[Bicycle7385]

What happens if owner retires after taking BH registration, whether the eligibility of BH registration goes away.

Also, I see RTO agent’s are discouraging and advising only if one is moving on a regular basis, however my thought is currently we are able to handle resale only within state however BH series should give us more flexibility around resale.

[Aviator_guy]

Originally Posted by Bicycle7385

What happens if owner retires after taking BH registration, whether the eligibility of BH registration goes away.

Also, I see RTO agent’s are discouraging and advising only if one is moving on a regular basis, however my thought is currently we are able to handle resale only within state however BH series should give us more flexibility around resale.

BH series has a specific purpose which to let a person in a transferable job retain the same car without having to go thru RTO hustle. As long as this is the primary intent, the BH registration works well.

Anything other than above is a grey area and govt is intentionally not encouraging so that whole nation doesn't run after BH registration, at least not as yet unless they figure out how to make up for revenue loss and implement BH across states seamlessly.

That's the reason, we can see various guidelines from time to time. Recently, they have published the following

1. Resale can happen to a BH eligible person only, otherwise pay regular tax and convert to regular number.
2. During payment of tax every two years, owner has to continue to be BH eligible, otherwise pay the regular tax and convert to regular number.

Keeping the above points in mind, my appeal to the fellow members is to carefully evaluate if BH series registration would work in your case or not and then only opt for it. If you are someone who wants to sell the car every few years or has a doubt whether you would remain BH eligible in future, then this BH registration may not be the right thing.

[J2022]

So many unknowns about this scheme, it's a good example of irresponsible law making that creates more problems than it solves.

- What happens in a resale?

- What happens after a change in job?

- What happens if the organization downsizes and becomes ineligible?

- What if a non-BH car is acquired by a BH-eligible purchaser, can it be re-registered?

- Who will check the veracity of the representation (of employer)?

These issues should have been considered and addressed prior to rollout of the scheme instead of fixing things up as issue come to light.

The very premise of the 'BH' series is flawed - i.e., conferring benefits to a class of carowners based on a temporal (and very personal choice) [of career].

In my humble view the Union Govt should have consulted with states and simply done away with dual RTO-taxation (like GST).

[Bicycle7385]

Originally Posted by febin8055

What is the “1.25” mentioned in the formula meant for?

I am still trying to get my head around this. Tax on my C5 Aircross is still not making sense.

Bifurcation of RTO Tax is as follows.


Ex showroom 3717000x14%=520380/-

Therefore , 520380x1.25%x2%
= 1300950.

1300950/15= 86730 is the base tax as mentioned + 520380x2% RTO Cess
= 10407.60 + 850 charges mentioned in disclaimer.
______________________________
97,988/- Total tax paid for BH.

This is the exact bifurcation which I understood for BH registration. The message you will receive from RTO will be the same amount as mentioned above.

Just wanted to share the calculation. Now price 3717000 is including GST and still road tax is calculated on it.
Also, after one arrives at Road tax factor of 1.25% and 2% is not making any sense.
Regards

Mangesh

[texens]

Originally Posted by Bicycle7385

Just wanted to share the calculation. Now price 3717000 is including GST and still road tax is calculated on it.

It looks like different states have different rules wrt the "including GST" part. In this thread itself, there are one group of buyers who have shared that their tax calculation did not have GST included, and another group for which GST was included.

Originally Posted by Bicycle7385

Also, after one arrives at Road tax factor of 1.25% and 2% is not making any sense.

1.25 is the multiplier for this BH scheme.
And 2 is for the 2 years for which tax is being paid upfront

[TheARUN]

Originally Posted by fusionbang

Anybody from Bangalore working in private sector was able to get BH series on their newly purchased car? If yes, what was the procedure and how much was the cost for 2 years?

Thanks in Advance!

I met this Citroen C3 Owner at the Kasturi Nagar RTO [KA 03]. He had a BH registration on his car. I asked him multiple times, he patiently confirmed that he was Private Sector and got the BH done seamlessly.

I've enquired with a Mahindra Dealer. He said its only for Central Government Employees, he had heard of a few BH Registration of MNC Employees happening at Pune, but none in Karnataka

Everyone I asked told me that Karnataka is not registering vehicles under BH.

I'm expecting my Z2 Scorpio N in April-May, going for BH then. The plan is to get a temporary registration that is valid for 6 months and then run from pillar to post to get the vehicle BH registered.

I think its possible but not probable right now in Karnataka

[MDED]

I have got BH series for my Taigun in January 2023. I work at a public sector bank which is getting privatised in the Q1 of FY23-24. The RTO official in Bengaluru were recalcitrant to the idea of registering my car under BH series sighting the reason that my bank is a private sector bank and then I had to share copies of my transfer orders from other state to KA and then they relented. My BH tax calculation was on the basic invoice price of the car. The basic invoice price excluded the CGST, SGST and cess and accordingly road tax was calculated. The calculation is fairly simple:

If the vehicle price is above ₹10 lakh, then 10% of invoice price of car (minus the tax and cess) multiplied by 1.25 multiplied by 2 and then divided by 15. My registration was done at E City RTO and my other colleagues have got their BH series done at KA-02, 04, 53.

[R_D_S_7]

Recently i bought Tata safari from Pune, Maharashtra. Final invoice amount is 2491500; ex showroom price is 1683446.

My BH road tax is calculated based on final invoice amount which is 58135 , overall road tax for 15 years is 436012.

If I would have opted for Maharastra, registration it would have been 373725.

Could someone explain why additional ~62000?

[condor]

Originally Posted by R_D_S_7

Recently i bought Tata safari from Pune, Maharashtra. Final invoice amount is 2491500; ex showroom price is 1683446.

8 Lakhs worth tax & Insurance ? Looks too high.

[ghodlur]

Originally Posted by R_D_S_7

Could someone explain why additional ~62000?

For the following reasons:
1. Flexibility with BH reg to move between states
2. Option to pay tax once in 2 years. So basically pay as per use.
3. Option to pay tax online.

BH registration should be ideally opted by people who keep moving due to transferable jobs, for all other reasons state registration is more economical.

[krishnadevjs]

Originally Posted by R_D_S_7

Could someone explain why additional ~62000?

BH has two advantages:

1. The obvious advantage of ease of transferring from one state to other without new payment/refund. Plus the lack of harassment from police/MVD.

2. There’s an advantage in the net payout due to tax rate and NPV (Net Present Value).
This can vary by class of vehicle and state. The first part is due to the difference in tax rate between state registration and BH (multiplied by 1.25, since that’s how BH tax is calculated). The second part is because the money is paid in future as a series rather than now as lump sum, thereby giving you interest income for the balance amount.

In your case, I’ve illustrated the NPV benefit basis the figures you gave as below. I’ve assumed you get a 10% return on your money, of which you pay 30% tax and therefore finally get 7% return.

As you can see, BH is better despite the total payment being higher, because you earn interest on the balance amount over several years.

[R_D_S_7]

Originally Posted by krishnadevjs

BH has two advantages:

1. The obvious advantage of ease of transferring from one state to other without new payment/refund. Plus the lack of harassment from police/MVD.

2. There’s an advantage in the net payout due to tax rate and NPV (Net Present Value).
This can vary by class of vehicle and state. The first part is due to the difference in tax rate between state registration and BH (multiplied by 1.25, since that’s how BH tax is calculated). The second part is because the money is paid in future as a series rather than now as lump sum, thereby giving you interest income for the balance amount.
...

Thank you so much for the detailed price comparison table which helped me understand how much I am going to save!

Also I see many members commented about tax calculation wrt Base price vs ExShowroom price(Base Price+SGST+CGST+CESS). Is this issue settled? any one got concrete response from the Vaahan or the RTO.

Originally Posted by condor

8 Lakhs worth tax & Insurance ? Looks too high.

Sorry for confusion and my mistake.

I wanted to write Base price is 1683446 and Exshowroom price is 2491500(including 14% SGST+14%CGST+20%CESS).

[UltraViolence]

Originally Posted by R_D_S_7

Also I see many members commented about tax calculation wrt Base price vs ExShowroom price(Base Price+SGST+CGST+CESS). Is this issue settled? any one got concrete response from the Vaahan or the RTO.

All the RTOs in Mumbai are calculating BH tax on Invoice price only i.e. Ex-showroom price - GST - Cess. Its weird why Pune being in same state is following different protocols

[R_D_S_7]

Originally Posted by UltraViolence

All the RTOs in Mumbai are calculating BH tax on Invoice price only i.e. Ex-showroom price - GST - Cess. Its weird why Pune being in same state is following different protocols

Could you or someone share a road tax receipt for a vehicle with Invoice value, hiding all personal details. It will be helpful for me to check with my dealer RTO person with some proofs or any suggestions how to raise a complaint for this miscalculation

[ishan12]

Last weekend got the delivery of my XUV700 AX5 Diesel Auto 7 seater in Pune. Got the BH number. Pretty straight forward process, only 2 additional documents needed apart from the usual docs needed for vehicle registration, which are company ID card copy and form 60 duly stamped and signed from company mentioning the addresses in 4 states and their GST numbers.
The tax for BH calculation in my case was based on the invoice value (Ex showroom price). I sat with the showroom RTO guy, when he selected the BH registration option from the drop down, that's the tax that was displayed on the portal. So there was no contesting it, as it is what the RTO portal calculates. But I guess if someone has the time and means, may be they can contest this and get clarity on it further.
Sharing the tax receipt for the vehicle, the amount, Rs 47,341 matches as per the 14% tax on ex showroom value and further BH formula applied for 2 year tax.