Jammu: The Transport Department Wednesday issued a clarification regarding levying of the road/token tax on old vehicles.
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.
“In case of vehicles below 15 years of age in whose case part token tax stands realized at pre revised rates, the token tax shall be calculated at revised rate on the value so arrived at as per the method at the time the instalment of token tax has become due and the instalment so worked out shall remain fixed for the remaining period of registration maximum up to 15 years inclusive of the earlier period for which the Road/ token tax has been paid at pre-revised rate,” states the order.
Similarly, vehicles involving body fabrication shall be registered only after body fabrication and sum total of cost of the chassis plus GST thereon and cost of body fabrication plus GST are taken together for levying of road tax, the order said.