One doesn’t have to re-register a vehicle if it is relocating from one city to another within the same state. However, one must apply for re-registration of the vehicle if moving from one state to another. The owner can run, say, a Maharashtra-registered car in Tamil Nadu for twelve months without having to re-register. But, the process of re-registration must be initiated within those twelve months to avoid any penalties. And why do we need to re-register our cars or bikes? That’s courtesy of varied road taxes amongst states.
The Current Process
It is a tedious and painful one. A passenger vehicle user has to take the following steps to withdraw the registration from the parent state and apply for a new one in another:
- Procure a No Objection Certificate from the parent state’s transport department.
- Get a new registration number after paying road tax, on a pro-rata basis, in the new state.
- Apply for a refund (also calculated on a pro-rata basis) of road tax paid in the parent state.
Those steps might seem straightforward, but even the Ministry of Road Transport & Highways (MoRTH) concedes that:
The provision to get a refund from the parent State on a pro-rata basis is a very cumbersome process.
The Proposed Process
As a pilot run, MoRTH proposes to assign registration numbers starting with ‘IN’. This facility of vehicle registration will be available to Defence personnel, Central Government, State Governments, Central/State PSUs and private sector companies/organisations, which have their offices in five or more states/union territories. The motor vehicle tax will be calculated for two years or in multiple of two. The ministry says that this process will allow free movement of personal vehicles from one state to another. There won’t be any requirement for re-registration.
MoRTH is currently asking for suggestions from the relevant stakeholders. This process will continue for thirty days before the final draft is formed. What do you think about the proposed approach?
What's your reaction?
