Shifting to a new state in India can be a very tiring process. While moving your belongings is not exactly easy, moving your vehicle is an entirely different ballgame.
To transfer your vehicle from one state to another, you are required to:
1) Secure a ‘No Objection Certificate’ from your former state.
2) Re-register the vehicle in your new state.
3) Be aware that road taxes are different in every state. So you must either pay the difference or get a refund from the new state—depending upon the taxation.
However, a Group of State Transport Ministers are set to make this process slightly easy and much cheaper for you.
The group of ministers (GoM) was set up by the Central Government to look after the road transport sector in India and to initiate reforms that could help the citizens.
12 transport minister associated with GoM had met in Guwahati earlier this week to discuss reforms for the inter-state transfer of vehicles. They decided that the transfer of vehicles and driving licenses from one state to another should not be a worrying process, but must be made easy through online procedures.
They also discussed how to make this transfer cheaper for the common man.
If all the state governments accept the proposal of the GoM, you may not have to pay any road tax for the transfer of your vehicle from one state to another.
Taking into consideration the number of people that move to different cities in India, and taking cognisance of the possible misuse of this scheme, the GoM has set a few conditions for this scheme to be applicable.
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Firstly, this exemption of road tax will only apply to those vehicles that are more than two years old. The second condition is that the tax difference between the state from where you are shifting and the state you are shifting to has to be less than 2%. If either of these conditions is met, you will be exempt from paying the road tax.
This system will work through two central online databases—Vahan 4 and Sarathi 4. Created by the National Informatics Centre (NIC), these databases will have to be updated by the respective state governments. The former will contain the vehicle registration details, and the latter will delete the existing registration number or licence before a new one is issued, after application.
(Edited by Gayatri Mishra)