Mumbai RTO Targets 132 High-End Vehicles Registered Outside Maharashtra

In a proactive measure ahead of the Dussehra festivities, the Regional Transport Offices (RTOs) in Mumbai have launched a targeted initiative against luxury vehicles registered outside Maharashtra but predominantly used within the state. This drive, which commenced recently, aims to address concerns over tax evasion, particularly among high-end vehicles registered in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.

Officials have observed a notable increase in the number of vehicles displaying registration marks from the Union Territory, especially those with the 'DD' series. The RTO has reported that the registration of vehicles peaks during the Dussehra and Diwali festive seasons, prompting this timely intervention. So far, action has been taken against 132 vehicles that are suspected of evading Maharashtra's motor vehicle tax.

The RTO's investigation revealed that some vehicle dealers may be misleading customers into registering their vehicles in states with lower tax rates. Maharashtra imposes a one-time tax ranging from 11% to 15% on private vehicles, depending on the type of fuel and the vehicle's cost. In contrast, the tax rates in Dadra and Nagar Haveli and Daman and Diu are significantly lower, with rates as low as 2.5% for vehicles costing up to Rs 10 lakh. This discrepancy has led some owners to register their vehicles in the Union Territory to minimize their tax obligations.

Under the current drive, RTO teams are diligently checking whether vehicles registered outside Maharashtra are liable for the state's motor vehicle tax. Enforcement squads have been deployed to key locations, including the Bandra-Worli Sea Link toll plaza, where inspections have taken place. During these checks, vehicle documents and owners' permanent addresses are scrutinized to determine tax liabilities. The Tardeo RTO has already issued challans for tax differences on 35 out of 65 vehicles inspected.

The transport department is urging vehicle owners and dealers to refrain from registering vehicles in other states solely to evade tax obligations in Maharashtra. The RTO emphasizes that registration in another state does not exempt a vehicle from tax liabilities in Maharashtra, as the applicable tax provisions depend on how the vehicle is utilized within the state. This initiative aims to ensure compliance and fairness in tax contributions from vehicle owners in Mumbai.