Telangana RTA Cracks Down on Out-of-State Vehicles: 14% Tax, Heavy Penalties Announced
Telangana RTA seizes 60+ vehicles in a major drive against tax evasion. Learn about 14% border tax, penalties, and compliance rules for out-of-state cars.
Hyderabad: The Telangana Road Transport Authority (RTA) has intensified its crackdown on vehicles registered in other states but operating illegally within Telangana.
Over 60 cars, bikes, and commercial vehicles were seized in recent raids across Hyderabad, Ranga Reddy, and Medchal, as authorities tighten enforcement of tax compliance and registration rules.
Table of Contents
Key Highlights of the Crackdown
- 14% Lifetime Tax Mandatory: Vehicles entering Telangana from other states must pay a one-time tax of 14% of their purchase price. For example, a ₹9 crore car from Mumbai incurs ₹1.26 crore tax.
- Monthly Penalties Up to 2%: Delayed payments attract penalties of 1% (voluntary compliance) or 2% (if caught in inspections) monthly on the vehicle’s invoice value.
- Hyderabad Hotspots Targeted: Special teams are scrutinizing corporate hubs and residential areas where employees use out-of-state vehicles long-term.
Telangana’s Rules for Out-of-State Vehicles
- Border Tax Requirement:
- Vehicles used in Telangana for over 12 months must re-register and pay the 14% lifetime tax.
- After 2 years in another state, Telangana’s tax applies immediately.
- Penalties for Non-Compliance:
- Voluntary payment: 1% penalty/month.
- RTA-detected evasion: 2% penalty/month + possible seizure.
- No Telangana Registration Without Clearance:
- Unpaid taxes block local registration. Vehicles remain impounded until dues are cleared.
Strict Warning from Transport Officials
Joint Transport Commissioner C. Ramesh stated: “We are deploying checkposts and AI-powered surveillance to identify tax evaders. Owners of unauthorized vehicles involved in accidents will face criminal charges.”
Addressing Public Queries (FAQs)
Q: Can I drive my Maharashtra-registered car in Hyderabad without an NOC?
- A: No. Beyond 12 months, a No-Objection Certificate (NOC) from the home state and Telangana re-registration is mandatory.
Q: Is there a border tax for cars entering Telangana?
- A: Yes. The 14% lifetime tax applies upon re-registration, not at physical borders.
Q: Where can I find Telangana Motor Vehicle Rules?
- A: Download the Telangana Motor Vehicle Rules PDF from the state transport department’s official website.
Q: Are outside vehicles banned in Telangana?
- A: No, but they must comply with tax rules within 12 months of entry.
Vehicle owners are urged to clear pending taxes immediately to avoid penalties. Telangana RTA’s updated guidelines emphasize adherence to curb illegal operations and ensure road safety.
- Check tax liabilities using the Telangana RTA’s online portal.
- Clear dues before penalties escalate.
- Secure NOC from the home state RTO if staying long-term.
Stay updated on Telangana’s transport laws to avoid fines and ensure smooth travel.
