General Applicability of Road Tax

• Yes, road tax is applicable on leased vehicles in India.
  
• It must be paid before the vehicle is registered and allowed on public roads.
  
• The tax obligation applies regardless of whether the vehicle is leased or purchased outright.
  
• The lease arrangement does not exempt the vehicle from tax liability.
  
• Registration and road tax must be completed before delivery to the lessee.
  

Responsibility for Payment

• The responsibility for paying road tax usually lies with the lessor (leasing company).
  
• In some cases, the lessee may bear the cost as per the lease agreement terms.
  
• The party named in the Registration Certificate is legally accountable for tax payment.
  
• Fleet lease companies often pay tax upfront and include it in the lease cost.
  
• Clear terms should be stated in the contract to avoid disputes.
  

Payment at Registration

• Road tax is paid at the time of initial vehicle registration.
  
• It is generally a one-time payment for a fixed period, commonly 15 years.
  
• Commercial leased vehicles may attract recurring tax as per usage rules.
  
• Payment must be made at the Regional Transport Office of the registration state.
  
• The tax rate is calculated based on vehicle cost, type, and state policies.
  

Re-registration and Interstate Transfers

• If a leased vehicle is relocated to another state, fresh road tax must be paid.
  
• The original tax may be eligible for a refund, depending on state laws.
  
• A No Objection Certificate is required from the lessor and the RTO.
  
• The new lessee or leaseholder must complete re-registration formalities.
  
• Updated tax documents are required for continued legal operation.
  

Leased Vehicle Documentation

• Lease agreement and lessor’s authorization are needed for RTO processes.
  
• Identity proof of lessee and lessor must be submitted.
  
• Tax receipts must be preserved for record and compliance.
  
• Renewal of road tax may be needed upon lease extension or ownership transfer.
  

Road tax must be up to date to avoid fines, seizure, or registration suspension.