Paying octroi for your car in Mumbai

When you move to Mumbai with a car that has been registered outside Mumbai, as per the Mumbai Municipal Corporation (levy) of Octroi Rules, 1965, the car is treated as “imported” and octroi needs to be paid. Most often, the car is driven into the city and not transported in a carrier, so the payment of octroi at that time is bypassed, either wilfully or inadvertently.

The Mumbai Municipality (BMC), in a bid to recover precious octroi revenue, regularly conducts drives at apartment complexes to look out for non-Mumbai registered cars. Owners of the car parking slots where such cars are found are sent notices by BMC, asking them to pay up the octroi due for the cars parked there.

A few months after we moved to Mumbai we realised that octroi, that was payable on our car, had not been paid. This through a BMC notice.

To handle the payment of octroi, there are several agents whose services can be used. Handling it oneself is also a good option if one has a few hours to spare. Here is my account of resolving the issue.

I visited the BMC office at Chatrapathi Shivaji Terminus (CST), at the address on the notice they issued, located near the fish market. I carried with me the RC book of the car (note: the car is not registered in my name) and the latest paid insurance policy.

Generally octroi @ 4.5% is payable on the insured value of the vehicle. I was told by the officer that vehicles that are old (like my car which was about 10 yrs old) could also be valued on the resale value, in case the insured value was higher than the expected resale value.

It took about 10 minutes to get the job done. I paid the octroi amount in cash. I was given a receipt for the amount and the NOC which allows the vehicle to ply freely on Mumbai roads. I was told that I could now also sell the vehicle in Mumbai. Happy to say that I got the job done without paying any “coffee money” (which the officer was suggesting at one point and which was quickly forgotten by him after I made it clear that was not accustomed to bribing). By going without an agent I realised that apart from saving some money, I bypassed possible bribing too.

13 thoughts on “Paying octroi for your car in Mumbai

  1. CarVar February 16, 2016 / 6:39 pm

    Thanks for the info. Having a car transferred is really a pain. Government should do something about it!

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  2. krupakar June 27, 2016 / 5:56 pm

    Can you please give the exact address of this office. It seems office in suburbs are not considering Insured value for calculation of octrai and demanding exorbitant amounts. Thanks.

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  3. krupakar June 27, 2016 / 5:59 pm

    I am currently got stuck in the middle of the process where my RTO agent is saying BMC ppl are demanding 15000 as octrai for a 10 year old swift. If you can give me this address i can go there and pay it myself. Thanks in advance.

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  4. Arathi Manay June 27, 2016 / 6:22 pm

    Go to the Office of the Dy Assessor & Collector (Octroi) Vehicle Section, Shri Chatrapati Shivaji Maharaj Market Building, 3rd Floor, Mata Ramabai Ambedkar Marg (Paltan Road), Mumbai 400001. This is the same building as the fish market.

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  5. Nitesh Sharma June 28, 2016 / 5:25 pm

    Do we need to take vehicle with us at the time of paying for Octroi?

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  6. Arathi Manay June 28, 2016 / 6:31 pm

    No need to take vehicle. RC book and insurance policy (originals) are enough.

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  7. sedrick July 27, 2016 / 1:03 pm

    But what about the NOC required from the RTO where your vehicle is registered, in my case its Delhi.

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  8. Mukul Biswas November 20, 2016 / 9:33 pm

    Very useful information. I am about to buy a Pune registered motorcycle and I was pretty sure that not only I needed an NOC from the Pune RTO, but also needed to pay the Octroi tax. I guess that it does not necessarily need follow the same order. However I might have to have both of them, NOC & Octroi tax, ready before presenting the vehicle at the Mumbai RTO for the transfer process. Right?

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  9. Arathi Manay November 21, 2016 / 7:41 am

    Yes Mukund. To transfer you will need both. I was told that transfer was not mandatory and that we could use the vehicle as we would a Mumbai-regd vehicle. So we did not transfer our vehicle, and anyway, now we took it back to our hometown. Once you take the NOC though, you need to get it regd in some other place.

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  10. Nilesh January 18, 2017 / 3:27 pm

    Hi,

    I stay in New Panvel and bought a car from AndheriI which I have booked this month, while booking they told me it is octroiless, if it’s passes by Panvel RTO. Now it’s car delivery time and dealer is saying that you need to pay 3% as octroi charges as from 1st of Jan there will be Octroi on cars in Panvel (New Mumbai) area. Is this true?

    Regards,
    Nilesh

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  11. santosh T shinde January 31, 2017 / 6:20 pm

    what amount did u payed for ur used car.

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  12. Arathi Manay January 31, 2017 / 7:27 pm

    Rs 4500 which was 4.5% of expected resale value of 1,00,000

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  13. Degenerate Prabhu April 19, 2017 / 9:38 am

    Is depreciation deductible?If yes than how much it is ?

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