1. 1 Regional Training Institute, Ranchi Structured Training Courseware on State Receipts Audit Audit of Motor Vehicles Receipts

2. RTI, Ranchi2 Session Objectives At the end of these sessions, the participants will be able to Explain the registration and permit processes of Motor Vehicles List the types of fees and taxes levied on motor vehicles Discuss important registers and records and Detail audit checks in motor vehicles receipts

3. RTI, Ranchi3 Background “Taxes on mechanically propelled vehicles” is included in concurrent list of seventh schedule of Constitution Motor Vehicles Act, 1988 by the Central Government regulates licenses of drivers, registration of vehicles and collection of fees State Motor Vehicle Taxation Acts provide for taxation of motor vehicles

4. RTI, Ranchi4 Key Definitions Stage carriage –Vehicle to carry more than six passengers, where passengers have to pay fare for either whole of the journey or for stages of the journey (e.g. City Bus Service)

5. RTI, Ranchi5 Key Definitions (contd.) Contract carriage –A motor vehicle carrying passengers engaged under a contract (e.g. Taxi or Auto-rickshaw)

6. RTI, Ranchi6 Key Definitions (contd.) Transport vehicle –A public service vehicle (carrying passengers for hire) –A private service vehicle (carrying more than six persons) –An educational institution bus or –A goods carriage

7. RTI, Ranchi7 Registration of Motor Vehicles No motor vehicle can be driven without certificate of registration Application for registration to be made within seven days of taking delivery of vehicle Registration certificate is valid throughout India

8. RTI, Ranchi8 Registration of Motor Vehicles (contd.) Transport vehicles require additionally, a certificate of fitness Certificate of fitness issued for two years initially –Annual renewal required

9. RTI, Ranchi9 Registration of Motor Vehicles (contd.) Motor vehicles with manufacturer or dealer –Exempt from registration if used under authorization of trade certificates Temporary registration granted on application - valid for one month

10. RTI, Ranchi10 Registration of Motor Vehicles (contd.) Motor vehicle registered in one State should apply for new registration in another State –If it is kept for more than twelve months in the new State –Should obtain “No Objection Certificate from competent authority in 1 st State

11. RTI, Ranchi11 Licensing of Drivers Minimum age for driving –Motor vehicles – 18 years –Transport vehicle – 20 years –Motor cycle – 16 years (engine capacity 50 cc or less) –Conductors on ‘stage carriages’ – 18 years

12. RTI, Ranchi12 Licensing of Drivers (contd.) Licenses –Learner’s license –Driving license –Conductor license License is specific to type of vehicles viz. Motor Cycles with / without gear, Light Motor Vehicle, Transport Vehicle etc. These licenses are valid all over India Learner’s license is valid for six months and subject to renewal

13. RTI, Ranchi13 Licensing of Drivers (contd.) Validity of driving license (for non- transport vehicle) –20 years or till the licensee reaches 40 years For transport vehicle –3 years

14. RTI, Ranchi14 Licensing of Drivers (contd.) For issue of License –Test of competence conducted on type of vehicle for which license is sought –Driving license is subject to renewal –Schools / Driving Schools are also subject to licensing

15. RTI, Ranchi15 Permits Permit from Regional / State Transport Authority required for using motor vehicle as a transport vehicle either for carrying passengers or goods

16. RTI, Ranchi16 Permits (contd.) Permits are generally specific to a particular State. They are of following types: –Stage carriage permits –Contract carriage permits –Goods carriage permits –Tourist vehicle permits Temporary permits cannot exceed four months and have to be for specified purposes

17. RTI, Ranchi17 Permits (contd.) National permits –Permits for goods carriages to operate either throughout India or at least 4 contiguous States –Issued only for multi-axle goods carriages less than 15 years old –Issued for other goods carriage less than 12 years old National permits are issued by a particular State authority –Authorization fees levied annually by other concerned States

18. RTI, Ranchi18 Taxes and Fees Taxes on motor vehicles fall into two categories –Motor Vehicles Tax (also called Road Tax) –Tax on carriage of goods and passengers

19. RTI, Ranchi19 Motor Vehicles Tax Motor vehicles tax (as well as additional motor vehicles tax in States like Bihar & Jharkhand) is levied on transport vehicles only

20. RTI, Ranchi20 Motor Vehicles Tax (contd.) Motor vehicles tax varies according to various criteria: –One-time tax for personalized vehicles for the whole life of the vehicle –Registered laden weight for goods carriage as well as trailers –Seating capacity of taxis and buses as well as other transport vehicles

21. RTI, Ranchi21 Motor Vehicles Tax (contd.) –Unladen weight for most other vehicles –Vehicles in the possession of manufacturer / dealer Rebate is given for payment of annual tax in advance for transport vehicles Penalties imposed for delayed / non- payment of taxes Motor vehicles tax can also be exempted / written off

22. RTI, Ranchi22 Tax on Carriage of Goods and Passengers This includes the following: Tax on goods carried by public service and private vehicles as a specified percentage of the amount of freight calculated at specified rates

23. RTI, Ranchi23 Tax on Carriage of Goods and Passengers (contd.) Tax on passengers carried by stage carriages, usually as a specified percentage of the fare payable by the passenger Compounding of the above taxes (i.e. lump sum tax) and fines and penalties

24. RTI, Ranchi24 Tax on Carriage of Goods and Passengers (contd.) These taxes can be paid either –At specified intervals, or –In the form of stamps purchases in advance and pasted on the passenger ticket

25. RTI, Ranchi25 Tax on Carriage of Goods and Passengers (contd.) If lump sum tax method is not adopted, –Operators are required to maintain detailed accounts and records –Furnish relevant returns to taxation authorities for assessment

26. RTI, Ranchi26 Fees Fees for learner’s / driving / conductors licenses –Including fees for tests –Renewal of licenses Fees for registration / transfer of registration –Including fees for allotment of choice number –Fees for endorsing note of hire purchase agreement

27. RTI, Ranchi27 Fees (contd.) Fees for trade certificates and certificates of fitness Fees for permits Fees for appeals Fines and penalties

28. RTI, Ranchi28 Organizational Set up State Transport Commissioner (STC) Joint STC (Hdqrs.) Regional Transport Authorities District Transport Officers Motor Vehicles Inspectors Enforcement Wing

29. 29 Registers and Records Registration District Transport Offices Registration Register with vouchers Register of application for transfer of ownership etc. Register of motor vehicles temporarily register Register of recording of present address (P.A.) Motor Vehicles Inspectors Certificate of fitness register Accident reports

30. 30 Registers and Records (contd.) Taxation O/o State Transport Commissioner Files in respect of exemption cases District Transport Offices Taxation register Tax token Exemption register with concerned files Refund register

31. RTI, Ranchi31 Registers and Records (Contd.) Demand, Collection and Balance Register Collection Register or Tax Posting Register-gives details of amount remitted into treasury with number and date of challan Records for sale of tax stamps Assessee files containing returns furnished by operators and assessment orders thereon

32. RTI, Ranchi32 Registers and Records (Contd.) Licenses Register of learner’s license Register of driving license Guard file of vouchers of learner’s / driving licenses Certificate case register Stock register of driver’s badge

33. RTI, Ranchi33 Registers and Records (Contd.) Licenses (contd.) Register of conductor’s license Stock register of conductor’s badge Index register Collection register-details of amounts remitted in treasury with number and date of challan Cash Book and Receipt Books

34. 34 Registers and Records (Contd.) Permits Regional Transport Office Register of composition of offences Register of petitions and proposals for grant of stage carriage permits Register of applications for stage carriage permits Register of time schedules Register of sketches of bus routes Register of stage carriage (route-wise and operator-wise) Register of punishment to bus operators Register of applications for contract carriage permits

35. RTI, Ranchi35 Registers and Records (Contd.) Permits (contd.) RTORegister of private carriers permits Register of applications for temporary permits Register of application for special permits Register of national permits Concerned files in respect of temporary permits / permanent permits / National permits / Special permits

36. 36 Registers and Records (Contd.) Permits (contd.) State Transport Commissioner National Permit Register Concerned files in respect of National permits Register of tourist permits Register of bilateral agreements District Transport Office Permit Register with vouchers Register of application for transfer of ownership Register of motor vehicles temporarily registered

37. 37 Registers and Records (Contd.) Permits (contd.) District Transport Office Register of recording of present address (P.A. Register) Diary and dispatch register Register of international driving permits issued Register of issue of No Objection Certificates Motor Vehicle Inspectors Certificate of fitness register Accident report

38. RTI, Ranchi38 Audit Checks Registration Whether prescribed fee for temporary registration paid Whether extra fee for detention of old number / choice number been paid For ‘Hire Purchase Agreement’ whether adequate endorsement fee realized

39. RTI, Ranchi39 Audit Checks (contd.) Registration Whether adequate fee for transfer of ownership realized Whether adequate fee for registration paid Whether sitting capacity of public service vehicles and mini buses fixed as per wheel base

40. RTI, Ranchi40 Audit Checks (contd.) Registration Whether fee for duplicate certificate of registration realized correctly after furnishing affidavit Vehicles of other States Whether statements from other States received at the STC’s office with complete details Whether all bank drafts received are entered in proper register and remitted and credited to Government account promptly

41. RTI, Ranchi41 Audit Checks (contd.) Registration of vehicles of other States Whether proper machinery exists for periodical verification and reconciliation of number of bank drafts sent by other States and received in the office of STC

42. RTI, Ranchi42 Audit Checks (contd.) Registration of vehicles of other States Whether taxes realized by other State paid from their vehicles to be paid to this State realized at correct rates Whether there is loss of revenue due to not following the relevant agreement between States

43. RTI, Ranchi43 Audit Checks (contd.) Certificate of fitness of motor vehicles Whether adequate fee relating to the model of vehicle paid Whether certificate of fitness granted / renewed conforms to maximum / minimum period Whether challan / pay-in- slip showing deposit of fee been forfeited where vehicle not produced for inspection

44. RTI, Ranchi44 Audit Checks (contd.) Taxes and Fees Whether fees leviable were correctly charged Assessment and realization of fees currently shown in relevant register If proper records kept for crediting fees to Government account

45. RTI, Ranchi45 Audit Checks (contd.) Taxes and Fees Check amount shown in pay-in-slip with bank scroll to ensure fees deposited has been properly accounted for Check if entries and corrections in relevant registers were attested by competent authorities See if applications from operators were in proper form

46. RTI, Ranchi46 Audit Checks (contd.) Taxes and Fees If rules for grant / renewal/ issue of duplicate documents observed If refund was sanctioned by competent authority If time-barred refund claim entertained

47. RTI, Ranchi47 Audit Checks (contd.) Taxes and Fees If proper stock account kept for metal badges If permits issued only where applications accepted and considered If exemptions allowed only where admissible If records of all sections are complete in every respect

48. RTI, Ranchi48 Audit Checks (contd.) Road Tax For transport vehicle check the permit to ply in particular route Whether tax has been correctly assessed and realized Whether proper penalty realized where tax paid after due date Whether tax token issued for period for which tax paid

49. RTI, Ranchi49 Audit Checks (contd.) Road Tax If duplicate token was issued whether prescribed fees charged Whether taxation register is posted up- to-date Whether notices issued to defaulting owners of vehicles If recovery certificate issued where tax arrears not paid

50. RTI, Ranchi50 Audit Checks (contd.) Motor Vehicles Tax Check number of vehicles registered and the dates Where vehicle is replaced, check the date of replacement and registration number of the new vehicle Check Registration Register Check concerned files of tax, refund and exemption of tax

51. RTI, Ranchi51 Audit Checks (contd.) Pay-in-slips Verify pay-in-slips with bank scrolls Compare pay-in-slip with bank’s copy of the scroll for selected months and test check other months

52. RTI, Ranchi52 Audit Checks (contd.) Licenses Check validity of learner’s licenses does not exceed six months Check class of vehicle for which learner’s license issued and whether correct fee was paid Whether proper fees for driving test paid Whether driving license issued for class of vehicle for which driving test cleared

53. RTI, Ranchi53 Audit Checks (contd.) Licenses Whether correct fee for issue of license realized Whether medical certificate and photograph submitted before issue of conductor’s license Whether specified fee received for renewal / duplicate license

54. RTI, Ranchi54 Audit Checks (contd.) Permits Whether prescribed fee for temporary permit paid Whether validity of temporary permit exceeds four months Whether extra fee for retention of old number / choice number paid Whether correct fees for transfer of ownership realized

55. RTI, Ranchi55 Audit Checks (contd.) Permits Whether correct fee for permit paid Whether sitting capacity of public service vehicle and mini buses fixed as per wheel base Whether fee for duplicate certificate of permit realized along with affidavit

56. RTI, Ranchi56 Audit Checks (contd.) Issue and Renewal of Certificate of Fitness Whether correct fee based on model of vehicle charged Certificate of fitness granted / renewed conforms to maximum / minimum period If vehicle not produced timely for inspection, whether challan / pay-in-slip showing deposit of fee forfeited