Imposition of a tax on motor vehicles

(1) The Government may, by notification in the Official Gazette, from time to time, direct that a tax shall be levied on every motor vehicle used or kept for use in the Union territory of Puducherry.

(2) The notification issued under sub-section (1) shall specify the rates at which, and the quarter from which, the tax shall be levied:

Provided that the rates shall not exceed the maximum amounts specified in Schedule I:

Provided further that the tax already paid in respect of one category of permit viz., a goods carriage permit or a zonal permit or a national permit for a goods vehicle shall be allowed to be adjusted against the tax payable for the grant of another category of such permits.

Provided further that where in the case of ---

(a) a motor-cycle (including motor scooters and cycles with attachment for propelling the same by mechanical power); and

(b) an invalid carriage and a motor vehicle weighing not more than 3,000 Kilograms unladen, not being a motor vehicle plying for hire or used for the transport of passengers or in respect of which permits have been issued under the Motor Vehicles Act, 1988 (Central Act, 59 of 1988) , the registered owner or the person having possession or control of the motor vehicle makes an application in writing for payment of one -time tax, the tax shall be levied at the rates specified in Schedule IA.