Running a hotel? What’s the one thing you just can’t overlook? Having transport services, right? When commuting from the airport to the hotel, you have to have them covered. Commuting to the nearest pickup point, you have got to have them covered.
That’s how you get more business. Several other businesses need vehicles. So, are you going to use your transport for this? Obviously no. It is a commercial vehicle — and honestly, it is more than needed — it is mandatory.
But, whereas we are at this, are business automobiles registered just like private ones? A lot of us have that question. So, let’s get to know everything you need to know.
What is the Meaning of Vehicle Registration?
Registration is the compulsory or voluntary enrollment of a motor vehicle with one of the government authorities. The goal is to create a relationship between the automobile and its owner or user. Whereas practically all motor vehicles have a unique identifying number, only registered ones have a number plate and a certificate. The enrollment is distinct from licensing and certification of roadworthiness.
Also, registration works in three ways.
It connects with its owner, which further connects to the state and the government. We can say it establishes the relationship between the owner, the vehicle, and the state.
For instance, if there was a crime committed in West Bengal, and the only information the cops had was the number, they could always make a West Bengal vehicle registration search. Isn’t this great?
Among the total consumer market of commercial vehicles, TATA is the key player in India with the maximum share in the market, followed by Mahindra & Mahindra, Ashok Leyland, and Eicher Group.
Where are Commercial Vehicles Used?
In India, commercial vehicle restrictions are governed by the Motor Vehicles Act of 1988 and the respective state rules. These rules outline the norms that govern their use on Indian highways.
The Motor Vehicle Act governs all aspects of transport. All drivers need to have a valid driver’s license under this law. Every business transport must also be registered under the Motor Vehicle Act.
In India, do you own and operate one? Then, you should have a permit issued by the Regional Transport Office (RTO). This permit, also known as an RC (Registration Certificate), allows you to operate your business conveyance. The RC specifies the permitted operating region, the kind of commodities or persons that can be transported, and other criteria.
Difference Between Private Vehicle Registration and Commercial Vehicle Registration
Can Commercial Vehicles Be Used Personally?
Consider the following factors before using a business vehicle for personal purposes:
- Vehicle registration: It declares its intended business purpose. Their personal use is prohibited under the Motor Vehicles Act of 1988. In the event of non-compliance, you may face legal action.
- Financial implications: They have greater purchase prices, maintenance costs, and insurance premiums than private ones. Moreover, business automobiles are subject to certain taxes based on their usage, whereas personal ones are not. As a result, before using commercial transport for personal use, consider the financial ramifications.
- Commercial driver’s license (CDL): You should be aware that a dedicated driver’s license (CDL) is required to operate a commercial vehicle. It is only valid for automobiles used for business and has restrictions on personal use. Check the restrictions linked with your CDL before utilizing our auto for personal purposes.
- Insurance: Insurance coverage is yet another major factor to consider. Insurance for business automobiles is required. This covers specific risks connected with the intended usage specified during registration. You may have to forego insurance coverage if an accident or damage happens when operating such transport for personal use.
What is the Process to Register a Commercial Vehicle?
To register a commercial vehicle, you have to go to the RTO and follow the procedures. The officials will provide you with suitable guidance. Alternatively, you may just follow the steps below:
- Go to the RTO with your new automobile.
- To submit your application, complete Form 20. The RTO superintendent will look into this.
- Pay the enrolment and tax fees. The type of automobile determines the cost.
- An Inspector of Motor Vehicles (IMV) will inspect the automobile and collect data for the RTO database.
- The data entered is verified by the RTO superintendent.
- The commercial transport enrollment is approved by an Assistant Regional Transport Officer (ARTO).
- The process is started, and once completed, the Smart Card is delivered to your registered address.
Can Commercial Vehicles be Converted to Private?
If you need to convert a business vehicle into a private vehicle, you must follow the steps below.
- Fill out the BT/BTI form and submit it to the registering authority, in this example, the RTO.
- In the case of a loan, obtain approval from the financier to convert the vehicle.
- Pay the required payments and receive clearance following inspection.
- You have to also supply the following documents: Certificates of Registration, Taxation, Insurance, PUC (Pollution Under Control), Fitness, and Professional Tax Clearance.
- During the inspection, you should submit your road permit to the granting authorities and present proof of the same. An officer will inspect your conveyance during the inspection. They will share a report if everything is in order.
- The report must then be presented to the Registering Authority (RTO).
- Your vehicle will be successfully converted to a private one after approval and payment of the appropriate One-Time Tax or tax discrepancy.
Conclusion
If you plan on getting a vehicle for your business purposes – this post has you covered all the aftermath of commercial vehicle registration. This makes things so much easier. Now, you can simply go ahead and get started with the enrollment of your vehicle. Along with that, even if you want to convert your commercial to a private one, you can do that with the procedure explained above.
