BIHAR MOTOR VEHICLES TAXATION ACT, 1994

Act No. 8 of 1994

26.4.1994

An Act to regulate imposition and levy of tax on Motor Vehicles in the State of Bihar. Be it enacted by the Legislature of the State of Bihar in the Forth-Fifth year of the Republic of India as follows:1 1. Published in the Bihar Gazette (Ex.-ord.) dated 26.4.1994.

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S.1 Short title, extent and commencement

(1) This Act may be called the Bihar Motor Vehicles Taxation Act, 1994.

(2) It shall extend to the whole of the State of Bihar.

(3) It shall come into force with immediate effect.

S.2 Definitions

In this Act unless there is anything repugnant in the subject or context

• (a) "Additional Motor Vehicles Tax" means the tax imposed under the provisions of sub-section (2) of Section 5 of this Act.
• (b) "Appellate Authority" means the authority specified under Section 26 of this Act.
• (c) "Certificate or registration" "goods", "goods carriage", "gross vehicle weight, "invalid carriage Motor cab", "Motorcycle", "Motor Vehicle" "Private Service vehicle", "trailer" "unladen weight", "registering authority", "tractor", "transport vehicle" and any other expression, not specifically defined in this Act shall have the same meaning assigned to them respectively in the Motor Vehicles Act, 1988 (Act No. 59 of 1988).
• (d) "Motor Vehicles Tax" means the tax imposed under sub-section (1) of Section 5 of this Act.
• (e) "One-time tax" means the tax imposed on personalised vehicles under sub-section (1) of Section 7 of the Act.
• (f) "Owner" means
  

S.3 Appointment of taxing officers

The State Government may, by notification appoint any person as Taxing Officer to exercise and perform within such areas may be specified in such notification, the powers and duties conferred and imposed on the Taxing Officer by this Act, or by Rules made thereunder.

S.4 Remission for vehicles used solely for agriculture

Nothing in this Act shall apply to a motor vehicle used solely for the purposes of agriculture.

Explanation. A motor vehicle used for transporting agricultural produce shall not for the purpose of this section, be deemed to be used solely for the purpose of agriculture.

S.5 Levy of tax

(1) Subject to other provision of this Act, on and from the date of commencement of this Act, every owner of a registered motor vehicle shall pay tax on such vehicle at the rate specified in Schedule-I.

(2) Subject to other provisions of this Act, on and from the date of commencement of this Act, every owner of a registered motor vehicle shall pay additional Motor Vehicle Tax on such vehicle at the rate specified in Schedule-ll.1

[Provided that an Omni bus registered for use for private purposes shall not be liable to pay additional motor vehicle tax.]

(3) The State Government may, by notification from time to time, increase the rate of tax specified in the Schedules:2

[Provided that no such increase shall, during any year exceeding fifty percent of the rate of taxes prescribed in the Schedules.]

3[xxx]

4[(4) A rebate of fifty percent of total tax payable, including Additional Tax, shall be allowe

S.6 Tax payable by a manufacturer or a dealer

A tax at the annual rate specified in Schedule-III in lieu of the rates specified in Schedule-I shall be paid by a manufacturer of or a dealer in motor vehicles, in respect of the motor vehicles in his possession in the course of his business as such manufacturer or dealer under the authorisation of trade certificate granted under the Central Motor Vehicles Rules, 1989.

S.7 Payment of tax

(1) On personalised vehicles, 1[or vehicle of Omni bus category with seating capacity of six to twelve for private use] one time tax for the whole life of the vehicle shall be levied at the time of registration at the rates specified in Schedule-I:

Provided that the personalised vehicle registered prior to February 1,1992 for which One-time tax has not been paid, shall have to pay One-time tax at the rates prescribed in Schedule-I within 30 days of the expiry of the existing tax token otherwise an interest at the rate of two per cent per month shall be charged on the amount of tax due together with the arrears and penalty, if any calculated up to 30th November, 1993 at the rate of annual tax leviable prior to 1st February, 1992.

(2) Where a One-time tax for any motor vehicle has been paid and the registration of the vehicle has been cancelled for any reason whatsoever or the vehicle has been removed to any place outside the State on account of transfer of o

S.8 Payment of differential tax

(1) When a motor vehicle, in respect of which tax for any period has been paid is altered during such period or is proposed to be used during such period in such a manner in respect of which ha higher rate of tax is payable, the owner of the vehicle, shall pay to the taxing officer a differential tax of a sum which is equal to the difference between the tax already paid and the tax which becomes payable in respect of such vehicle for the period for which the higher rate of tax is payable in consequence of the alteration or the proposed use as the case may be.

(2) Payment of differential tax under sub-section (1) shall be made within such time and in such manner as may be prescribed.

Explanation-I. In determining the differential tax any broken period in a month shall be reckoned as a full month.

Explanation-II. A motor vehicle shall be deemed to have been altered if there is a change in the manner of its actual use irrespective of the facts as to whether such a

S.9 Tax where to be paid

(1) For newly registered vehicles, the tax shall be paid to the taxing officer in whose jurisdiction or the place of registration falls.

(2) For the vehicles which are already registered on or before the date of commencement of this Act, the tax shall be continued to be paid to the taxing officer to whom the tax was last paid just before the commencement of this Act.

(3) If an owner of a vehicle other than a personalised vehicle changes his place of business or residence and his new place of residence or business falls within the jurisdiction of an other taxing officer, he can (a) either continue to pay the tax at the place where the previously paid tax, or (b) start the payment of the tax to the other taxing officer in whose jurisdiction his new residence or place of business falls:

Provided that the new taxing officer shall not accept the payment of tax till the owner presents before him a "No objection Certificate" from the previous taxing officer in the man

S.10 Rebate on payment of tax paid in advance

A rebate of 1[10%] on the annual tax payable in respect of transport vehicles shall be allowed if such annual tax is paid in advance.

1. Substituted for 5% by Bihar Act 8 of 2010.

S.11 Grant of tax token and receipt of payment of tax

(1) The taxing officer shall grant a receipt and a tax token in the prescribed form in the prescribed manner to every person who pays motor vehicle tax or additional motor vehicle tax under Section 7 or differential tax under Section 8 in respect of any motor vehicle.

(2) The taxing officer shall endorse the particulars of tax paid in the certificate of registration granted in respect of the vehicle under the Motor Vehicles Act, 1988.

S.12 Refusal of acceptance of tax

Subject to other provisions of this Act, the taxing officer shall not accept the tax or penalty, if any, in respect of a motor vehicle for the current period unless the arrears of taxes and penalties due in respect of the vehicle have been fully paid or settled:

1[Provided that in case the amount of outstanding amount of arrears of tax and/or penalty exceeds Rs. 50,000/- 2[and Rs. 10,000/- (Ten thousand) for three wheelers and Rs. 25,000/- (twenty five thousand) for Light Motor Vehicles] an authority not below the rank of State Transport Commissioner or an officer authorised by him may order to accept such outstanding amount with current tax in monthly installments, preferably within two months from the filing of application, which shall not in any case be more than six installments and in such case a provisional tax-token may be issued by the taxing officer].

1. "Proviso" Inserted by Act 7,2006.

2. Inserted by Finance Act, 8

S.13 Liability of successor to pay arrears

(1) If the tax payable in respect of any motor vehicle remains unpaid by any person liable for payment thereof and such person before having paid the tax has transferred the ownership of such vehicle or has ceased to be in possession or control of such vehicle, the person to whom the ownership of the vehicle has been transferred or the person who has come in possession or control of such vehicle shall be liable to pay the said tax;

(2) Nothing contained in this section shall be deemed to affect the liability of the person who has transferred the ownership or has ceased to be in possession or control of such vehicle, for payment of the said tax.

S.14 Transport vehicles registered outside Bihar not to be used or kept for use unless tax paid

Notwithstanding anything contained in Section 7, no transport vehicle under a permit granted by a competent transport authority of any other State under the provisions of Motor Vehicles Act, 1988 (Act no. 59 of 1988) shall be used or kept for use in Bihar unless there has been paid in respect thereof, tax calculated at the appropriate rate specified: 1[ln Schedule-I and additional motor vehicle tax as specified in Schedule-ll for the entire period for which the permit is valid in the State of Bihar:

Provided that motor vehicles plying in Bihar, under permits granted by appropriate Transport Authorities of such States as have agreed on reciprocal basis to exempt motor vehicles plying in those States under permit granted by competent Transport Authorities of this State, shall not be required to pay any tax under this section other than the additional motor vehicles tax:

Provided further that the permit holders opting for the State of Bihar under the National