Applicable to Certain Vehicle Categories Yes, road tax can vary based on seating capacity, especially for commercial vehicles. Buses, vans, maxi cabs, and other transport vehicles are commonly taxed per seat. Passenger-carrying vehicles used for business purposes are...
Road Tax is Linked to Vehicle, Not Owner Road tax in India is not transferrable from one person to another as a separate component. It is paid against the vehicle registration, not the individual owner. When a vehicle is sold, the road tax remains valid with that...
Possible Reasons for Rejection Mismatch between vehicle details and jurisdiction of the RTO. Incorrect or incomplete documentation submitted during payment. Payment made to the wrong RTO office or portal. Errors in online transaction or receipt validation failure....
Jurisdiction-Based Payment Rule Road tax must generally be paid at the RTO where the vehicle is being registered. Each RTO operates within a defined geographic area or district. The vehicle owner is required to pay tax at the RTO that matches their residential or...
No Uniform Central Rate Structure There are no central guidelines prescribing fixed road tax rates for all states. Road tax is governed individually by each state under the powers granted by the Constitution. The Central Government does not regulate or cap...
Constitutional Authority for Road Tax Road tax is imposed under the authority granted by the Constitution of India. Article 246 read with the Seventh Schedule allocates taxation powers to the Union and States. Road tax falls under the State List (Entry 57) which...
Categorization as Transport Vehicles School buses are classified as transport vehicles under Indian motor laws. They fall under the commercial vehicle category for taxation purposes. Road tax is applicable even if the bus is privately owned but used for school...
Role of Regional Transport Offices (RTOs) RTOs are responsible for verifying road tax payments at the time of registration. They maintain a database of all vehicles, tax amounts, and payment dates. Road tax records are checked when issuing or renewing registration...
Cost-Based Tax Calculation In many Indian states, road tax is calculated as a percentage of the vehicle’s cost. The ex-showroom price or invoice value is commonly used as the base. Higher-priced vehicles attract proportionately higher tax amounts. This model ensures...
Basis of Engine Capacity Classification Engine capacity, measured in cubic centimeters (cc), is a primary factor in determining road tax rates. Vehicles are categorized into tax slabs based on predefined cc ranges. Higher engine capacity is generally associated with...