The new registration system has been proposed to avoid the hassle of re-registering a vehicle when moving to another state.

Vehicles on the roadImage for representation
Money Transport Thursday, April 29, 2021 - 16:00

The Road Transport Ministry has proposed a new vehicle registration system for personal vehicles so as to avoid the hassle of re-registration when moving to another state. It has proposed that vehicles be registered under the India series, IN. 

The proposed registration facility under the IN series will be open to personal vehicles owned by defence personnel, employees of Central and state governments, public sector undertakings and private sector companies and organisations, which have their offices in five or more states/Union territories. 

Officials told the Economic Times that the registration facility is voluntary and can be used for existing and new vehicles. The pilot scheme is part of a draft notification, which seeks to enable the transfer and re-registration of such vehicles to other states in a seamless manner. 

The vehicle owners can opt for the ‘IN series’ and the road tax on such vehicles will be levied for two years or in multiples of two. Further, the entire process will be brought online so that there is no need to visit the RTOs (Road Transport Office). 

The Transport Ministry has also proposed a uniform rate of road tax of 8% for vehicles below Rs 10 lakh, 10% for vehicles between Rs 10-20 lakh, and 12% for vehicles above Rs 20 lakh. While these road tax rates will be applicable to vehicles with ‘IN series’ registration throughout the country, state governments are free to charge 2% extra for diesel vehicles, and 2% less tax from electric vehicles. 

If you are moving to a new state, the parent state where the vehicle was first registered will remain the same. The road tax will be payable in the state where the vehicle is currently in operation. 

Presently, the 15-years road tax for registering personal vehicles needs to be paid upfront. If you transfer vehicles in between to another state and go for re-registration, you need to pay the road tax again for the remaining years. Then, you are required to claim the already paid amount from the state where the vehicle was initially registered. This is a cumbersome process, and the new registration system seeks to address this problem. 

Under section 47 of the Motor Vehicles Act, 1988, a person is permitted to keep the vehicle for 12 months in any state other than the state where the vehicle was originally registered, but a new registration has to be obtained within this period of 12 months, and any violation is punishable under law. 

The proposal has been submitted to state governments for suggestions and final guidelines will be issued in due course. 

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