rto tax
Querist :
Anonymous
(Querist) 30 December 2009
This query is : Resolved
Hi,
my client is finance co.my client is vehicle finance co.hirer take loan from co.said vehicle on hp is our co,party ready pay installment regularly,then hirer has sold that vehicle to third party,after hirer gone to usa,third party not pay loan amount.co seized that vehicle,third party pay lumsum amount to co. co.has relesed that vehicle to third party,he not pay RTO tax, RTO give notice to finance co.pay RTO tax,who is responsibility for RTO tax, co.and hirer or third party ?
A V Vishal
(Expert) 30 December 2009
As per the prevalent sections Motor vehicle Act, every vehicle owner has to pay road tax at the time of registration of his vehicle and thereafter as per rule formed there under. Since the company has extended the loan under Hire Purchase to the purchaser, the ownership in the property vests with the finance company until the HP instalments are completed, hence the company has to bear the road tax. Further this tax can be debited to the loan account of the purchaser and recovered subsequently.
Sachin Bhatia
(Expert) 15 January 2010
agree with the above experts
Sajjan B G
(Expert) 31 March 2013
I agree with Vishal
prabhakar singh
(Expert) 31 March 2013
Mr. A V Vishal has stated correct position of law on topic to which i too agree.
