ATCS is an Automated Toll Collection System used for collecting tax automatically. In this we do the identification with the help of radio frequency. A vehicle will hold an RFID tag. This tag is nothing but unique identification number assigned. This will be assigned by RTO or traffic governing authority. In accordance with this number we will store, all basic information as well as the amount he has paid in advance for the TOLL collection. Reader will be strategically placed at toll collection center. Whenever the vehicle passes the toll collection centres, the tax amount will be deducted from his prepaid balance. New balance will be updated. In case if one has insufficient balance, his updated balance will be negative one. To tackle this problem, we are alarming a sound, which will alert the authority that this vehicle doesn't have sufficient balance and that particular vehicle can be trapped. As vehicles don't have to stop in a queue, it assures time saving, fuel conservation and also contributing in saving of money. Automatic Toll Collection systems have really helped a lot in reducing the heavy congestion caused in the metropolitan cities of today.