Motor cycle as a Transport vehicle.

A recent news item says that the police seized several motor cycles used for hire or reward. Usually bicycles are available for hire in all the towns. Some states like Goa has motor cycle on hire.

What the Rule Says?

There is a scheme called Rent a Motor cycle scheme 1997. It was published by the Government in notification No. S O. 378(E) dated 12.5.1997.

If a person wants to lend his motor cycle for hire what he has to do?

He has to apply for a licence to the State Transport Authority.

He has to pay the prescribed fee and produce the RC of the motor cycles he intended to let for hire.

The motor cycle shall be registered as a transport vehicle . Please see Government of India notification in S O 1248(E) Dated 5.11.2004.

But the rate of tax is the same.

If the conditions laid down in Rent a motor cycle scheme is fulfilled then the licence can be granted.

A person may start a business as "Motor cycles for Hire" with the above licence.

Church vehicles - Registration.

The Government of India in a letter in No. RT 11028/14/2002 - MVL dated 3.X.2006 issued by the Ministry of Shipping Trpt and Highways clarifies how a vehicle with a seating capacity exceeding 6+1 has to be registered.

1. The classification omni bus for private use was abolished already. Therefore a vehicle having a seating capacity of more than 6+1 can be registered in the name of an individual as a non transport vehicle.if the vehicle is used for his personal purposes.

2. The vehicles of Central Government, State Government and their undetakings can be registered as a non transport category.

3. For charitable and philanthropic institutions, as it widely uses the road and therefore be registered as a transport vehicle and should undergo fitness test.

Circular No. 12/2007 also stresses these points.

A circular was issued in the year 2002 much ahead of this letter referred above . But the contents of the circular holds good even now. It is circular no. 36/2002.The contents of the circular are as follows:-

The instructions of Government of India are only administrative in nature and cannot overrule the spirit of the notification.

The end use has to be seen before deciding about the class of vehicle. If it is social service and work relating to religious one not connected with any commercial activity then the vehicles belonging to church can be registered as non transport category.

So eventhough the seating capacity exceeds 6+1, if the vehicle is purchased by a church or any religious organisation then the vehicle can be registered as non-transport.

The usage alone is the criterion and not the nomenclature.

Also refer circulars 107/2000, 36/2002, 12/2007

Maxi Cab - Higher rate of tax.

Though the tax rate for maxicab is Rs.275/- per seat per quarter, for certain vehicles the tax is Rs.500/- per seat per quarter.

At the time of FC or permit we should watch out these variations and collect tax accordingly.

These vehicles are defined as luxury vehicles under taxation Act.

The following are some of vehicles for which tax should be collected at Rs.500/- per seat per quarter.

Innova 2.5.G Diesel, 7 seater Circular no. 45/06
Innova 2.0. Petrol 7 seater Circular no. 45/06
Ford Endeavour 7 Seater Circular No. 23/05
Tata Safari Lx 2 7 Seater circular No.30/07
Premier Sigma 7 Seater Circular No.46/06

The price of these vehicles are on the higher side compared to other variations of these models.

EIV - Judgement.

Now it is time for checking school/ college vehicles.

Circular No.21/96 explains the salient features of a Supreme Court judgement.

The High Court in W P No.47114/2002 also stresses the same.

The Important points in the judgement are:-

1. All the vehicles of school/college shall have a board as educational institution vehicle in the front and back of the vehicle.

2. If the vehicle is hired by the school or college or parents, the vehicle carrying the students shall carry a board On School duty at the time of school trips.

3. Windows of the vehicle shall be fixed with horizontal grills.

4. Doors of the vehicle should have reliable locks.

5. The point noted below has been stressed strongly by the High court.

The driver of the vehicle should have at least ten years of experience and should not have been charged for any offence relating to rash and negligent driving.

So before issuing a permit or F C the following should be ensured.
At the time of issue of permit or renewal of permit or FC the licence details of the driver of the vehicle should be noted in a register for this purpose and also in the permit register.

A separate page may be allotted for each institution and as and when they come for the works, the driver details of each vehicle may be noted as such that they should not submit the same licence again and again.Each institution should be accommodated in a separate folder

Advertisement

The High court of Judicature, Chennai in a writ petition filed by Consumer forum Coimbatore has delivered its judgement regarding Advertisements in buses.

The salient features of this judgement are as follows:-

1. There should be no advertisements on the wind screen.,or rear window, or side windows of buses.

2. Home secretary should issue directions to follow the judgement strictly.

3. Advertisements in the buses distract the road users. It is an hindrance to the passengers sitting in a bus as it bars the views from inside. It attracts other road users as their attention is diverted, distracted and a cause for accidents.

4. Advertisement may be allowed inside the buses and rear portion of the exterior body of the vehicle.

5. Advertisement may be considered on extended body panel sheets.

6. Also on glass panels above the windows.

7. Prior permission from the Transport Authority is a must. The authority granting permission should ensure that no obscene ads are placed in such a way to distract the other road users.

8. If violations are noticed the permits are liable to be suspended.

Ambulance - Rate of tax.

When a new vehicle is Registered as an ambulance What is the rate of tax?

"Ambulance" is defined as a transport vehicle as per the notification of Government of India in S O 1248 (E) dated 5.11.2004.

A circular issued by the Transport commissioner way back in the year 1997 namely 43/97 says that tax should be collected as per first schedule of taxation Act 1974 under item 7.

But the circular was issued prior to introduction of life tax.Well before 1.7.98.

After the introduction of life tax the question of payment of annual tax for newly registered vehicles does not arise.

In the mean while the Transport Commissioner Chennai has issued a letter in 41635/A5/2009 dated 11.8.2009 which states that ambulances are liable to pay tax on annual basis at the rates prescribed in item No. 7 of first schedule of TNMVT Act 1974.

With the letter in hand, the dealers who register the ambulances now, are paying annual tax.

Trent

Zimbabwe is an African country previously known as Rhodesia and Harare is its capital. It gained freedom in the year 1980.

Our subject matter is about a lady of letters from that country.

Trent born in 1965 attended elementary school for one year and her father married her off when she was 11 years old. The only thing she got through marriage is blows and babies.After a decade a head of an international Aid group " Heifer International" visited her village . Mr. Jo Luck head of that group interacted with the villagers and told the villagers that they should stand up, nurture dreams and change their lives. Trent, immediately scribbled in a piece of paper that she wanted to get a degree, do her studies in USA and get a doctorate.She has heard from so many Africans that knowledge is the only key to prosperity.

She met Jo Luck and joined in the group . From the money she got she studied in correspondence course. She developed her knowledge by interacting with the members of Heifer International . She saved all her money so that she could fly to USA for higher studies.

She took all her four kids along with her to USA. Trent's mom sold her cows, neighbours sold their goats and helped her to get tickets.She got a seat in Oklahoma University. In 1998 she flew to United States.

The family lived in an abandoned trailer shivering in cold and going hungry for several nights. Her classmates helped her with left overs, her friends who worked in malls and supermarkets told her that they have dumped foods which have crossed the expiry dates in their dumping zones and she had all those.She used to visit the Walmart super market in the early morning and she used to take all those thrown away things.

She washed cars, utensils and did all the jobs.

After knowing her tribulations one NGO Heifer international helped with a small one room shelter. She finished her under graduation and joined for UG.

She did research in Aids in Africa and got a parttime job in her college.

Now she is pursuing her research in Michigan university and has almost achieved all her goals.

Come December she will be awarded a Ph.D. A one time less than a year elementary school drop out will be now Dr.Trent.All dreams are possible.

(Courtesy Nov.14 edition of New York Times. Thanks to D.Kristof, the author of this article.)

Late payment of tax - C F to be collected.

The Transport Commissioner, Chennai has issued two circular instructions to collect the compounding fee for belated payment of tax.

They are 40/94 and 9/96.

Up to 50% penalty except for E.I.V and P S V Rs.150/- has to be collected. for School vehicles, college vehicles and PSV Rs.250/- has to be collected..for penalty upto 50%.

For 100 % penalty except for Educational institution vehicles and PSV Rs.250/- has to be collected. If the tax is paid with 100% penalty for Educational Institution vehicle and PSV then the CF to be collected is Rs.300/-

This includes penalty under Sec.15-B of TNMVT Act 1974.

Excavator - Registration

Whether excavators, or other construction equipment can be registered, whether to register as a transport vehicle or a non transport vehicle?

The Government of India in notification GSR 642(E) dated 28.7.2000 describes the excavator as a non transport vehicle. Hence the excavator needs to be registered as a motor vehicle.

Though construction equipment vehicle is intended for use generally in off the road conditions such as a plot, building space etc, when the public road is used regularly for carrying on commercial activities then such vehicles as dumpers, excavators shall be deemed as a transport vehicles.

Refer Govt of India notification in SO 1248 (E) dated 5.11.2004.

Also refer circular No.43/2004.

No Tax Due - Nil assessment.

Rule 3 of the Tamil Nadu Motor vehicles Taxation Rules 1974 specifies under what circumstances a tax can be assessed as NIL.

For the vehicles seized by the Government or Government Department like Forest, Police etc subject to physical verification by the M.V.I.

For the vehicles detained by any financial institution owned by the Government subject to verification.

For the vehicles involved in accidents and where CFX notices were issued.

For a vehicle which is sold as scrap or dismantled subject to prior permission from the authority and also subject to verification about the non-use.

For the stolen vehicle based on police certificate.

For the vehicles where permission is granted under Rule 172(6)

For the above cases Tax can be assessed as NIL.

Please refer circular No.61/96

Road Safety Tax - Exemption.

We all know that the Government has introduced Road Safety Tax w.e.f.1.8.2009.

All the vehicles registered or re-registered are liable for payment of road safety tax .

Whether the vehicles belonging to non-commercial departments are liable for payment of road safety tax?. The vehicles belonging to non-commercial departments of Govt. of Tamil Nadu are exempted from payment of road tax. Likewise such an exemption be applicable to road safety tax.

The Transport Commissioner Chennai has clarified that all Government departments which are non commercial are exempted from payment of road safety tax as road safety tax is also a tax. So at the time of registration of Govt.of Tamil Nadu vehicles road safety tax need not be paid(applicable to non commercial dept)

T C Letter no.53874/A4/2009 dated 10.11.2009

International Driving Permit - Procedures.

The Central Government has issued a notification in GSR 720(E) dated 10.9.2003 in which the details relating to International Driving Permit have been published.

It specifies the following are needed for issue of IDP

1. An application in form 4-A
2. Valid driving licence.
3 Fees of Rs.500 + Service charge of Rs.500/-
4. 3 passport size photos
5. Medical certificate in form 1-A
6. Valid pass port
7. Valid visa.

The validity of permit is for one year or till the expiry of licence whichever is earlier.

Automobile Association of India can also issue IDP to its members.

Sanjay Jha

Good horses may lose because of bad jockeys, even bad horses may win because of good jockeys.

Likewise for a company the boss can make a turn around from sinking to brimming.

Sanjay Jha, when he became the Co CEO of Motorola, one of the mobile phone producers,the company was in doldrums. Losses were mounting, no new product, no inquiries. The technology of the phones of his company is outdated and no sales at all.

Apples iphone had got the market RIM s Blackberry is stealing the show.

Sanjay Jha called up a meeting of the employees and one employee mentioned about Android operating system for mobile phones. This system would bring together text messages, email , browsing and social net work like face book, orkut , twitter etc.

Next week the engineer Osterloh had a separate meet with Sanjay Jha and explained the Android system in detail. Sanjay Jha found out that Osterloh could write a wonderful software for mobile phones. Then they made the first smart phone DROID.

He showed the phone to Verizon a leading mobile service provider of U S and then the company placed orders and followed AT & T.

The screen of the phone is bigger than the Iphone and the resolution is higher and the system support high definition video.

Now the company is again looking back. The company now sees new light at the end of the tunnel.

You can be also proud about this as Sanjay Jha is an Indian.

Military licences - conversion as civil licences.

One of the real VIPs who visit transport offices is the Ex-service men.

They protect the nation in the chill and ever cold borders and their sacrifice is ineffable.

When once they retire from service, they would convert their military licence to civil licences.

What we have to do?

The Government of Tamil Nadu has issued a G. O. in G O Ms.2615 Home dated 15.9.1972 which says that 5 years military experience of driving L M V, H M V will automatically qualify them for the grant of civil driving licence.

So when an ex-service man with 5 years of driving experience in military needs a civil licence that can be granted automatically by collecting the fees and without any test.

Rule 46 (5) of Tamil Nadu Motor vehicles Rules 1989 also exempts ex-service man from payment of fee for the issue and renewal of licence. But they have to pay the fees of service charge, llr etc.

Latest in Trpt. Dept.

Certain latest developments in Transport Department.

The Government of India intends to bring an amendment in Motor vehicles Act which would facilitate the hearing impaired people.

The disability to hear proscribes a person from obtaining a driving licence. The Government intends to modify as follows:-

If a person with disability could hear sounds with hearing aid over and above 40 decibels he can be issued with a driving licence to drive transport vehicle.

If he could hear sounds with hearing aid over and above 60 decibels, he could be issued with a driving licence to drive non transport licence.

Another one is the Judgement of High Court.

The Chennai High Court has up held the circular No.43/2007 of Transport Commissioner. The circular which prescribes guidelines for driving schools was challenged before the High Court. The High court upheld that the circular is not ultra virus and within law.

Two or more modifications come in the circular with reference to space of the driving school, open area where candidates can be given training and solvency limit.

We may wait for further instructions from Transport Commissioner.

Central Govt.Vehicles -Tax liability.

The Central Government vehicles are liable for payment of tax.

Though the Government have exempted the non-Commercial Departments of State Government, the Central Government vehicles are liable for payment of tax. Central Government departments like Income tax, Postal, Customs have to pay tax for their vehicles.

Prior to 1984, the Central Government vehicles were exempted from payment of tax. From 1.1.1984 the Government of Tamil Nadu by G O Ms.2725 Home Dt 27.12.1983 cancelled the exemption given to Central Government vehicles.

Also refer circular no.34/2002.

Over Load - Compounding fees.

The ways of levying compounding fee differs for home state vehicles and other State vehicles

We will discuss collection of compounding fees in respect of other State Goods vehicles for the offence of over load by goods.

Circular no. 40/2008 deals with levying compounding fee for over load in goods vehicle for other state vehicles.

As per this circular the penal provisions of Section 194 are to be followed.

A question may arise in our minds whether the penal provisions contemplated under Section 194 can be enforced by the officers of this Department. Is not Court alone competent to enforce this. Is not sanction a must?

In the event a owner of a vehicle pays the fine on volition, the authorised officer gets the jurisdiction and authority to compound the offence.

The only thing is that executive should not out stretch the limit in levying the compounding fee. In other words, the amount prescribed by Section 194 should not be enhanced by the officer who collects the fine.

Also in this case we should not restrict the compounding fee to the maximum of Rs.5000/- as we do for Home State vehicles.


The compounding fee levied should be concomitant to the over load carried. So if the over load is 3100 kg then the c.f. should be 4000+2000=6000 and if the over load is 5100 kg then the c.f should be 6000+2000=8000.
We will now see how the compounding fee is levied for home state vehicles. The above illustration applies to Other State Goods vehicles.

For HOME STATE vehicles
------------------------
A reading of circular no. 44/2007 would show that the compounding fee fixed for home state vehicles also draw the penal provisions to its rescue but the maximum fine is fixed for Home State vehicles keeping the Rule 206 of the TNMVR 1989 in mind. So for Home State vehicles the penal provision of Section 194 of M V Act and Rule 206 of TNMVR is combined for collection of compounding fee for the offence of over load of goods in goods vehicle.

Entry Tax.

When an other state vehicle is Re.registered in our State or when a vehicle is purchased from another state, and brought for fresh registration here, one important point we have to see is whether the entry tax is paid. Also when an imported vehicle is brought for registration then also entry tax is to be paid. For eg. certain vehicles may not be readily available in this state and the buyer may buy the same from the neighbouring state.So we have to see the entry tax is paid or not.

If a vehicle is registered in other state and brought to this state within 18 months from the date of registration, then entry tax is to be paid.

If the vehicle is more than 18 months old, then the entry tax payment does not arise.

A batch of writ petitions challenging the introduction of entry tax was allowed by the High court and the High court Chennai held the introduction of entry tax as null and void. But subsequent appeal to the Supreme court by State Government upheld introduction of entry tax. So as on date entry tax is applicable.

Refer Circular No.42/2002

Sudha Murthy

Just for a change. Instead of writing about Rules and circulars I have decided to allot the weekends to write about famous personalities whose life has an influence over others. They were born as ordinary people like all of us. But transformed to a great personality.Their life is a great source of inspiration and influence.

Sudha Murthy wife of Narayana Murthy is one such person. Her life has transformed millions of people in unknown villages. A recent article about her is a great source of wisdom.

In 1974 When Sudha was a student of Indian Institute of Science in Bangalore, an ad in a notice board tells about vacancies at Tata Motors Pune, which also said that woman need not apply for this post.

So she immediately sent a letter to Mr. JRD Tata the Chairman of Tata Group informing him that it is a great wonder that great groups like Tata found gender differences.

In a short span she received a telegram to appear for an interview at TATA Pune.

One of the interviewers informed her that the factory is not a co.ed college to which Sudha replied that if firms like TATA shut the door for woman in employment, in India no firm will appoint any woman in any job.

Finally the plum job landed in Sudha's hand. She met Narayana murthy another employee and they got married.

One day when she was waiting in the corridor there came Tata the Chairman of the group and inquired her about her waiting in the late evening to which she replied she is waiting for her husband. Tata told her that he would wait along with her till her husband comes as there was none in the corridor and it is late in the evening. When Naryana murthy came to pick her, Tata told her to inform her husband not to make her wait for long time.

Finally when Narayana murthy decided to start Infosys Sudha met Tata to give her resignation. Tata asked what she would do when the company goes to great heights. To which Sudha replied that she has doubts about that at that time. Pat came the reply
"Start with Hope and Courage and aim for Big". Tata finally informed her to do something for the society as we receive a lot from the Society.

To day there are many foundations from Infosys stable which help villages, old age people, educational assistance, medical help etc.

Recently Sudha and Murthy sold their 1% of their share and raised around 750 crores and started a venture capital called "CATAMARAN INVESTMENTS' a few days earlier. This will help new budding entrepreneurs who have innovative ideas but not enough money to start their own business.

A big photo of TATA adorns the wall of Sudha's cabin.

"Great people do not do big things, but they do little things with great heart"
Sudha.

Duplicate Reg. Certificate.

Quite often we receive applications for the issue of duplicate Reg.Certificate. How to deal with it

The Transport Commissioner has issued guidelines for this. Circular No.80/99 illustrates this.

An application in form no.26 with a photo of the owner of the vehicle should be presented with appropriate fees.Police certificate and a copy of intimation given by the owner about the loss of the RC should be enclosed. The vehicle should be inspected and the owner's address should be verified.An undertaking from the owner that he is really in possession of the vehicle should be obtained.Financier NOC should be enclosed.

If the above conditions are fulfilled then the application can be considered.

Also refer Rule 53 of CMVR , Section 41 (14) and Section 51(6) of M.V Act.

Accidents.

The Government of Tamil Nadu has recently introduced a new system viz. Road Accident Data Base Management System.

This system comprises of three principal architects namely Police, Highways, Transport.

It works like this.

When an accident takes place, immediately the Transport Office in whose jurisdiction the accident takes place receives an intimation through email.

The Officer in charge of the office should open the relevant email which will lead him to a data base in which there is a form called Accident Report Form.

The form contains several columns concerning the vehicle. The form has to be filled within the stipulated time i.e. within a day in case of fatal and within 3 days in case of other accidents.

A common data base is created in the police headquarters which will have the details of all the accidents taken place in this State.

If the form is not filled in, the system will generate an email to the Road Safety Commissioner that such a report is pending from particular office.

So when an accident takes place the details should be kept handy to fill up the form.

one month tax -

Quite often stage carriage operators approach the office for one month tax permission. They may replace the present vehicle with another one during the second month of the quarter.

In such cases what we have to do?

The permission should be granted on or before the first day of the quarter and the tax should be paid on the first day of the quarter.

If the applicant could not replace the existing vehicle before the commencement of the second month of the quarter and if he seeks permission to pay tax for second month also, such request cannot be entertained as it would amount to payment of tax on monthly basis. But in the beginning of the quarter if he seeks permission to pay tax for two months and intends to replace the bus in the third month of the quarter, such request can be entertained.

If he is unable to replace the vehicle during the first day of the second month of the quarter as he has agreed, then he has to pay the balance of tax on the first day of the second month of the quarter.

If he has obtained permission for two months and fails to replace the vehicle on the first day of the third month of the quarter, then he has to pay the tax with appropriate penalty.

If the applicant stops the vehicle and seeks permission then permission to such stoppage can be given.

Refer circular No.19/2002

Transfer of driving school permit.

Suddenly if a driving school owner dies, the transport authorities would say that there is no provision to transfer the driving school permit.

But it is not so.

If the claimant has all the qualifications to run the driving school, that could be considered.

One driving school owner has got a government job and he wants to trasnfer the school permit to his wife, but the Licensing Authority has refused and rejected the application.

On an appeal, the Transport Commissioner has observed as follows:-


"In other words the licence to run a driving school is not treated like a right in property. But it does not mean that the licencing authority cannot even examine the claim of a person who in law inherits the property of the deceased licensee. In terms of rules in such cases if one of the legal heirs fulfills the all the qualifications prescribed under Rule 24 there cannot be any impediment for the licencing authority to consider the question of transmission."

So says the Transport Commissioner in his order in 68706/H1/09 dated 3.4.2009.

Pitfalls in making HP Ter entries.

Recently one type of fraud is in offing in the transport department.

The computer has given us lot of facilities. New techniques and new ideas not only help people who want to put things for the service of humanity.,but also help people with dangerous designs in their mind. The problem is the staff working in the department fall prey to it unintentionally.

One such area is cancelling the hire purchase agreement. Because people who want to cheat the finance companies easily make hp ter forms through colour xerox. So for the ordinary eye, it is difficult to find out the variations.

Now some one buy lorries or cars and make hire purchase agreements. Some time later they come to office with form 35 and NOC from the financier and the work is over in a jiff and after some time the financier says that he has not signed the form and the vehicle and the owner is absconding and then he files criminal case and unfortunately the staff who prepares the work and who signs become the victim.

How to avoid it.


Though we cannot totally eradicate it, we have some safe passages. These are

1. Always get a cover with sufficient stamp from the applicant to send a signed 35
form to the hire purchase company after the work is over.

2. If it is a company please get the list of authorized persons who are empowered to
sign the document. Check the signature of the person who has signed the
document.

3. Please see the time gap between the making of hp agreement and the termination
application date. If it is too short just write to the firm and confirm.

4. If the company has an email i.d. just get the confirmation thro email.

5. Get the authorisation properly.

6. Always keep a register for hp termination cases and when you hand over the papers
to the tapal section get the signature from the tapal clerk and please see to it
that the despatched tapal comes to your seat properly.In cases
if the papers are not traceable then the needle of suspicion falls on staff.