Road tax is charged to people in West Bengal when they purchase a two-wheeler or four-wheeler in the state. The section and act under which road tax is levied in West Bengal is Section 39 of the Motor Vehicle Act, 1988.
State charges various taxes on vehicles to earn resources for the state it is the key source of revenue for the state. When you are buying a vehicle you have to be aware of the two types of prices, the ex-showroom price and the on-road price. The on-road price always exceeds the ex-showroom price by 10%. On-road price in West Bengal (Capital City: Kolkata) is the manufacturer price along with the cost of registration and taxes due to the central and state government and the cost of vehicle insurance. The taxes charged on the vehicles in West Bengal is based on the provisions under Section 39 of the Motor Vehicle Act, 1988. This Section states the guidelines on how to calculate tax on the vehicles sold or registered in West Bengal.
How is the Road Tax Calculated in West Bengal?
Road tax in India is imposed by both the central as well as the state government. Road tax imposed is subject to the government rules, traffic regulation, etc. This is why road tax is different from state to state. When you are purchasing the vehicle, you will be charged the central excise duty, central sales tax and state VAT. The road tax is calculated on the engine capacity, seating capacity and cost price. Road tax is different for trucks, vans, cars, two wheelers, etc.