Payment of tax and issue of licence

(1) The tax levied in pursuance of sub-section (1) of section 3 shall be paid in advance, in such manner as may be prescribed, by the registered owner or person having possession or control of the motor vehicle, for a quarter, half year or year, at his choice, upon a quarterly, half yearly or annual licence to be taken out by him. Explanation.—The tax for a half yearly licence shall not exceed twice, and the tax for an annual licence shall not exceed four times, the tax for a quarterly licence. (2) In the case of half yearly and annual licence such rebate in respect of the tax as may be prescribed shall be granted. (3) When any person pays the amount of tax in respect of a motor vehicle used or kept for use in the State or produces a certificate from the Regional Transport Officer, on proof, that no tax is payable in respect of such vehicle, the Taxation Officer shall— (a) grant to such person a licence in the prescribed form, and (b) record that the tax has been paid for the specified period or that no tax is payable in respect of that vehicle, as the case may be, in the certificate of registration granted in respect of the vehicle under the Motor Vehicles Act, 1939, or in the case of vehicles not registered under that Act, in a certificate in such form as may be prescribed by the Government. (4) No motor vehicle liable to tax under section 3 shall be kept for use in the State, unless the registered owner, or the person having possession or control of such vehicle has obtained a tax licence under sub-section (3) in respect of that vehicle. (5) No motor vehicle liable to tax under section 3 shall be used in the State unless a valid tax licence obtained under sub-section (3) is displayed on the vehicle in the prescribed manner. (6) Notwithstanding anything contained in sub-section (1), no person shall be liable to tax during any period on account of any taxable motor vehicle, the tax due in respect of which for the same period has already been paid by some other person.