State-wise Autonomy

• Road tax in India is governed by state governments, not centrally regulated.
  
• Each state has the power to frame its own road tax rules under the Motor Vehicles Act.
  
• The tax rates and methods of calculation vary from one state to another.
  
• State-level economic policies influence the road tax structure.
  
• There is no uniform nationwide road tax system in place.
  

Variation in Tax Rates

• Some states charge a fixed amount while others apply a percentage of vehicle cost.
  
• High-value and luxury vehicles face steeper rates in certain states.
  
• States like Karnataka and Maharashtra follow percentage-based systems.
  
• Others like Delhi apply slab rates based on engine size.
  
• Rates may differ significantly even for similar vehicle models.
  

Difference in Payment Mode

• States offer different payment frequencies like one-time, annual, or quarterly.
  
• Private vehicles often pay lifetime tax in states such as Tamil Nadu.
  
• Commercial vehicles may have monthly or annual payment schedules.
  
• Some states allow online payment while others still use offline systems.
  
• Renewal requirements also differ from state to state.
  

Benefits and Exemptions

• Exemptions are granted differently across states for electric or special vehicles.
  
• Some states offer rebates for environmentally friendly vehicles.
  
• Government or public service vehicles may receive exemptions.
  
• States may reduce tax for vehicles relocated within a certain timeframe.
  
• Not all states follow the same rules for refunds or NOC-based transfers.
  

Administrative Process

• The procedure for tax payment and documentation differs state-wise.
  
• Documents required, forms used, and processing times are not uniform.
  
• RTO systems and compliance enforcement vary among states.
  
• Transfers of ownership across states require fresh registration and tax payment.
  

Rules for tax refund claims are specific to the state of origin.