composite tax - the myth

Refer: circular No. 32/98 , 34/06
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In G O Ms 1265 Home Transport department dated 12.12.08 the Government of Tamil Nadu has raised the composite tax for all the other state national permit vehicles from Rs.3000/- to Rs.5000/-.

Already the Government of Kerala, Karnataka and Andhrapradesh have raised the composite tax from Rs.3000/- to Rs.5000/-

One big question arises now is whether the concessional rate of tax granted to multi axle vehicles in G.O.Ms.238 Home (Trpt.III) dated 5.3.1998 is applicable to other state vehicles.

The G.O.referred above clearly states that the concessional rate is on reciprocal terms.

In ordinary parlance, if you give the concession to our state vehicles, we would do the same to your state vehicles.

Andhra and Karnataka have not extended any concession to multi axle vehicles. So the tax due for these states are Rs.5000/- per year.

Likewise states like Rajasthan, Goa, Maharastra also do not extend any concession.

So whenever any application for authorisation comes to us for national permit vehicles, we would mind whether Rs.5000/- is collected for each state except union territory Puduchery