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Karnataka Motor Vehicles Taxation (Amendment) Act, 2023
[Karnataka Act 31 of 2023][28th July, 2023]

CONTENTS

1. Short title and commencement

2. Amendment of the Schedule

3. Power to remove difficulty

 

An Act further to amend the Karnataka Motor Vehicles Taxation Act, 1957.

Whereas it is expedient further to amend the Karnataka Motor Vehicles Taxation Act, 1957 (Karnataka Act 35 of 1957) for the purpose hereinafter appearing:

Be it enacted by the Karnataka State Legislature in the seventy fourth year of the Republic of India as follows:

## Section 1. Short title and commencement.—(1) This Act may be called the Karnataka Motor Vehicles Taxation (Amendment) Act, 2023.

(2) It shall come into force at once.

## Section 2. Amendment of the Schedule.—In the Schedule to the Karnataka Motor Vehicles Taxation Act, 1957 (Karnataka Act 35 of 1957) (hereinafter referred to as the Principal Act),—

(1) in Part ‘A’,—

(i) in item No. 2, for the words “Invalid carriages”, the words “invalid carriages/Adapted vehicle/Divyangjan (availing GST Concession)” shall be substituted;

(ii) in item 3, in sub-item (1), clause (c) and entries relating thereto shall be omitted;

(iii) in item No. 8, in sub-item (f),—

(a) in clause (i), in column (2), for the figures “20.00”, the figures “100.00” shall be substituted;

(b) in clause (ii), in column (2), for the figures “80.00”, the figures “200.00” shall be substituted;

(2) for PART A6 of the Principal Act, the following shall be substituted, namely:—

“PART A6

(see section 3(1))

Life time tax for goods vehicles having gross vehicle weight exceeding 1,500 Kgs. But not exceeding 12,000 Kgs. In weight laden, whether used for hire or reward or not.

Item No.

Class of Vehicles

Goods vehicle having gross vehicle weight exceeding 1500 Kgs. And not exceeding 2000 Kgs. Rs.

Goods vehicle having gross vehicle weight exceeding 2000 Kgs. And not exceeding 3000 Kgs.Rs.

Goods vehicles having gross vehicle weight exceeding 3,000 Kgs. And not exceeding 5,500 Kgs. Rs.

Goods vehicles having gross vehicle weight exceeding 5,500 Kgs. And not exceeding 7,500 Kgs. Rs.

Goods vehicles having gross vehicle weight exceeding 7,500 Kgs. And not exceeding 9,500 Kgs. Rs.

Goods vehicles having gross vehicle weight exceeding 9,500 Kgs. And not exceeding 12,000 Kgs. Rs.

1

2

3

4

5

6

7

8

A

At the time of Registration of New Vehicle

20,000

30,000

40,000

60,000

80,000

1,00,000

B

If the vehicle is already registered and its age from the month of Registration is:

 

 

 

 

 

 

1

Not more than 2 years

18600

27900

37200

55800

74400

93000

2

More than 2 Years but not more than 3 Years

17400

26400

35400

53400

71400

89400

3

More than 3 Years but not more than 4 Years

16200

24900

33600

51000

68400

85800

4

More than 4 Years but not more than 5 Years

15000

23400

31800

48600

65400

82200

5

More than 5 Years but not more than 6 Years

13800

21900

30000

46200

62400

78600

6

More than 6 Years but not more than 7 Years

12800

20600

28400

44200

59600

75200

7

More than 7 Years but not more than 8 Years

11800

19300

26800

42200

56800

71800

8

More than 8 Years but not more than 9 Years

10800

18000

25200

40200

54000

68400

9

More than 9 Years but not more than 10 Years

9800

16700

23600

38200

51200

65000

10

More than 10 Years but not more than 11 Years

9000

15600

22200

36600

48600

61800

11

More than 11 Years but not more than 12 Years

8200

14500

20800

35000

46000

58600

12

More than 12 Years but not more than 13 Years

7400

13400

19400

33400

43400

55400

13

More than 13 Years but not more than 14 Years

6600

12300

18000

31800

40800

52200

14

More than 14 Years but not more than 15 Years

5800

11200

16600

30200

38200

49000

15

More than 15 years

5000

10100

15200

28600

35600

45800

(3) for Part A8 of the Principal Act, the following shall be substituted, namely:—

“PART A8

(see section 3(1))

Life time Tax for Motor Cabs other than those registered out-side the State

and covered with the permit issued under sub-section (9) of section 88 of the

Motor Vehicle Act, 1988 (Central Act 59 of 1988).

Sl. No.

Class of vehicles

Cost of the vehicle which exceeds Rs. 10 Lakhs but does not exceeding Rs. 15 Lakhs

Cost of the vehicle which exceeds Rs. 15 Lakhs

A

At the time of Registration of New Vehicles

9% of the cost of the vehicle

15% of the cost of the vehicle

B

If the vehicle is already registered and its age from the month of Registration is:

Percentage of the Life Time Tax levied under Clause A

Percentage of the Life Time Tax levied under Clause A

1

Not more than 2 years

93%

93%

2

More than 2 Years but not more than 3 Years

87%

87%

3

More than 3 Years but not more than 4 Years

81%

81%

4

More than 4 Years but not more than 5 Years

75%

75%

5

More than 5 Years but not more than 6 Years

69%

69%

6

More than 6 Years but not more than 7 Years

64%

64%

7

More than 7 Years but not more than 8 Years

59%

59%

8

More than 8 Years but not more than 9 Years

54%

54%

9

More than 9 Years but not more than 10 Years

49%

49%

10

More than 10 Years but not more than 11 Years

45%

45%

11

More than 11 Years but not more than 12 Years

41%

41%

12

More than 12 Years but not more than 13 Years

37%

37%

13

More than 13 Years but not more than 14 Years

33%

33%

14

More than 14 Years but not more than 15 Years

29%

29%

15

More than 15 years

25%

25%

Notes:

(1) In respect of vehicles for which tax was due prior to the 1st day of April, 2012, but has not been paid, such tax shall be collected at the rates prevailing prior to such day along with the penalty due, if any.

(2) In its order dated 08-10-2012 passed in WP No. 33654-58/2012, the Hon'ble High Court of Karnataka has granted two installments for payment of the tax: The first installment is payable before 31-12-2012 and the Second Installment is payable before 31-03-2013. This concession is available only to vehicles registered prior to 01-04-2012.

(3) Cost of the vehicle in relation to motor vehicle means,—

(a) In respect of a vehicle manufactured in India, cost of the vehicle as per the purchase invoice issued either by the manufacturer or by the dealer of the vehicle including the excise duty, surcharge or cess, Goods and Services Tax etc., as payable in the State of Karnataka whichever is higher; and

(b) In respect of an imported motor vehicle, irrespective of its place of manufacture, the total cost incurred in importing the vehicle, that is to say, the value of the motor vehicle as endorsed in the Bill of Entry or such other document and assessed as such under the Customs Act, 1962, together with the Customs Duty levied, freight charges incurred and other taxes levied thereupon including additional duty or penalty levied if any, by the Customs Department or any other Department.”

(4) for Part C5 of the Principal Act, the following shall be substituted, namely:—

“PART C5

(see section 7(3))

Refund table for goods vehicles having gross vehicle weight exceeding 1,500 Kgs. But not exceeding 12,000 Kgs. in respect of which lifetime tax is paid under Part A6

Item No.

Class of Vehicles

Goods vehicle having gross vehicle weight exceeding 1500 Kgs. And not exceeding 2000 Kgs. Rs.

Goods vehicle having gross vehicle weight exceeding 2000 Kgs. And not exceeding 3000 Kgs.Rs.

Goods vehicles having gross vehicle weight exceeding 3,000 Kgs. And not exceeding 5,500 Kgs. Rs.

Goods vehicles having gross vehicle weight exceeding 5,500 Kgs. And not exceeding 7,500 Kgs. Rs.

Goods vehicles having gross vehicle weight exceeding 7,500 Kgs. And not exceeding 9,500 Kgs. Rs.

Goods vehicles having gross vehicle weight exceeding 9,500 Kgs. And not exceeding 12,000 Kgs. Rs.

1

2

3

4

5

6

7

8

1

Within a year

18600

27900

37200

55800

74400

93000

2

After 1 year but within 2 years

17400

26400

35400

53400

71400

89400

3

After 2 year but within 3 years

16200

24900

33600

51000

68400

85800

4

After 3 year but within 4 years

15000

23400

31800

48600

65400

82200

5

After 4 year but within 5 years

13800

21900

30000

46200

62400

78600

6

After 5 year but within 6 years

12800

20600

28400

44200

59600

75200

7

After 6 year but within 7 years

11800

19300

26800

42200

56800

71800

8

After 7 year but within 8 years

10800

18000

25200

40200

54000

68400

9

After 8 year but within 9 years

9800

16700

23600

38200

51200

65000

10

After 9 year but within 10 years

9000

15600

22200

36600

48600

61800

11

After 10 year but within 11 years

8200

14500

20800

35000

46000

58600

12

After 11 year but within 12 years

7400

13400

19400

33400

43400

55400

13

After 12 year but within 13 years

6600

12300

18000

31800

40800

52200

14

After 13 year but within 14 years

5800

11200

16600

30200

38200

49000

15

After 14 year but within 15 years

4200

9000

13800

27000

33000

42600

16

After 15 years

Nil

Nil

Nil

Nil

Nil

Nil

(5) for Part C7 of the Principal Act, the following shall be substituted, namely:—

“PART C7

(see section 7(3))

Refund Table for Motor Cab cost of which exceeds Rs. 10 Lakhs

Sl. No.

If after the registration removal of vehicles or cancellation of Registration of vehicle taken place.

Percentage of Life Time Tax paid to be refunded

1

Within a year

93%

2

After 1 year but within 2 years

87%

3

After 2 year but within 3 years

81%

4

After 3 year but within 4 years

75%

5

After 4 year but within 5 years

69%

6

After 5 year but within 6 years

64%

7

After 6 year but within 7 years

59%

8

After 7 year but within 8 years

54%

9

After 8 year but within 9 years

49%

10

After 9 year but within 10 years

45%

11

After 10 year but within 11 years

41%

12

After 11 year but within 12 years

37%

13

After 12 year but within 13 years

33%

14

After 13 year but within 14 years

29%

15

After 14 year but within 15 years

25%

16

After 15 years

Nil

## Section 3. Power to remove difficulty.—(1) If any difficulty arises in giving effect to the provisions of the Karnataka Motor Vehicles Taxation (Amendment) Act, 2023 the State Government may, by order published in the Official Gazette, make such provisions as may appear to it be necessary or expedient for the purposes removing difficulty:

Provided that, no such order shall be made after the expiry of a period of two years from the date of commencement of the Karnataka Motor Vehicles Taxation (Amendment) Act, 2023.

(2) Every order made under sub-section (1) shall, as soon as after it is made, be laid before the State Legislature.