Consider a luxury petrol SUV priced at Rs 2 crore. Maharashtra's one-time motor vehicle tax for private petrol cars is capped at Rs 20 lakh, while the rate cited by RTO officials for petrol cars costing more than Rs 10 lakh in Dadra and Nagar Haveli and Daman and Diu is 3%.
On that illustrative calculation, the tax in Diu and Daman would be Rs 6 lakh, compared with Rs 20 lakh in Maharashtra, creating a potential difference of Rs 14 lakh. The calculation explains the financial incentive behind the alleged registration arrangement; it is not the confirmed amount evaded on any particular vehicle. Maharashtra's official tax schedule sets out the state's rates and maximum tax.
