Can a private license be used for commercial vehicle?


To rent your private vehicle to another person in exchange of some money, amounts to use of your vehicle for the commercial purpose. It is permissive to do so, subject to payment of tax as required under the Motor Vehicle Act. You may rent out a car provided you change the car from personal car to the commercial car. You will need an Rs.100 stamp and make an agreement and mention the terms and conditions as per duty and responsibility of the person hiring the car.

The document will be known as hire- purchase agreement. You may rent a car as far as you are not earning any income out of it, otherwise you will have to get it registered as a commercial vehicle for leasing a personal car in india is banned under Motors Vehicle Act. Indian law prohibits renting out private vehicles for self-drive or commercial purposes.

For a commercial registration, that is a yellow number plate with black letters, the owner of the vehicle should have a commercial driverÕs licence. For a self drive registration, that is a black number plate with yellow letters, the owner should have fleet of 50 cars in order to be eligible for it.




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