Registered car outside city to evade tax? Get ready to pay up | mumbai | Hindustan Times
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Registered car outside city to evade tax? Get ready to pay up

If you live in Mumbai but own a car registered outside the city, then get ready to pay 4.5% octroi duty to the Brihanmumbai Municipal Corporation (BMC). Failure to do so may result in your car being seized and auctioned.

mumbai Updated: May 19, 2012 01:36 IST
Alok Deshpande

If you live in Mumbai but own a car registered outside the city, then get ready to pay 4.5% octroi duty to the Brihanmumbai Municipal Corporation (BMC). Failure to do so may result in your car being seized and auctioned.

The civic body wants city residents, who own vehicles with registration numbers other than MH-01, MH-02 and MH-03, to pay 4.5% of the total cost of the car as octroi duty, if they haven’t paid it so far. The cost of a car is Rs10,000 to Rs20,000 less if registered outside the city.

“Every car which gets registered in the city’s RTOs pays octroi duty. It has become a common practice to purchase a car from Mumbai and to get it registered with RTOs in Thane or Vashi as it is cheaper,” said a civic official.

Rajiv Jalota, additional municipal commissioner, project, said people buying new cars would need to be careful. “If they don’t pay the octroi, then they will be fined 10% of the car’s cost. They may even face criminal case,” he said, adding that buyers of second-hand cars will also have to pay the amount if the original owner has not done so.

Civic officials said they were hoping residents would come forward to pay the dues and is expecting to collect around Rs10 crore. “We will observe the response for the first 15-20 days,” said an officer.

Few years ago, the civic body had undertaken a similar drive wherein each society had been asked to send a list of cars with its number to the ward office. The BMC had collected around Rs. 3.25 crore in the drive.