Composite Tax - Penalty provisions

Composite tax means the tax paid by other state N.P.vehicles to operate in this State and vice versa.

If a composite tax is not paid in time how much penalty has to be collected ? What is the relevant rule that fixes the penalty.

Rule 7 of the T.N.M.V.T.Rules 1989 specifies that the composite tax has to be paid 15 days prior to its expiry date.

Rule 8 (4) of the same Rules state that the penalty is Rs.100/- per month or part there of.

So if an authorisation expires on 10.6.2009, the last date for presenting the application is 26.5.2009, if the application is made on or before 26.5., there is no need for any penalty.

If the application is made after 26.5.2009 but before 31.5.2009, then the penalty is Rs.100/- for each state.

If it is made at any time in June then the penalty for each state is Rs.200/-

Like wise it goes up.

For this state N.P.vehicles having authorisation to ply in Kerala State the penalty should be calculated as follows:

For first 30 days after the prescribed period 10%
within 90 days after the p.p. 20%
within 180 days after the p.p. 25%
after 180 days 50%

( please refer circular no. 34/2006)