Levy of tax

(1) There shall be levied, charged and paid to the State Government a tax,- (i) on all fares in respect of all passengers carried by motor vehicles at such rates not exceeding fifty percent of the value of fares, and (ii) on all freights in respect of all goods transported by motor vehicles at such rates not exceeding five percent of the value of freight, as the Government may, by notification, direct, subject to a minimum of five paise in any one case, the amount of tax being calculated to the nearest multiple of five paise by ignoring two paise or less and counting more than two paise as five paise. * * * * * * (1A) Notwithstanding anything contained in sub-section (1), when passengers are carried and goods are transported by a motor vehicle and- (i) no fare or freight, whether chargeable or not has, been charged, or (ii) fare or freight has been charged at a concessional rate, the tax at the rates as directed by notification by the Government under sub-section (1), shall be levied, charged and paid as if the passengers were carried or goods were transported either on fares and freights fixed by the competent authority under the Motor Vehicles Act for different classes of roads and motor vehicles in the State or on the fares and freights, for different classes of roads and motor vehicles, specified in Schedule-I to this Act, whichever is higher: Provided that the State Government, may, by notification, amend Schedule-I, and thereupon the Schedule-I, shall stand amended accordingly: Provided further that every notification amending Schedule-I, shall be laid on the Table of the Legislative Assembly. (2) Where any fare or freight charged is a lump sum paid by a person on account of a season ticket or as subscription or contribution for any privilege, right or facility which is combined with the right of such person being carried or his goods transported by a motor vehicle, without any further payment or at a reduced charge, the tax shall be levied on the amount of such lump sum or on such amount as appears to the prescribed authority to be fair and equitable having regard to the fare or freight fixed by a competent authority under the Motor Vehicles Act, 1988. (2-A). Where a motor vehicle plies for hire or reward in contravention of the provisions of the Motor Vehicles Act, 1988 (59 of 1988) the owner of such vehicle shall, without, prejudice to any action which is or may be taken under the Act, be liable to pay tax at the rate specified in sub-section (1) or such amount of fares and freights as may be determined in the prescribed manner by the prescribed authority. (3) Where passengers are carried or goods transported by a motor vehicle from any place outside the State or from any place outside the State to any place outside the State but through the State or from any place within the State to any other place within the State but through the intervening territory of another State to any place within the State, or from any place within the State to any place outside the State the tax shall be payable in respect of the distance covered within the State at the rate laid down in sub-section (1) and shall be calculated on such amount as bears the same proportion to the total fare and freight as the distance covered in the State bears to the total distance of the journey.