A number of factors determine the road tax imposed on a vehicle in Gujarat. Taxes are imposed on all types of vehicles. The amount paid as road tax varies based on the type of vehicle, its age and engine capacity as well as its purpose.
Gujarat, counted among the most developed states in India, boasts of a well-connected network of roadways spread across the length and breadth of the state. The state collects road taxes from all vehicle owners and across classes of vehicles such as transport or non-transport vehicles or new or old vehicles. The Transport Department, Gujarat (Capital City: Gandhinagar - Popular City: Ahmedabad) is the authority that levies and collects road taxes on behalf of the state government.
How to calculate Gujarat Road Tax?
Road tax in Gujarat is affected by a multitude of factors such as type, capacity, age of a vehicle etc. Taxes are collected on a lump sum basis which will keep your vehicle covered through its operating life. Vehicle owners are required to pay road taxes when buying a new or used vehicle in all cases.
The taxes may be applicable as an amount or a percentage of total cost of vehicle. Gujarat has one of the simplest road tax structures in the country which stipulates a flat rate for a class of vehicle across all categories. Taxes are exempt on tractors used for agricultural purpose, auto rickshaws, and invalid carriage uw weight up to 250 kgs.
Tax on 2 Wheelers
2 wheeler vehicle owners need to pay a flat rate tax of 6% of cost of vehicle on all new vehicle purchase and registration in the state.
For resold vehicles up to 8 years old, road tax is charged at 15% of lump sum tax paid. For older vehicles, road tax is levied at 1% of lump sum tax paid or Rs.100, whichever is more.
Tax on 4 Wheelers
Gujarat levies a flat rate tax of 6% of cost of vehicle on new 4 wheelers bought and registered in the state. This rate is applicable on private non-transport vehicles only.
How to pay Road Tax in Gujarat?
Road taxes in Gujarat can be paid by going to any of the district RTO offices and submitting the requisite forms along with any other documents as required. The process is simple and can be done without too many hassles. The tax receipt or challan should be kept with you for future reference.