How to collect tax for omni bus -

The Government of Tamil Nadu has recently revised the tax for omni buses as floor rate of tax.

For this the total area of the bus has to be measured and tax has to be levied.

But tax for omni buses is levied under Section 6 of Tamil Nadu Motor vehicles Taxation Act 1974.

So the tax is collected for seven days, 30 days or quarter. If a vehicle has paid tax for a month which falls in September and October how the tax has to be collected for the period lies in October.

For this the Transport Commissioner's Circular no. 21/2002 comes in handy.

Along with the circular a letter from the Home department is enclosed which is very useful to calculate the tax.

Let me explain the same in my own parlance.

First the tax paid at the old rate must be divided as tax for each day. For eg. the owner has paid Rs.30000/-for 30 days then the tax for a single day is Rs.1000/-

Next the tax at the new rate i.e. floor rate has to be calculated for a day. If it comes to for eg. Rs.1300/- then the difference from the new rate to old rate is Rs.300/-

The number of days that lies in the month of October has to be calculated from the t.p. period. as the new rate of tax comes to effect from 1.10.2009.

Caculate the number of days in October into the amount of difference of tax for each day.

There comes the balance to be collected.