PUNJAB MOTOR VEHICLES TAXATION ACT 1924

GOVERNMENT OF PUNJAB

..

DEPARTMENT OF LEGAL AND.

LEGISLATIVE AFFAIRS

The Punjab Motor Vehicles

Taxation Act, 1924

....

(PUNJAB ACT 4 OF 1924)

{As amended up to 31st August, 2004)

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Printed by :

The Controller, Printing and Stationery Department, U.T., Ohd.

R..27-00



THE PUNJAB MOTOR VEHICLES TAXATION ACT, 1924

(Pu;,,JABAcr 4 or 1924)

Secuon CONTENTS Page

l. Short title. extent and commencement. 3

2. Definitions.
3

3. Imposition of Tax.
5

3-A. Retrospective notificauon.
5

3-B. Imposition of tax in lumpsum on motor vehicles. 5

3-C. Refund of lax in certain cases.
5

3-D. Imposition of tax in lump sum of four wheeled 6

personalisedmotor vehicles,

3-F Refund of lax paid in respect of four wheeled 6

personalisedmotor vehicles.

3-F. Levy of special road tax.
7

4. Obhgauon of persons keeping motor vehicles to 7

make dee laration and to pay tax

+A. Obligation to make declaranon tn respect of 8

transport vehicles to pay special road tax.

...

5. Obliganon to make additional declaration and to 8

pay further tax.

5-A. Obligation on revision of rates of tax. 8

6. Service ot special notice to make declaration and 8

to pay tax.

7. Grant of license.
9

7A Owner to furnish security. 9

'J 7-8 Maintamance of accounts and determination of tax. 9

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7-C. Re-determmauon of tax. 9

8. Offences and penalties. 10

9 Compounding of offences. TI

10. Recovery of tax or additional tax imposed under IT
sec1100 8 or sccuon's.

11. Recovery of on arrear of tax. 11
I 1-A. Payment of interest. 11

11-B. Power of Licensing Officer to recover tax, 12
interest and penalty

11-C Liability of transferee of vehicles. 12

12. Appeals. l3

12-A Revison. 13
13 Refund and exemption. 14

j 4. Bar lo junsdrction of civil and crimmal courts in 14
matters of taxations.

14-A. Cogrugence of offencess. 14

14-B. Power to slop search and seizure. 14

14-C. Tax payable by dealer or manufacturer. 15

15 Power of State Government to make mies. 15

16 Delegation of power. 16

(ri)
. .,



(PUNJ,\BAC1 4 OF 1924)

1TUE PUNJAB MOTOR VJi:lllCLESTAXATlONACl? 1924

[Received the assent of the Governor of the P1111jab011 the 25th November.

192./, antl that of tile Gol'er11or-Ge11eralon the 25th Ja1111ary, 1925, and

was first 1publ?J,eJin the Punjab Gazelle of the JOtlt January, 1925.J

4

Amended by the Adaptauon or

Laws ('nurd Amendment) Order,

1951.

>Amended by Punjab Act 14 or

1954.

Amended by the Indian Indepen­

deuce (Adaptation of Bengal and

Punjab (Acts) Order, 1948 G G.0
.

.lO).

Amended by the Adaptation of

Laws Order. 1950.

• Amended by 1he Punjab Act 2 or

19-10

Amended t,y the: Government of

lodia lAdapu11ionof Indian Laws)

Order. 1937.

'Amended Pun1ab Acl IO of I 925

Whelhcr repealedor otherwise

affected by kgislauon

J

1nC Punjab Motor

Vehicles T3)(3IIOO

Act, 1924.

Short utle

2

·1

No

1. For S1:11ement or ObJetts and Re3S01\S, see P11njallGa:rtle, 192-1. Part I, pages 64-65 tor

Select Comm111e:e·s Report. :s1.'I! Punjab Gau11e, l!.'<t110Td1no.ry,1924, pages 13-20, for proc:ecdmgs

m Council see PunJab Lc:g1sl1111veCouncil Debates, Vol VI, pages 372-79, nnd S74 and Vol VII,

pages 309-16 311d 332-39.

2. See Punjab G11:tflt, 1925, Pan 1, pages 60 65

3 For S12ten1C11lor Objects and Reasons, see Pull)ab Gmett«: \ 925. Extraordm:IT)', p:agc 72,

and for Proceedings in Council iu Punjab Lcgislatsvc Council Debates, Volume Ylll-B pages

1298 99

4 F<•r Stntcnll!nt of ObJcCts and Rnsons, see Punjnb Gazelle 1940, Extraordinary, page

200, snd for Proceedings m Assembly s?? Punjab Lc:gisliitiveAss.:mbly Debates, Volume XL P. 5S7.

and Volume XI-A pages 270--93 and JM-89 ..

5. for S1a1ement of ObJC:ClS.md Reasons, see Punjab Government Gozeu«. (13x1T111.mlinury),

19S4, page 278

:,-

Year

1924



4

Whether repealed or other

affected by legislallon

'Extended Lo Pepsu Terrin

PunJab Act, S of 1957

'Amended by Punjab Act .30 of J
>Amendedby Pun1ab Act 5 of II)
'Amended by PunJat, Act 32 or I
$Amc:ndedby Punjab Act 25 of I
•Amended by Punjab ,\ct 25 of I
\\meoocd by PunJ11bAct 4 of 19',
'Amended by PunJab Act 24 of I?
'Amended by Punjab Act 9 of 19,
1°Amcndedby Punjab Act 13 of I
11Amended by Pwl)ab Act 17 of I
"Amended by Puajab Act I of 19:
1>An1cncledby PunJ:ib Act 12 of I'
••Amended by Purgab Act 22 of I 1

rsa\mcnded by Punjab Act 12 of21

11AmmJecfby Pumab Act 7 or 201

2

J

Shon title

The PunJab Motor.

Vehicles Taxation

Acl \924

2

No.

4

Year

1924

I for Staremem of Objects and Reason's, Jet". />11nj,1bGm,'f!rnm!'nt Go..,rf/e (Exrrnoni1951, page 339
2. For Sta1cmcm of Objects and ReDSon·?. ,,.,. Punjnb GovernmeJ1t Cnzeite (Extr.aord1961, page I J 11-12
3. For Statctlll!nl of Objects and Rc::ison's, u? Punjab Governmenr Gazett« (E1m:aordl 936, JY.18C 199
4. F'or Suitcmcnt of Objects and ReilS()n's, stt Puninh Gm-rnimcnt G11u:11r (ExtmordJ 963, page 1164
S. For S1atemcnt of ObJcclS and Reason's, set. P,.,nJnb Gov,:rnml'nt Gozc11e (?trnord,1964, page 915-37

6. For Statement of Objects l!lld Re?n·s. tf't' P11njobGo,-ernmo:nt Gn=e1te (E"1raord1I 965, page 1130.

7. For Sta1cmen1 of Objects and Rel.Son's. see Prm1nb Governmem Gn?ltte (E,nraordi1971, page 70.

8 For Statemeru of Objects and Reason's, see P1111)nbGo,·,,rnmcnr Gnume CE.xlrllordi,1974 pngc 1746.

9 For Statement of ObJCCISand Reason's, see Pmynb Go1v,r11ment Gareu« (Extrnordi11973, page 284

IO For Statc:mcnt of ObJC:ClSand Reason's. sec P1t'!}ab Govenrmt.'11t Gozettr (.E:ttraordudaled the Jrd February. l91U page 182
11 For SU1tm1tn1 or ObJects and Reason's, see Punjab G1mm1mcn1 (,a::e((e ll:xtr.1ord1r1l:11cd the 30th August, 1983, page I 044
12. For Siatement of ObJccL?:ind Rc:ison's. sl.!e Pun1nb Gon:mmt'nt Gtn.ette (E!\traordfocblcd the 15th December, 1986. page 14)).
lJ For Satement or OhJC:CIS:ind Reason's, see Pun.Job Gowr,,mcnt Gn;e11e (Extruordindoled Ille 21st December, 1992, p:igc 2268
14 For Statement or ObJC<'ts and Rcasoo's. see P11111,1bGo,wnmt11t Gnu11e (E.xtraon:hndaatd the Sth Apnl, 1992, page 824
1:'i For StatCll'lc:'nt of ObJtXIS and Rcu!ln's, tf'i' P11ninh (;m,,,11me11r G"::l'fte (Fxtraordtn:daacd the 9th MJrch. 2000, page I 98,
16. For Sto1emcn1 of Ob;ects and Reason's, SIY J>11,1Jnf>Go11•r,1111en1Gn.r((e (Eitlrnord1111datel.l ahc 191h Morch. 2001 page Sil

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J[(a) "Commissioner" means the State Transport Commissioner,
Punjab and includes any other officer appointed by notification
in the Official Gazette 1Jl tlus behalf by the Government;

(aa) "Government" means the Government of State of Punjab in the
Department of Transport.]

?r(a1) "four wheeled personalised motor vehicle" means a four wheeled
motor vehicle other than a transport vehicle, omni bus, road
roller, tractor, motor cycle or invalid carriage.]

J. ( [J The Act may be called the Punjab Motor Vehicles Taxation Act, Short ulle, extent

and eommence­

menr,

(1) 11 extends to 2lPunjab.]

{3) 1t shall come mto force on the Ist day of April, 1925.

2. ln this Act unless there is anything repugnant an the subject or

?ream "invalid carriage" means a motor vehicle the unladen weight
whereof does not exceed JOO kilograms and \\ hich ts specially
designed and constructed, and not merely adapted, for the use
of a person suffering from some physical defect or disability,
and used solely by or for such a person;J

6[(a11i)J"licensing officer" means 7[aperson] appointed by the '[State)
Government to perform the duties and exercise the powers im­

posed or conferred upon a licensing officer under this Act
.

1924.

An Act to impose a tax on motor vehicles in '[Punjab].

Whereas 1l rs expedient LO impose a tax on motor vehicles 10 '[Punjab]
and whereas the previous sanction of the Governor-General under sub-section
{3) of secuon 80-A of the Government of India Act has been obtained; ti is

hereby enacted a.s follows -

context

1. Subs111u1cd for the wo1d .. E.ist Punjab" hy A1hp1ation laws (Ulrd Amendment) Order, 1 '>51
2 Subsututcc.1 for 1he words ··wt Pun1nb" the Adaptarion of lows Order, 1950
3 Inserted by Punjeb Act 22 of 1993, seeton 2.
•l. Inserted by Pun1abAcl 12 of 1993, ?ecton 2
S Inserted by Punjab Act 11 ot 1987 secuon 2.
6 Releuered 11s "{a 111)"'by Punjab Act 22 ul 1993. section 2.
1 S11b?111u1ed for the word "an officer'' by Punjab Ac! JO of 1961, Seeton 2
8. Subs111uu:d tor rhc words "Provincial" by Adaptation of Laws Order. 195Q



4

1[(a1v) "motor cycle" means a two wheeled motor vehicle, inclusive of

any detachable side-car having an extra wheel attached to a

motor vehicle.]

•

··registra?wn··means the registralton of a motor vehicle under

the prow,ions of the Motor Vehicles Act, 1939 (Central Act

-t of 1939);)

(c)

?[(cc)

1[/bi) "owner" for the purpose of transport vehicle means the owner

of a transport vehicle in respect of which a perrrut has been

granted or countersigned under the provision of the Motor Ve-

hicles Act. 1988, and mcludes-

(a) the holder of a pemut in respect of such vehicle includ­

ing the holder of a goods carnage permit for carriage

of goods for or 10 connection with a trade or business

carried on by the permit holder;

(b) any person for the time being mcharge of such vehicle;

(c) any person responsible for themanagemcnl otihe place

of busmess of such owner; and

(d) Governrnent or a Corpornnon established under the Road

Transport Corporation Act, 1950,]

·'prescnbcd"means prescnbedby rules made under this Act ;

.

2[(a") "m1111 bes" means a stage carriage having the capacity to carry

not more than thirty passengers excluding the dnver and the

conductor; 1

(b) "motor vehicle'' inc:ludes a vehicle, carriage: or other means of

conveyance propclleJ,or which may be propelled.on a road by

electncal or mechnmcal power either entirely or partially;

(d)

S[(e)

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"tax" means the mx imposed under this Act ;

"token" means a ticket to be displayedon a motet vehicle as an

mdicauon that the tax levrablc thereon has been duly paid or that

no tax is payable']

6[(1) the words and expressions used in this Act but not defined and

defined in the Motor Vehicles Act, 1988 (CentralAct 59 of 1988),

shall have the meaning, respccuvely,ass1gned to them m that

Act.]

I Subs111u1cdby Pu11111bAcr 12 of 2000, section 2.

2. Inserted by Pun1ab Acl :U of 1993. secnon 2
.

.l Inserted by PunJab Act ibid, ?ccuon 2

4 Inserted by Punjllb Acl I of 19117, secncn 2.
,,

S. tnsened by Punjab Act 2 ol 1940, seeuen 2.
f

6 ln?erced by PunJnb Acl 12 of 1993. section :?.



lmpos111on of

II\'(

Rctro?pc:ttivc:
non fiaal ;on

'{(3-A)

(

..

Rehmd of ta>,. in

cc:rtam c11ses

Jmpo?111on of 1111t

in lump sum 011

motor-cycles

I. Suhsututetl for the v.anl .. the rate spcc1f1cd,n \ht Schedule lo 1h1s ,t,c1·· by PunJ3b A.:t \4 of t9S4.

2 Sub$1ilutcd for the word "rupc:?s t\wn1y thousand" by Punpb ,\cl ll of 198\. section 2

J ,\dJed by PunJab t\c:I 9 of 1975, scc11011 2

I tn?r1cd by PunJab Acl 13 of 1981, ,ect10?

5 IMc:rtcd by Puniab Act 12 ot 2000. secuon l

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Not'-v1thstnndt.nganytlung contained in this Act,-

(1) a not.ificaLionwider section 3 may be issued so as to be

e ffecttve on and from the commencement of the Pun Jab

Motor Vehicles Ta."<allon (Amendment)Act, 1981.

(ii) the tax. payable by virtue of notiCication referred to m

clause (i) for the quarters commencing on the 1st dny

of October. 1980, and the 1st day of January. !981,

may be paid within a period of one month from the

date of publicationof that no11ficat1on.]

·[(3-B) Notwithstandinganything contained in section 3, on and fro:n

the courrncncement ot the Punjab Motor Vehicles Taxation (Amendment)Act,

2000. tax on a motor cycle sbn\1 be leviable in lump sum, as may be notified by

the State Government on the basis of the price of the motor cycle, subject to the

maximum of ten per cent of the value of the motor cycle.

(3..C) Where an owner of a motor cycle m respect of which tax hos

been paid in lump sum under section 3-B. ceases to be U1e resident of the State of

Punjab and takes alongwith lum such motor cycle or if the ownership of the

motor cycle is transferred to a person having residence outside the State of

PunJab. then parual refund of the lump sum tax so paid, shall be allowed as

hereunder specified:-

5

3. (I) A tax shall be lev,able on every motor vehicle in equal inslalments

for quarterlyperiodscommenc1ng on the first day of Apnl, the first day of July,

•• the first day of October and the first day of January. at '[such rates not exceed­

ing 1[rupces thirty-fi-.e thous:.m<llper velucle for a periodof one year, as the State

Government may by notification direct:

Provided that anv broken periodin such quarterlypenods shall, for the

purpose of levying the tax. be considered as a full period .

1tProvidedfurther that in the case of a motor-vehicle, registeredin any

State, other than the State of PunJab.which is brought in the State on the basis of

a temporary pemut granted under section 62 of the Motor Vehicles Act, 1939

(Central Act? of 1939). tax shall be leviable for the penod of ducuhon of the

temporary permiton fortnightly basis and any broken penod of a fortmghl shall,

for the purpose of levying the tax, be considered as a full fortnight.)

(2) The tax shall be paid upon a hcensc to be taken out and paid for

under the provisionsof thrs Act by the person who keeps the motor vehicle for

use.



6

Senal Duration of use after the

No. date of registration of

motor cycle

1. Less than three years.

2. Three years or more.

but less than Silt years.

3. S1x years or more, but

less than rune years.

4. Nrne years or more

Amount of refund of tax

on motor cycle

Sixty per cent of the amount of

tax already paid under secnon 3-B

Forty per cent of the amount or

tax already paid under section 3-B.

Twenty per cent of the amount of

tax already paid under section 3-B

Ten per cent of the amount of

tax already paid under section 3-8.

lmpos,1ion of

1:1, m lump sum

un four wheeled

personalised
motor vehicles

R1:fund of tax

p:iiJ '" respect
of four wheeled

personatised
motor vehicles

(3-D). Notwuhstaading anything contained in section ,. on and from the

commencement of the Punjab Motor Vehicles Taxation (Amendment) Act, 2000,

tax on a four wheeled personalised motor vehicle shall be leviable in lump-sum,

as may be notified by the State Government by nouficauon on the basis of the

price of the four wheeled personalised motor vehicle, subject to the maximum of

ten per cent of the value of such four wheeled personalised motor vehicle.

(3-E). Where an owner of a four wheeled personalised motor vehicle iu

respect of which tax has been paid m lump sum under section 3-0. ceases to be

the residenl of the State of Punjab and takes alongwith him such four wheeled

personalised motor vehicle or if the ownership of the four wheeled personalised

motor vehicle ts transferred to a person having residence outside the State of

Punjab, then partial refund of the lump sum tax so paid. shall be allowed as

hereunder specified :-

Sena I Duration of use after the Amount of refund of ta."<

No date of registration of lhe on four wheeled personalised

four wheeled personalised motor vehicles

motor vehicle.

Less than three years. Sixty per cent of the amount of

tax already paid under section 3-0

2. Three years or more, Forty per cent of the amount of

but less than six years. lax already paid under section 3-D

3. Six years or more, but Twenty per cent of the amount of

less than nine years. tax already paid under section 3-D

4. N me years or more. Ten per cent of the amount of

tax already paid under section 3 -D J

•



7

Levy of special
ro,ld tu

11\scrt?d by Pun111hAc1 22 of 1993. section 3.

•

Obhgiitiol\ of

pC'rsons \e?p1ng

mutor vehicle?

to make

decl .. rnt1on :Ind

10 p&y 13?

(3) Every person who owns any motor vehicle which is let for hire,

shall, for the purposes of this Act, be deemed LO be the person who keeps the

motor vehicles for use

1{3-F(1) In o.ddmon to the tax levied under section 3, on and from the

commencement of the Pun Jab Motoc Veluclcs Taxalion (Amendment)Act, l 993,

and subJCCl lo the rules made by the Government under this Act, there shall b?

levied and paid to the Government, a special road tax on transport vehicles at th<?"

rates as may be spect fled by the Government but not exceeding the rates specified

in Schedule 'A' to this Act.

(2) The rates of the special road tax as may be specified under s11bi

section (1), m respect of stage carriages shall be apphcableto and charged on thj

onnre distance permittedto be covered.

(3) Where a transport vehicle is plied without a valid permit or rf it is in

any other manner not authonsed by the pemut to be phed. there shall be levied

and paid to the Government further specialroad tax rn addition to the tax payable

under sub-section(/), on such vehicle at the rates as roay be specifiedbut not

exceeding the rotes spcciiiedin tuis behalf m Schedule' A' to trus AcL

(4) Where a transport vehicle registeredin a State other than the State

of PunJab,enters the State of Punjab, the specialroad tax shall become chargeable.

on such entry in the ptescribcdmanner.

Expla11ation.-Forthe purpose of special road tax levied under this Act, transport

vehicle shall mclude non-tranSPOn vehicle when used as transport vehicle by the

owner]

4. (/) Every person who keeps a motor vehicle for use shall fill up and

sign a declarauon m the prescnbedIorrn, slating the pres<'ribedparticulars,Md

shall deliver the declaration as filled up and signed by him to the ucensmg officer

before the 30th day of April, 1925 or if such pcr<;on commences to keep the

motor vehicle for use ofter the 10th day of Apnl, 1925 then before the exp1rat1on

of 21 days from the da) of his conunencmg to keep the motor vch1dc for use,

(2) The tax to which be appeius by such declaration to be liable shall be

paid by U1e person keeping the motor vehicle, if for the first quarterlyperiod

before the 30th day of April, if for the second quarterlyperiod before the 31st

day of July, if for the third quarterlyperiod before the 31st day of October, and

tf for the fourth quarterlypenod before the 31st day of January:

Provided that if such person commences to keep the motor vehicle for

use, after the I 0th day of April. 1925, he shall pay the first mstahnent due before

the expiration of 21 days from the day of his commencing to keep the motor

vehicle for use.



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(2) Toe special road tax payable under section 3-F in respect ofa

tran!'"OOrt vehicle shall be paid in the prescribedmanner
·

Provided that unless the manner is prescnbed.the amount of tax payable

quarterlyand monthly shall be one fourth and one twelfth. respectively,of the

annual rates of tax specified in Schedule 'A' to this Act referred to in

section 3-F)

5. Whenever any person. who has delivered a declarauon under

·(scct10n 4 and 4-A) becomes hable to an addiuonal tax by reason of hrs keeping

o greater number of motor vehicles, for use than he has slated in the declarauon

or by reason of any change in the character of any motor vehicle kept by him for

use, he shall fill up and sign an add1ttonal decla.ratton specifying with reference to

such liability the particularsrequired under 1[sect1on4 and 4-A)

Such person shall deliver the ado1t1onal declaration so filled up and signed

and pay such add1honal tax as by the last mentioned declaration appears to be

payableby him to the licensing officer before the exp1rauon of 2 l days from the

day of lus becoming so liable as aforesaid ·

Provided tbal when paymcnl is made of additional lax by reason of any

change in the character of any motor vehicle, an allowance shall be made for the

U1X already paid.

1[(5-A) 11 as a result ofrev1s1on ofrale of U\X as may be specifiedunder

section 3 or section 3-F. a motor vehicle or a transport vehicle, as the case may

be, in respect ofwh1ch tax has been paid. bi:comes liable to tax al a high rate, the

owner or any person having pol>sess1on or control of the motor vehicle or

transport vehicle, as the case may be, shall, within the time allowed for pa?ent

of tax for the following year or quarter or month thereof, as the case may be. pay

add1tionol ta."< of a sum which is equal to the dt ITcreuce bt!tween the tax already

paid and the tax which becomes payableat the higher rate due to such revision m

respect of such vehicles for the remainder of the complete current month of the

quarter or the year, as the case may be, and the licensing oflicer shall not issue a

fresh token in respect of such vehicle until such umoU!'ll of tax bas been paid.]

6. The licensing officer may direct a special notice to be served upon

any person requuing such person to ult up. sign and deliver to the officer named

in such notice, a form of declnrnlion to be left with such nouce, stattng whether

such person is or IS not liable to the payment of any ta.'< and lo pay the tax to

1(4-A (I} In respect of a transport velucle an owner shall also be

required to make declaratton in the prescribed form staling the prescribed

particulars.

Service of $1)(.'Cio.l
OOllC:C lo m4lcc

d?t.larauon aml

10 pay tax.

Obligation on

revision of rates

of t:ix.

Obligation 10

malcc additional
d?ct:iralion and

lo pay rurthcr

13)(.

Obl1gJ1ion10

m:1kc dccln.ra1ton

111 respect ol

tr:insporl
vehicles 10 pay

special road rex

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l ln?cneJ by the /\ct PunJ3b Acl 22 of 1993. secuon .i.

2 Subslltutcd for the wort! "preceding ?ecuon" by the /\cl 1bl1l. section S

3 lnscflc:d by the Act ibid. section 6

...



9

I. Substituted by Puniab .t\ct 22 of 1993, section 7.

which he appears by such uccl3ration, to be liable co the person named therein

before the expiraflon of 14 days from the date of the service of such special

•

Re-dt:termina­

uon of tax

lllX,

M;11ntena11ce of

:u:counts and

dctcnmnahon of

7-C. (/) If m consequence of an information. the licensing officer

discovers that the tax due from the owner bas been under determined or escaped

dt:tcrminauon in any year. the hcensmg officer, may, at any time, within ten years

following the close of the year for which re-determination is to be made

7. Every licensing officer shall grant and deliver to every person who Giant ut license

pays to him the first instalment of tax due, a license in which shall be specified

the particulars of the tax paid, with any other particulars that may be prescribed.

The hcense shall be dated on the day of granting the same and shall expire on the

3 l st day of March, next follow mg.

1[7-A.(J) The licensing officer, for the proper realisation of tax levied Owner tu f11m,sh

under ihis Act, shall after giving an opporturuty ofbeing heard, require any owner security

of the transport vehicle to deposit as security an amount not exceeding fifty

thousand rupees m the prescribedmanner where such an owner makes a default in

the payment of tax under this Act for a conuouous penod of two months or more.

(2) Where the security furnished by an owner of a transport vehicle

under sub-secuon (I) is in the form of a surety bond and the surety becomes

insolvent or ts otherwise iucapac1tatedor dies or withdraws, such owner shall

wilhm fifieen clays of the occurrence of any of the aforesaid events. inform the

licensing officer and shall within thirty days of such occurrence, furnish a fresh

surely bond

(3) 1111::licensing officer may, by an order in writing for good and sufficient

cause and alter giving the owner a reasonable opportunityof being heard, forfeit

the whole or any part of the security furnished by such owner for realising any

amount of tax, interest or penalty payable by him under tlus Act.

(4) Where by reason of an order under sub-section (3), the sccuruy

furnished by such owner ts rendered msulficient, he shall make up the deficiency

in such manner and withm such tune as may be prescribed.

(5) The licensing officer may, on an applicauon by such owner release

the security furnished by him or any part thereof, if the same is no longer required

to be retamed for the purposes of this Act

7-B. (/) A:n owner of a transport vehicle may be required to maintam

such accounts as may be prescribed and to submit the same to the licensing

officer as and when required.

(2) If the licensing officer is satisfied that tax has not been correctly

paid or the owner bas not furmshed declaration as provided m sub-section (1) of

section 4-A or has given inaccurate particulars in the declaratton, he shall. after

grving the owner a reasonable opportumty of being heard, proceed to determine

the amount of tax due and recover the same.

no ace.



,

10

I

?-

(2) The hceos;,,g omccr, may, al any time, w1lhlll one year from the

dale of any order passed by him and subject lo such conditions as m<1Y be

preso<1bedrectify any clerical or orilhmeticalerror apparent from ihe record.]

?

and after g,ving the owner a reasonableopportumlyin lhe p,escnbedmanner of

being heard, proceedto re-deterrrnne the tax payable.

(b) fails to step the motor vehicle when requiredto do so by

the said officer or obstructs any officer Ul the exercise of the

powers conferred by section 14-B, shn\\ on conv1cuon be

punishablE:with floe, wtuch may extend lo a sum equal lo twice

the average monthly Lax payable,in respect of such vehicle, or

rupees five Lbousanc\,whlchever ,s more.

(a) keeps in his possessionor control any motor vehic\e, in the

State, without having paid the amount of tax due in accordance

with the prov1s1onsof this Act m respect of such vehicle or

keeps the motor vemc\e for use without having proper licence

or furnishes a declaration under section 4 or section 4-A. wherein

the particularsrequuedby or under this Act to be furnished, are

not fully and tntely st.ated ; or

1{8.(1) Whoever-

/JJ If a person (al fails to furmsh a declarauon in accordance with

the proV1sionsof this Act, or (b) fu,rushes a declarauon wherein particulars

prescribed10 be tbetei,., are not fully and uuly stated, the hcens,ng officer may

after malung such enquiry, as he deerns 61 and afte, heating the person, if he

desim 10 be beard, onposc on such person any tax or odd1nnnaltax for sucb

quarterlyperiodor periods,as the hcens;ng officer may [Ind that such person IS

bable to pay under uie p,r,v,s1onsof this Act and n,ay also impose a penalty,

which may c<1end to twice th• aJOount of the tax to which he ,s found hable. y

t. lnset1cJ by l'unjab /\cl 22 of I 993. section R.

(2) Whenever, the \itcnsing officer determines or re-determines the

tax. in respect of a transport veh,cle under section 7-B or in respect of on o\\,1cr

of mo1or-vc\11cl•under section 7-C a; the case may be, which such owner w"as

ltable to pay, and has not paid, the hi.:ensing officer, may, after giving an

opportunityof being heard, nlso direct that such owner shall pay IJ\ the p,escnbed

manner by way of penalty,a sum not esceeding five times the amoun1 of IWl so

assessed subject to a minimum of five thousand rupees.

Offences and

Penalties

\I

•

\
.



11

P:iymenl of

1ntcrc:.s1

Recovery of on

.il'TC3r of tax.

Recovery of .ex

OT :idd1tiOt1al13!\

,mposedunder

section 8 or

cect\on 9

Compoundingof

offences

I Subst11u1edfor the word •·co\lcclor''bY Pu11Jt1b;\cl 22 01 I 993, ?i:c11on 9.

2. lnscr1c:dby the ,\cl Ibid. scc\1/'ln \0.

1{(11-A).(/) If an owner fails lo pay tax du• front \um as r<quired

under sectton l or sec\\OO 3-f, be shall in addition lo the amount or tax be l1able

to pay simple interest on the arnounl of tax due from h,rn a, the ,ale or one and

n. Wbert a pers0n negleClSor re[uSeS w pay an msu,Jmcnlof""' witlun

one ,nonlh from lhe ""1)irat1onof penodll,.ed for sucb payment,lhe licensing

officer ,nay fo,ward to ,he '{Comroiss•oner]a certuicale under his signarute speci­

fyin & the amount or the arrears due frorn the person,
and the

'{Cornm1ssion<r]on receipl of such certificate sball pmcecdto recover from sucb

person lhe at1tount specifiedlhereut as iflt were an aaear of land revenue.

.

IO. MY tax or ,dd1oonal tax unposcdunder the provisionsof sc..:liou 8

or section 9 mnY be reco,er<d m lhe manner providedin section I I for lhe

recovery of an arrear tax.

l'tov1cledlhat before imposing such penaltya -onablc opp<>rtunityof

being heard shall be gwen to ihe person
concemecL

(5) Whoever contr.1venesmiy of tbe provisionsof this Act, or any

rules mad• !hereunder,and no penaltyis providedfor such contravention,shall

on convicbon be purushablew1lh a fine, which may «tend to five hundred rupees

and in lhe event of such person, having previouslybeen convictedof an offence

under ihis Act, or the rules made lherelll>der,wilh f,ne which may e,tend to one

thousand rupees.

9. Whet< an offeoc• under this /\Ct bas been conunitted.such an of-

fence ,nay at any umc before conviction, be compoundedby any officer of lh<

Tr,nsport Departmentnot below the rnnk of Assistant District Tnuisport Officer

authorisedby lhe CoourusSloOe<tn this behalf, after acceptingby way of compo­

sition thereof, a surn or money not exceedlOg, such amount, as may be pre·

scribed, togelher w,lh lhe amount of tax, if any, which may be due from ,he

person
co,nntlttiog ibc offence. Such cornp<>Sltionshall hove the effect of dis-

chargingsuch pc<son from liability for tne offence and no forth"' proceedt•II'

shall be takco or contmuctiagnuisthim 10 «specl oflbe offence so compousdrJ.]

(?) Whoever contravenes or fails lo c01nplY with any of tb•

prov.sionsof lh1s /\cl, or lh• rules made lhcrcunde< or any order or d\reclion,

made or given lhereuodet, in r,:spcct of tax bable on a uansp<>rtveh!cleshall be

l\abl• to 1mp0s1tionof perialtynot e,cccding five lhousand rupee<but not less

lhan one thousand rupees :



Powc:r ot

licensing effieer

to recover tax.

interest and

?n.ilty

· 12

a half per cent per month from the date immediately following the last date for

the subrmssion of declaration as provided in sub-sec hon (/) ofsecuon 4-/\ ull the

default contmues

(2) If the amount of tax under secuon 3 or section 3-F or penalty under

section 8 due from an owner is not p:.11Jby him within the period specified in the

prescribednotice, or, if no period rs specified in the nouce, within thirty days

from the service of such notice, the owner shall. in addition to the amount of tax

or penalty, be hable to pay simple interest on the due amount of tax or penally, as

the case may be, at the rate of one and a half per cent per month from the date

following the date on which the penod specified in the aforesaid notice or the

period of thirty days, as the case may be, expires Lill the default continues.

Provided that where the recovery of any tax or penalty is stayed by an

order of a court, the amount of tax or penalty shall, after the order of stay is

vacated. be recoverable alongwith interest at the aforesaid rate on the amount

due and such mterest shall be pa)'abl? from the date, the ta.'< or penalty had first

become due.

(3) The amount of interest payable under this section shall be calculated

by treanng part of a month as one month but no interest shall be chargeable if the

total amount payable on account of Lax or penalty or both, is fifty rupees or less

and if such an amount is more than fifty rupees but less than one hundred rupees,

interest shall be calculated treating such amount to be one hundred rupees.

ll-B (l) Without prejudice to the provisions of section 11, the ncencmg •

officer may proceed to recover tax, interest or penalty due under this Act, III the

prescribed manner, by attachment and sale of the moveable property of the

person liable for the payment thcrcol
,

(2) 1 he hcencing officer may also recover ta.'<,)Plcrestor penalty due,

under this Act in instalments but he shall not grant more than four equal mstalments

payable on monthly basis

I

l 1ib1h1y of

tmnsfer.:c of

vehicle.

11-C. (/) If the ta>. Ieviable in respect of any motor vehicle remains

unpaid by any person liable for payment thereof and any such person, before

having paid the tax, has transferred the ownership of such vehicle, or has ceased

to be in possession or ownership of such vehicle, the person to whom the

ownership of such vehicle bas been transferred or the person who bas pos&csston?y

or control of such, ehicle, shall also be liable lo pay the said tax.



13

(2) Nothmg cont:uned m this section shall apply to a person, who has

obtained possession or control of such vehicle by purchase 111 a public auction

conducted by a Government Department to recover the arrears of tax, interest or

penally except under the orders of a competent court.]

11(12). Any person aggneved by an order relating to the determination, Appeal

re-deterrrunanon. impos1tton or recovery of the tax, interest or penalty may, within

a period of tbirty days from the date of such order, appeal against such order to

the Commissioner or sf the Comrrussioner is the officer who passed such order,

then lo the Government. The: appellate order of the Commissioner or the

Government, as the case may be. shall be final and conclusive:

Provided that no appeal shall be entertained unless ll is accompanied by a

satisfactory proof of payment of tax, interest or penalty or such other amount as

is admitted by the appellant to be due from him.

12-A (J) The Commissioner, on his own motion, or, on application Revision

made to h101 in the prescribed manner, may, call for the record ofany proceedings,

which are pending before or have been disposed of by any other authority

subordinate to him under this Act for the purpose of satisfying lumself as to the

legality or propnety of such proceedings or of any order made therein and may

pass such orders in relation thereto as be may think fit :

Provided that the owner may make such application only within one year

from the date of the order required to be revised.

(2) No apphcauon under sub-section (/) shall be entertained unless the

application rs accomparued by a satisfactory proof of the payment of the tax or

interest or of the penalty. 1f any, imposed, as the case may be
.

Provided that if'the Commissioner rs sausfied that the owner is unable to

pay the tax determined or interest or U1e penally, if any. imposed, he may. for

reasons to be recorded in wnung, entertain the application without the tax or

interest or penalty having been paid or after part payment of such tax or interest

or penalty
Provided further that rf the owner of a motor vehicle has preferred, a

revisron under tlus section, the Commissioner, muy, on an applicauon in writing

from the owner of such vehicle stay the recovery of the disputed amount of tax,

interest or penalty or ony·part thereof. during the pendency of the revision, if the

owner furnishes sccunty m such form and in such manner as may be prescribed,

for the entire amount for which stay has been prayed for :

Provided further that if the recovery of tax, interest or penalty or any

part thereof is stayed, under the preceedmg proviso, then such an amount shall

be recoverable wnh interestat such rate, as may be prescribed, on the amount

-.. ultimately found due and such interest shall be payable on such amount from the

date the same bad become first due.

I Substituted by Punjab Ac! 22 \\f l \193. section 11



Refund and

exernptlon.

Bar to jurisdie­
•,on of CIVIi and

cnmlnal courts

in matter! or

t..;,..,,h.,,a.

Cognizance of

offence)

Power of stop,
search and

seizure

14

(3) No order shall be made under this section without giving an owner

or any other person interested a reasonable opportunity of being heard.]

1(13 (1) When any person, who bas paid the tax under section 3 or

sccuon 3-F, proves to the satisfaction oft.he Commissioner m the prescribed

manner that the motor vehicle or the transportvehicle in respect of which such

ta'< has been paid, has not been used for a continuous period of not less than one

month since the tax was last paid. he shall be enutled to the exemption in respect

of that tax and to the refund of an amount equal to one twelfth of the annual rate

of the tax paid in respect of such vehicle for each complete month for which

such tax bas been pard and an endorsement to that effect on the license shall be

made by the licensing officer,

(2) The Licensingofficer may refund or adjust in the prescribed manner

any amount paid in excess of the tax due.

(3) The Government may, by general or special order and subject to

such condruons, as may be specified, exempt any person or class of persons

from the opera lion of all or any of the provisions of this Act, if in its opinion,
such exemption would promote national or public interest.

(4) Nothing in this Act shall apply to a motor vehicle used solely for the

purpose of Agnculture.]

14. Ihe habi !tty of a person to pay the tax or penally shal I not be determined

or questioned in any 0U1er manner or by any other authority than is provided in

this Act or in the rules made thereunder, and no prosecution, suil or other

proceedings shall lie against any Government officer for anything in good faith

done or intended to be done under this Act
•

2[14-A. (1) No court infenor lo that of a Judicial Magistrale of First

Class shall try any offence punishable under this Act

(2) 111e court s.halJ not lake any cognizance except upon a cornplaint

made by the licensing officer in this behalf.

14-B (1) Any officer of the Transport Department, not below the rank

of Assistant District Iransport Officer authonsed by a general or special order,

in this behalf, by U1e Commissioner, may require the driver of any motor vehicle

at any pince to stop the vehicle and cause it to remain stationary so long as may

be reasonably necessary for the purpose of satisfying himself that the amount of

the tax due in accordance with the provisrons of this Act in respect of such

vehicle, has been paid

I. Sublllitutcd by Punjab Acl 22 or 1993, section 12

2. Inserted by the Ac1 1bi1f, secuon 13



IS

I. SubihtutcJ 1or the word "Pro?inc,al" by the Ad:ipt.1ionof uws Order, I 950.

2. For rule! see not1hca11on No 7083. d:itcd 16th March, I 925. Punj,ib Gme11ee, 1925. Part I,

page 1'17 No 8576 dated 18th Much, 1926, P1111JabGaxeue«, 1926, Pan 1. Page 2S4, and

??o 18617. dated 14th June: 1926. Punjab Grr:crtee 1926, Part I pnge 583

3 Subst11uttid for "cast PunJ3b"-v. hlch had been subs1t11u1cd for "the Pun1ab" by G.G O, 40 of

1948-by Atlap1a11on of Laws Oro.:t". I 950.

•

Power of S1.11tc

Govrmmcnt to

make rule5

fax p.iy:iblcby
denier or

manufacturl:T.

Provided that where the vehicle so seized is a non-transport vehicle,

such officer may release the vehicle after obtaining a bond for a sum not exC'eedmg

five hundred rupees from the driver or the owner or any person, having possession

or control of the vehicle, as the case may be, for depositing the tax within the

period specifiedin the bond

(3) Any officer of the Departmentof Transport referred to in sub-section

(2), may for the purpose of this Act enter at any tune between sun rise and sun

set, in any premises, where he has reason to believe that a motor vehicle is kept

in contrav?nhon of the provisions of this Act

14:..C. If a dealer or manufacrurer of motor vehicles keeps any such

vehicle in his possession- in course of his business as such dealer or manufacturer

and such possession is authonsed under a trade ceruficate grantedunder the

Central Motor Vehicles Rules, 1989, he shall pay a tax. at the specified

annual rate.]

15. (1) The '(State] Government may after previous pubhcationmake

?rules for the purpose of earrymg into effect the provisions of this Act.

(2) 1n particularand without prejud1ccto the generalityof the foregoing

power, the '[State) Government may make 1rules for all or any of the fol1owu1g

purposes, namely :-

(a) to prescribe the form of any declaration, license, certificate

or special notice and the particulars 10 be stated therein;

(b) to perscribe the officer by whom any duties are 10 be

performedand the area in which they shall exercise their

authonty;

(c) to provide (or the total or partial exemption for a hnuted period

from liabihty to ta..-xation 10 respect of any motor vehicle

brought mio 3[PllOJablby persons making only a temporary

stay in '[Punjab);

(2) Where any ta." due in respecl of any vehicle has not been paid, any

officer referred to in sub-section (1). may seize and detain such vehicle and take

or cause to be taken such steps as he may consider necessary for the safe

custody of the vehicle uuul it is producedbefore the licensing officer of the area

concerned. w1thm a reasonable time or until the tax: due in respect of the vehicle

is paid



\
16

Dc:legallon of

l'ower

(d) to regulate the method of assessing and recovenng the tax;

(e) to regulate the manner in which specialnotices may be served;

(f) to regulate the extent to wlui:h licenses may be transferrcJ:

(g) to regulate the manner m which exemptions or refunds may

be claimed and granted.

(11) to regulate the manner in which appealsmay be instituted and

1,eard?

'l(i) to n.:qu1rc that no motor vchic\e shall be used in the 1lStatcl

unless a token is d1c;p\ayedthereon indicating that the tax has

been duly paid or that the owner of the vehicle is entitled to

cxempuon;

(J) to prescnbethe form of tokens and the manner ill which they

shall be displayed;

(k) to providefor the issue of token and its duplicate? and)

>t(l) to provide for any other matter which may be required to be

prescribedl

"(16. fhe Comnussionermay by generalor specialorder in writing

delegate its power of heanng an appeal or revision to any

person not below the rank of Deputy State Transport

CommisS1oucr l

'(SCHEDULE'A'

Sr. Description ofTrpL Vehicle

No.

Muimum Rate

Rate per scat per

lolometer per clay

10 paise

8.52

\0.64

12.78

17.04

29 82

I ln?ertc:d by PunJab /\Ct. 2 of l Cl40. sccuon 3.

2. "?1111.1tcclfor 1hi: WO(ds"Pro"1no:" :ind ''Pn)VlOCllll'',cspcc11vcly,by /\dap1a11onor L'l\\<S Otdcr. 11)50.

' 'Addol >, e,01ob A" 21 of \993. ""J;o, "

>
"sJ

.1 Suh?111u1cdby me Atl ibuf. sec;11un IS.

5. lni;crted by Pun1abAcl 22 nl 1993. secuen

\
1 Stage Cnrriagcs

(a) Ordmary buses

(b) Express buses

(c) St:nli-dclux buses

(d) Deluxe buses

(c) A1r-cond1ttoncdbuses

-



17

,

'[2

2

3

4

'[5
6

Goods Carriages

(a) LightMotor Vehicle

(b) Medium Goods Vehicle

(c) Heavy Goods Vehicle

OTilERPASSENGER VEHlC'LES

Auto Rickshaws ·

(a) having two seats

(b) for each addiuonal seats

Taxi cabs up to 5 seats

Maxi cabs having 6 to 12 seats

?1ini buses having I to 15 seats

Mani Buses having 16 to 30 scats

Buses plied on pnvate service vehicle permits

(1) Ordinary
(ai) Deluxe buses

(iii) Air-condiuoned buses

Rate per annum

(i11rupees)
10,000 00

15,000.00
20,000.00]

Rate of Special
Road Tax excluding
dnvers and conductors

per year (Rs.)

600.00

200 00

1,000.00
8,000.00
8,800.00

25,000 001

20,000.00
40,000.00
50,00,000

(aj Up to 15 seats

(b) 16 to 30 seats

(c) 31 to 54 seats

'[7 Vehicles plied on Contract

Carnage Pemuts or All

India Tourist Permits or

any other sinular perrrut
registered in oth-r Slates

entering the State or Punjab
having seating capacity or

Rate of Special Road Tax per doy
of Operation (Rs.)

Ordinary Deluxe Air-

conditioned

800 00 1,200 00 1,600 00

1.200 00 1,600.00 2,000.00

1,600.00 2,000.00 2,400.00]

8 Vehicles plied on All India Tounst permit :

'((1) Motor Cabs Rs. 3,000.00 per year.]

{ii} Iounst buses-

Ordinary Rs. 2,00,000 per year

Deluxe buses Rs. 2,50,000 per year

Air-condruoned buses Rs 2.88,000 per year.]

I Suhsntui.:J b}" PunJab Ac• I' ul 2()()(), secuon 4.

2. Substuuted by the Ac1 rbuf s«l11)11 I

) Sub?tlllllcd b} runjab /\Cl 7 11r 200 I. secnen 2

-I Subl,ututcd by lhc /\Cl 1b1d. SCCUC•ll 2.

. .

.. ('
4697 LR(P) Go, 1. Press. UT.. cu«