For anyone shifting their residence between states, it is a big hassle to get your vehicle transferred legally. In the scheme of things, the task of physically transferring the vehicle to the new location is the easiest step of the process!
Just to recap, the following are the steps:
1) First you need to get a NOC from the local Police Station certifying that you have no police cases pending against your vehicle.
2) Then, you need to apply for a pro-rated refund of the Road Tax already paid in the previous state.
3) Thirdly, you need to pay the required Road Tax in the new state after transferring the vehicle there.
4) Lastly, you need to re-register your vehicle in the new state and get a new local registration number.
Clearly, this is a labyrinthine process that has remained stuck in the 1980s. And as a result, people often prefer to sell their vehicles while shifting and purchase a new vehicle in the new place of residence. Or alternatively, they don’t follow the above procedures and continue to drive the car in the new state with the old registration number beyond the first year, which is illegal.
With today’s technology and interlinking of all state RTO and Police databases, it should be possible to vastly simplify this archaic procedure.
Also, it is silly to have differential Road Tax rates in different states. Such citizen-unfriendly tax laws should be repealed as part of the GST introduction and Road Tax must be made uniform across the country.
Here’s how a simplified process would look like:
1) After shifting to the new state, a person approaches the RTO and applies for formal transfer of registration.
2) New RTO approves the registration and assigns a local registration number.
3) New RTO internally notifies the local police about the new registration. Police enters this into a national Police database which will be visible to the Police in the old state as well. The old registration number will be linked to the new registration number and the new address of the owner, making it easy for the Police to track down the owner if and when required, if any cases are pending.
4) New RTO internally forwards a request to the old RTO for freezing of old registration number and for transferring pro-rated balance Road Tax to the new RTO’s account. The owner would not need to pay any additional tax or apply for refund as the rates would be uniform across India.
As can be seen above, the procedure is vastly simplified with the owner only having to approach one single office (the new RTO) and submitting a single one-time application.
Such changes are required in several Govt. departments to facilitate smoother movement across the country, which has become a part of life today in this era of globalisation.