Imposition of 2 % tax only if owns two vehicles during physical registration: Telangana HC

Last Updated on December 4, 2024 by Shianjany Pradhan

Background

In the given case, the petitioner paid Rs 4,31,820/- as vehicle tax, that is, 18 percent of the showroom price.

However, when it reached for registration, it was informed that he was supposed to pay an additional 2 percent as it was a second vehicle.

Arguments

It was argued by the petitioner that the first vehicle was sold off before the registration and that it is not applicable during the temporary registration.

Observation

The Telangana Motor Vehicles Taxation Act specifies that vehicles that cost over 20 lakh have to be charged 18 percent, and the second vehicle is charged 2 percent.

Justice Nagesh Bheemapaka clarified that the additional tax on the second vehicle would be applicable only if the individual owns 2 vehicles at the time of registering the new vehicle.

The HC agreed with the point and clarified that for the imposition of this tax the date of physical registration is important and not the temporary registration.

Conclusion

The Telangana HC set aside the Moosarambagh RTO’s direction that 2 percent additional tax has to be imposed on a resident’s purchase of a Mahindra XUV 700 car, by calling it to be his ‘second vehicle’