Search the Internet          Tips  Sites: Finance, Investment

Recent Specials

Arun Shourie's      tactical errors Stalling of India's      industrial engine Divestment: Will the      horse fly again? UTI bailout: Common      man feels the pinch The fiscal impact      of bailouts Cellular phone war      hots up again Too many advisors      in the North Block? Cricket: FMCG firms      fight for turf

On a registration drive

Arti Sharma

When Krishnan Sharma bought a 10-year-old Kinetic Honda for Rs 10,000 it seemed like a good deal. But Sharma quickly changed his mind when he realised that his new pride and joy was registered in Gujarat and needed to be re-registered in Maharashtra.

Sharma found that he would have to write another cheque for Rs 1,200 to get it done. In fact, a broker outside the RTO demanded Rs 3,500 to get the job processed in double-quick time.

The fact is that most people buying either new or second-hand vehicles have no clue what is required for registration or re-registration of vehicles or why it is important. Says K S Agha Mohiuddin, assistant road transport officer, Mumbai-west: "It is a name tag for your vehicle and also helps us to be prepared in case something untoward happens with your vehicle."

To re-register a vehicle, the most important documents - apart from the vehicle documents (like insurance papers, pollution under control certificate, previous tax papers) - are a no objection certificate (NOC) from the original registration authority and an NOC from the crime branch that the vehicle is not stolen property.

The RTO will not re-register the vehicle unless these two have been confirmed. Re-registration can either take place when one transfers from one state to another or from one RTO zone to another.

"For re-registration we exempt the taxes based on whatever period has lapsed and whatever has already been paid in the original state. So only the difference will have to be paid," says Mohiuddin. The processing fee is the same as for registration of new vehicles.

When a vehicle is re-registered in another state it is always liable to octroi because it has been imported from one state to another. Also, the road taxes are applicable as per the rules in the new state.

If the imported vehicle is less than 30 months old, it is also liable for excise duty as per state rules. However, if the excise duty has already been paid then the difference will be adjusted. For instance, the current excise duty is 12 per cent of value in Maharashtra, but about 10 per cent in Gujarat.

If a vehicle is imported from Gujarat into Maharashtra then the vehicle owner will have to pay the difference of 2 per cent to the RTO. This entire procedure takes about 45 days in the case of a state-to-state re-registration and about a week in case of a change in the RTO zone.

The RTO has made the process more convenient by introducing websites for every state that enable you to check the details of the procedure and requirements online. For instance, the website for Maharashtra - www.mahatransport.org - and the Karnataka state website - http://ksu.kar.nic.in/rto - allow access to data on fees, requirements and online applications.

There are also a number of unauthorised brokers outside any RTO who offer to help with the paperwork. There is, however, no fixed fee for their services. The real help these people give you is to direct you to the correct windows. You still have to collect the relevant documents and present the vehicle for inspection on your own.

By comparison, the registration of new vehicles, says Mohiuddin, is a fairly easy process. "Today we have a facility where the dealer can get it done for the buyer. But, in any case, it is always better to know what is involved so that you are not misguided," he adds.

For the registration of a new vehicle you will need the following documents. First, the buyer will be allotted a temporary registration number plate, which has to be endorsed at the RTO within 30 days.

For the endorsement, you require proof of residence which can be either a passport, driver's licence, ration card, electricity bill or telephone bill with your name and address on it, or a letter from the company that you work for validating the address of your residence. A notarised affidavit will also suffice.

You also need to have the name and address of both the dealer and the manufacturer from whom the car or two-wheeler has been purchased along with the purchase invoice. In the case of a new vehicle, the dealer has to give you a sale certificate, which confirms that the manufacturer has dispatched the vehicle to the dealer and which also quotes the vehicle's price.

The paid-up price on the certificate will include the octroi and excise duty applicable if the vehicle is manufactured outside the state you will be plying in. The dealer also has to give you a letter confirming the road worthiness of the vehicle.

You also need to submit the first year insurance papers of the vehicle at the time of registration. The processing fee involved is Rs 60 for a motorcycle and Rs 200 for a car. The cost may vary a bit depending on the make of the car but it is generally in this price range.

Apart from the octroi and the excise duty, there are also certain road taxes that one has to pay for. These costs vary from state to state. For instance, in Maharashtra, under the 1958-59 Bombay Motor Vehicle Act, one has to pay a 4 per cent tax on the total value of the vehicle in order to ply a vehicle in the municipal areas of Maharashtra.

Also, if the vehicle is being run in the rural areas of Maharashtra, no octroi will be charged since those areas are not governed by municipal corporations. The RTO taxes in Maharashtra amount to 4 per cent of the total value of a car and 7 per cent of the total value of a motorcycle. Again this tax will differ from one state to another.

ALSO READ:
More Specials
More Money Headlines