Delhi Motor Vehicles Taxation Act, 1962 Complete Act - Bare Act

DELHI

An Act to impose a tax on motor vehicles in the Union Territory of Delhi and for other matters connected therewith. Be it enacted by Parliament in the Thirteenth Year of the Republic of India as follows

(1) This Act be called the Delhi Motor Vehicles Taxation Act, 1962

(2) It extends to the whole of the Union Territory of Delhi.

(3) It shall come into force on such date1 as the Chief Commissioner may, by notification in the Official Gazette, appoint.

In this Act, unless the context otherwise requires

(a) 22. Substituted vide Amendment Act No. 17 of 1983. Administrator means the Administrator of Delhi appointed by the President under Article 239 of the Constitution.

(b) "Delhi" means the Union Territory of Delhi;

(c) "prescribed" means prescribed by rules made under this Act;

(d) "quarter" means a period of three months commencing on the first day of April, the first day of July, the first day of October or the first day of January in each year ;

(e) " registered owner" means the person in whose name a motor vehicle is registered under the Motor Vehicles Act, 1939 ;

(f) "tax" means the tax levied under this Act;

(g) " taxation authority " means any person or authority appointed by the 2[Administrator] by notification in the Official Gazette to exercise the powers and perform the duties conferred or imposed upon a taxation authority by or under this Act;

(h) "token" means a ticket to be displayed on a motor vehicle as an indication that the tax has been duly paid or that no tax is payable;

(i) "year" means the financial year; and

(j) all words and expressions used, but not defined in this Act, and defined in the Motor Vehicles Act, 1939 , shall have the meanings respectively assigned to them in that Act.

(1) Subject to the other provisions of this Act, on and from the commencement of this Act, there shall be levied and collected on all motor vehicles used or kept for use in Delhi, a tax at the rate specified in Schedule I.

"(2) The Administrator may, by notification in the Official Gazette, increase from time to time, the rate specified in Schedule I in relation to any motor vehicles:

Provided that the rate as so increased shall in no case exceed the rate as so specified by more than twenty-five per cent thereof".

(1) Every registered owner or person having possession or control of a motor vehicle used or kept for use in Delhi shall fill up and sign a declaration in the prescribed form stating the prescribed particulars and shall deliver the same to the taxation authority within the prescribed time.

(2) The tax to which a registered owner or person having possession or control of a motor vehicle appears by such declaration to be liable under Section 3 shall be paid by him

(a) for a year the rate specified in Schedule I ( hereinafter referred to as the annual rate); or

(b) for one or more quarters, at one-fourth of the annual rate for each quarter, or

(c) once in two months or monthly, in equal installments at one-sixth or one- twelth, as the case may be, of the annual rate:

Provided that any broken period in a month shall, for the purpose of levying the tax be considered as a full month.

(3) The tax shall be paid within such time and in such manner as may be prescribed.

(4) In calculating the tax due for any period less than one year, fraction of a rupee shall be counted as a rupee.

(1) When a person pays the amount of tax leviable under Section 3 in respect of any motor vehicle or proves to the satisfaction of the taxation authority that no such tax is payable in respect of such vehicle, the taxation authority shall

(a) issue to such person a token in the prescribed form specifying therein the period for which such tax has been paid or that no such tax is payable, and

(b) specify in the certificate of registration granted in respect of die vehicle under the Motor Vehicles Act, 1939, or in the case of vehicle not registered under that Act, in a certificate in such form as may be prescribed, that the tax has been paid for the period specified under clause (a) or that no tax is payable in respect of that vehicle, as the case may be.

(2) No motor vehicle liable to tax under this Act shall be used or kept for use in Delhi unless the registered owner or the person having possession or control of such vehicle has obtained a valid token in the prescribed manner.

(1) When a motor vehicle used or kept for use in Delhi is altered or is proposed to be used in such manner as to render the registered owner or the person who has possession or control of such vehicle liable to the payment of additional tax under Section 7 such owner or person shall fill up, sign and deliver in the manner provided in sub-section (2), an additional declaration and shall, along with such additional declaration ( accompanied by the certificate of registration in respect of such motor vehicle), pay to the taxation authority an additional tax payable under that section which he appears by such additional declaration to be liable to pay in respect of such vehicle.

(2) The additional declaration shall be in the prescribed form containing the prescribed particulars and shall be delivered to the taxation authority after being duly filled up and signed within the prescribed time. The additional declaration shall indicate clearly also the nature of alteration made in the motor vehicle or, as the case may be, the altered use to which the vehicle is proposed to be put.

(3) On receipt of the additional tax under sub-section (1), the taxation authority shall issue to the registered owner or the person who has possession or control of the vehicle, a fresh token in place of the original token and shall cause an entry of such payment to be made in the certificate of registration.

When any motor vehicle in respect of which a tax for any period is payable or has been paid, is altered during such period, or proposed to be used during such period in such manner as to cause the vehicle to become a vehicle in respect of which a higher rate of tax is payable, the registered owner or the person who has possession or control of the vehicle, shall, in addition to the tax, if any, due from him for that period, be liable to pay for the unexpired portion of such period since the vehicle is altered or proposed to be used, an additional tax of a sum equal to the difference between the amount of tax payable for such unexpired portion at the higher rate and the rate at which the tax was payable or paid before the alteration or use of the vehicle for that portion ; and until such additional tax has been paid, the taxation authority shall not grant a fresh token in respect of the vehicle so altered or proposed to be so used.

Explanation-ln calculating the unexpired portion under this section any broken period in a month shall be considered as a full month.

Every registered owner or person having possession or control of a motor vehicle shall, at the time of making payment of the tax, produce before the taxation authority a valid certificate of insurance in respect of the vehicle complying with the requirements of Chapter VIII of the Motor Vehicles Act, 1939.

(1) If the tax leviable in respect of any motor vehicle remains unpaid by any person liable for payment thereof and such person before having paid the tax has transferred the ownership of such vehicle or has ceased to be in possession or control of such vehicle, the person to whom the ownership of the vehicle has been transferred or the person who has possession or control of such vehicle shall be liable to pay the said tax to the taxation authority.

(2) Nothing contained in this section shall be deemed to affect the liability to pay the said tax of the person who has transferred the ownership or has ceased to be in possession or control of such vehicle.

Section10 Refund of tax

(1) When any person who has paid the tax in respect of a motor vehicle produces before the taxation authority a certificate signed by the registering authority stating that the tax token and the certificate of registration issued in respect of such vehicle have been surrendered on the date specified by the registering authority in his certificate, such person shall, on an application made in that behalf to the taxation authority and subject to such conditions as may be prescribed, be entitled to a refund for each complete month of the period for which such tax has been paid and which is unexpired on the date on which the tax token and the certificate of registration omitt were surrendered, of an amount equal to one-twelfth of the annual tax payable in respect of such vehicle.

(2) When any person has paid the tax in respect of a motor vehicle and the vehicle is removed outside Delhi before the expiry of the period for which the tax has been paid and taxed in another State, such person shall, on an application made in that behalf to the taxation authority and subject to such conditions as may be prescribed, be entitled to a refund for each complete month of the period for which such tax has been paid and during which the vehicle was removed from Delhi, of an amount equal to one-twelfth of the annual tax payable in respect of such vehicle.

Section11 Penalty payable when tax not paid

When any registered owner or any person who has possession or control of any motor vehicle used or kept for use in Delhi is in default in making a payment of the tax the taxation authority may direct that, in addition to the amount of arrears, a sum not exceeding the annual tax payable in respect of such vehicle shall be recovered from him by way of penalty:

Provided that before giving any such direction the registered owner or such person shall be given a reasonable opportunity of being heard.

Section12 Arrears of tax and penalty recoverable as arrears of land revenue

(1) any tax due and not paid as provided for by or under this Act and any sum directed to be recovered by way of penalty under Section 11 shall be recoverable in the same manner as an arrear of land revenue.

(2) The motor vehicle in respect of which the tax is due or in respect of which any sum has been directed to be recovered as penalty under Section 11, or its accessories may be and sold in pursuance of this section whether or not such vehicle or accessories is or are in the possession or control of the person liable to pay the tax or penalty.

Section13 Exemptions

(1) Where the registered owner or the person having possession or control of a motor vehicle is an agriculturist and that motor vehicle has been designed for agricultural operations and is used, solely for such operations in relation to his own land than, that vehicle shall be exempted from the payment of the tax.

Explanations.--For the purposes of this sub-section the expression "agricultural operations " includes,

(i) tilling, sowing, harvesting, crushing of any agricultural produce or any other similar operation carried out for the purpose of agriculture;

(ii) transport of manure, seeds, insecticide and other like articles required for work in the land from the market to the land; and

(iii) transport of any agricultural produce from the land to the place of storage or from the place of storage to the market.

(2) When the registered owner or the person having possession or control of a motor vehicle has given previous intimation in writing to the taxation authority that the motor vehicle would not be used in any public place for a particular period, being not less than one month, and deposits the certificate of registration of such motor vehicle with the taxation authority and obtains an acknowledgement therefor from that authority, he shall be exempted from the payment of the tax for that period.

(3) Where the 11. Substituted by Amendment Act No. 17 of 1983 for the words 'Chief Commissioner'. [Administrator] is of opinion that it is necessary or expedient in the public interest so to do, he may, by notification in the Official Gazette, and subject to such conditions as he may specify in the notification, exempt either totally or partially any class of motor vehicles other than those falling under sub-section (1) or any motor vehicles belonging to any class of persons from the payment of the tax.

Section14 Reduction of tax in cases of certain motor vehicles

Where the registered owner of a motor vehicle used or kept for use in Delhi is a co-operative society registered under any law relating to co-operative societies for the time being in force, the tax payable in respect of that motor vehicle shall be one half of the rates specified in Schedule I, if the taxation authority is satisfied, after such enquiry as it deems fit that,

(i) the co-operative society is solely enagaged in the business of transport of goods or passengers or both from one place to another in motor vehicles;

(ii) at least seventy-five per cent, of the members of the co-operative society are its employees;

(iii) at least fifty per cent of the member of the co-operative society are not related to each other; and

(iv) the motor vehicle is used or kept for use exclusively for the purpose of the co-operative society.

Explanation-For the purpose of this section a member shall be deemed to be related to any other member if that member is the husband, wife, brother or sister or any lineal ascendant or descendant of that other member.

Section15 Effect of payment of tax in other States with respect to motor vehicles brought into Delhi

Where in respect of a motor vehicle the tax payable under the law relating to taxation on motor vehicles in force in any State has been paid in that State for any period and that motor vehicle is brought into Delhi for use during that period, then,

(i) no tax under this Act shall be payable in respect of that motor vehicle; and

(ii) the token issued in that State in respect of that motor vehicle shall be deemed to be a token issued under this Act, for such period or for a period of ninety days from the date on which the motor vehicle is brought into Delhi, whichever is shorter:

Provided that the registered owner or the person having possession or control of the motor vehicle complies with the provisions of sub-section (1) of Section 4.

Section16 Appeal

(1) Any person who is aggrieved by any order or direction of the taxation authority may file an appeal before such person or authority, in such manner, within such time and on payment of such fees, as may be prescribed.

(2) The appeal shall be heard and decided in such manner as may be prescribed.

(3) Every decision on such appeal shall be final and shall not be called in question in any court of law.

Section17 Powers of police officers and other officers

Any police officer in uniform, not below the rank of Sub-Inspector or any other officer prescribed in this behalf may

(a) enter at any time between sunrise and sunset any premises where he has reason to believe that a motor vehicle is kept, or

(b) require the driver of any motor vehicle in any public place to stop such vehicle and cause it to remain stationary so long as may reasonably be necessary, for the purpose of satisfying himself that the amount of the tax in respect of such vehicle, has been paid.

Section18 Penalty for incomplete and untrue declaration, etc

Whoever

(a) delivers in respect of a motor vehicle a declaration or additional declaration wherein the particulars required by or under this Act to be therein set forth are not fully and truly stated, or

(b) obstructs any officer in the exercise of the powers conferred by clause (a) of Section 17 or fails to stop the motor vehicle when required to do so by such officer under clause (b) of that section. shall on conviction be punishable

(i) with fine which may extend to a sum equal to the annual tax payable in respect of such vehicle ; and

(ii) in the event of such person having been previously convicted of an offence under this section, with fine which may extend to a sum equal to twice the annual tax payable, in respect of such vehicle.

Section19 Other penalties

Whoever contravenes any of the provisions of this Act or the rules made thereunder other than those punishable under Section 18 shall on conviction be punishable with fine which may extend to one hundred rupees and in the event of such person having been previously convicted of an offence under this section, with fine which may extend to two hundred rupees.

Section20 Utilization of the proceeds of tax

The proceeds of the tax collected under this Act ( which shall form part of the Consolidated Fund of India) reduced by the cost of the collection as determined by the Central Government shall, if Parliament by appropriation made by law in this behalf so provides, be paid to,

(i) the Municipal Corporation of Delhi established under Section 3 of the Delhi Municipal Corporation Act, 1957 ;

(ii) the New Delhi Municipal Committee established under Section 11 of the Punjab Municipal, Act, 1911, as extended to Delhi; and

(iii) the Cantonment Board, Delhi, constituted under the Cantonments Act, 1924, for the performance of their respective functions under the said Acts and the payment shall be made in such proportion as may be prescribed."

Section21 Trial of offences

No court inferior to that of a magistrate of the second class shall try an offence punishable under this Act.

Section22 Protection for bona fide acts

No prosecution, suit or other proceedings, shall lie against the taxation authority or any other authority for anything in good faith done or intended to be done under this Act.

Section23 Power to make rules

(1) The [Administrator]22. Substituted for 'Chief Commissioner' by Amendment Act No. 17 of 1983. may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act

(2) In particular and without prejudice to the generality of the foregoing provision, the 22. Substituted for 'Chief Commissioner' by Amendment Act No. 17 of 1983. [ Administrator ] may make rules for all or any of the following matters, namely :

(a) the time within which, and the manner in which, the tax shall be paid;

(b) the form of declaration and additional declaration, particulars to be stated therein and the time within which the declaration or additional declaration shall be delivered under Section 4 or Section 6, as the case may be;

(c) the from of the tax token and the manner in which the tax token shall be displayed in the motor vehicle under Section 5 ;

(d) the conditions subject to which refund of tax may be allowed under Section 10;

(e) the authority before which, the manner, in which, the time within which and the fee on payment of which, an appeal may be filed and the manner in which, such appeal shall be heard and decided under Section. 16;

(f) the issue of duplicate tokens and of certified copies of the records of the taxation authority and the fees chargeable therefor; and

(g) any other matter which is to be, or may be prescribed.

11. Substituted by Delhi Motor Vehicles Taxation (Amendment) Act, 1983 (No. 17 of 1983). "(3) Every rule made under this section and every notification issued under sub- section (2) of Section 3 shall be laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification, or both Houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification."

Section24 Repeal

(1) On and from the commencement of this Act, the Acts specified in Schedule II shall stand repealed.

(2) The repeal of the said Acts by sub-section (1) shall not affect,

(a) the previous operation of the said Acts or anything duly done or suffered thereunder; or

(b) any right, privilege, obligation or right conferred, accrued or incurred under any of the said Acts ; or

(c) any penalty, forfeiture or punishment incurred in respect of any offence committed against any of the said Acts;

(d) any investigation, legal proceedings or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if the said Acts had not been repealed.

(3) Subject to the provisions contained in sub-section (2) and notwithstanding the repeal of the Punjab Motor Vehicles Taxation Act, 1924, as extended to Delhi,

(i) every declaration delivered under that Act in respect of any motor vehicle shall be deemed to be a declaration delivered under this Act; and

(ii) every token issued under that Act and valid immediately before the commencement of this Act, shall continue to be valid after such commencement for the unexpired portion of the period for which it has been issued.

Section25 Amendment of Section 184, Act 66 of 1957. Central Government to pay proceeds of entertainment and betting taxes to Corporation

In the Delhi Municipal Corporation Act, 1957, for Section 184, the following section shall be substituted, namely : "184. The proceeds of the entertainment and betting taxes collected in Delhi under the provisions, of the U. P. Entertainment and Betting Tax Act, 1937, as extended to Delhi (which shall form part of the Consolidated Fund of India) reduced by the cost of collection as determined by the Central Government shall, if Parliament by appropriation made by law in this behalf so provides, be paid to the Corporation for the performance, of its functions under this Act."

SCHEDULE(See Section 3) SCHEDULE I

(See Section 3)

Description of motor vehicles

Annual rate of tax for each motor vechicle

1

2

Rupees

PART A Motor vehicles fitted solely with pneumatictyres

I.

Motor cycles and tricycles ( including motor scooters

and cycles with attachment for propelling the

same by mechanised power)

40/-

(a)

Motor cycles, (flat rate) ...............................

20/-

(b)

Scooterettes and auto-cycles (flat rate) ..........

50/-

(c)

Tricycles (flat rate) ................................ .' ......

The rate specified in (a)

(d)

Motor vehicles specified in (a) or (b) or (c)

or (b) or (c) above plus 15/

Above used for drawing a trailer or side car ..

II.

Motor vehicles ( adapted and used for invalids)

the registered unladen weight of which does not

10/-

Exceed three hundred kilograms ........................

III.

Motor vehicles ( including tricycles, used) for the

Transport of haulage of goods or materials, the registered

laden weight of which

220/-

(a)

Does not exceed one tonne .....................

(b)

Exceeds one tonne but does not exceed two

310/-

Tonnes ....................................................

(c)

Exceeds two tonnes but does not exceed four

470/-

Tonnes ..........................................................

(d)

Exceeds four tonnes but does not exceed six

630/-

Tonnes ..........................................................

(e)

Exceeds six tonnes but does not exceed eight

780/-

Tonnes ..........................................................

(f)

Exceeds eight tonnes but does not exceed nine

940/-

Tonnes ..........................................................

(g)

Exceeds nine tonnes but does not exceed ten

1100/-

Tonnes .................................... . .....................

The rate specified in (g)

(h)

Exceeds ten tonnes .......................................

above plus 156/- for every

one tonne or part

thereof in addition to ten

tonnes

IV.

Additional tax payable in respect of vehicles referred to in Item, III, used for drawing trailers

(a)

for each trailer the registered laden weight of which does not exceed two tonnes...............

150/-

(b)

For each trailer the registered laden weight of which exceeds two tonnes ............................

300/-

Provided that two or more vehicles shall not be chargeable under this Item in respect of the same trailer.

V.

Motor vehicles ( including tricycles) plying for hire and used for the transport of passengers, when

(a)

licensed to carry, in all, not more than two passengers ( excluding driver ) .................

100/-

(b)

licensed to carry, in all, more than two but not more than four passengers ( excluding driver and conductor) .............................

200/-

(c)

Licensed to carry, in all, more than four passengers but not more than six passengers (excluding driver and conductor ) ....................

375/-

(d)

Licensed to carry, in all, more than six passengers but not more than eighteen passengers ( excluding driver and conductor) .........

630/-

(e)

Licensed to carry more than eighteen passengers ( excluding driver and conductor) .........

The rate specified in (d) above plus 94/- for every passenger in addition to eighteen passengers which the vehicle is so licensed to carry

VI

Motor vehicles owned by Airline Companies or Corporations for carrying passengers and staff

(a)

The seating capacity of which does not exceed Four ( excluding driver)...............

200/-

(b)

The seating capacity of which exceeds four But does not exceed six ( excluding driver)

375/-

(c)

The seating capacity of which exceeds six but Does not exceed eighteen (excluding driver)...

630/-

(d)

The seating capacity of which exceeds eighteen ...........................................

The rate specified in (c) above plus 94/- for every person in addition to eighteen persons

VII.

Break-down vans used for towing disabled vehicles and tower wagons used for maintenance of overhead electric lines .................................

310/-

VIII.

Motor vehicles other than those liable to tax under the foregoing provisions of this Schedule, the registered unalden weight of which

(a) does not exceed one thousand kilograms ......

125/-

(b) exceeds one thousand kilograms but does not exceed one thousand and five hundred kilograms.......................................................

160/-

(c) exceeds one thousand and five hundred kilograms but does not exceed two thousand kilograms .....................................................

320/-

(d) exceeds two thousand kilograms ..................

The rate specified in (c) above plus 150/- for every one thousand kilograms or part thereof in addition to two thousand kilograms

IX.

Additional tax payable in respect of vehicles referred to in Item VIII, if such vehicles are used for drawing trailers

(i) for each trailer the registered unladen weight of which does not exceed one tonne .............

60/-

(ii) for each trailer the registered unladen weight of which exceeds one tonne ..........................

120/-

Provided that two or more vehicles shall not be chargeable under this Item in respect of the same trailer

PartB

-Motor vehicles other than those fitted solely with Pneumatic tyres

The rates shown in Part A plus 50% thereof

Schedule[see Section 24 (1)] Schedule II

[see Section 24 (1)]

1. The Punjab Motor Vehicles Taxation Act, 1924 (Punjab Act4 of 1924) as extended to Delhi.

2. The Punjab Motor Vehicles Taxation ( Amendment) Act, 1940 ( Punjab Act 2 of 1940) as extended to Delhi.

3. The Punjab Motor Vehicles Taxation ( Delhi Amendment) Act, 1954 ( 6 of 1954).

4. The Punjab Motor Vehicles Taxation ( Delhi Amendment) Act, 1955 ( 2 of 1956).

5. The Punjab Motor Vehicles Taxation ( Delhi Amendment) Act, 1956 ( 10 of 1956).