contract carraige-Taxi
Tourist Taxi – Contract Carriage
There are certain confusions among the Insurers and also in Surveyor fraternity
about the Registration, Usage, Permit related to contract carriage (Tourist Taxi). The writer wish to
submit this paper based on his knowledge and information gathered / collected and vet by MV
Department officials.
When New Cars are sold for private use is classified in MV Act as LMV Car and it will be
registered as LMV Car. The vehicles which are sold for Tourist Taxi are registered as Tourist Taxi
instead of LMV car. Here Tourist Taxi – not only class of vehicle and also usage is mentioned.
The reason behind is, the vehicle is having exemption in GST (Earlier it is central excise) for the
Tourist Taxi vehicles. To promote the Tourism Development / self-employment and also an
opportunity for the business, this facility is given by the Central Government. These vehicles
necessarily to be used minimum of 24 months as Tourist Taxi and if the customer does not want
to continue after some time before the time limit as fixed by the Govt, the customer need to
pay back the concessions enjoyed by him to the Government.
If the vehicle is not registered as Tourist Taxi, otherwise the buyer would declare as taxi for GST
and get benefit from GST and register his vehicle as Private car and tend to cheat the
Government. This is check point for Government and GST department. To avoid the
cheating, the vehicles are registered as Tourist Taxi only.
It does not mean the vehicles are allowed to operate as Tourist Taxi from the date of
registration and without a permit. The vehicles which are registered as Private cars are allowed
to use as Private cars once after its registration and there is no formality to be complied by the
buyer. But it is not in the case of the vehicles which are registered as Tourist Taxi.
Route Permit:
It is a separate subject from the vehicle. This relates to usage. Issuance of the permit is the
prerogative of the RTA (District Collector) or RTO. The power is normally delegated to RTO by
the RTA.
The person who want to operate a Tourist Taxi (either before or after buying a new vehicles)
need to apply to RTO/RTA for a Tourist Taxi in the form CCPA – application for a permit in
respect of contract carriage. (Even the Used Cars which are registered as Private Cars can be
operated as Tourist Taxi within 4 years from the date of registration).This process is called as
Proceeding and buyer need to pay the fees for this. CCPA application form is attached for
reference.
At the time of application, Registration Number, Type of car &Make of car are not necessary
and it is only class of vehicle. It can be ‘Ford’ or ‘Indica’ and it did not matters.
Then RTO will conduct personal hearing with the applicant and then RTO/ RTA will allow the
applicant to use one vehicle as Tourist Taxi by issuing order to the applicant and this is called as
“Proceeding Order” and it will be valid for three months.Model Proceeding order is attached.
Upto this stage,there is no necessity for the vehicle and it can be carried out even before buying
the vehicle and that is right way also.
Buying a vehicle with Motor Dealer, there is no compulsion to get RTO proceedings. Similarly,
for getting proceedings order there is no necessity to have the vehicle.
Once the car is purchased, it should be in the name of applicant who had applied for permit.
Customer also have a choice buying new car without GST concession and apply for Tourist Taxi.
But he will not get the Cars at lower rate.
Earlier there was permit Tax and separate tax endorsement to be done in the RC. Now it is life
tax for all vehicles including Tourist Taxi. Hence the life tax will be collected and will be paid
through the dealer at the time of Registration itself.
The coloring of number plate (Base yellow and Letters in black) and writing the number plate at
both rear quarter panel to be done.
a. Regn Number in side body panel
b. Number Plate for Transport vehicle
Earlier Fitness to be obtained separately. Now the system is changed the FC for 2 years will be
automatically granted for the Tourist Taxi vehicles while at the time of registration. FC will be
given for two years for new vehicles and subsequently given One year to Old vehicles. FC will
not be applicable for private car. RC is valid for 15 years.
After this formality s over, RC, IC and Proceeding order to be submitted to RTA for granting
permit to RTA or RTO as the case may be. Separate fees to be paid for this.
Then RTA will issue a permit for 5 years in separate format and the form is called as PC – Permit
for Contract Carriage. Model CC Permit is attached. The Vehicle are allowed to operate as
Tourist Taxi and carry passenger only after this.
But most of the dealers while selling the new cars collect the fees and apply for permit and not
informing the Insured about the procedures.
Customers are under the impression that once the vehicle is registered and it can be used as
Tourist Taxi. But it is wrong notion.The vehicles become Tourist Taxi once the permit is issued
and to be used as Tourist Taxi only after that.
Normally the step is like this
1 Fees Paid for Regn and Life tax – it need to be done only dealer 02.06.2019
2 Date of Registration as T Taxi / FC also will be done on same date in the present system 04.06.2019
3 Fees paid for Proceeding order 04.06.2019
4 Application for Proceeding Order 04.06.2019
5 Proceeding order date for grant of Proceeding order 08.06.2019
6 Date of application for applying permit along with RC 11.06.2019
7 Fees paid for applying for permit 11.06.2016
8 Permit would be granted and will be issued with effect from 13.06.2019 to 12.06.2024
This procedure of obtaining tourist-taxi contract carraige route permit can vary little bit form state to state. However,the readers can provide details about this formality of their state it will be useful for all the concerned.
Contributed by: P.Pandiyan -Surveyor & loss assessor-Chennai