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5. Levy of tax on motor vehicles

  (1) Notwithstanding anything contained in section 3, there shall be levied and collected a tax on the entry of a motor vehicle into a local area for use or sale therein:

Provided that such motor vehicle is liable for registration or assignment of a new registration mark in the State under the Motor Vehicle Act:

Provided further that no tax shall be levied and collected in respect of a motor vehicle which was registered in any Union Territory or any other State under the Motor Vehicles Act, for a period of fifteen months or more before the date on which it is registered in the State under that Act.

(2) The tax shall be levied on purchase value of a motor vehicle at the rate equal to the difference between the sales tax rate applicable in the State and the sales tax or the central sales tax rate charged on the sale of the motor vehicle in the invoice relating to the purchase of the vehicle:

 Provided that the sales tax rate applicable in the State for the purpose of this section shall be taken as on the date mentioned in the invoice relating to the purchase of the motor vehicle:

Provided further than if no invoice in respect of purchase of the motor vehicle is produced or if the invoice does not show the rate of sales tax or central sales tax, as the case may be, charged, then the tax rate applicable under this section shall be the rate of sales tax applicable in the State on the date of assessment

 

 

 

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