Non-KA registered vehicles

Life Time Tax or LTT

Rame Gowda

transport commissioner

WHAT HAPPENS WHEN A NON-KA VEHICLE IS STOPPED?

RTO officials

Karnataka Motor Vehicles Taxation act

DL/vehicle document

Transport dept will have a hawkeye system to net non-LTT-paying outstate vehicles(vehicles registered outside Karnataka) plying within the state by flouting the tax () norm will no longer have an escape route. The state transport department will soon have a centralised monitoring system which will integrate all interstate toll gates, which are entry/exit points, to keep tabs on them.Bengaluru alone is estimated to have close to a lakh defaulting vehicles; so the new system facilitates instantly alerting by flashing details of such vehicles that are found to be plying on the roads within the state even a month after the vehicle has entered the state.Senior officials of the transport department said the new system would completely plug loopholes pertaining to the LTT issue wherein owners register vehicles outside Karnataka to save on taxes and then bring them into the state to ply them without paying LTT, which amounts to 18 per cent of the vehicle sale amount.The new centralised system will supplement the department's ongoing drive as it was found difficult for the transport department officials to prove the stay period of non-KA registered vehicles beyond 30 days, which is the criterion to demand payment of LTT.“We are shortly coming up with the complete fool-proof system wherein the vehicle owner or driver can’t give excuses, the most common being that they entered the state just a day or a week ago and would leave in a day or two,”told Bangalore Mirror.The new system is expected to effectively check the huge relative revenue loss incurred by the state due to vehicle owners buying and registering the vehicle in other states and then entering the state with out-state-registered vehicles although the owner is domiciled in Karnataka. They continue plying such vehicles well beyond the 30-day period.“The department will soon have a centralised service/monitoring system. In this system all the interstate toll gate entry/exit points will be integrated into a single platform. Here, the details of a vehicle entering the state will be entered first. So will the vehicle exit/entry details. If entry and exit details of non-KA vehicles doesn’t match the specified 30-day limit the system flashes details of such vehicles. There will be neither an excuse nor an escape as the evidence will be right there,” Rame Gowda explained.Logistics of the new system are being worked out and the system will be put in place soon, senior officials of the department said, adding that the aim was to find a scientific solution to the rising number of non-state-registered vehicles plying within the state.“As per a survey we have carried out, Bengaluru city alone has over a lakh of such vehicles playing on the city roads. The survey is on across the state.These vehicles are being brought under the scanner on a routine basis through extensive drives. While the status of existing vehicles is being checked there will be a scientific method once the centralized system is in place to check vehicles coming afresh. The system will avoid stopping and checking for records as only defaulting vehicles will be pointed out, served a notice and asked to pay up,” Narendra Holkar, joint commissioner, transport department told Bangalore Mirror.Letting the defaulting vehicles stay beyond 30 days flouting norms, will not only affect revenue loss but would also amount to dereliction of duty as the courts and the CAG’s (comptroller & auditor general) office may take a serious view on the revenue losses, the officials added while refuting charges of harassment to non-KA vehicle owners.“Allegations that our officers are harassing no-KA registered vehicles are wrong. Our officials only ask owners of such vehicles to pay LTT if they are found within the state beyond 30 days.“Even that will be refunded when they return. In case of any inconvenience to such LTT payers, they can directly call me. We are only trying to implement the existing laws. Not acting would end up with serious remarks by the CAG as it causes a huge loss to the state revenue. Not acting despite a violation would further amount to dereliction of duty. That is why we are carrying out the ongoing drives,” Rame Gowda added.However, department insiders say that although the system sounds technologically good the manpower to monitor the system could pose a big challenge. “We are working with close to just fifty per cent of strength. Deputing department personnel at every toll to monitor vehicles would also be a challenge as at present we are working with staff slightly above 40 per cent. It will be fruitful if the process is completely automated using details at toll gates as at most toll gates, vehicle registration numbers are entered manually or through photographing,” a senior officer told Bangalore Mirror.Once the LTT is paid, such vehicle which migrate or move out of Karnataka to any other state, the LTT paid will be refunded by the state transport department on production of proof from their counterpart on transfer of the vehicle from Karnataka to other state.Thedemand owner/driver to produce the vehicle registration (which has the original address of the owner), other vehicle documents, and the tax paid receipts under section 3 of, 1957. Then the officials seek details of the owner/driver. If they find documents indicating an overstay (beyond 30 days) the owner will be asked to pay LTT based on different slabs as specified under the Karnataka Motor Vehicles Taxation act, with respect to cost of the vehicle as per the purchase invoice issued either by the manufacturer or by Motor Vehicles Taxation 661 dealer of the vehicle including the excise duty, sales tax, surcharge or cess, entry tax etc., as payable in the state of Karnataka. The LTT is assessed as per the slab specified in the act. In case of absence of an invoice, the cost of same make of the vehicle registered in state (with RTO) in the same year of the vehicle under scanner is considered standard price and LTT is assessed based on the vehicle’s age considering depreciation.In case of violation, transport officials seize original documents includingand issues notice to pay LTT within 7 days. Documents are released on producing LTT receipt.If the vehicle or owner/driver doesn’t have originals, the vehicle is confiscated under the Karnataka Motor Vehicles Taxation act and released on payment of LTT.Non-adherence to the transport department notice will lead to initiation of auction process after thirty days during which notices are issued to the owner as per the act.