N C P vehicles - penalty amount Specified.

There has been lingering doubt about the penalty amount to be collected in respect of N C P vehicles and the Transport Commissioner has issued a clarification in this regard.

The Transport Commissioner has issued a clarification in his letter no. A5/18673/2009 dated 24.2.2010.

As per this letter for N C P vehicles the penalty amount has to be collected as follows:-

within 15 days after the stipulated period:- 1/16th of the tax amount

more than 15 days but within 45 days:- 1/4th of the tax amount.

More than 45 days i.e. after the quarter:- 1/2 of the tax amount .

From this we can understand that for n.c.p. vehicles the penalty to be calculated is 50% of the tax amount. i.e. Rs,.2400/- + Rs.1200/- if the payment is made after the quarter, i.e. beyond 90 days .

It is also mentioned in this letter that if a vehicle is found plying without permit then the compoundding fee to be collected is Rs.5000/-

In offices where penalty is not calculated as per the clarification, we have to prepare a list now and collect the penalty when the vehicle owner comes for payment tax now .