Road Tax is Non-Transferable

• Road tax is generally not transferred to the new owner directly.
  
• It is paid to the state government for the vehicle’s use on public roads.
  
• The tax remains associated with the vehicle and not with the owner.
  
• If already paid for the full period, the buyer need not repay.
  
• The new owner becomes liable for any future dues after the transfer.
  

Responsibility of the Seller

• The seller should provide original road tax payment proof to the buyer.
  
• Any unpaid tax prior to sale must be cleared by the seller.
  
• It is the seller’s duty to notify the RTO about the ownership change.
  
• The seller should collect a copy of the tax receipt for record.
  
• Miscommunication about pending tax may cause legal issues later.
  

Requirements for the Buyer

• The buyer must ensure the road tax has been paid in full.
  
• A new tax may be required if transferring the vehicle to another state.
  
• Proof of tax payment is necessary for re-registration and fitness.
  
• The buyer should obtain a No Objection Certificate from the previous RTO.
  
• Transfer documents like Form 29 and Form 30 must include tax status.
  

Interstate Vehicle Transfers

• Road tax paid in one state does not carry forward to another state.
  
• The new owner must pay road tax as per the new state’s rules.
  
• Refund of previous tax must be applied for by the original owner.
  
• A fresh registration number is issued after tax payment.
  
• The buyer bears the cost of the new road tax obligation.
  

Refund of Road Tax

• Sellers can claim a pro-rata road tax refund if the vehicle is sold interstate.
  
• Refund is granted only after cancellation of registration in the original state.
  
• The buyer must first pay tax in the new state to complete the process.
  
• Refunds are not automatic and require application with supporting documents.
  
• Each state has its own timeline and procedure for refund approval.