Indore (Madhya Pradesh): Lack of information and complex process to get the refund of tax has proved costly to the vehicle owners who get their vehicles transferred to other states. The transport department owes crores of rupees in tax refund to the people who have transferred their vehicles, but many vehicle owners do not apply for a refund and in many cases the agents returned the application to people who had applied for it.
Surprisingly, the last refund of vehicle tax transferred to another state by Indore Regional Transport Office was done four years ago. The data showed that as many as 37,233 vehicle owners had taken the non-objection certificate (NOC) from Indore RTO to get their registration transferred to another state in the last five years but only one refund of tax was done.
As per the rules, “When a motor vehicle registered in one state has been kept in other states for a period exceeding twelve months the owner is required to obtain a new registration mark to be assigned by the registering authority within whose jurisdiction the vehicle then is in terms of section 47 of the Motor Vehicle Act 1988.”
Agents at RTO Indore said that many people come to take the refund but the complexity of the process and requirements of the documents like bank statement of the initial tax paid make it hard for the applicant as well as for them to process the file due to which the refund could be done.
When you apply for the new registration mark, the state authorities would demand a NOC for the original registration authority (from the earlier state). NOC is normally issued by such authority after ascertaining that all taxes/dues have been paid.
In the case of a non-transport vehicle, one-time tax for 15 years in the first instance (and 5 years thereafter) is paid in most of the states. In case of transfer to another state, the new state would demand pro-rata tax for the remainder of the one time tax period. A corresponding refund can be applied in the earlier state in the period of 60 days of getting the new registration mark.
Apply with complete application, a refund will be initiated: RTO
Regional Transport Officer Jitendra Raghuvanshi said vehicle owners can apply for a tax refund of the remaining years (out of paid tax of 15 years) on transferring vehicles to another state. Applicants will have to apply with a complete application with requisite documents, and refund would be initiated.