FD asked for easy method to calculate Token Tax
Nishikant Khajuria
JAMMU, Mar 2: Renewal of the registration of old vehicles continue to remain on hold notwithstanding the Finance Department’s much awaited clarification, which only added more confusion on the fee applicable for the same.
Official sources told the Excelsior that the clarification regarding levying of the Token Tax on old vehicles for renewal of their registration after 15 years, has further confused the Regional Transport authorities, which have failed to understand its classified language and the method of calculating the tax.
After remaining unsuccessful to understand this highly confusing clarification, the Transport authorities are now learnt to have sought fresh clarification on the clarification from the Finance Department, which had earlier taken more than six months to issue the same.
The much awaited clarification was issued last month by the Finance Department after Excelsior had exclusively highlighted how tens of thousands of people were suffering as the Transport authorities in J&K put on hold renewal of the registration of old vehicles due to lack of clarity on fee applicable for the same.
According to the clarification: “For vehicles involving life extension beyond 15 years, written down value method shall be adopted to work out the residual value of the vehicles at the end of their registration period as prescribed in the relevant Act/ Regulation for ascertaining the token tax payable at the time of registration of such vehicle. With regard to average Consumer Price Index (CPI) inflation as the discounting factor, subject to the condition that the registration of old vehicles shall take into account directions, if any, of NGT/CPCB/ SPCB before authorizing registration of old vehicles in J&K in respect of non-attainment cities in respect of air pollution.”
However, instead of clearing confusion on the Token tax payable at the renewal of registration, the much awaited clarification only puzzled the Regional Transport authorities, which remained grappled with its wording for trying to understand the method of calculating the fee/tax.
As no one in the Transport Department could understand the classified language of the clarification, sources said that the Transport Department has once again approach the Finance Department seeking some easy method to calculate the Token Tax for old vehicles or simply consider the value of old vehicles as per value mentioned in its latest insurance.
Pertinent to mention that tens of thousands of people are suffering as the Transport authorities in Jammu and Kashmir Union Territory have put on hold renewal of the registration of old vehicles due to lack of clarity on fee applicable for the same. Even after more than six months since the issuance of Government SRO on Token Tax for registration of new vehicles, till date there is no clarity on fee applicable for renewal of registration of the vehicles, which are older than 15 years.
More than one lakh applications for different category of vehicles have piled up across the Regional Transport Authorities in Union Territory of J&K and the number is increasing with the passage of time. While the aggrieved people are running from pillar to post for ascertaining the fate of their vehicle’s registration, the Transport Authorities are in a fix because of no clarity on the same.
Before the issuance of new SRO, the motor vehicles were being given registration for initial 15 years against the payment of one time token fee of Rs 8700 for the vehicles upto 1300 CC capacity and Rs 22800 for the vehicles above 1300 CC. After 15 years, the registration of old vehicles used to be renewed for next five years against the payment of Rs 3000 and then for three and two years.
Last year, the Principal Secretary Transport Department, Government of Jammu and Kashmir, issued SRO 392, dated August 1, 2019, according to which nine percent of sale value of the motor vehicle has been applied as One Time Token Tax for registration of all the newly purchased vehicles in J&K. However, the SRO is silent on the fee applicable for the renewable of registration of the vehicles, which are 15 years old.
After the matter was brought into the notice of the Administrative Department, the issue was taken up with the Finance Department to work out the fee for renewable of registration. Though it is not such a big issue but the Department of Finance took months to issue clarification, which was too confusing to understand by the Regional Transport authorities thus further prolonging the delay for RC renewal of old vehicles.
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