Quick answer. A commercial vehicle permit is a written authorisation from the State Transport Authority (STA) or Regional Transport Authority (RTA) under §66 of the Motor Vehicles Act, 1988 that allows you to use a motor vehicle to carry passengers or goods for hire or reward. In 2026 you apply online at parivahan.gov.in → Permit module (or the Vahan portal of your state). Pick the right permit category — Stage Carriage (city bus on a notified route), Contract Carriage (taxi, tourist cab, charter bus), Goods Carriage (truck, tempo, mini-LCV), or All-India Tourist Permit — fill the relevant form (PStCC / PCO / PCG / PStSA), pay the fee + counter-signature charge + state tax, upload RC, fitness, insurance, PUC and driving licence of the operator, and appear before the STA on the hearing date. Decision normally within 30-60 days. If silent beyond that, an RTI to the STA Secretary unblocks 80% of cases at a cost of ₹10.
Suresh Gowda, 38, ex-IT support engineer who took voluntary retirement in early 2026 and decided to start a small Karnataka tourist-taxi service from Bengaluru. Bought a second-hand Toyota Etios in February 2026, applied for a Contract Carriage permit at the Bengaluru Central RTO (Koramangala) on 2 March 2026.
“I thought the hardest part would be financing the car. Wrong — it was the permit. I uploaded everything on Sarathi-Vahan: RC, fitness certificate, comprehensive insurance, PUC, my driving licence, my badge, an affidavit, and the surety bond. Paid ₹1,015 application fee + ₹2,500 permit fee + ₹2,000 counter-signature fee. The hearing was scheduled for 16 March. I went, the Senior Inspector signed off. Then — silence. Three weeks. The Vahan dashboard kept showing 'Under Process at STA Section'. I called the helpdesk twice — they said 'wait, file is with the Secretary'. On 6 April I sent a one-page RTI by Speed Post to the PIO, Office of the State Transport Authority, Karnataka, M.S. Building, Bengaluru — total cost ₹10 IPO + ₹52 Speed Post. I asked just three things: present status of permit application no. KA-XXX, name of officer holding the file, and date file was last moved. Reply came on 27 April (21 days). They wrote: 'File pending counter-signature of Joint Commissioner; cleared on 22 April; permit dispatched to applicant address on 24 April.' I got the printed permit by post on 30 April — exactly 35 days from applying, and 24 days after the RTI. The travel agent who 'helps with permits' had quoted me ₹15,000 for the same.”
—Suresh, May 2026
Karnataka's STA processes around 42,000 contract carriage permit applications a year. According to the 2024-25 administrative report, the average disposal time was 47 days; about 18% of files crossed the 60-day mark — and most of those moved only after a written grievance or an RTI.
A commercial vehicle permit (also called a transport permit) is the legal licence under the Motor Vehicles Act, 1988 that allows a vehicle to carry passengers or goods for hire or reward. Without it, the vehicle is a “private” vehicle — using it commercially attracts seizure under §192A (penalty up to ₹10,000 + jail up to 6 months) and the insurance becomes void.
You need a permit if you are:
The legal anchors are §66 (necessity of permit), §72 (stage carriage), §73 (contract carriage), §74 (private service), §79 (goods carriage), §88 (validation in other states) of the Motor Vehicles Act, 1988, read with the Central Motor Vehicles Rules, 1989 (CMVR) and your State Motor Vehicles Rules (e.g., Karnataka MV Rules 1989, Maharashtra MV Rules 1989).
Picking the wrong category is the most common reason an application is rejected at first hearing — you then have to re-apply and re-pay.
Apply only after the vehicle is registered as a transport vehicle (yellow number plate for passenger / goods). If you bought a private car (white plate) and want to convert, first apply for conversion of registration under §52 of MV Act, then get a fitness certificate from the RTO/ATS — a mandatory pre-condition for any permit.
Fields you'll fill: vehicle registration number, chassis/engine number, owner name + Aadhaar, route/area requested, seating/load capacity, badge number of driver(s), name of operator/firm, surety details.
Fee structure varies by state and category — see the table below. The Vahan portal generates a GRN (Government Reference Number) receipt — keep it; you'll need it at the hearing.
+--------------------------------+-----------------------------------------+ | Contract Carriage (taxi, cab, | Application fee: ₹500-₹1,000 | | tourist car) — §73 | Permit fee: ₹2,000-₹3,500 | | | Counter-signature (per state): ₹2,000 | | | Validity: 5 years | | | Eligibility: any individual/firm with | | | transport-class RC + fitness + commerc. | | | insurance + PSV badge driver | +--------------------------------+-----------------------------------------+ | Stage Carriage (city/town bus | Application fee: ₹1,000-₹2,000 | | on notified route) — §72 | Permit fee: ₹3,500-₹7,500/year of valid.| | | Validity: 5 years | | | Eligibility: typically auctioned / | | | route-rationalised; private operators | | | need bus body code AIS-052 + ABS + GPS | +--------------------------------+-----------------------------------------+ | Goods Carriage (truck/tempo/ | Application fee: ₹500 | | LCV) — §79 | Permit fee: ₹1,500-₹2,500 | | | Validity: 5 years | | | Eligibility: GVW ≤ 7,500 kg generally | | | exempt under §66(3) but registration as | | | transport vehicle still needed | +--------------------------------+-----------------------------------------+ | All-India Tourist Permit | Tier-based annual fee: | | (§88(9), Tourist Vehicle Rules | - Up to 6 seats: ₹15,000 | | 2023) | - 7-13 seats: ₹25,000 | | | - 14-23 seats: ₹40,000 | | | - 24-35 seats: ₹70,000 | | | - 36+ seats: ₹1,00,000 | | | Validity: 1 year (renewable) | +--------------------------------+-----------------------------------------+ | Special Permit (fair, election,| ₹50-₹500/day depending on category | | festival) — §87 | Validity: up to 4 months | +--------------------------------+-----------------------------------------+ | Permit renewal (any category) | Renewal fee = original permit fee | | | Late surcharge: 1/12th per month delay | +--------------------------------+-----------------------------------------+ | Auto-rickshaw permit (city) | ₹500-₹1,500 + state-specific badge fee | | | Often capped by city quota — waitlist | | | of 1-3 years in Mumbai/Delhi/Bengaluru | +--------------------------------+-----------------------------------------+ | RTI to STA / RTA on permit | ₹10 by IPO. BPL = free. | | delay | | +--------------------------------+-----------------------------------------+
The STA / RTA / Transport Department is a public authority under §2(h) of the RTI Act 2005.
RTI helps here when:
See the dedicated guide: RTI for vehicle RC / NOC / permit delay — copy-ready template.
RTI does NOT help here when:
Q. Do I need a permit if I drive my own car as Uber/Ola?
Yes — even if it's your own car. Aggregator drivers must hold a Contract Carriage permit (or All-India Tourist Permit) and the car must be transport-class with yellow plate, commercial insurance and PSV badge. Aggregator licence under the Motor Vehicle Aggregator Guidelines 2020 is on the company; the operator-driver permit is on you.
Q. My truck is below 7,500 kg — do I still need a permit?
Under §66(3) of MV Act, goods vehicles up to 7,500 kg GVW are exempt from permit requirement. You still need transport-class registration, fitness, commercial insurance, PUC. Many states have additionally exempted these from National Permit fee under the 2007 amendment.
Q. I want to ply my Karnataka taxi to Goa — separate permit?
Either get the destination state to counter-sign your KA permit (Form PCO) on payment of border tax + counter-signature fee, or get an All-India Tourist Permit (one-time annual fee, no per-state counter-signing).
Q. Permit got rejected. Can I appeal?
Yes — under §89 of MV Act to the State Transport Appellate Tribunal (STAT) within 30 days of the order. Court fee ₹100-₹500. The tribunal can confirm, modify or set aside.
Q. How long is a tourist permit valid in 2026?
Under the All-India Tourist Vehicle Rules 2023, the permit is valid for 1 year (renewable). The earlier 4-month/yearly tier system has been simplified into seat-tier-based annual fees (see fee table above).
Q. Can I transfer my permit to the buyer if I sell my taxi?
Yes — under §82 of MV Act, with permission of STA. Apply within 30 days of vehicle transfer along with Form 29 + 30 (RC transfer) and Form PTRA (permit transfer). Fee ₹100-₹500 + counter-signature charges. See Transfer vehicle ownership RC 2026.
Q. What is “counter-signature”?
A permit issued in State A is not automatically valid in State B. State B's STA “counter-signs” the permit on payment of border tax + countersign fee — confirming State B accepts the permit on its roads. Tourist Permit operators are exempt from per-state counter-signature.
Q. Auto union in my city refuses new permits — what can I do?
The cap is set by the State Government / Municipal Authority — not the union. RTI the Transport Commissioner asking for the current cap, last revision date, and number of vacant permits. If a vacancy exists and the union is blocking via political pressure, you can write to the State Human Rights Commission citing right to livelihood under Article 21.
Last reviewed: 26 April 2026 by RTI Wiki editorial team. Permit fees, counter-signature charges and category caps vary by state and change with annual MV Tax Notifications — verify on parivahan.gov.in or your State Transport Department site, or write to admin@bighelpers.in if you spot a stale figure.