National Permit - Authorisation expiry.

When a National Permit is surrendered, we have to see whether there are any compounding fees due, any arrears of tax due etc.

But if the authorisation is expired what we have to do. Is it necessary to collect the composite tax.

The Transport Commissioner in circular No. 36/2001 has categorically stated that there is no need to collect any composite tax even if the card is expired. As the vehicle could not ply without valid authorisation in other states, there is no need to collect any composite tax.

However during the validity of the earlier period if the composite tax is raised in the middle of the year by other states like Kerala or Karnataka, the difference has to be collected.