Packers and Movers Moving Guide

Important Points You Should Remember about Octroi Tax

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So, you are all set to move to a new destination with the best packers and movers in your city? You may have entered into an agreement with them after taking into the consideration their services, cost, etc, right? However, the main question that crops out here is have your home shifting service providers told you about the Octroi Tax? If not, then after going through this guide, you can get in-depth information about the tax.

What is Octroi Tax?

Octroi is a kind of charge or tax, which is collected by the state government on those goods that have been bought into the city/state for the purpose of personal use and sale. The charges on the items are generally levied after on the weight, value and total number of goods. The percentage of tax usually varies from state to state and city to city.

States Where Octroi Tax is Charged

Currently, there are two states in India, Maharashtra and Gujarat which levy this kind of tax. However, for many people, who do not know that the new state government in Maharashtra is considering abolishing Octroi and introducing a new tax system called Goods and Services Tax (GST). The government is of the opinion that with the abolition of Octroi, it will put an end to the corruption and harassment faced by the traders. Furthermore, GST will be purely an online service, which means that the application and collection of tax will be undertaken online. It will be a paperless system, which will save time and money.

Well, let’s us wait and watch, when the government will quash the decade old cash collection system of Octroi. At present, you have to pay this tax, if you are planning to relocate to Maharashtra or Gujarat. 

Goods on Which Octroi Tax is Charged

There are various kinds of goods on which Octroi tax is levied. Some of them are listed below:

1.    Food grains

2.    Leather goods

3.    Cars and other motor vehicles

4.    Goods manufactured from silk

5.    Items made from gold

6.    Imported glass

7.    Products made from wood

8.    China made products

9.    Domesticated animals

How the Octroi Tax is Calculated?

The percentage of charges, which are imposed on the goods are different from state to state. The lists of the goods on which the taxes will be levied are formulated by the Municipal Corporation of the state/city. It is imperative that when you are preparing to relocation, then you must provide a list of the goods to the packers and movers, which are to be moved along with their market value. This will help a great deal in the calculation of Octroi Tax well in advance and also help you to prepare a moving budget.

How Octroi Tax is to be Paid?

The vehicle on which the goods are loaded when passes through the Octroi check posts, then the officer at the post will inspect the items and prepare a total amount of tax that you have to pay. You can ask your relocation company to pay the tax on your behalf, which can be later adjusted into the final moving bill.

Other Important Points to Remember

    Many home shifting service providers may try to cheat the people by quoting very high relocation charges in the name of this particular tax. In such a situation, it is important that you carry out a very good research work before finalizing a deal with the moving company.

    At the time of the Octroi check post, after the thorough inspection work and payment of the tax, the government or municipal body inspection officer issues a certificate. The certificate acts a proof that all the charges have been paid and the truck can enter into the state/city without any problem. Do not forget to collect the certificate otherwise you may face some inconvenience.

    As from the above discussion, it is quite clear that the Octroi is only charged in Maharashtra and Gujarat. So, if you are moving to these states, then you are required to pay the tax otherwise not.

Therefore, if you are still facing some trouble to understand the technicalities involved in the Octroi Tax, then it is important that you decrease your stress, by logging into the Here, you can get a comprehensive list of moving cost and also get a great opportunity to select the professional packers and movers in your area. So, what are you waiting for, just browse the website and enjoy a hassle free relocation experience.

Author : Mukesh Singh

on 20th April 2015 - Moving Expert

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