Levy and Collection of Road Tax

• State Transport Departments are authorized to levy and collect road tax under their respective Motor Vehicles Taxation Acts.
  
• They determine the tax rates, slabs, and payment structure for various categories of vehicles.
  
• The department ensures that every vehicle registered in the state pays the required tax before being used on public roads.
  
• Road tax collected contributes directly to state revenue for road infrastructure and transport services.
  
• They may offer options for lifetime, annual, or quarterly tax payments based on vehicle type.
  

Policy Implementation and Notification

• The department issues official circulars and orders announcing new tax rates, exemptions, or revisions.
  
• It implements central government mandates such as those relating to emission norms and electric vehicle incentives.
  
• Policy decisions like tax concessions or penalty waivers are communicated and enforced by the department.
  
• Any change in vehicle classification or usage (e.g., private to commercial) is processed under their supervision.
  
• The department coordinates with finance and transport authorities for tax-related decisions.
  

Verification and Compliance Enforcement

• It monitors compliance by conducting road checks and vehicle inspections.
  
• Officers verify whether road tax is paid and valid for the duration of vehicle use.
  
• Vehicles with unpaid tax are subject to fines, seizure, or suspension of registration.
  
• The department maintains tax records and updates them with each payment or refund.
  
• It may initiate legal action against repeat defaulters or fraudulent declarations.
  

Processing of Refunds and Corrections

• The department handles refund applications in cases of vehicle relocation, scrappage, or double payment.
  
• It verifies documents, calculates eligible refund amounts, and issues approvals.
  
• Corrections in tax receipts or vehicle records are made upon valid request and review.
  
• Appeal mechanisms are provided for disputed tax assessments or overpayments.
  
• Delays or administrative lapses in processing are addressed through internal review channels.
  

Inter-State Coordination and Data Management

• State departments coordinate with other states for vehicle transfers and tax settlements.
  
• They ensure tax records are updated when a vehicle moves out or enters the state jurisdiction.
  
• Road tax databases are maintained to support enforcement, re-registration, and compliance tracking.
  
• The department supports integration of data across vehicle registration, permit, fitness, and tax records.
  
• It also plays a key role in modernizing tax systems and supporting digital recordkeeping.