Levy of Tax

Levy of Tax. 3.

1. (1) There shall be levied charged and paid to the State Government a tax on all fares and freights in respect of all passengers and goods carried in a taxable vehicle at the rate of 15 paise per rupee, value of the fare subject to the minimum of five paise in any case, the amount of tax being rounded to the nearest whole paise. Provided that the State Government may, by notification in the Official gazette exempt any item or items of Food Stuffs or other essential commodities from payment of such tax for a specific period. Explanation—(i) When passengers or goods are carried in a taxable vehicle and no fare or freight has been charged the tax shall be levied and paid as if such passengers or goods were carried at the normal rate prevalent on the route.
   • (ii) Where any fare or freight is charged or paid in a lump sum on account of a season ticket or as subscription or contribution for any privilege, right or facility which is combined with the right of a passenger or goods being carried in a taxable vehicle without any further payment or at a reduced charge, the tax shall be levied on the amount of such lump sum or on such amount as appears to the prescribed authority to be fair and equitable.
2. (2) Where passengers or goods are carried in a taxable vehicle from any place outside the State to any place within the State or from any place within the State to any place outside the State, the tax shall be payable in respect of the distance covered within the State at the rate laid down in Sub-section
3. (1) and shall be calculated on such amount as distance covered in the State bears to the total distance of the journey.