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No tax on vehicles for one year from other states

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A division bench of Justices Jayanth Patel and B V Nagarathna termed the amendment to the Karnataka Motor Vehicle Taxation (Amendment) Act, 2014, “Unconstitutional” and said that vehicles which visit the state need not pay tax in Karnataka for up to one year and dismissed the appeal made by Karnataka state government.

Karmnata state had amended the KMVT Act in 2014-2015 by inserting section 3(1) of the Act on all such vehicles which were plying on its roads beyond 30 days which made it compulsory to pay tax.

The judgement reads “A vehicle which is registered outside the state of Karnataka and is plying on the state roads for a period from 31 days up to 12 months cannot be subjected to tax,”.

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