During their 15-day long campaign, the Wadala Regional Transport Office (RTO) came down heavily on high-end cars that are registered in other states so as to evade high taxes in Maharashtra.
During their 15-day long campaign, the Wadala Regional Transport Office (RTO) came down heavily on high-end cars that are registered in other states so as to evade high taxes in Maharashtra. Taking action against 16 vehicles has earned the state around Rs2 crore.
Between March 1 and 16, a flying squad from the Wadala RTO were on a lookout for vehicles bearing registration numbers of states like Jharkhand and Chhattisgarh, said Vikas Pandkar, regional transport officer (Wadala).
The impounded cars include a Rolls Royce, Range Rover, Audi Q7, BMW 7 Series, Mercedes S Class, Mercedes C Class and even a Honda Civic. Till date, the Wadala RTO has recovered Rs1,99,85,741 as state taxes from 13 cars. It expects to earn around Rs20-30 lakh from the remaining three vehicles in their possession.
As per the Motor Vehicles Act, owners of luxury and high-end vehicles have to pay 20% of its purchase cost as tax.
Of the Rs1.99 crore collected, Rs43.67 lakh came from the owner of the Rolls Royce, while owners of the other cars paid around Rs6-10 lakh.
Explaining the modus operandi, an officer said that car dealers misguide customers by saying they are saving 20% on the cost of the vehicle. These dealers register the cars in others states and give possession to the buyer. A temporary address in some other state is given to evade tax, while only their Mumbai’s contact details are given in the permanent address column. Once registered in another state, the registration is never transferred to Mumbai to avoid paying heavy taxes.
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