Method of collection of tax

The tax and surcharge shall be collected by the owner if the motor vehicle and paid to the State Government in the prescribed manner: Provided that in case of goods carriages or motor cabs, maxi cabs and scooter rickshaws, wherever an owner opts to pay the tax or tax and surcharge in lump-sum, the Government may accept a lump-sum in lieu of the tax or tax and surcharge, as the case may be, payable under sections 3 and 3-A, on freight or fare in the manner prescribed. Provided further that in case of motor vehicles (including the stage carriages or contract carriages), other than those specified in the first proviso, in which the passengers are carried, wherever an owner opts to pay the tax and surcharge in lump-sum, the State Government may accept a lump-sum, in lieu of the tax and surcharge payable under sections 3 and 3-A, in the manner prescribed, taking into consideration the registered capacity of the vehicle and the distance to be covered by such motor vehicles under the permit issued for such vehicles District, within five days of the close of each month during which collection was made by him alongwith the treasury challan. (3-b) If a person specified in sub- section (1), fails without sufficient cause to comply with the requirements of the provisions of sub-section (3-a), the Commissioner or any person appointed to assist him under section 7 of the Act, may, after giving such person a reasonable opportunity of being heard, direct him to pay by way of penalty a sum not exceeding Rs. 5,000. (3-c) If any person liable to pay tax under this Act, fails to pay the amount of tax due from him, he shall, in addition to the amount of tax, be liable to pay simple interest on the amount of tax due and payable by him at the rate of one percentum per month, from the date immediately following the last date on which the person should have paid the tax under this Act, for a period of one month, and thereafter, at the rate of one and a half percentum per month till the default continues. (4) The provisions of section 12 shall mutatis mutandis apply for recovery of any amount of tax payable and or any penalty imposed but not deposited under this section.