The Department of Transport for government of Gujarat is given the responsibility of establishing and maintaining a smooth public transport system, pollution control, vehicle registration, driving licence list, permits, road tax collection etc. This department also has the responsibility towards policy-formation, besides monitoring and regulation functions for all transport aspects for the state of Gujarat.
While this state is counted amongst the most developed across the nation. It also has a large network of roadways that spans across the state’s dimensions. The state is responsible for the collection of road taxes from owners of vehicles, across various vehicle classes like transport and non-transport for new as well as used vehicles.
A motor insurance is mandatory for every vehicle registered at Gujarat RTO as per The Motor Vehicle Act, 1988.
Like most other states, the calculation of road taxes in the state of Gujarat is influenced by various factors related to the vehicle such as:
Tax is gathered as a percentage or along a lump sum criterion that covers you throughout its operational life. Owners of vehicles need to pay road taxes when purchasing new or old vehicles.
The revenue comes as amount or fraction of the total cost of vehicle. Gujarat is endowed with one of the simplest structures for road tax in the whole country. This includes a consistent rate for each class of vehicle across various categories. There are no taxes on vehicles utility in agriculture. The same is applicable on auto rickshaws, and carriages for the invalid carriage up to 250 kilograms.
Two-Wheeler
Owners of two-wheeler vehicles have to pay tax at a flat rate of 6% of the vehicle’s cost on all newly bought vehicles and their registration in the state of Gujarat. For vehicles that are up to 8 years old, the road tax is 15% of lump sum tax. For vehicles that are older vehicles, road tax comes to around 1% of lump sum tax paid or INR100, whatever is more.
Four-Wheeler
The state of Gujarat charges a flat 6% taxation rate on new 4 wheelers purchased and registered within the state. This is only for non-transport vehicles of a private ownership only.
The road tax in Gujarat is payable at any of the RTO offices in the district, after the required form is submitted together with various other documents as needed. This entails a procedure that is simple and free of hassles. The challan or receipt of tax should be preserved for reference in the future.
What is the procedure for transferring vehicles to Gujarat
The vehicle is required to be produced compulsorily for inspection.
Documents Required
Process for car transfer from Gujarat to any other state
This varies along these factors:
Transfer of ownership will come at a small fee, it changes from one state to the other.
For instance, when changing registration from Gujarat to Maharashtra you are required to pay the road tax on the allocated criteria. When by chance you have bought the vehicle in Mumbai in the first place, you will face a lot of hassle. Since everything is considered from the previous ownership date.
What is the latest that transport department is experiencing
Motor vehicle tax revenue is reflecting 21% increment in revenue collection. Defaulters of vehicle tax need to be aware. The transport department of the state is monitoring you if you try evading vehicular taxes. With a drive in place for catching up with defaulters using smart IT systems, the department’s revenue collection has increased by INR 577.49 crore to INR 3352.51 crore. This is for until February 2018 from the initial INR 2,775.02 crore in the same time period in the previous year. This is a 21% increment.
The total tax collection until February 2018 is INR 3352.51 crore, this is higher compared to INR 2775.02 crore from the previous year. The increase has been made possible due to the rigorous enforcement and intense use of IT for tracking default in payment. The transport department is the third highest revenue gatherer for the state treasury after GST and revenue board. The tax is gathered in form of:
• Motor vehicle Revenue
• Registration Fee
• License fee
• Offences Fines and Penalty etc.
App to spot tax defaulters