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On the purchase of a new vehicle, you are required, by law, to pay road tax that contributes to the registration charges of the vehicle. You are required to pay road tax on the basis of the state where you purchase the said vehicle. You can pay your road tax both online and offline. In the case of the former, you can visit the Parivahan website and make the payment. For the latter, visit the nearest RTO in your vicinity.

Who levies Road Tax and why is it State Level?

The road tax for a vehicle is levied by the government of the state in which you choose to register the said vehicle.

 

One of the primary reasons why road tax is collected at the state level has to do with the fact that the state government is the entity responsible for developing and maintaining roads and other road infrastructure.

 

And the collection of road tax by state governments is a way through which they can raise funds for their road infrastructure development and maintenance activities.

When to Pay Road Tax?

The payment of road tax for a vehicle must be done at the time of vehicle registration itself at an Regional Transport Office (RTO). Usually, the dealer of your vehicle collects the requisite amount from you and makes the payment of road tax online or offline on your behalf.

 

Also, since this tax is collected at the state level, you will be required to pay road tax online once again if you choose to move your vehicle from one state to another.

How to Pay Road Tax Online in India

Making the payment of RTO tax online is the easiest and the most hassle-free way to do it. All that you would have to do to accomplish this is follow the below-mentioned steps.

 

  1. Firstly, visit the Parivahan website.

  2. Hover your cursor over the ‘Online Services’ tab and click on the ‘Vehicle Related Services’ option.

  3. Select the state in which your vehicle is registered.

  4. You will be redirected to a new state-specific webpage.

  5. Choose the Regional Transport Office applicable to you and proceed to log into your account.

  6. Enter all the relevant details such as your vehicle’s registration number.

  7. Verify the details you’ve entered and make the vehicle tax online payment.

How to Pay Road Tax Offline in India

Alternatively, if you’re apprehensive about making vahan tax online payment, then don’t worry. You can choose to pay road tax through offline means as well. Let’s take a brief look at the process flow that you would have to follow.

 

  1. Visit the Regional Transport Office where your vehicle has been registered.

  2. Fill the parivahan tax form and make the payment at the cash counter.

  3. Collect the road tax payment receipt.

Documents Needed for Road Tax Payment in India

When paying your road tax through the offline method, you may be asked to submit a few documents at the Regional Transport Office. Check out this list of documents down below.

 

  • The Registration Certificate of your vehicle

  • The vehicle insurance policy

  • The purchase invoice of your vehicle

  • A copy of your identity proof

  • A copy of your address proof

  • In the case of inter-state transfers, a copy of the No-Objection Certificate (NOC) provided by the RTO of the previous state

How to Get a Road Tax Refund in India?

Did you know that you can get a road tax refund? Under two circumstances, you can get road tax refunds from the Regional Transport Office. Let’s take a quick look at both of the scenarios.

 

1. When you discard your vehicle

 

If you choose to discard your vehicle, you can claim a road tax refund from the RTO where your vehicle is registered. However, to do this, you should scrap your vehicle before the expiry of its Registration Certificate (RC), which is valid for 15 years.

 

To claim a road tax refund, all you need to do is visit your RTO and raise a refund claim by submitting the appropriate documents.

 

2. When you move from one state to another

 

Alternatively, if you’re moving from one state to another, you can also make a claim for road tax refund. The request has to be lodged with the RTO of the state from where you’re transferring out of.

Documents Required When Claiming a Road Tax Refund

At the time of claiming a road tax refund, you will be required to submit a few documents with the RTO. Here’s the list of documents that you might have to produce.

 

  • A letter requesting the refund of road tax

  • Registration Certificate of your vehicle

  • Chassis imprint of your vehicle

  • Pollution Under Control (PUC) certificate

  • Vehicle insurance policy

  • No-Objection Certificate from the current RTO

  • Original road tax payment receipt

  • Proof of inter-state transfer and relocation

  • Duly filled RTO Form 16 and DT

  • CRTI intimation (in the case of the state of Karnataka)

Penalty for Not Paying Road Tax in India

Failure to make road tax payment online can lead to unnecessary and unavoidable penalties. In the case of repeated offences, there will be an increase in the penalties as well. Let’s take a closer look.

 

  • In the case of a first-ever offence, the penalty would be the amount of road tax payable for two quarters.

  • In the case of consecutive offences, the penalty would not be less than or equal to the road tax payable for a year. Depending on the circumstances, the penalty can be extended to up to twice the yearly tax amount.

Wrapping it up

As you can see, payment of road tax on time is very important since lapses can lead to severe penalties and unnecessary legal troubles. However, to make road tax payment, you will have to possess a valid vehicle insurance plan.

 

Without producing an active vehicle insurance policy, you will not be allowed to make road tax payments. So, make sure to first purchase or renew your insurance plan before proceeding with the tax payment.

 

If you’re confused as to the kind of vehicle insurance plan that’s perfect for you, visit the Bajaj Markets website right away. You can make a detailed comparison between multiple insurance plans and choose the one that fits your needs.  

FAQs on Road Tax in India

Should I mandatorily pay road tax online?

 No. While paying road tax online is the easiest way, it is not mandatory. You can also choose to make offline payments as well.  

What will happen if I don’t pay road tax?

 Failing to make road tax payments on time can lead to severe penalties, especially in the case of multiple consecutive offences.  

What is the road tax payment that you make used for?

 The road tax that you pay is used by state governments to develop and maintain road infrastructure and safety.  

When should I make the Vahan road tax payment?

 Ideally, you should make the road tax payment at the time of purchase of your vehicle itself. Also, if you’re planning to shift states, you will have to pay road tax once again in the state to which you’re shifting to.

Does the road tax for a vehicle vary from one place to another?

 Yes. The road tax rates vary from one state to another. Therefore, different states will levy different amounts of tax.  

Is the rate of tax the same for personal and commercial vehicles?

No, the road tax applicable to vehicles used for personal purposes varies from the rate applicable for commercial vehicles. The rate for commercial vehicles is normally higher. 

Why do we have to pay tolls in India?

Toll revenue is used to fund road building and maintenance. As a result, the toll tax is used to fund the expenses of newly constructed toll roads. It also has to pay for the upkeep of the toll roads. The toll fee is not the same as the regular road tax that car owners must pay to the RTO.

In India, which state has the highest road tax?

If you drive in Karnataka, you are one of India's largest road tax payers.

What would be the road tax liability on a bike that costs Rs.4 Lakhs after 15 years of registration?

After 15 years, owners of a bike valued between Rs.3 Lakhs and Rs.15 Lakhs will be required to pay Rs.7000 in road tax every five years. If the price of the concerned two-wheeler is more than this range, the obligation will be larger, and vice versa.   

Is it possible to get a road tax refund if you pay it even though your vehicle isn't registered in the new state?

No, the vehicle must be registered in the new state or the old registration must be revoked in order to qualify for a road tax refund.

Is it possible to apply for a road tax refund online?

No, the only way to get a road tax refund is to go to the RTO office and submit the necessary documentation.

Which vehicles are exempt from road tax?

Solar-powered vehicles or vehicles that run on electricity are exempt from road tax. 

In the case of subsequent registrations and re-registrations, do vehicles have to pay road tax again?

 Yes. All vehicles will have to pay road tax again in the case of subsequent registrations and re-registrations. However, it is usually just a percentage of the road tax paid on first registration.

In India, why do we have to pay tolls?

Toll revenue is used to fund road building and maintenance. As a result, the toll tax is used to fund the expenses of newly constructed toll roads. It also has to pay for the upkeep of the toll roads. The toll fee is not the same as the regular road tax that car owners must pay to the RTO.

What happens if I fail to pay road tax on time?

 If you’re found to have not paid road tax for your vehicle, you may be liable for a penalty of up to two quarters’ worth of road tax applicable for your vehicle.  

How can you pay road tax when moving to a different state?

Firstly, you'll need to get a NOC from the previous state's RTO office and submit it along with the additional documents to the RTO office of the state you are moving to. Then you need to register your vehicle and pay the road tax according to the state taxation norms.

How is a car's tax calculated?

Find the total sales tax charge for the city to compute the sales tax on your car. 7.25 percent is the bare minimum.

Do I get any returns from paying road tax?

Yes. You can apply for the RTO road tax refund. 

What if I paid excess tax?

You can request a refund through an application form from the taxation authority. 

Will I have to pay road tax again if I sell my vehicle to someone in another state?

Yes, if the car is sold to a person in another state, the buyer will be required to pay the state's road tax in order to operate the vehicle in that state.

Is it possible to pay the road tax without the vehicle's invoice?

Yes, road tax can be paid without the car's invoice by producing other vehicle documents such as the RC book, PUC, and so on.

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