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.