State Government Responsibility

• Road tax in India is collected by the respective state governments.
  
• It is administered under the provisions of the Motor Vehicles Act, 1988.
  
• Each state has the authority to decide tax rates and collection methods.
  
• The tax revenue goes into the state’s treasury, not the central fund.
  
• State laws and transport policies determine the collection framework.
  

Role of Regional Transport Offices (RTOs)

• Regional Transport Offices act as the primary collection agencies.
  
• RTOs process vehicle registration and road tax payment.
  
• They maintain records of all registered vehicles and payments.
  
• Receipts and certificates are issued by RTOs after tax is paid.
  
• They are also responsible for monitoring compliance and penalties.
  

Collection at Time of Registration

• Road tax is collected during initial registration of the vehicle.
  
• It is usually paid along with registration and other statutory fees.
  
• The payment must be made at the RTO of the registering district.
  
• The tax becomes effective from the date of registration approval.
  
• Non-payment results in denial of registration services.
  

Collection During Renewals or Transfers

• RTOs also collect tax during ownership transfers and re-registrations.
  
• Renewal tax applies after the expiry of the initial registration period.
  
• Commercial vehicle owners must pay recurring tax to RTOs.
  
• Vehicles transferred across states must pay tax in the new location.
  
• Valid tax records are needed for transfer approvals.
  

Use of Online and Offline Channels

• States offer both offline counters and online portals for tax collection.
  
• RTOs accept payments via banks, government counters, or digital systems.
  
• Verification of vehicle details is mandatory before payment.
  
• Online systems generate tax invoices and payment proofs.
  

Digitalization has made the collection process faster and more transparent.