Method of collection and payment of tax

The tax levied on the passengers and goods by motor vehicles other than private carriers shall be collected by the owner and the tax so collected, and the tax levied on the goods carried by private carriers, shall in either case be paid to the State Government in the prescribed manner: Provided that an officer, not below the rank of an Assistant Excise and Taxation Officer appointed under sub-section (1) of Section 7, with the prior approval of the incharge of the district, may allow the owner to pay the amount of tax due in instalments subject to the payment of interest at the rate of two per cent per month and if the instalment is not paid within due date then additional interest not exceeding two per cent per month for the period of default shall also be payable by the owner of the vehicle : Provided that no interest shall be payable on the arrears of tax due on the date of commencement of the Punjab Passengers and Goods Taxation (Haryana Amendment) Act, 2002, if allowed to be paid in instalments.