The Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987

1. (1) This Act may be called the Maharashtra Tax on Entry of Motor Vehicles into Local Areas, 1987.
2. (2) It extends to the whole of the State of Maharashtra.
3. (3) It shall be deemed to have come into force on the 30th day of September 1987.

1. (1) In this Act, unless the context otherwise requires,—
   • (a) "Accessories" means the car air-conditioner, music system and any other article fitted to a motor vehicle and which is not included in the original invoice;
   • (b) "Appellate Authority" means an Appellate Authority appointed under section 6;
   • (c) "Appellate Tribunal" means the Maharashtra Sales Tax Tribunal constituted under section 21 of the Bombay Sales Tax Act;
   • (d) "Assessing Authority" means any officer appointed under section 5;
   • (e) "Bombay Sales Tax Act" means the Bombay Sales Tax Act, 1959; (e-a) "designated officer" means an officer designated to be the designated officer under-section 10A;
   • (ei) "dealer in motor vehicles" means a person whose principal business is of buying, selling or both buying and selling, motor vehicles;
   • (f) "Entry of Motor Vehicle into a local area" with all its grammatical variations and cognate expressions, means entry of motor vehicle into local area from any place outside the State but not being a place outside the territory of Union of India, for use or sale therein.
   • (g) "Importer" means a person who brings or causes to be brought a motor vehicle into a local area from any place outside the State but not being a place outside the territory of Union of India, for use or sale therein, and who owns the vehicle at the time of its entry into the local area;
   • (h) "Local area" means the area within the limits of,-
     • (i) a Municipal Corporation established under the Bombay Municipal Corporation Act, the Bombay Provincial Municipal Corporations Act, 1949 and the City of Nagpur Corporation Act, 1948;
     • (ii) a Municipal Council established under the Maharashtra Municipalities Act, 1965;
     • (iii) a Zilla Parishad established under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961;
     • (iv) a Notified area committee or a cantonment board constituted or established under any law for the time being in force;
     • (i) "motor vehicle" means a motor vehicle as defined in clause
2. (18) of section 2 of the Motor Vehicles Act, 1939 and includes motor cars, motor taxi cabs, motor cycles, Motor cycle combinations, motor scooters, motorette, motor omni buses, motor vans, motor lorries and chassis of motor vehicles and bodies or tankers built or meant for mounting on chassis of motor vehicles, but excludes tractors whether on wheels or on tracts;
   • (j) "person" includes any company or association or body of individuals whether incorporated or not, and also a Hindu undivided family, a firm, a local authority or any State Government;
   • (k) "prescribed" means prescribed by rules;
   • (l) "purchase value" means the value of a motor vehicle, as ascertained from original invoice and includes the value of accessories fitted to the vehicle, insurance, excise duties, countervailing duties, sales tax, transport fee, freight charges and all other charges incidentally levied on the purchase of a motor vehicle : Provided that, where purchase value of a motor vehicle is not ascertainable on account of non-availability or non-production of the original invoice or when the invoice produced is proved to be false or if the motor vehicles is acquired or obtained otherwise than by way of purchase, then the purchase value shall be the value or price at which motor vehicle of like kind or quality is sold or is capable of being sold, in open market;
   • (m) "rules" means rules made under this Act;
   • (n) "State" means the State of Maharashtra;
   • (o) "tax" means the tax payable under this Act.
3. (2) Words and expressions used but not defined in this Act shall have the meanings assigned to them under the Bombay Sales Tax Act.

1. (1) Subject to the provisions of this Act and rules thereunder, there shall be levied and collected a tax on the purchase value of a motor vehicle an entry of which is effected into a local area for use or sale therein and which is liable for registration in the State under the Motor Vehicles Act, 1939 at such rate or rates as may be fixed by the State Government by notification in the Official Gazette, but not exceeding the rates prescribed for motor vehicles in the Schedules appended to the Bombay Sales Tax Act or fifteen paise in the rupee whichever is less : Provided that, no tax shall, be levied and collected in respect of a motor vehicle which was registered in any Union Territory or any other State under the Motor Vehicles Act, 1939 for a period of fifteen months or more before the date on which it is registered in the State under that Act.
2. (2) The tax shall be payable and paid by an importer within 15 days from the entry of motor vehicle into the local area or before an application is made for registration of the vehicle under the Motor Vehicles Act, 1988, whichever is earlier, in the manner laid down under section 10 of this Act.
3. (3) The tax shall be in addition to the tax levied and collected as octroi by a Municipal Corporation, Municipal Council, Zilla Parishad, Panchayat Samiti or Village Panchayat or any other local authority, as the case may be, within its local area.

1. (1) Where an importer of a motor vehicle liable to pay tax under this Act being a dealer in motor vehicles, becomes liable to pay tax under the Bombay Sales Tax Act by virtue of the sale of such motor vehicle, then this liability under the Bombay Sales Tax Act shall be reduced to the extent of tax paid under this Act.
2. (2) The amount of tax leviable under this Act shall subject to such condition as may be prescribed, be reduced to the extent of the amount of tax paid, if any, under the law relating to General Sales Tax or Central Sales Tax as may be in force in any other State or Union Territory by an importer who, not being a dealer in motor vehicles, had purchased the motor vehicle for his own use in that State.

The State Government may, by notification in the Official Gazette, appoint such officers to be the Assessing Authorities for the purposes of this Act and may assign to them such local area or areas be specified in the notification.

The State Government may, by notification in the Official Gazette, appoint such officers to be Appellate Authorities for the purposes of this Act and may assign to them such local area or areas as may be specified in the notification.

1. (1) Every person liable to pay tax under this Act shall furnish a return within 15 days from the entry of motor vehicle into the local area or before an application is made for registration of the vehicle under the Motor Vehicles Act, 1988, whichever is earlier. The return to be so furnished shall be in such form, for such period and to such authority, as may be prescribed.
2. (2) If any person liable to pay tax under this Act, having furnished return under sub-section (1), discovers any omission or incorrect statement therein, he may furnish a revised return before the expiry of three months from the last date prescribed for furnishing the original return.

1. (1) The amount of tax due from a person liable to pay tax under this Act shall be assessed separately for such period as may be prescribed.

1. (1) The State Government may, by notification in the Official Gazette and subject to the condition of previous publication, make rules for carrying out the purposes of this Act : Provided that, if the State Government is satisfied that circumstances exist which render it necessary to take immediate action, it may dispense with the previous publication of any rule to be made under this section.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for the following matters, namely :—
   • (a) the duties and powers of officers appointed for the purpose of enforcing the provisions of this Act;
   • (b) all matters expressly required or allowed by this Act to be prescribed;
   • (c) generally regulating the procedure to be followed and the forms to be adopted in proceedings under this Act;
   • (d) any other matter including levy of fees for which there is no provision or no sufficient provision in this Act and for which provision is, in the opinion of the State Government, necessary for giving effect to the purposes of this Act;
   • (e) the procedure for any other matters (including fees), incidental to the disposal of appeal, and the value of court-fee stamp which a memorandum of appeal should bear;
   • (f) the person who may appear or attend before any authority in connection with any proceedings under the Act, including his qualifications, the conditions subject to which the person shall be entitled to appear and attend and the form of authorisation authorising such person to attend.
3. (3) Every rule made under this Act shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days, which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, and notify such decision in the Official Gazette, the rule shall, from the date of publication of such notification have effect only in such modified form or be of no effect, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done under that rule.

In the Motor Vehicle Act, 1939, in its application to the State of Maharashtra in the First Schedule,—

1. (a) in Form E, after entry IB, the following entry, shall be inserted, namely :— “ IC. Whether the vehicle has