Abstract: This paper is about creating a reliable system that takes over the task of identifying free slots in a parking area and keeping the record of vehicles parked very accurately. This project lessens the human effort at the parking area to great extent such as in case of searching of free slot by the driver and calculating payment for each vehicle using the parking area. This system employs ATmega 644 as its heart which comes under AVR family of microcontrollers. The various steps involved in this operation are vehicle identification, free slot detection and payment calculation. Vehicle identification is carried out using RFID and here it is suggested that each vehicle to have unique identity. Free slot detection is carried out using display. Payment calculation is done on the basis of period of parking and this is done with the help of real time clock (RTC). For the system to be more reliable, RTC is powered from a separate dc source.