Type of Vehicle

• Road tax varies for two-wheelers, four-wheelers, and multi-axle vehicles.
  
• Private vehicles and commercial vehicles are taxed under different categories.
  
• Heavy-duty transport vehicles incur higher tax than light vehicles.
  
• Passenger vehicles and goods carriers are assessed separately.
  
• Agricultural or government vehicles may receive exemptions or lower tax.
  

Engine Capacity and Vehicle Cost

• Engine power measured in cubic centimeters influences the tax rate.
  
• Higher engine capacity generally leads to higher tax.
  
• The ex-showroom price or invoice value is used for cost-based tax calculation.
  
• Luxury and premium vehicles face elevated tax brackets.
  
• Some states apply a percentage of the vehicle’s price as road tax.
  

Purpose of Vehicle Usage

• Private use vehicles often pay one-time or lifetime tax.
  
• Commercial use vehicles have recurring tax obligations.
  
• Rental, transport, and school-use vehicles are taxed under specific categories.
  
• Special purpose vehicles like ambulances may have concessional rates.
  
• The use declared during registration determines applicable slabs.
  

Age and Ownership of the Vehicle

• New vehicles attract full tax as per state-defined slabs.
  
• Older or second-hand vehicles are taxed at depreciated value.
  
• The vehicle’s age affects tax during re-registration or transfer.
  
• Owners transferring vehicle ownership must pay tax if not already settled.
  
• The longer the vehicle has been in use, the lower the tax in many states.
  

State of Registration

• Each Indian state has different road tax structures and rates.
  
• Tax policies vary depending on infrastructure development needs.
  
• Some states allow lifetime tax while others prefer periodic payments.
  
• A vehicle moved to a new state must comply with new tax rules.
  
• Cross-state transfers may involve refunds and new tax liabilities.