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-   -   Jeep re-registration woes: road tax Rs.15.8K (https://www.team-bhp.com/forum/indian-car-scene/44814-jeep-re-registration-woes-road-tax-rs-15-8k-3.html)

Hhehe good one :uncontrol Trust them to milk you for any small reason!

Isnt it possible to meet someone above the inspector or to understand the calculations from the inspector itself, carrying a copy of this document might help.

I re-registered a 10 year old esteem from West Bengal to Bangalore .They did not ask for any invoice in my case .
They calculated the current price from which they deducted certain percentage from the new road tax as per the age of the vehicle .

i think that is because esteem is a relatively new vehicle as compared to jeep.the production of jeep was stopped yrs ago.
since the esteem`s roduction was on till 2008 (january)hence it is easy to get the value of the car.

So finally its done. Eventhough it may be expensive, I think the headache is closed once for all. Right?
Btw, is there any upper limit for the # of years like 5yrs or 10yrs beyond which we need to do FC something like?

As per my knowledge, in Karnataka, FC needs to be done on completion of 15 years, and subsequently every 5 years thereafter.

15 years is the time for FC for a private vehicle.

I visited the RTO for clarifying the tax calculations, I was mainly concerned about the tax rates. That concern was quickly resolved.:Frustrati The Karnataka government, in it's infinite wisdom has decided to increase the road tax for all the vehicles that enjoy the great pot-hole-roads of Karnataka.

Effective from August 1st 2008, the life time tax rates as follows:

Vehicles costing below 5 lakhs: 12%
Vehicles costing between 5-10 lakhs: 13%
Vehicles costing above 10 lakhs: 16%
(these are on ex-showroom cost)

Now to the actual calculations:

According to GAAP (generally accepted accounting principles), I thought one can't levy tax on tax, or that tax is applied on depreciated value of an older vehicle. But GAAP is obviously not acceptable to Karnataka government.

The oldest invoice I could manage to get was for 1998 CL340, invoiced at Rs.3,56,160. Also NOC was slightly older than 1 month. And this is how they calculate tax.

Road tax (12%): 356160 X 0.12 = 42739.20
Municipality tax (10%) on road tax: 42739.20 X 0.1 = 4273.92
Total tax on invoice price = Rs.47013.12

Total tax after depreciation for 13 years (33%) : 47013.12 X 0.33 = 15514.32
Penalty for delayed registration (2%): 15514.32 X 0.02 = 310.24
Grand total = Rs.15824.60 only

Anybody still standing after reading this? Anybody needs smelling salts or any other first aid?

Yes, I again confirmed that they levy municipality tax on road tax. And that they calculate tax on original value and then depreciate the tax. All this for the great roads of Karnataka. Now I really know the meaning of adding insult to injury.

Had I managed to get the original price invoice/statement of 1994 CJ340 which was much lower, I could have saved up to 5K, but I couldn't get that price statement. So I am just giving up and paying this ransom.

What for? For not providing any parking place to park our vehicles? I wanted to see the "officer" who have passed such a practice of calculating the TAX. :Frustrati

I was hoping that they will depreciate the vehicle value first and have tax for that amount. So, its basically depreciation on TAX.

thats really sad.This can happen only in a state like ours where as time goes by,iam sure we would be taxed even for breathing air.I dont think it would be of any help to you now but my uncle was the SP of Udupi till a few months ago until he got transferred back to bangalore.Maybe if he was there then he could have been of some help to you.

The tax situation in KA is really sad, you dont have the basic infrastructure but are charged for world class infrastructure . That is the reason I have been driving my HR reg vehicle here for about 2.5 years now. I had checked the tax when I just moved and was given an amount close to 50k for my ikon. I decided that even if I have to pay 500 bucks everytime a cop catches me it still comes wayyyyyy cheaper.
So there :D

Confusing - shouldnt the depreciation be on the invoice of the vehicle rather being on the tax?

agree: Even I am not able to understand this part. Youc an file for an RTI appl to understand this method of accounting.

As I said before, these guys don't follow GAAP. Right now, I want to just get on with life, offroad, etc.

Samurai San, what I fail to understand is why is the road tax of 12% calculated on 3.56L? Isn't it supposed to be calculated on the depreciated value of the JEEP? Or is 3.56L the assessed value of the JEEP after depreciation?