Incidence of Tax

Tax198710 sections

Statutory text

(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) 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) 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.

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