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entry tax & LBT

Discussion in 'Car Purchase Queries' started by Abhishek Paranjape, Mar 19, 2015.

  1. Abhishek Paranjape

    Abhishek Paranjape Novizio

    Messages:
    39
    Dombivli
    Avventura 1.3 90 HP
    i need help in the following scenario.
    i would be buying an Avventura Emotion from Ahmedabad via CSD.
    The dealer will hand over the car to me in ex-showroom price ( Insurance paid ).
    I will be getting the car back to Maharashtra and get it registered here - MH 05 registration.
    Now how do i pay the Entry tax ( if any ) and where do i pay it? i assume its the RTO, but want to make sure.
    Also am i liable for LBT or it is exempt for Defence personnel ?
  2. ghodlur

    ghodlur Esperto

    Messages:
    2,319
    Thane
    Entry Tax is the LBT and generally paid to the KDMC and not to RTO. For RTO you will need to pay the Lifetime road tax and registration charges. I doubt if you can take the benefit of LBT exemption since the car will be registered in your name even though purchased in CSD.

    Since you are bringing the car from out state, you will need to catch hold of a good agent (although they are banned in RTO's) which can provide you the correct information. Please ensure that you get all the necessary vehicle documents required for the registration if you are planning to do it on your own.

    Please go through this link for more details.

    http://mahatranscom.in/regnewveh.aspx
    asimpleson likes this.
  3. Abhishek Paranjape

    Abhishek Paranjape Novizio

    Messages:
    39
    Dombivli
    Avventura 1.3 90 HP
    Yes i have confirmed the Lifetime road tax which is 11% for a diesel vehicle + registration fees.
    The vehicle won't be in my name, but in the name of my Uncle who is serving in the Indian Navy. i have not been able to confirm whether LBT/Entry Tax is exempt for Defence Personnel.
  4. ghodlur

    ghodlur Esperto

    Messages:
    2,319
    Thane
    What stops you or your uncle from buying it in Mumbai CSD? Would it be more hassle free than getting it from Ahmedabad? You would anyways be driving the car from Ah'bad to Dombivli (I guess) and driving a non registered car under the pretext of defence personnel purchase is not risk free.

    Just one question - Will this be an outright purchase or through loan too? If through loan then hypothecation process also needs to be ensured.
  5. Abhishek Paranjape

    Abhishek Paranjape Novizio

    Messages:
    39
    Dombivli
    Avventura 1.3 90 HP
    Ya i will need to drive back the car to Dombivli from Ah'bad.
    Dealers back here in Mumbai/Navi-Mumbai are not giving me a proper update on CSD pricing. Balaji/Torrid Fiat people are saying that there is hardly any benefit of 20,000 rs while Ah'bad dealer has given me a proper VAT Free pricing ( Gujarat exempts complete VAT for CSD ). The Ahmedabad dealer is giving me the car with temp. registration
  6. Abhishek Paranjape

    Abhishek Paranjape Novizio

    Messages:
    39
    Dombivli
    Avventura 1.3 90 HP
    Booked An Avventura Emotion Orange.
    getting it on Monday the 6th of april.
    i would be driving it from Ahmedabad to mumbai. What should Speed/RPM should i keep as a safe limit all along this drive ?
  7. pabhishek

    pabhishek Esperto

    Messages:
    1,380
    Oslo
    Pune
    Linea T-Jet
    Congratulations @Abhishek Paranjape for the avvy!
    Just try to keep the rpm range till 2.5k for first 2k Kms.
    Please start an ownership thread once you get hold of it.
  8. Abhishek Paranjape

    Abhishek Paranjape Novizio

    Messages:
    39
    Dombivli
    Avventura 1.3 90 HP
    Thank you.
    I will keep the rpm range as suggested.
    yes definitely i will start an ownership thread.
  9. ghodlur

    ghodlur Esperto

    Messages:
    2,319
    Thane
    Congrats Abhishek on the buy. Request you to details the complete process for buying from CSD for the benefit of the fourm. Would be helpful to have an insight. Are you buying the Insurance or dealer provided? Would suggest to keep an extra set of vehicle documents along with the Insurance handy during the journey from A'bad to Dombivli.
  10. Aashish Kulkarni

    Aashish Kulkarni Timido

    Messages:
    13
    Pune
    Pune
    Fiat Enthusiast
    Entry tax- This tax is applied if you bring a vehicle from outside Maharashtra into Maharashtra. It is equal to the difference between VAT that would have been payable if you would have bought the vehicle in Maharashtra and the VAT that is already paid. As GJ VAT will be nil and I assume there will be VAT applicable in MH, you gain nothing buy buying the car from outside MH pricing. This has to be paid at Sales Tax office and involves lot of paperwork. (Many forms and going through many babus). If you go through agents, they usually charge upwards of 5k Rs as service charges.

    LBT- No LBT is payable if the car is 'imported' in LBT applicable areas by a person if it is to be used for solely own use and not for resale. So, you don't need to pay LBT (technically). However, I am sure, there will be rules already in place to plug this loophole for a new car and you would end up with big issue as RTO will not register your car unless he sees LBT payment invoice. It means you need to apply for LBT number, pay LBT and then file LBT return. This is just my understanding.

    In short, you would probably end up paying much more than what you would pay at retail price (leave aside CSD price).

    Only solution is, find out a dealer which caters to your area and get the car at whatever price he is offering. Else, loss of peace of mind guaranteed.

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