cars registered in other states such as Maharashtra and Haryana, the government loses R 5-6 crore per month.

Spend a few crores in a luxury car is not exactly a hole in your pocket, but by paying a road tax on this vehicle can be a bit difficult for those who drive a Mercedes, Audi, BMW, Nissan and Ahmedabad. To dodge the tax detectives, most luxury car owners are behind plates Chandigarh, Maharashtra and Haryana

The Gujarat government says nothing to lose between R 5 and R 6 million rupees a month road tax in Gujarat.

The Department of Transportation has already prevailed in the 200-odd vehicles in the past two months and has collected nearly Rs 20 crore tax of owners, “said JP Gupta, Commissioner of Transportation.

Granted the State Government had lost taxes due to out-of-state vehicle registration, Gupta said: “The tax structure in Gujarat, could change. It ‘s really is under consideration. But in the meantime, we have discussions with the Centre for the Development of uniform tax structure of other states. Places like Chandigarh rate is very low. ”

Consideration of tax to the state, however, seems to be a property that reducing taxes on luxury vehicles are not likely to go down too well with the opposition party. A former distributor of Mercedes cars in Ahmedabad said that car dealers have been high-end approach to state government seeks a review of tax rates for some time now.

“Although the state government does not want to lose revenue to other states, must be careful not to reduce the luxury tax to arrest political opponents,” said a request for confidentiality.

Gujarat imposes 12.5 percent value added tax (VAT) on all vehicles with an additional 2.5 percent up grant. Add to this the Regional Transport Office (RTO) charges road tax at a rate of 12 per cent of vehicle price for all units built cars are registered in the name of individuals, and 24 percent when He is registered to a company. Tax RTO, but it is weak in the case of completely knocked down units at a rate of six per cent and 12 per cent, respectively. This is much higher than some neighboring countries like Haryana, which brings together eight per cent road tax for vehicles over Rs 20 lakh and the Punjab, which includes two per cent road tax on the price of the vehicle. Even the neighboring state of Maharashtra charges 20 percent of tolls on vehicles imported or CBU.

Chandigarh is now considering revising the taxation of vehicles by introducing three tax slabs, Gupta said.

Guruprasad Mohapatra, the commissioner of commercial tax on the issue of Gujarat, as some of the neighboring states pay toll rates fixed, regardless of the value of the car, the benefit of the buyer. He added, however, that the size of the collections of the Government of automobiles increased by 55.5 per cent last financial year 2010-11. State Tax Department collected taxes worth Rs 2,301.5 crore from all passenger cars with passenger cars, commercial vehicles and two-wheelers, where VR 1480 crore in 2009-10.

Point sources in the State Department on the service tax if it is an old trick to evade taxes, the situation has taken today by volume.

Gujarat is one of the fastest growing states in the form of sales of luxury cars. Nearly 100 high-end vehicles sold each month in Ahmedabad and its environs alone.

“Most of these cars are sold between Rs 20 lakh and Rs 80 lakh. Some imported vehicles also cost in the range of millions of rupees a year. With an RTO of 24 per cent tax, it costs Rs 24 lakh as fee for a vehicle of Rs 1 crore. This is a major obstacle to the sale of luxury vehicles to the state in the long run and will have an impact on our business, “said Samir Mistry Audi dealer in Ahmedabad.

Another luxury car salesman said: “The buyers have now decided to register the car in Chandigarh or the address of Haryana. While local merchants are those who have given their cars, and sales from their budgets , technically the car belongs to someone with out-of-state address. ”

Tax officials believe most of these addresses are fictitious and had taken action against some retailers located in cities have recently erupted in the bottom of things.

As the standoff between tax authorities and buyers of luxury cars still some chose to withdraw from RTO in court. In a case of road tax evasion possible, had a bench of the Gujarat High Court issued a Rs 77 lakh Porsche in February, said that § 46 of the Act provides that motor vehicle when the vehicle is registered in a state, it should not be placed in another.

The RTO has seized vehicles belonging to Liverpool Retail India Ltd, as used in Ahmedabad, but was registered in Chandigarh.

The division bench of High Court decided that the motor vehicles Act § 47 provides that when the vehicle is registered in one and keep another state, which is more than 12 months, the owner of the vehicle registration authorities shall apply state the task of the new registration.

Until this happens, the vehicle can be seized for tax evasion.

While distributors are based on the recent ruling, they admit that the tax structure should be revised shortly to ensure a healthy growth rate for luxury cars in the state.