State Transport Departments

• Road tax collection is managed by the Transport Department of each state.
  
• These departments operate under the administrative control of the state government.
  
• They have the authority to implement, amend, and enforce road tax rules.
  
• Each department manages its own budget, collection targets, and compliance system.
  
• Policy decisions and rate changes are issued through official state notifications.
  

Regional Transport Offices (RTOs)

• RTOs function as the operational units for road tax collection.
  
• They handle all tax-related transactions during vehicle registration and renewal.
  
• RTOs maintain tax records for individual vehicles and fleets.
  
• They also monitor non-compliance and initiate penalty actions.
  
• Every district typically has one or more RTOs under the state’s transport authority.
  

Motor Vehicles Department (where applicable)

• In some states, a Motor Vehicles Department specifically oversees RTO functions.
  
• This department ensures uniform implementation of vehicle and tax laws.
  
• It acts as a regulatory body for vehicle administration and taxation.
  
• Coordination between this department and the Transport Department ensures efficient tax management.
  
• Not all states have a separate department by this name.
  

Finance and Treasury Coordination

• State finance departments receive the road tax collections into the treasury.
  
• The transport department coordinates with treasury officials for fund deposit.
  
• Budgetary allocations for road infrastructure draw from these tax revenues.
  
• Treasury data helps in auditing and tracking tax performance.
  
• Financial monitoring ensures transparency and proper utilization.
  

Legal Oversight under the Motor Vehicles Act

• The Motor Vehicles Act, 1988 governs the legal framework for tax collection.
  
• It provides guidelines on rates, enforcement, and penalties.
  
• State governments exercise powers under this Act to define their own tax slabs.
  
• Legal interpretations and changes are made through state legislature or gazette notifications.
  

Courts may also intervene in case of disputes over taxation policies.