Moving to a new city- Know about Octroi

Octroi refers to the tax or charges levied by the various state governments on goods that are brought into its Municipal Corporation limits. These goods could be for personal use, for sale, or consumption. At present, this tax is levied as Octroi charges in the states of Gujarat and Maharashtra. However, in Maharashtra the Octroi is also in the process of being abolished and a new tax called the LBT is being planned to be introduced. Despite state wide bandhs and strikes, there is still no clarity on this issue yet!

Major things to know about Octroi

List of goods on which Octroi is levied:

A complete list of goods on which Octroi charges are applicable is available with the Municipal Corporation of that state. Mostly the list includes goods like food grains, leather products, cars and other automobiles, precious metals like gold and silver, imported glassware and chinaware, wooden goods, silk and silk items, domesticated animals and items of value.


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Calculation of Octroi

Octroi charges can vary between different states and are subject to change from time to time. The list of charges for different goods is usually released by the Municipal Corporation whenever changes are made. When moving house, you have to give your packers and movers the total list of goods that you are packing and their market value. This helps in calculating your total Octroi charges beforehand.

Octroi through packers and movers

Your moving will pass through Octroi check posts while crossing the Municipal limits. Here an officer will cross check the goods and collect the amount of tax to be levied.  Your packers and movers can pay the charges at this post, and you can either pay this amount beforehand or ask them to add it to the final relocation bill.

Important points to keep in mind

  • Octroi charges can be portrayed as a matter of ambiguity by unscrupulous packers and movers.  They may try to dupe you by quoting unnecessary charges in the name of this tax.  Therefore it is important that you stay well informed.
  • At the Octroi collection checkpost, the officer provides an Octroi certificate authorizing the entry of the goods. Remember to ask for this certificate during delivery of your goods, and before making the final payment.
  • As mentioned above, Octroi is applicable only for limited few states, so ensure claims of Octroi charges are applicable to your relocation.

Instead of troubling yourself with the nuances of Octroi, you could just log onto ezmove.in where we make it a hassle free moving experience for you. Get a transparent list of the applicable charges and cost depending upon your relocation. Choose from amongst verified packers and movers and get control over payment terms by making payments online. So for a trouble free moving experience, log on today on ezmove.in

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