No entry tax – Karnataka – Sensible judgement.

Wah. I was waiting for this stupidity to end. Thank God for a sensible judge who overruled it. Karnataka forces people to pay entry tax (and it is as steep as 12% for cars/scooters/…) whenever you buy a vehicle outside the state and bring it in. It was the main reason, why I sold my WagonR in Noida, came to Bangalore, and then bought my new car. Add to the woes, the road tax in KA is probably the highest in the country too.

…road tax in the state is supposed to be the country’s highest. Road tax on cars below Rs 5 lakh is roughly around 10.8%, and from above Rs 5 lakh it varies between 13.75% and 17.5%. The tax in New Delhi is 4% and in Kerala it’s 6%. —source

Phew, and now a sensible judge has overruled this. I particularly like the wordings that were used. Beautiful.

Justice Kumar observed that the makers of the Constitution had favoured free movement and exchange of goods throughout India, which is necessary for the economy and for improving living standards of the country. In his 200-page judgment, he noted that Article 301 emphasises that the economic unity of the country would provide the main sustaining force for stability and progress of the political and cultural unity of the country. Justice Kumar pointed out that in the present context of globalisation, privatisation and free economy, the national boundaries and barriers should be sidelined for the benefit of economic development of the world, “If a state’s economy should be prosperous, because of the tax holidays and lower tax rates, it only shows a mature political leadership vibrant tax planning and marshalling resources available in the state. It is worthy of emulation by other states by free flow of trade and commerce from such a state to neighbouring states.”

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30 Responses to No entry tax – Karnataka – Sensible judgement.

  1. satyask says:

    Hi!
    This is a sort of all encompassing comment.
    Nice Blog, though I do get the feeling I have been here before.
    I like the casual style of your writing, the topics you pick, the pictures and of course the tips. I am going to get out of your blog.. now, I have some planned work.., but I’ll come back for a romp again sometime.
    Satya

  2. satyask says:

    I am very curious about your choice of words why “honoured”?
    I left a comment for Amitabh Bacchan and he said that, I left a comment for Kiran Munral and she said that.
    Please do shed light on that word.
    Satya

    • gcmouli says:

      Merriam-Webster’s gives ‘privelege’ as one of the meanings for honor. And I am truly privileged, for visitors like you to my blog. People visit my blog, and I track the views-per-day everyday, but people like you, who give nice words about the blog, and comment sensibly, are the reason, why we bloggers continue writing post after post.

      • satyask says:

        Thank you. I think that good comments thanking the author are almost the only payment the blogger-author receives. Stats, Link-backs and Translates are also nice, when we get them! Sometimes regular visitors become friends and that is a wonderful reward too!
        Satya

  3. Bala says:

    Hi Mouli,

    I read this news in TOI but am confused. I am planning to bring my vehicle bought from Kerala three months back. So what does this judgement mean to me? How much will I have to pay now?
    Is entry tax and road tax same?

    Bala

    • gcmouli says:

      You should check with the RTO concerned ; since I am not an authority in these things. But from what I understand,
      * road tax and entry tax is not same. entry tax was one absurd tax only in KA, which one had to pay if you want to bring in a vehicle bought in another state.
      * road tax – if you paid lifetime road tax in a different state, theoretically, you do not need to pay it anywhere else. But in KA, the police harass you to pay lifetime tax again here – they urge you to ask for refund in the other state (which in my opinion is absurd). I hope, some judgement happens for this also 🙂

      • Bala says:

        Thanks Mouli

      • Pankaj says:

        This is the query most of the people would be having. Also, is there a method by which this “absurd” road tax gets calculated. Andhra pradesh also charges this road tax that i paid for my car. there it was claulcted as per the age of the car and the cc value.

  4. rkonagu says:

    hello gcmouli

    the court has said.no need to pay the entry tax its means the road tax itself.we dont need to ant thing if we bring any vehicles from any other states..these entry tax and road tax are sme

  5. rkonagu says:

    i bring my bike from keala here.so i enquired abt the tax.so i got the inf that i have to pay 12 % of vehicles invoice as raod tax.so it wil be around 5850 for me.that rule has been removed now

  6. Krishna says:

    Nope. Everything is getting confused here. Entry tax is not road tax. Road tax is for using your vehicle on the KA roads. Imagine you pay 3000 Rs road Tax for your bike in Kerala which goes to the kerala govt. And now you ride your bike in KA where the local govt spends money to lay these roads. You are actually not helping the state in providing you the service ( forget the condition of roads in reality) because your money is in kerala and your bike on KA roads.
    Also, imagine from now on everyone in KA buys vehicles from other states.Then who pays for the roads ? if no one pays, the govt doesnt have money to lay good roads nor repair old ones. What happens next ?

    Entry tax is different. If you read the full article in the newspaper, they also refered to toyota being benifitted. How can a car manufacturer be benifitted by abolishing the road tax ? the ones who should be benifitted are the people who buy the vehicles.

  7. Thanks for the info, I have never purchased a vehicle in my life so far. 🙂

    In future, this info will be useful for me

  8. Arun says:

    Hello Mouli. Thanks for sharing the same. I came to Bangalore around 2 yrs ago. I have a AP state registered bike, which is roughly 6 yrs old. I was actually planning to pay the road tax in KA. Does this rule mean that I dont have to pay the road-tax I was planning to? I tried looking for the source of the news in TOI, could not locate any. Please share.. Thanks a million!

  9. baljit says:

    guys;

    entry tax on cars is to paid only if your car is less than 15 months old when you brought the car from other state to karnatka. I paid 8000 for my santro. entry tax has nothing to do with road tax. Entry tax is collected by department which handles octroi/VAT etc. however RTO has instructions that if the vechicle is less than 15 months old..first send the person to pay entry tax then ..only you will be allowed to pay road tax & change the registration number.

    Now this article ask about refund of entry tax..anybody knows how that is going to be implemented?

  10. Shawn Fernandes says:

    Dead friends,

    Hi, i am a student in Bangalore and i had got my Karizma from Goa 2 years ago . Till date i have not paid my road tax but i am planning to pay it this time soon. So far i have been fined say roughly 600 rs by various cops during various occasions due to non payment of the road tax.

    I would be in Bangalore for another year and i would like to know whether the road tax in now exempted by some new rule which has been implied. My friend wold me he read in the paper that it would be in 2 months from now.

    Is this genuine news can anyone post me a link to this new’s page….

    Help would be greatly appreciated…

    Thanks for your help..

    Shawn Fernandes

  11. Mayank says:

    The article can be accessed on epaper.timesofindia.com website for Bangalore edition of date 25th July 2009.

    Article appeared on the first page of newspaper of that day.

  12. Pramod says:

    Yes Entry Tax and Road Tax are two different things. The honorable HC verdict of July 2009 have quashed the entry tax only. Entry tax is the tax you pay for a vehicle bought outside Karnataka. Meaning, for example an imported car, or a brand which has no showrooms in karnataka etc. These vehicles you bought in another state and brought into Karnataka. At this time time you had to pay an entry tax. Road tax is the tax you need to pay the government to use karnataka roads. But a recent verdict of Karnataka HC has quashed that rule too. That was what I heard and am still searching for it to confirm whether it is true or not.

  13. Chinnappa says:

    I bought a Baleno 2005 model car in nov 2008 from kerala. I was using the car in bangalore without paying Road Tax in KA. Recently RTO caught me and made me to caugh a whopping Rs.77650. ( Rs 60,000 Road tax 13% of invoice Rs 573000- 81%) Rs 6650 cess and 11000 penalty. My advice is never ever venture into bring a vehicle to KA (except a stolen one).It wont make any sense any form.

    Chinnappa

  14. Sam says:

    Hello Sir,

    I bought my alto to bangalore from Kerala with Kerala registration and life time road tax paid. I was caught by the RTO and they asked me to pay the karnataka road tax to drive here. Since I am a frequest traveller with my business in Kerela. I come to Bangalore for a day or two in a month and go back. Now RTO has taken my vehicle documents and are not giving it to me …They state that I have to pay it or they are going to seize the vehicle. Please advice how do I resolve this issue. Its was a very heart breaking that the cops behave in such a way in Karnataka.

    Regards- Sam

  15. Vibin says:

    Hi Sam,

    You can drive the car in any other state for the first 3 months without paying tax. But if you plan to drive it for more time, better to pay the tax. In this case, if you can show the proof – the fuel bill, emission certificate -etc from Kerala through which if you can prove that you reached in Bangalore recently, which may help you.

    Regards,
    Vibin

  16. Karthick says:

    I there any change in the entry tax of tourist buses?

  17. mahesh thamban says:

    Lets initiate a joint public interest complaint to the honorable high court of Karnataka to get a judgement and control over the other state vehicles where we have paid the Tax.
    Also the complaint should highlight the harassment and attitude towards other states vehicles by the corps.

  18. Girji says:

    Now the Karnataka RTO / Police started noting the number and entering into central system using blackberry.

    If they entered your vehicle number multiple times within a span of period ( Eg : 5 entries over a period

    of 3 months with 10 days gap between each entry), then they will take your original RC book or the car.

    Your car will be given back only if u pay the full tax tax ( around 73k ).

    They wont leave even if you tell them that u came here few days back or you were travelling from and to

    It is a clear evidance that your car is running through karnataka road over these period !!!

    http://www.deccanchronicle.com/channels/cities/bengaluru/non-state-vehicles-now-under-watch-173

  19. pranav says:

    can i bring my bike and ride it in bangalore without paying road tax… i will b going back to delhi after three three months…

    wat should i do????? plz help me as soon as possible (asap)…

  20. sukriti guha says:

    Can someone please provide the citation of the judgment? Also, has the Hon’ble HC passed any judgement for non requirement of road tax for vehicles bought outside karnataka?

  21. Girish says:

    Just want to know the amount of road tax for a TN regisitered Maruti 800 2000 model

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    but after looking at some of the posts I realized
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