The amount of tax charged can depend on a lot of factors that can range from the price of the vehicle to the age and even include the seating and engine capacity of the vehicle. Other than this, the factors that are considered can also be the purpose of the vehicle and the place that it was manufactured. For example, if the vehicle is manufactured in India then the cost of the vehicle will include the price announced by the manufacturer and any other central or state government cess and taxes applicable (excise duty,sales tax, entry tax, etc).
Tax on 2 Wheelers:
The tax charged on 2 wheelers is dependent on the cost of the vehicle and the age. As per these guidelines the taxes collected can be:
| Vehicle category | Life Time Tax Applicable |
| New vehicle that costs less than Rs. 50,000 | 10% of the cost of the vehicles |
| New vehicles that cost more than Rs. 50,000 | 12% of the cost of the vehicles |
| Vehicles that run on electricity | 4% of the cost of the vehicles |
| Vehicles that are less than 5 years old | 73% to 93% as per clause A |
| Vehicles that are 5 years to 10 years old | 49% to 69% as per clause A |
| Vehicles that are 10 to 15 years old | 45% to 25% as per clause A |
Tax on 4 Wheelers:
The tax on 4 wheeler can depend on the use of the vehicle and its classification too. The vehicles we can consider for this segment can include cars and jeeps, vehicles commonly bought for personal use, that have a floor area of up to 5 sq mt.
| Vehicle Category | Life time Tax applicable |
| New vehicle that costs less than Rs. 5 lakhs | 13% of the cost of the vehicles |
| New vehicles that cost Rs. 5 lakhs to Rs. 10 lakhs | 14% of the cost of the vehicles |
| New vehicles that cost Rs. 10 lakhs to Rs. 20 lakhs | 17% of the cost of the vehicles |
| New vehicles that cost more than Rs. 20 lakhs | 18% of the cost of the vehicles |
| Vehicles that run on electricity | 4% of the cost of the vehicles |
| Vehicles that are less than 5 years old | 75% to 93% as per clause A |
| Vehicles that are 5 years to 10 years old | 49% to 69% as per clause A |
| Vehicles that are 10 to 15 years old | 45% to 25% as per clause A |
