[TheM0nk]

"The High Court of Jammu and Kashmir and Ladakh recently clarified certain legal issues that arise when a vehicle registered in one State or Union Territory (UT) of India is transferred to another part of the country [Ishfaq Ahmad Tramboo v. UT of J&K and Others].

Justice Javed Iqbal Wani noted that a motor vehicle generally has to be registered only once upon the payment of a fee prescribed by the Central Government. Such registration is valid throughout India.

"A motor vehicle has to be registered once upon payment of fee prescribed by the Central government and such registration shall be valid throughout India and a vehicle once registered is not required to be registered elsewhere in India," the Court said.

However, if the vehicle is taken to another State or UT (other than where it was registered) and it is plied there for a period exceeding 12 months, it would have to be assigned a new registration mark that is specific to that State or UT.

In such a scenario, the concerned authority of the State/ UT (where the vehicle is transferred to) has to arrange for the transfer of the vehicle's registration from the records of the registering authority where the vehicle is initially/originally registered.

In any case, the vehicle owner cannot be asked to pay a token tax or a road use tax again, merely because s/he wishes to use the vehicle in another State or UT.

"The Motor Vehicles Act, 1988 nowhere provides for re-registration of a vehicle and payment of fee upon such re-registration," the Court observed, in this regard."

If supreme Court does not eventually reverse the ruling, this is big big news. High Court of J&K noted that a motor vehicle generally has to be registered only once upon the payment of a fee prescribed by the Central Government. Such registration is valid throughout India.
In case Re registration is to be done (For eg, in case of the 1-year rule), authorities themselves should make arrangements to get it done. In any case, "Mango People" need not shell out more money. MVD boys are not gonna like this, Outstation vehicles are there "chakna" providers.

Link to news: https://www.barandbench.com/news/doe...-court-answers

[pedrolourenco]

This is indeed good news. However there could be complications.
Say you register a vehicle in Jharkhand paying 5% tax. Then you take the vehicle to Karnataka and reregister it after a year. Karnataka government has to recover the balance 14 years tax paid from the Jharkhand government and this transaction happens smoothly. Now since you have paid 5% tax to JH they will give 14 years prorata tax to KA. But KA tax is 20%. Now if everyone does this the KA government is bound to challenge it.

If we had people in the Ministry of Road Transport with common sense, they would have made the tax uniform in all states or introduce yearly tax. That way you just pay tax for one year in JH @ 5%, then move to KA and stay for 3 years so pay yearly tax in KA @ 20%, the move to MH and do the same etc.

[TheM0nk]

Originally Posted by pedrolourenco

This is indeed good news. However there could be complications.
Say you register a vehicle in Jharkhand paying 5% tax. Then you take the vehicle to Karnataka and reregister it after a year. Karnataka government has to recover the balance 14 years tax paid from the Jharkhand government and this transaction happens smoothly. Now since you have paid 5% tax to JH they will give 14 years prorata tax to KA. But KA tax is 20%. Now if everyone does this the KA government is bound to challenge it.

If we had people in the Ministry of Road Transport with common sense, they would have made the tax uniform in all states or introduce yearly tax. That way you just pay tax for one year in JH @ 5%, then move to KA and stay for 3 years so pay yearly tax in KA @ 20%, the move to MH and do the same etc.

Thats true actually. The Govt should probably look at tax rates paid yearly, especially for a country as diverse as ours. While BH exists, maybe they should bring it for states as well. Say SH series

[binand]

Originally Posted by TheM0nk

A motor vehicle has to be registered once upon payment of fee prescribed by the Central government and such registration shall be valid throughout India and a vehicle once registered is not required to be registered elsewhere in India.

I had mentioned this view earlier in the forum: https://www.team-bhp.com/forum/india...ml#post3936967 (Out-of-state cars can run on Karnataka roads for 1 year!)

Good to be vidicated by subject matter experts. :-)

Originally Posted by pedrolourenco

Now since you have paid 5% tax to JH they will give 14 years prorata tax to KA. But KA tax is 20%.

So in the long run - this will result in all states converging to the same tax rate, making "One nation, one road tax" a reality. Good for everyone concerned, no?

Originally Posted by pedrolourenco

If we had people in the Ministry of Road Transport with common sense, they would have made the tax uniform in all states or introduce yearly tax.

They don't have the power to do so. Vehicle tax rates are in the state list as per our constitution.

Originally Posted by TheM0nk

While BH exists, maybe they should bring it for states as well. Say SH series

Not sure what the difference between BH and SH is going to be - can you elaborate?

[TheM0nk]

Originally Posted by binand

Not sure what the difference between BH and SH is going to be - can you elaborate?

The bone of contention between states and center is the loss of revenue right ?
Say we have two tax structures in the state, Owner is given the freedom to choose the tax regime during registration.
First the regular one, 15 year tax paid, No questions asked. MH, GJ, KL, KA so on and so forth.
Second can be the SH series, where the tax is paid yearly depending on the state where the owner presently resides. Tax rates are decided by states rather than the center. No loss to states, no harassment for owners.
To further differentiate between the initial registration of vehicles, SH1, SH2, SH28 etc can be used. Assigning numerical values to each state as we currently do for districts.