Does "price protection" not apply to the car's road taxes?

UtkarshC · 19th July 2022, 18:13

Thanks to Rana Gurtej for sending this information in. Heartfelt gratitude for sharing it with other enthusiasts via this Team-BHP share page!

Quote:

As far as Chandigarh is concerned, there was a case where the base price was increased after the purchase of a vehicle against an invoice, and the RTO insisted on the payment of tax at a higher rate.

The petitioner, Alankar Narula, filed a case through my office before the Hon’ble Punjab and Haryana High Court and the Court has been pleased to issue a notice to the Registering and Licensing Authority as well as Chandigarh Administration.

I have attached the order that was passed by the Hon’ble Court.

I’m sure this will help many members.

jinojohnt · 19th July 2022, 19:37

This is how it works in Kerala as well.
As per government sources, this is done to curb black money.
If road tax is calculated on "ex-showroom minus discount", some people will pay half of the amount in cash (black) and the rest in cheque (white). And they will get a discount in road tax as well (because invoice is given only for the cheque transaction). To avoid this, road-tax is calculated on the ex-showroom price without considering the discount. This is the price we pay as a nation for the "below taxable income people" who drive around in Mercs.
If you have noticed, some of the discount clothing stores also give discounts (such as 50%) to their items but collect taxes extra (Tax that you pay is on full MRP)

LearnerForLife · 23rd September 2022, 16:53

Do we need to pay complete road tax before delivery OR does it need to be paid before the final (permanent) registration which usually takes some time post delivery?

How does the dealer pay this amount to RTA once we pay it to the dealer?

manikjeet · 23rd September 2022, 18:09

It happened to me as well in the month of April'22. I bought a Skoda Octavia and before I could register it, the price was increased by a few thousand.

But what really did me was Chandigarh RLA calculates the Road TAX on the Invoice value minus the Cess and GST. My Cars Value was just below the 20Lacs range and I was in the 6% Road Tax slab but with the Increase in the price, the Value just crossed the 20 Lacs bracket and I had to pay 8% tax despite my Invoice value being less.

In short, the current EX showroom price would be picked by the RLA.

19th July 2022, 19:37	#47
jinojohnt Senior - BHPian Join Date: Aug 2009 Location: Trivandrum Posts: 1,163 Thanked: 832 Times	Re: Does "price protection" not apply to the car's road taxes? This is how it works in Kerala as well. As per government sources, this is done to curb black money. If road tax is calculated on "ex-showroom minus discount", some people will pay half of the amount in cash (black) and the rest in cheque (white). And they will get a discount in road tax as well (because invoice is given only for the cheque transaction). To avoid this, road-tax is calculated on the ex-showroom price without considering the discount. This is the price we pay as a nation for the "below taxable income people" who drive around in Mercs. If you have noticed, some of the discount clothing stores also give discounts (such as 50%) to their items but collect taxes extra (Tax that you pay is on full MRP) Last edited by jinojohnt : 19th July 2022 at 19:43.
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23rd September 2022, 16:53	#48
LearnerForLife BANNED Join Date: Sep 2022 Location: Bangalore Posts: 33 Thanked: 15 Times	Re: Does "price protection" not apply to the car's road taxes? Do we need to pay complete road tax before delivery OR does it need to be paid before the final (permanent) registration which usually takes some time post delivery? How does the dealer pay this amount to RTA once we pay it to the dealer?
	() Thanks

23rd September 2022, 18:09	#49
manikjeet Senior - BHPian Join Date: Sep 2006 Location: chandigarh Posts: 1,617 Thanked: 296 Times View My Garage	Re: Does "price protection" not apply to the car's road taxes? It happened to me as well in the month of April'22. I bought a Skoda Octavia and before I could register it, the price was increased by a few thousand. But what really did me was Chandigarh RLA calculates the Road TAX on the Invoice value minus the Cess and GST. My Cars Value was just below the 20Lacs range and I was in the 6% Road Tax slab but with the Increase in the price, the Value just crossed the 20 Lacs bracket and I had to pay 8% tax despite my Invoice value being less. In short, the current EX showroom price would be picked by the RLA.
	() Thanks