Rebate - Is surcharge included.

The Government grants rebate for payment of tax either for half yearly or annual payment.

In G O Ms No.1694 Home Tr.I dated 14.8.89 rebate is granted at 6% if transport vehicle tax is paid on annual basis or at 4% if transport vehicle tax is paid on half yearly basis. This means that if the mode of payment is quarterly but if the owner opts for payment of advance tax for half year, or whole year.,then the rebate is applicable.

For stage carriages we levy surcharge . Town buses at 10% and mofussil buses at 25% of tax. While granting rebate for stage carriages if paid annually by corporation will the rebate be given to surcharge .

The Government have clarified in letter no. 2 D No.63 dated 3.2.2004 as follows.

The rebate of tax allowed in case of payment of tax in advance either for annual or half year instead of quarterly in respect of transport vehicles cannot be extended to surcharge payment of tax.

It means that when corporation comes for payment of tax annually the rebate has to be given only for tax and not on surcharge.