Semi Luxury Tax For 1838cc Petrol Car...

[Jayathu]

Hi everyone..

After many days of searching and pondering, I managed to get my hands on a Nissan Primera last week.. The car is in excellent condition and the previous owner has really maintained it very well.. Just a small problem though in the ownership transfer procedure.. Hope you guys can shed some light into this matter..

The YOM of the car is 97 and first reg in 2000. I got the car from the second owner who has been using it since 2001... The car is 1838CC petrol.. I came to know that I would need to provide the semi luxury tax payment receipts to get the ownership transferring done, but the previous owner mentioned that he has never had to pay the semi luxury tax.. He has been having his insurance with SL*C and says that it was never an issue in obtaining the insurance either.. I heard that, it is the responsibility of the insurance company to make sure that semi luxury tax is paid and the receipts are checked when you renew the insurance.. But this has never been the case with the previous owner..

I contacted Uni*n Assur*nce for a new comprehensive insurance cover and they informed me that the tax receipts would not be necessary to get the insurance done since the car is more than 7 years old but would need to provide them nevertheless for my personal file..

Really value your advice on what exactly is the legal background behind this.. would it be worthwhile to spend half the day at RMV just to get to know that I would still need the tax receipts or isn't it necessary for this car.. If it is necessary then I guess the late payment penalty should be paid as well..

Thanks in advance..

[ash]

Chk my reply in this earlier post for the rates...

http://forum.autolanka.com/index.php?a...=&pid=76716

Yes… Theoretically you’ll have to pay the luxury/semi-luxury taxes on the due date. Penalty for late payments is 50%.

Last time I inquired, the law on the payment of the taxes is getting tougher. Since my car payments were done on time by the previous owner, I had no issue on the insurance.

I got the insurance done on the car before this one although the taxes were not up-to-date. But anyhow I cleared all the taxes (with penalties) before I sold that.

My advice is, if possible sort out the payment with the previous owner. One day you’ll have to pay the taxes with penalties when you’re ready to sell the car in few years if the new owner requests you to pay the dues. If the deal is already finalized, wait till you sell the car in few years and if necessary pay the dues then. Since the taxes are already overdue and there won’t be any accumulation of penalties, why not pay when only required.

Anyway congrats on your new acquire. Plz post some pics.

[Optimus Prime]

We faced the same when selling our vehicle. We hadn't paid the semi-luxury tax either since we didn't know of its existence at the time. After the vehicle was sold, the new owner contacted my father regarding the payment receipts. We agreed to pay the tax for the number of years the vehicle was under our possession. However, we managed to get the penalty waved off. I think you need to go to the accounting section (1st floor) to get the tax amount calculated. My father had spoken to the personnel there and had explained that he did not receive any notice about the pending payments. He was then requested to appeal his case in writing to the Deputy Commissioner, and subsequently, got the penalty amount waved off. If you end up having to pay the tax (which shouldn't be the case IMO, because its the previous owner's responsibility) you could try and get the penalty annulled. Best of luck!

[Jayathu]

Chk my reply in this earlier post for the rates...

http://forum.autolanka.com/index.php?a...=&pid=76716

Yes… Theoretically you’ll have to pay the luxury/semi-luxury taxes on the due date. Penalty for late payments is 50%.

Last time I inquired, the law on the payment of the taxes is getting tougher. Since my car payments were done on time by the previous owner, I had no issue on the insurance.

I got the insurance done on the car before this one although the taxes were not up-to-date. But anyhow I cleared all the taxes (with penalties) before I sold that.

My advice is, if possible sort out the payment with the previous owner. One day you’ll have to pay the taxes with penalties when you’re ready to sell the car in few years if the new owner requests you to pay the dues. If the deal is already finalized, wait till you sell the car in few years and if necessary pay the dues then. Since the taxes are already overdue and there won’t be any accumulation of penalties, why not pay when only required.

Anyway congrats on your new acquire. Plz post some pics.

Thanks Ash for the clarifications.. I noted the rates you have mentioned and they amount to almost 1.2 lakhs and with the penalty it would be around 1.8 lakhs I guess..

My concern is how did the previous owner manage to escape the taxes every year... Wouldn't it be an issue when getting the revenue license and the insurance.. Is it possible that he never came across the need to pay the taxes during the 6 years that he has used..? Believe it is the responsibility of the Insurance company to make sure that we pay the tax.. anyways the previous owner promised that he will make an inquiry from SL*C about this and the need to pay the taxes.. Think it is his responsibility to settle the taxes as I can not get the transfer done until they are settled..

I guess I would have to run under the previous owner's name until the taxes are paid.. Might be an issue when applying for fuel allowances from my company..

The car was advertised on AL some time back.. Will post some pics ASAP..

[Jayathu]

We faced the same when selling our vehicle. We hadn't paid the semi-luxury tax either since we didn't know of its existence at the time. After the vehicle was sold, the new owner contacted my father regarding the payment receipts. We agreed to pay the tax for the number of years the vehicle was under our possession. However, we managed to get the penalty waved off. I think you need to go to the accounting section (1st floor) to get the tax amount calculated. My father had spoken to the personnel there and had explained that he did not receive any notice about the pending payments. He was then requested to appeal his case in writing to the Deputy Commissioner, and subsequently, got the penalty amount waved off. If you end up having to pay the tax (which shouldn't be the case IMO, because its the previous owner's responsibility) you could try and get the penalty annulled. Best of luck!

Thanks Optimus.. Looks like I have to negotiate with the previous owner about this.. Strange that the RMV does not notify all those who have to pay the tax, until we sell it and the next owner comes up to register it..

Anyway here are the pics.. She is a real beauty I should say.. Totally in love with my car.. Plan to visit A*W to get a full maintenance session..

http://img228.imageshack.us/img228/4089/dsc01919cy0.jpg

http://img150.imageshack.us/img150/6364/dsc01920mh7.jpg

http://img229.imageshack.us/img229/1423/dsc01921bb8.jpg

http://img518.imageshack.us/img518/8513/dsc01922rx5.jpg

http://img524.imageshack.us/img524/7703/dsc01923vj8.jpg

http://img262.imageshack.us/img262/4563/dsc01924je4.jpg

http://img515.imageshack.us/img515/243/dsc01925in3.jpg

http://img219.imageshack.us/img219/350/dsc01926ba4.jpg

http://img402.imageshack.us/img402/9478/dsc01927qu6.jpg

http://img100.imageshack.us/img100/7114/dsc01928iw8.jpg

http://img220.imageshack.us/img220/3312/dsc01929dd2.jpg

http://img101.imageshack.us/img101/3822/dsc01930lo2.jpg

http://img81.imageshack.us/img81/7092/dsc01931bp1.jpg

http://img402.imageshack.us/img402/9327/dsc01932zj4.jpg

[Devinda_Z]

Anyway here are the pics.. She is a real beauty I should say.. Totally in love with my car.. Plan to visit A*W to get a full maintenance session..

good idea - if the vehicle has gone into A*W before they will have a record or it..

Always best to start off with a full check - make it a point to look at fluids which are not changed often like Brake and Gear oil

A*W ought to stock most of the parts - get them to run a full diagnostic using the "Consult"

[Jayathu]

good idea - if the vehicle has gone into A*W before they will have a record or it..

Always best to start off with a full check - make it a point to look at fluids which are not changed often like Brake and Gear oil

A*W ought to stock most of the parts - get them to run a full diagnostic using the "Consult"

YES.. the maintenance records are all there.. The last session was dated somewhere last year and the engine oil change is due now.. also noted that brake oil and clutch oils are not at the full level either.. plan to get them refilled.. Have to get the brake lights fixed as well... Any idea about how much they charge for a full maintenance session..

[Edward]

Hi Guys,

Above what CC the semi luxury tax should be paid for petrol cars?

[Ruslan]

I guess my car is not included since it's 1798CC what's the CC margin for this Semi luxuary Tax??

[Devinda_Z]

YES.. the maintenance records are all there.. The last session was dated somewhere last year and the engine oil change is due now.. also noted that brake oil and clutch oils are not at the full level either.. plan to get them refilled.. Have to get the brake lights fixed as well... Any idea about how much they charge for a full maintenance session..

it might be best to have them all flushed completely and refilled if your not sure when they were last changed.

Parts and labour are very reasonable at A*W, but i'm not entirely sure how much it'll cost you as it will be dependant on what & what you choose to replace.

Basic check list will include filters,lubricants,spark plugs as well as the condition of rubber items such as suspension bushes and so on. Other items to check would be the condition of the break pads & disks for wear.

[Jayathu]

it might be best to have them all flushed completely and refilled if your not sure when they were last changed.

Parts and labour are very reasonable at A*W, but i'm not entirely sure how much it'll cost you as it will be dependant on what & what you choose to replace.

Basic check list will include filters,lubricants,spark plugs as well as the condition of rubber items such as suspension bushes and so on. Other items to check would be the condition of the break pads & disks for wear.

Yup.. I happened to glance through the maintenance record book maintained by A*W which included their checklist.. Would make sure that they they go through all the points you have mentioned as well.. Feel that the suspension might need some touch up since the ride is a bit bumpy.. might have to do with the low profile tyres, but anyway will get that checked as well.. The engine does not need many parts replacements I believe as it looks in excellent condition..

By the way, is there a good place to hunt for a side skirting since one of them is missing and the previous owner said that it is difficult to find an original one.. even an after market pair would do..

[chana]

Hey Jayathu,

Nice car you have... Congrats....!

Edited October 1, 2008 by chana

[Jayathu]

Hey Jayathu,

Nice car you have... Congrats....!

Thanks Chana.. She certainly is in superb condition..

[xXx]

Hi Guys,

Above what CC the semi luxury tax should be paid for petrol cars?

i think its 1800cc - 1999cc

[ash]

You’ll find this informative.

http://www.motortraffic.gov.lk/services.php

[Jayathu]

You’ll find this informative.

http://www.motortraffic.gov.lk/services.php

Thanks Ash, Any idea when this law came into effect??? and is it applicable for cars that were registered before this law was established?? that is a bit unreasonable.. but hey, this is Sri-Lanka. A land like no other

[Devinda_Z]

Thanks Ash, Any idea when this law came into effect??? and is it applicable for cars that were registered before this law was established?? that is a bit unreasonable.. but hey, this is Sri-Lanka. A land like no other

not too sure, but retrospective legislation isn't something limited to sunny SL

[Jayathu]

not too sure, but retrospective legislation isn't something limited to sunny SL

I really hope that this is not the case though....

[Jayathu]

not too sure, but retrospective legislation isn't something limited to sunny SL

I really hope that this is not the case though....

[isam]

Thanks Optimus.. Looks like I have to negotiate with the previous owner about this.. Strange that the RMV does not notify all those who have to pay the tax, until we sell it and the next owner comes up to register it..

Anyway here are the pics.. She is a real beauty I should say.. Totally in love with my car.. Plan to visit A*W to get a full maintenance session..

http://img228.imageshack.us/img228/4089/dsc01919cy0.jpg

http://img150.imageshack.us/img150/6364/dsc01920mh7.jpg

http://img229.imageshack.us/img229/1423/dsc01921bb8.jpg

http://img518.imageshack.us/img518/8513/dsc01922rx5.jpg

http://img524.imageshack.us/img524/7703/dsc01923vj8.jpg

http://img262.imageshack.us/img262/4563/dsc01924je4.jpg

http://img515.imageshack.us/img515/243/dsc01925in3.jpg

http://img219.imageshack.us/img219/350/dsc01926ba4.jpg

http://img402.imageshack.us/img402/9478/dsc01927qu6.jpg

http://img100.imageshack.us/img100/7114/dsc01928iw8.jpg

http://img220.imageshack.us/img220/3312/dsc01929dd2.jpg

http://img101.imageshack.us/img101/3822/dsc01930lo2.jpg

http://img81.imageshack.us/img81/7092/dsc01931bp1.jpg

http://img402.imageshack.us/img402/9327/dsc01932zj4.jpg

Congrats! she is in lovely shape!

[Jayathu]

Congrats! she is in lovely shape!

Thanks Isam.. Certainly have been enjoying great rides with her ever since I bought her.. An absolutely lovely car she is..

Anyway regarding the tax receipts, I hope that you would find a solution, cos I still have not found one myself.. The previous owner says that he never had to pay, but my sources say that this car is in the category where semi luxury taxes need to be paid.. Never checked with the RMV personally though.. Plan to go there this week (finally) and check for myself.. Hope I won't end up paying a huge tax by myself since the previous owner says that he will not pay.. (even though it is his responsibility, I have no way of legally pressurizing him)

[Devinda_Z]

Thanks Isam.. Certainly have been enjoying great rides with her ever since I bought her.. An absolutely lovely car she is..

Anyway regarding the tax receipts, I hope that you would find a solution, cos I still have not found one myself.. The previous owner says that he never had to pay, but my sources say that this car is in the category where semi luxury taxes need to be paid.. Never checked with the RMV personally though.. Plan to go there this week (finally) and check for myself.. Hope I won't end up paying a huge tax by myself since the previous owner says that he will not pay.. (even though it is his responsibility, I have no way of legally pressurizing him)

so that begs a question as to how the previous owner managed to get its revenue license each year without the tax reciepts

[Devinda_Z]

sorry browser froze - so repost

Edited December 15, 2008 by Devinda_Z

[Jayathu]

so that begs a question as to how the previous owner managed to get its revenue license each year without the tax reciepts

Exactly what I have been wondering also..

he says that he was able to get the revenue license and the insurance done each year with nobody mentioning anything about the tax.. As proof I have all the past revenue license copies and insurance copies.. (S**C full insurance). I heard that it is the responsibility of the insurance company to collect the taxes but looks like they have never bothered. When I got my insurance from U***n A*******e they said that since 7 years have already passed they do not care..

The situation is really complicated.. and hope things will settle in the fairest manner, since I do not want to pay the taxes for a period that I even did not use the car..

[Jayathu]

OK.. Here is the update after visiting the RMV. They demanded for the tax receipts (originals and copies) for all seven years. When I told them that they have never been paid and nobody has informed the previous owner about this, they asked me to talk to the Diesel Tax division (who handle semi luxury taxes also). I checked with their database and it seems they have records for the 2nd and 3rd payments. But the first payment is missing, god knows how that happened

They want me to pay the last four, the late payment fee (50%) and also the first payment which is absolutely absurd.. According to them, getting the annual revenue license is not an issue without paying the tax. But, the insurance company need to make sure that they collect the tax when the insurance is done every year. And they are the people who have discarded their responsibility. As a result they are demanding me to pay the unpaid installments plus the late payment fee which amounts to Rs. 80,000 for the last four only and goes upto Rs. 125,000 if they include the missing first payment as well.

Things look really bad and my only option now is to get hold of the previous owner and talk to his insurance agents and get a letter or something saying that the payments have been received.. Or else get him to pay the full amount...