Idle Tax or ULW Tax.

Though there is no legal term called idle tax, the tax levied on transport vehicles for which permit was not obtained is called idle tax or ulw tax.

The Government has issued an order in this .

G O Ms 2610 Home (Tr.I) dated 28.9.1977 holds good for idle vehicles.

The Government says that if the transport vehicles not covered by permit move empty from one district to another or from other state to this State on a temporary permit with FC or covered under exemption, or permit, be taxed on the basis of their unladen weight.

Therefore it is clear that if the vehicle is not used tax need not be paid. If the vehicle is used on the road then tax to be paid on ulw basis.If the vehicle is found to be misused by carrying goods without any permit then the regular tax with penalty has to be collected.

Also refer circular No.78/96