Amendment status not verified — confirm the current text below against the official source.
Liability for additional tax.- When any motor vehicle in respect of which a tax for any period is payable or has been paid, is altered during such period, or proposed to be used during such period in such manner as to cause the vehicle in respect of which a higher rate of tax is payable, the registered owner or the person who has possession or control of the vehicle, shall in addition to the tax, if any, due from him or that period be liable to pay for the unexpired portion of such period; since the vehicle is altered or proposed to be used, an additional tax of a sum equal to the difference between the amount of tax payable for such unexpired portion at the higher rate and the rate at which the tax was payable or paid before the alteration or use of the vehicle for that portion; and until such additional tax has been paid, the taxation authority shall not grant a fresh token in respect of the vehicle so altered or proposed to be so used. Explanation.- In calculating the unexpired portion under this section any broken period in a month shall be considered as full month. 1[7-A. Owner to furnish security.- (1) Where such an owner makes a default in the payment of tax 2[or penalty] under this Act, for a continuous period of two months or more, the taxation authority, for the proper realisation of tax 3[or penalty] levied under this Act, shall, after giving an opportunity of being heard, require any owner of the motor vehicle to deposit as security 4[a sum equal to the amount of tax or penalty due from him], in the manner prescribed. (2) Where the security furnished by an owner of a motor vehicle under sub-section (1) is in the form of surety bond and the surety becomes insolvent or is otherwise incapacitated or dies or the surety withdraws, such owner shall, within fifteen days of the occurrence of any of the aforesaid events, inform the taxation authority and shall within thirty days of such occurrence, furnish a fresh surety bond.