will definitely be some initial hiccups, and this is where I am trying to collect information from MoRTH and will try to push them to issue clear guidelines in case of transfer of vehicle.

Originally Posted by varkey

The amended rule is below, which means post year 14, the tax would need to be paid annually which would be half of the bi-annual tax. This can be higher than the state green tax and other fees, can even be in addition to the green tax/fees.

> Provided that on and after fourteenth year from the date of first registration, the motor vehicle tax (Rounded to next integer) shall be levied annually which will be half of the tax as mentioned in sub-rule (3).”

But then again, I am pretty sure the rules for BH would further evolve over the next 15 years, so too early to comment.

The gazette notification does have some ambiguity and needs clarification, which as you mentioned will likely evolve with time.

[jinojohnt]

In Kerala, some people have started questioning the delay in court.
For those people, the hon'ble High Court has passed an interim order to allow BH registration for them.
https://timesofindia.indiatimes.com/...w/90648959.cms

[rkponders]

Hi Folks - Does anyone has a news on TN accepting BH number plate yet ? The last I heard was in TOI -
https://timesofindia.indiatimes.com/...w/89627174.cms

In Karnataka, the state government seems to have accepted BH but only Central Govt employees are under the scope. Private employees have been left out of the opportunity to have a BH number plate.

[mrehanms]

Originally Posted by audioholic

It was confirmed by the dealers RTO agent after inquiring in the RTO. I felt it makes sense. Lets say I sell my car in five years with BH Registration, how can a private individual who is not entitled for this be allowed to transfer the car to their name? The very basis of this registration is to allow individuals with transferable jobs move their car from state to state. And to prevent the burden of re-registering in every state along with the hassle of road tax refund and repayment to new RTO.

The Kerala High Court ruling that came up yesterday does essentially agree with this - it has asked the state to do BH registration - but at the same time, asked the petitioners not to alienate / transfer their vehicles

[newbie_thar]

Originally Posted by sauravm_89

Sure- Attaching the form- have redacted some sections to avoid general misuse.

I have a similar case from Delhi and moving to Bangalore. My company has GST registration active in 7 states (I verified on services.gst.gov.in), but they have not signed the Form-60 yet. What did you say to the company to get it signed?

Can I register at any RTO, say If the permanent address is Delhi? I have some other privacy-sensitive questions, can I private message you?

Mod Note - Please proofread before posting.

[sauravm_89]

Originally Posted by newbie_thar

. What did you say to the company to get it signed?

Can I register at any RTO, say If the permanent address is Delhi? I have some other privacy-sensitive questions, can I private message you?

Nothing really- the company in question is an IT major , who apparently had several such requests, so they signed it without too much coaxing, even when we went back with a few iterations courtesy RTO demands.

Ideally any RTO in Delhi should be able to do this, although they do suggest that you approach the RTO as per your address pin code. If you are referring to RTO's from other state, that seems unlikely with a delhi address.

Go ahead and PM, happy to help

[Piyush_DT]

I got the BH series in Feb 2022 for my XUV 700 and received smart card yesterday. My RTO was in Nagpur, Maharashtra.

The registration validity mentioned is 15 years and not 02 years. Am I missing anything or its the same for others as well? I understand road tax needs to be paid after every 02 years and may not have to do anything with registration but what needs to be done after 15 years? Re-registration?

[thanixravindran]

Originally Posted by Piyush_DT

I understand road tax needs to be paid after every 02 years and may not have to do anything with registration but what needs to be done after 15 years? Re-registration?

It is the same for everyone. After 15 years, vehicle has to undergo Fitness test and renewal of registration mark on block of 5 years each.

Road Tax is indicated as LTT Paid (Life Time Tax) which generally is concurrent for normal registration, so 15 years. For BH, at least they could indicate as Biennial.

[AutoNerd]

Dear mates, I got BH series for my vehicle in Jan 2022. The road tax for me was calculated on the car's ex-showroom value including GST. However, as per the BH Series Gazette notification, Road tax was to be calculated on ex-showroom price exclusive of taxes. Hence, I have been wrongly taxed by the RTO.
Since, under this new regime of BH series, the owner has to pay the tax for each block of two years till the 14th year i.e. for seven times, I will end up paying a higher road tax for a total of 07 times, thus loosing on considerable money.
Please help me in understanding the ways to get the tax amount amended i.e. exclusive of GST. Also, how can I get a refund for the already paid higher tax?
Thanks in advance.

[ghodlur]

Originally Posted by AutoNerd

Dear mates, I got BH series for my vehicle in Jan 2022. The road tax for me was calculated on the car's ex-showroom value including GST. However, as per the BH Series Gazette notification, Road tax was to be calculated on ex-showroom price exclusive of taxes. Hence, I have been wrongly taxed by the RTO.
Since, under this new regime of BH series, the owner has to pay the tax for each block of two years till the 14th year i.e. for seven times, I will end up paying a higher road tax for a total of 07 times, thus loosing on considerable money.
Please help me in understanding the ways to get the tax amount amended i.e. exclusive of GST. Also, how can I get a refund for the already paid higher tax?
Thanks in advance.

Unfortunately there is no way to get the road tax refund as of now since there is nil clarity amongst the dealers and the RTO reg the applicable tax on either exshowroom or exshowroom minus the GST. As of now the road tax is collected on exshowroom cost and basically the dealer submits the same for road tax calculation on the parivahan website. Agreed that road tax would be higher than the usual LTT but not substantial though. The advantages which comes with a slightly higher tax out weighs the ones with LTT.

The other headache is that BH registration road tax does not go to the state coffers hence local RTO support is minimal if not negligible.

[Travel Bright]

I am from New Delhi,planning to buy two new cars. Can I get BH for both? I have read the gazette notification; no where it restricts to one car. Kindly clarify if I can get BH for 2 cars. Thank You

[ajmat]

Originally Posted by Travel Bright

I am from New Delhi,planning to buy two new cars. Can I get BH for both? I have read the gazette notification; no where it restricts to one car. Kindly clarify if I can get BH for 2 cars. Thank You

If it obviously states one car, what did you bother to ask the question?

[Travel Bright]

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