Taxation Authority and Legal Framework

• Road tax on two-wheelers is levied by individual state governments under their respective Motor Vehicles Taxation Acts.
  
• The power to impose and collect tax is granted by the Constitution under the State List.
  
• Each state defines its own slab rates, payment structure, and renewal rules for two-wheelers.
  
• The tax must be paid at the time of registration and is a prerequisite for legal road use.
  
• It is enforced through the respective Regional Transport Offices (RTOs).
  

Factors Affecting Tax Amount

• Tax is calculated based on the ex-showroom price, engine capacity, or vehicle weight.
  
• It varies depending on whether the two-wheeler is used for private or commercial purposes.
  
• Emission standards, vehicle age, and location within the state may influence the rate.
  
• Higher engine capacity typically attracts a higher tax rate.
  
• Tax slabs are periodically updated by state transport departments.
  

Payment Methods and Duration

• States offer either a lifetime tax for two-wheelers or periodic options such as annual payment.
  
• Lifetime tax is generally valid for a fixed duration from the date of registration.
  
• Payment can be made online or through the RTO at the time of registration.
  
• For second-hand vehicles, tax may be reassessed at the time of ownership transfer.
  
• Proof of payment must be retained for future compliance and verification.
  

Enforcement and Penalties

• Using a two-wheeler without paying road tax is considered a violation of motor vehicle laws.
  
• Non-payment results in fines, interest, or seizure of the vehicle in some cases.
  
• RTOs may impose penalties based on the delay duration and outstanding amount.
  
• Renewal, permit issuance, or ownership transfer may be blocked due to unpaid tax.
  
• Enforcement is supported through physical verification and digital systems.
  

Policy Considerations and Concessions

• Some states may offer rebates or exemptions for electric two-wheelers.
  
• Tax policies are reviewed to promote fuel efficiency, safety, and environmental goals.
  
• State authorities may announce special tax waivers or amnesty schemes.
  
• Concessions may be applicable for specific categories such as the disabled or government staff.
  
• All changes are implemented through official notifications by transport departments.