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Amended Motor Vehicle Act to provide for pro-rata refund of taxes news
14 May 2012

The amended Motor Vehicle (Amendment) Bill, 2012, which was passed by the Rajya Sabha on 8 May 2012, provides for pro-rata refund of taxes on transfer of vehicles from one state to another and subsequent pro-rata payment of taxes at the migrating state.

This will apply to all private vehicles where the owner shifts residence and applies for `no objection certificate' with the registering authorities, minister of state for road transport and highways Dr Tushar A Chaudhary informed the Lok Sabha today.

''Where an owner of a motor vehicle (other than transport vehicle) on which one-time or long-term tax has been paid, ceases to reside at the address recorded in the certificate of registration of the vehicle on account of his transfer on official duty or shift of residence, the registering authority shall, where the vehicle was registered prior to such transfer or shift of residence, on application for no objection certificate under section 48, refund the pro-rata unutilized tax on the vehicle; and the registering authority where the vehicle is being shifted shall levy and collect pro-rata tax for the remaining valid period of registration of such vehicle.''

There is a provision in the Bill that those causing overloading will also be held responsible along with the driver and the vehicle owner. It says if the documents in possession of the driver or owner establish that "the offence was committed with the knowledge of or under the orders of the consignor or the common carrier", then the penalty will be on the consignor. Besides, if the driver or the owner is found to be responsible for overloading, then they will be held responsible as well.

Once the bill becomes a law after being passed by Lok Sabha, traffic police officers across the country can start issuing challans to violators as per the new provisions. Rules stipulate that Rs 500 fine can be slapped for not wearing seat belt and helmet, or for jumping a red light for the first time. Drunk driving will be graded according to alcohol levels in the blood, and punishment can go up to a two-year jail term and Rs5,000 fine or both.

The fines will multiply if the same offender violates the rules subsequently. Repeat traffic offences will invite stiff fines. Jumping red lights or not using seat belts and helmets will attract a penalty between Rs500 to Rs1,500. And, repeated use of cellphone while driving will cost an offender Rs5,000.

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Amended Motor Vehicle Act to provide for pro-rata refund of taxes