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PROCEEDINS OF THE GOVERNMENT OF KARNATAKA

Subject:Order to remove the difficulties in the implementation of the

provisions of section 3 of the Karnataka Motor Vehicles Taxation

Act, 1957

*****

Whereas a tax at the rates specified in Part A of the Schedule is levied on all

Motor Vehicles suitable for use on roads under section 3 of the Karnataka Motor

Vehicles Taxation Act, 1957 (Karnataka Act 35 of 1957).

Whereas in clause (aa) of the fifth proviso to sub-section (1) of section 3 of

the Karnataka Motor Vehicles Taxation Act, 1957 (Karnataka Act 35 of 1957), tax

is levied at the rates specified in Part A6 of the Schedule, in case of goods vehicles

having gross vehicle weight exceeding 1,500 kgs but not exceeding 5,500 kgs in

weight laden, whether used for hire or reward or not.

Whereas in clause (d) of sub-section (1) of section 3 of the Karnataka Motor

Vehicles Taxation Act, 1957 (Karnataka Act 35 of 1957), tax is levied at the rates

specified in Part A8 of the Schedule in the case of Motor Cabs the cost of which

exceeds rupees fifteen lakhs other than those registered outside the State and

covered with a permit issued under sub-section (9) of section 88 of the Motor

Vehicles Act, 1988 (Central Act 59 of 1988).

Whereas Part A6 of the Schedule of the Karnataka Motor Vehicles Taxation

Act, 1957 (Karnataka Act 35 of 1957), has been substituted by the Karnataka Motor

Vehicles Taxation (Amendment) Act, 2023 wherein lifetime tax for goods vehicles

having gross vehicle weight exceeding 1,500 kgs but not exceeding 12,000 kgs in

weight laden, whether used for hire or reward or not has been specified.

Whereas Part A8 of the Schedule of the Karnataka Motor Vehicles Taxation

Act, 1957 (Karnataka Act 35 of 1957), has been substituted by the Karnataka Motor

Vehicles Taxation (Amendment) Act, 2023 wherein Life time tax for motor cabs

other than those registered outside the State and covered with the permit issued

¨sÁUÀ – 1

Part – I

11

2023(

ಪ, 20

1945)

BENGALURU, MONDAY, 11, SEPTEMBER, 2023(BHADRAPADA, 20, SHAKAVARSHA, 1945)

. 421

No. 421

2

under sub-section (9) of section 88 of the Motor Vehicles Act, 1988 (Central Act 59

of 1988) has been specified.

Whereas the following difficulties had arisen in giving effect to the provisions

of the Karnataka Motor Vehicles Taxation (Amendment) Act, 2023 (Karnataka Act

31 of 2023) namely:-

i.

Lifetime tax for goods vehicles having gross vehicle weight exceeding

5,500 kgs in weight laden, whether used for hire or reward or not;

ii.

Lifetime tax for motor cabs the cost of which exceeds rupees ten lakhs;

and

iii.

Other consequential amendments to section 4.

Whereas to remove the above difficulties, the Government had issued the

Karnataka Motor Vehicles Taxation (Power to remove difficulties) Order, 2023 vide

Order No:TD 03 TDR 2023/Part-1, dated:30.08.2023 published in the Karnataka

Gazette Extra-ordinary dated:30.08.2023.

Whereas the Government has received representations from several

Transport Operators Associations regarding difficulties faced in payment of

Lifetime Tax under the provisions of the Karnataka Motor Vehicles Taxation

(Amendment) Act, 2023 and have urged for postponement of tax payment and

facility of paying tax in installments.

Whereas the approval of the Finance Department has obtained in the

endorsement No.FD 325 EXP-11/2023 dated:02.09.2023 and No.FD 344 EXP-

11/2023 dated:04.09.2023.

In the above circumstances the Government of Karnataka hereby clarifies as

under,-

ORDER (2) No. TD 133 TDO 2023,

Bengaluru, Dated:08.09.2023.

In exercise of the powers conferred by section 3 of the Karnataka Motor

Vehicles Taxation (Amendment) Act, 2023, (Karnataka Act 31 of 2023) the

Government of Karnataka hereby clarifies that,-

“The provisions of the Karnataka Motor Vehicles Taxation (Amendment) Act,

2023, (Karnataka Act 31 of 2023), shall come into force with effect from

1^st day of November, 2023.

Note:

i.

In case of new vehicle to be registered, tax levied shall be paid in full at the

time of registration and in case of already registered goods vehicles having

Gross Vehicle Weight (GVW) exceeding 1500 kgs but not exceeding 12000

kgs levied under Part A6 of the Schedule and already registered motor cabs

levied under Part A8 of the Schedule, the lifetime tax levied may be paid in

two equal installments, in the following manner, namely:-

3

(a) Out of the tax so levied, half of the amount shall be paid at the

time of tax due; and

(b) The balance of tax shall be paid within five months from the date

of payment of the first installment.

ii.

For goods vehicles and motor cabs due for payment of tax under Part-A of

the Schedule before the date of commencement of the Karnataka Motor

Vehicles Taxation (Amendment) Act, 2023 (Karnataka Act 31 of 2023) shall

pay taxes without penalty till 31^st day of October, 2023.

iii.

The registered owner who has paid the tax in part under clause (i) of third

proviso of sub-section (3) of section 4 shall not be entitled for a refund of tax,

unless the tax is paid in full”

By order and in the name of the

Governor of Karnataka

(PUSHPA .V.S)

Under Secretary to Government,

Transport Department.

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THAMMAIAH

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Date: 2023.09.12 17:01:27 +05'30'