1. What is Motor Vehicle Tax in India?

Motor vehicle tax in India is levied by state governments and includes various components like excise duty and GST. The tax amount varies based on vehicle type, price, and state regulations.

2. How is Vehicle Tax Calculated?

The calculator uses the following formula:

Where:

• \( Vehicle\ Price \) — Ex-showroom price of the vehicle
• \( Freight \) — Transportation charges
• \( Excise\ Duty \) — Percentage as per vehicle type
• \( GST \) — Currently 28% for most vehicles

3. Components of Vehicle Tax

Details: The total tax includes:

• Excise Duty: Varies by vehicle type (12-27%)
• GST: Standard 28% for most vehicles plus applicable cess
• Road Tax: Varies by state (not included in this calculation)
• Registration Fee: Varies by state

4. Using the Calculator

Tips: Enter the ex-showroom price, freight charges, excise duty percentage, and GST percentage (default 28%). The calculator will compute the total tax and final amount payable.

5. Frequently Asked Questions (FAQ)

Q1: Why is GST 28% for vehicles?
A: In India, most vehicles fall under the 28% GST slab as they are considered luxury items, with additional cess for certain categories.

Q2: Does this include road tax?
A: No, road tax varies by state and is calculated separately. This calculator only computes central taxes (excise and GST).

Q3: How accurate is this calculator?
A: It provides an estimate of central taxes. For exact amounts, consult your RTO as state taxes and fees may apply.

Q4: Are electric vehicles taxed differently?
A: Yes, EVs have lower GST rates (5%) and may have different excise duties.

Q5: What's included in freight charges?
A: Freight includes transportation costs from manufacturer to dealership, typically 1-3% of vehicle price.