300 times more tax on second-hand vehicles
Thinking of buying a second-hand vehicle? Well, think again, as you might end up paying more than the price of the vehicle in tax to transfer the ownership.punjab Updated: Nov 24, 2012 14:41 IST
Thinking of buying a second-hand vehicle? Well, think again, as you might end up paying more than the price of the vehicle in tax to transfer the ownership.
The Punjab government has increased the transfer-of-ownership tax by up to 300%. Effective from Friday, the November 6 notification was received here earlier this week.
Signed by HPS Mahal, secretary in the state department of legal affairs, the discreet move means that to shift the ownership of a two-wheeler, the tax has gone up to Rs 2,500, from the earlier Rs 30.
For three-wheelers, it goes up from Rs 150, straight into five figures at Rs 10,000. And if you want to shift the ownership of a car or jeep, the fee now is 30,000 - no less than 300 times the previous tax of Rs 100!
For six-wheelers like trucks and buses, the fee is now half-a-lakh, up from Rs 300.
As for vehicles that have more wheels than six, the tax is now Rs 75,000. This category would, however, also include tractors other than the 'agricultural tractors' as defined in the Central Motor Vehicle Rules 1989. Tax for agricultural tractors has been set at Rs 5,000.
However, no additional tax would be levied in case of transfer of ownership owing to death, or transfer to insurance company for settlement of claim.
Ludhiana district transport officer (DTO) Manpreet Singh Chhatwal said he had received the notification, and would comply with the orders from Friday.
As for vehicles on which the lump sum tax was not payable earlier, the tax would be computed by reducing the transfer-of-ownership charges by 5% per financial year, for up to 10 years from the date of registration. As such, the lump sum tax must not exceed Rs 75,000 after 10 years.
What you will now pay to govt for transfer of ownership of vehicles:
Vehicle type Earlier Now
Scooters, bikes R30 R2,500
3-wheelers R150 R10,000
Cars, jeeps R100 R30,000
6-wheel trucks, buses R300 R50,000