Grounds for PIL to Honourable High Court Dear BHPians,
Tax structure for cars in different states are very different. When a car shift from origin state to destination state, it has to pay tax in destination state and then apply for refund of tax from origin state.
In a way this rule does really help states getting much revenue as at the same time the destination state has to refund tax for outgoing vehicle. This adds to harassment to the people from origin as well as destination state.
First we can qualify what is the ground for filing PIL: 1. Since, India is a democratic country hence all citizens have fundamental right to work and earn in any part of country. For that, citizen will move with his assets to state where he will be going to stay and earn.
2. The car, asset which he purchased from origin state has duly paid the tax on it at the time of purchase. 3. Since, car is a movable asset so it is bound to move any part of the country.
4. If a person pays tax in origin state and moves to destination state, by current law, he has to pay road tax on car at destination state. At the same time, some person from destination state might have moved to any other state of country, in this case it has to refund road tax to the owner.
5. Current road tax law leads to corruption than revenue generation.
6. Procedure is very cumbersome and it takes months to complete.
7. Citizens of one state being harassed by police or authority of another state, in which he moved.
8. In Income tax laws, If a person earns in other country and pays tax there, he need not to pay tax in his home country, when he produce valid document for the same. There is not re-taxation and refund mechanism.
9. If this law change, it will give more sense of freedom to citizens of India.
10. In the age of globalization, this law leads to localization.
11. It will help to reduce the work burden of RTO for maintaining data for other state vehicle and refund of tax.
What steps need to take in order to waive tax for other state vehicle: (Suggestions) 1. The owner has to register his vehicle in destination state within six months of arrival, upon paying nominal fee.
2. The vehicle database should be made central and all RTO should be equipped with facility to inquire about any vehicle of India, with the help of registration number.
3. All RTO of India should be connected in order to exchange information with the help of IT Infrastructure.
4. If vehicle complete 15 years (Life time) he can re-pay tax in destination state upon production of document.
5. If a person purchase vehicle in a place then he should have valid documents to prove that he is resident of that particular area/locality/district/state.
6. Vehicle should be fined, if found not registered in the destination state after six months of arrival. (Ref: Pt. 1)
These are the points, I could make out from my mind. I am not lawyer and I cannot think about some finer points. We can take help of lawyer for this. All BHPians please add your valid points too. Can we arrange a meeting in near future at Bangalore to discuss more about this topic and form a working group which can start work for this cause upon advise of all members? We need Volunteers for this. This is for all people of India. Note: This meeting should be open all Non KA registered vehicle owners as well as all KA registered vehicle owners. It can be possible that KA registered vehicle can move to TN, AP or any other state. This is for all.
Friends, please do not think of result now. It can be positive, it can be negative, it can take time, but we have to take initiative.
You also can write/email to ministry of surface transport on MORTH
Last edited by anujmishra : 17th December 2008 at 16:53.
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