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A Guide to Vahan Tax in Sikkim

Updated on December 23, 2024 , 4189 views

Sikkim is a state situated in the northern part of India. The road length of Sikkim is about 7,450 km recorded in 2016. When it comes to road tax, it is applicable to every vehicle purchased within the states. The tax is collected and used for the betterment of roads and infrastructure. A recent study shows that Sikkim levies the lowest tax compared to other states. The state government constructs about 70-80% of the roads in the state. It recovers the cost by applying different Taxes to different vehicles.

Calculation of Road Tax

Guidelines for determining the road tax in the state is under the provisions of Sikkim Motor Vehicles Taxation Act of 1982. This act was revised over the years by Sikkim’s Legislative Assembly. The vehicle owners registered in the state or even out of the state will have to pay the determined tax. Factors used to calculate the tax are - vehicle age, seating capacity, weight, price, model, engine capacity, the purpose of use and in some cases type of fuel too.

Road Tax on Two-wheelers

The Vahan tax for a two-wheeler is determined by the engine capacity of the vehicle.

The below table shows the tax rates for two-wheelers which are used privately and not for commercial purpose.

Description of the Two-wheeler	Tax Rate
The capacity of the engine not more than 80 CC	Rs. 100
The capacity of the engine between 80 CC to 170 CC	Rs. 200
The capacity of the engine between 170 CC to 250 CC	Rs. 300
The capacity of the engine more than 250 CC	Rs. 400

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Tax for Commercial Vehicles

Road tax rates for vehicles used for commercial purposes is mentioned in the table below-

Description of the Vehicle	Tax Rates
The capacity of the engine not more than 900 CC	Rs. 1000
The capacity of the engine between 900 CC to 1490 CC	Rs. 1200
The capacity of the engine between 1490 cc to 2000 CC	Rs. 2500
The capacity of the engine more than 2000 CC	Rs. 3000

Tax for Omnibuses

Omnibuses registered in the state and used for non-transport purposes will have to pay Rs 1,750. For educational institute transport purposes an addition of Rs 188 for each additional seat.

Tax for Transport Vehicles

Description of the Vehicle	Tax Rates
Maxi vehicles for each seat	Rs. 230
Other vehicles used as Maxi (per seat)	Rs. 125
Vehicles weighing not more than 500 kg	Rs. 871
Vehicles weighing between 500 kg to 2000 kg	Rs. 871 and additional Rs. 99 for every 250 kg added
Vehicles weighing between 2000 to 4000 kg	Rs. 1465 and additional Rs. 125 for every 250 kg added
Vehicles weighing between 4000 to 8000 kg	Rs. 2451 and additional Rs. 73 for every 250 kg added
Vehicles weighing more than 8000 kg	Rs. 3241 and additional Rs. 99 for every 250 kg added

Payment of Road Tax in Sikkim

Vahan tax can be paid at the Regional Transport Office (RTO). Payment can be made by cheque or cash as per your preference. Owners can also pay the tax online by logging in to the website of the Commercial Taxes Division of Sikkim government. Owners will receive an acknowledgement of payment by the RTO.

Tax Exemption

If the owner wants to dismantle the vehicle, and if it is used for less than 15 years, then they will have to cancel the registration of the vehicle by heading to the RTO where the vehicle was initially registered. In case of transfer of registration from one location to another, owners can opt for a refund from RTO (where the vehicle was initially registered).

FAQs

1. Who has to pay road tax in Sikkim?

A: Anyone who owns a vehicle and uses it to ply on the roads and highways in Sikkim has to pay road tax.

2. Is the road tax calculated based on the age of the vehicle?

A: Yes, the road tax in Sikkim is calculated based on the age of the vehicle. Owners of vehicles that are not older than fifteen years and want to dismantle their respective vehicles will not have to pay road tax.

3. How does the road tax in Sikkim compare to other states?

A: Compared to other states, Sikkim has the lowest road tax.

4. How can I pay road tax in Sikkim?

A: You can pay road tax in Sikkim by visiting the Regional Transport Office or through the online mode. You can make the payment through cash or by cheque.

5. Is there a separate road tax for commercial vehicles in Sikkim?

A: Yes, there is a separate calculation of road tax for commercial vehicles in Sikkim. Owners of commercial vehicles have to pay higher taxes compared to domestic vehicles. Additionally, the engine capacity, seating capacity, and weight of the vehicle will also be considered while calculating the commercial vehicle road tax.

6. How often do I have to pay road tax in Sikkim?

A: In Sikkim, you can pay road tax once, and it is applicable for the lifetime of the vehicle unless the ownership changes. If the ownership changes, then road tax has to be paid by the new owner.

7. Can I pay road tax in Sikkim through online mode?

A: Yes, you can pay the tax via online mode. You can simply log on to the Commercial Taxes Division of the Sikkim government website.

8. Does a vehicle need to be registered to pay road tax in Sikkim?

A: Yes, you will need to register the vehicle first before you can pay road tax in Sikkim. While paying road tax, you will have to show the registration certificate, route permits, driving license, fitness certificate of the vehicle, and other such documents to pay road tax.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.