It is proposed to amend the Karnataka Motor Vehicles Taxation Act, 1957.

Notwithstanding anything contained in sections 3, 6 and 7 a tax shall be levied on the gross revenue from fares and freights of Public Service Vehicles owned by a fleet owner at the rates of,- (i) five percentum in respect of public service vehicles referred to in the explanation to clause (aa) of sub-section (1) of section 2 operating within the limits of a city and within the radius of twenty five kilometers from the limits of the city as defined in clause (4) of section 2 of the Karnataka Municipal Corporations Act, 1976, (Karnataka Act 14 of 1976); and (ii) five per centum in other cases. (a) In order to determine the amount of tax payable by a fleet owner in any year, before the commencement of such year, the fleet owner shall first make and deliver to the taxation authority a preliminary declaration in the prescribed form estimated gross revenue from fares and freights in respect of the transport vehicles liable to tax under this Act kept by him on the last day of January of the year immediately preceding the year for which such declaration is made. Such declaration shall be accompanied by a certificate of final assessment of tax, if any, issued by the taxation authority for such previous year and such other documents as may be prescribed. (b) As soon as may be after receipt of such preliminary declaration, the taxation authority shall, on the basis of such declaration determine the amount of tax to be paid provisionally by such fleet owner at five percentum or seven percentum as the case may be of the estimated revenue by way of fares and freights declared for the said year under clause (a) of this section and communicate the same to the fleet owner by issuing a certificate of provisional assessment of tax for the year in such form as may be prescribed. (c) The amount of tax provisionally determined under clause (b) shall be paid by the fleet owner within such period from the date of receipt of the certificate of provisional assessment and in such number of instalments not exceeding twelve as the taxation authority may specify. (d) The fleet owner shall, after the close of the year fill up and sign a final declaration in the prescribed form along with a certified copy of the audited accounts of the fares and freights collected during that year in respect of the transport vehicles liable to tax under this Act kept by him during that year and shall deliver within the prescribed time the final declaration so filled in and signed to the taxation authority. Such declaration shall be accompanied by the certificate of provisional assessment of tax issued by the taxation authority for the year and such other documents as may be prescribed. (e) On receipt of such final declaration in the prescribed form along with a certified copy of the audited accounts of fares and freights collected during that year and such other particulars as may be deemed necessary, the Taxation Authority shall finally determine the amount of tax leviable at the rate specified under this section on public service vehicle of such fleet owner and by issuing a certificate of final assessment of tax for the year in such form, as may be prescribed. (f) When the amount of tax is finally determined under clause (e) taking into consideration the amount paid by the fleet owner under clause (c), the difference that may be due shall be paid by, or refunded to, the fleet owner in such manner and within such time as may be prescribed: