THE GUJARAT STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1976
PAST VI
Acts of Parliament and Ordinances promulgated by the President
GOVERNMENT OF GUJARAT
LEGAL DEPARTMENT
Sachivalaya, Gandhinagar, 31st March, 1976
No. 12839/B. The following President’s Act assented on the 31st March, 1976, is published for general information.
THE GUJARAT STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1976
[Act No. 11 of 1976]
Enacted by the President in the Twenty-seventh Year of the Republic of India.
AN ACT
to provide for the levy and collection of a fax on professions, trades, callings and employments for the benefit of the State.
In exercise of the powers conferred by section 3 of the Gujarat State Legislature (Delegation of Powers) Act, 1976, the President is pleased to enact as follows:—
Short title, extent and commencement
1. (1) This Act may be called the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on the 1st day of April, 1976.
Definitions
2. In this Act, unless the context otherwise requires,—
(a) “Commissioner” means the Commissioner of Profession Tax appointed under section 12, and includes an Additional Commissioner of Profession Tax (if any) appointed under that section;
(b) “employer”, in relation to an employee earning any salary or wages on a regular basis under him, means the person or the officer who is responsible for disbursement of such salary or wages, and includes the head of the office or any establishment as well as the manager or agent of the employer;
(c) “month” means a month reckoned according to the British calendar;
(d) “person” means any person who is engaged in any profession, trade, calling or employment in the State of Gujarat, and includes a Hindu undivided family, firm, company, corporation or other corporate body, any society, club or association, so engaged, but does not include any person who earns wages on a casual basis;
(e) “prescribed” means prescribed by rules made under this Act;
(f) “profession tax” or “tax” means the tax on professions, trades, callings and employments levied under this Act;
(g) “salary” or “wage” includes pay or wages, dearness allowance and all other remunerations received by any person on regular basis, whether payable in cash or kind, and also includes perquisites, and profits in lieu of salary, as defined in section 17 of the Income-tax Act, 1961;
(h) “Schedule” means a Schedule appended to this Act;
(i) “Tribunal” means the Gujarat Sales Tax Tribunal constituted under section 28 of the Gujarat Sales Tax Act, 1969, and discharging the functions Guj, of the Tribunal assigned to it by or under this Act;
(j) “year” means the financial year.
Levy and charge of tax
3. (1) Subject to the provisions of article 276 of the Constitution and of this Act, there shall be levied and collected a tax on professions, trades, callings and employments for the benefit of the State.
(2) Every person engaged in any profession, trade, calling or employment and falling under one or the other of the classes mentioned in column 2 of Schedule I shall be liable to pay to the State Government the tax at the rate mentioned against the class of such person in column 3 of the said Schedule:
Provided that the tax so payable in respect of any one person shall not exceed two hundred and fifty rupees in any year:
Provided further that, entry 9 in Schedule I shall apply only to such classes of persons as may be specified by the State Government, by notification in the Official Gazette, from time to time.
Employer’s liability to deduct and pay tax on behalf of employees
4. The tax payable under this Act by any person earning a salary or wage, shall be deducted by his employer from the salary or wage payable to such person, before such salary or wage is paid to him, and such employer shall, irrespective of whether such deduction has been made or not, when the salary or wage is paid to such person, be liable to pay tax on behalf of all such persons:
Provided that, if the employer is an officer of Government, the State Government may, notwithstanding anything contained in this Act, prescribe by rules the manner in which such employer shall discharge the said liability.
Registration and enrolment
5. (1) Every employer not being an officer of Government liable to pay tax under section 4 shall obtain a certificate of registration from the prescribed authority in the prescribed manner.
(2) Every person liable to pay tax under this Act (other than a person earning salary or wages, in respect of whom the tax is payable by his employer), shall obtain a certificate of enrolment from the prescribed authority in the prescribed manner.
(3) The prescribed authority shall mention in every certificate of enrolment the amount of tax payable by the holder according to Schedule I, and the date by which it shall be paid, and such certificate shall serve as a notice of demand for purposes of section 10.
(4) Every employer or person required to obtain a certificate of registration or enrolment shall, within such period as may be prescribed, or, if he was not engaged in any profession, trade, calling or employment on the date of the commencement of this Act, within such period from the date of commencement of his profession, trade calling or employment, as may be prescribed, or, in respect of a person referred to in sub-section (2), within such period from the date of his becoming liable to pay tax at a rate higher or lower than the one mentioned in his certificate of enrolment as may be prescribed, apply for a certificate of registration or enrolment, or a revised certificate of enrolment, as the case may be, to the prescribed authority in the prescribed form, and the prescribed authority shall, after making such inquiry as may be necessary within thirty days of the receipt of the application (which period in the first year from the commencement of this Act shall be extended to ninety days), if the application is in order, grant him such certificate.
(5) Where an employer or a person liable to registration or enrolment has wilfully failed to apply for such certificate within the required time, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose a penalty not exceeding twenty rupees for each day of delay in case of an employer and not exceeding five rupees for each day of delay in case of others.
(6) Where an employer or a person liable to registration or enrolment has deliberately given false information in any application submitted under this section, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose a penalty not exceeding one thousand rupees.
Returns
6. (1) Every employer registered under this Act shall furnish to the prescribed authority within fifteen days of the expiry of a month a return in the prescribed form showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof, during the month immediately preceding that month.
(2) Every such return shall be accompanied by a treasury challan or any other document as may be prescribed in proof of payment of full amount of tax due according to the return, and a return without such proof of payment shall not be deemed to have been duly filed.
(3) Where an employer has wilfully failed to file such return within the required time, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty not exceeding five rupees for each day of delay.
Assessment of employers
7. (1) If the prescribed authority is satisfied that the return filed by any employer is correct and complete, he shall accept the return.
(2) (a) If the prescribed authority is not satisfied that the return filed is correct and complete he shall serve upon the employer a notice requiring him to attend in person or through an authorised representative, and to produce accounts and papers in support of the return, on a date specified in the notice.
(b) The prescribed authority shall on examination of, accounts and papers, assess the amount of tax payable by the employer.
(c) If the employer fails to comply with the terms of the notice, or if in the opinion of the prescribed authority the accounts and papers are incorrect or incomplete or unreliable, the said authority shall, after such inquiry as he deems fit or otherwise, assess the tax due, to the best of his judgment.
(3) If an employer has wilfully failed to get himself registered or being registered has failed to file any return, the prescribed authority shall, after giving the employer a reasonable opportunity of being heard and after holding such inquiry as he deems fit, or otherwise pass an order assessing the amount of tax due, to the best of his judgment.
(4) The amount of tax so assessed shall be paid within fifteen days of receipt of the notice of demand from the prescribed authority.
Payment of tax
8. (1) The tax payable under this Act shall be paid in the prescribed manner.
(2) The amount of tax due from enrolled persons for each year as specified in their enrolment certificates shall be paid—
(a) in the case of a person who stands enrolled before the commencement of a year or is enrolled on or before the 31st day of August of a year, before the 30th day of September of that year, and
(b) in the case of a person who is enrolled after the 31st day of August of a year, within one month of the date of enrolment.
Consequences of failure to deduct or to pay tax
9. (1) If an employer (not being an officer of Government) does not deduct tax at the time of payment of salary or wage, or after deducting fails to pay the tax as required by or under this Act, he shall, without prejudice to any other consequences and liabilities which he may incur, be liable to pay, in addition to the amount of tax, simple interest at two per cent. of the amount of the tax due for each month or part thereof for the period for which the tax remains unpaid.
(2) If an enrolled person fails to pay the tax as required by or under this Act, he shall be liable to pay, in addition to the amount of tax, simple interest at the rate and in the manner laid down in sub-section (1).
Penalty for non-payment of tax
10. If an enrolled person or a registered employer fails, without reasonable cause, to make payment of any amount of tax within the required time or date as specified in the notice of demand, the prescribed authority may, after giving him a reasonable opportunity of being beard, impose upon him a penalty not exceeding fifty per cent. of the amount of tax due.
Recovery of tax, etc.
11. All arrears of tax, penalty, interest and fees under this Act shall be recoverable as an arrear of land revenue.
Authorities for implementation of the Act
12. (1) (a) For carrying out the purposes of this Act, the State Government may appoint—
(i) an officer to be the Commissioner of Profession Tax for the whole of the State of Gujarat;
(ii) one or more officers to be the Additional Commissioners of Profession Tax as the State Government thinks necessary;
(iii) such number of Deputy Commissioners of Profession Tax, Assistant Commissioners of Profession Tax and Profession Tax Officers and other officers and persons (with such designations) as the State Government thinks necessary.
(b) An officer appointed under paragraph (ii) or (iii) of clause (a) shall, within the limits of such area as the State Government may, by notification in the Official Gazette specify, to be within his jurisdiction, exercise such powers and perform such duties as may be conferred or imposed upon him by or under this Act.
(c) The superintendence and control for the proper execution of the provisions of this Act and the rules made thereunder relating to the levy and collection of the tax shall vest in the Commissioner.
(2) The Tribunal constituted under section 28 of the Gujarat Sales Tax Act, 1969, shall be the Tribunal for the purposes of hearing appeals and revision applications and discharging other functions of the Tribunal under this Act, and accordingly the provisions of that Act relating to the Tribunal including section 28, and the regulations (subject to such amendments as may be made therein in their application to the Tribunal for the purposes of this Act) made thereunder shall apply to or in relation to such Tribunal for the purposes of this Act.
(3) For carrying out the purposes of this Act, the State Government may, at its discretion, appoint any Government Department or officer, or a Municipal Corporation, Municipality or District Panchayat [hereinafter called “the Collecting Agent”) as its agent responsible for the levy and collection of the tax under this Act from such persons or class of persons as may be prescribed; and thereupon, it shall be the duty of such Collecting Agent to carry out in such manner as may be prescribed, such functions under this Act as may be prescribed, and to render to the Commissioner in such manner and at such time as that officer may require full and complete account of the tax levied and collected.
(4) Any officer authorised by the Collecting Agent in this behalf shall have for the purposes of levy and collection of the tax all the powers of the prescribed authority and such other powers as may be prescribed.
(5) A Municipal Corporation, Municipality or District Panchayat appointed as agent to carry out the purposes of this Act under sub-section (3) shall be paid such collection charges as may be determined by the State Government, after consultation with the local authority concerned.
(6) It shall be lawful for the Commissioner, or an officer duly authorised by him, to have access to, and to cause production and examination of books, registers, accounts or documents maintained or required to be maintained by the Collecting Agent for the purposes of this Act, and the Collecting Agent shall, whenever called upon to do so, produce such books, registers, accounts or documents for inspection by the Commissioner or by the authorised officer.
Appeal
13. (1) Subject to such rules as may be made by the State Government, any person or employer aggrieved by any order made under section 5, 6, 7, 9, 10, 15 or 16 may appeal against such order to,—
(a) the Assistant Commissioner, if the order is passed by any prescribed authority or officer subordinate to him;
(b) the Deputy Commissioner, if the order is passed by the Assistant Commissioner; and
(c) the Tribunal, if the order is passed by any officer not below the rank of Deputy Commissioner,
(2) No appeal shall be entertained after the expiry of sixty days from the date of receipt of demand notice or receipt of the order:
Provided that, the appellate authority may admit the appeal after the expiry of the aforesaid period, if it is satisfied that there was sufficient cause for the delay.
(3) No appeal shall be entertained, unless the amount of tax or penalty or interest in respect of which the appeal has been preferred has been paid in full:
Provided that in any particular case the appellate authority may dispense with the requirement of such payment if it is of opinion that such requirement will use undue hardship to the appellant.
(4) The appellate authority in disposing of an appeal, may—
(1) confirm, annul, reduce, enhance, or otherwise modify the assessment or penalty or interest, or
(ii) set aside the assessment or penalty or interest and direct the authority which made the assessment or imposed the penalty or charged the interest to pass a fresh order after further inquiry on specified points.
(5) No order under this section shall be passed without giving the appellant or his representative, and where the appellate authority is the Tribunal, without giving the authority whose order or direction is the subject of the appeal or his representative, a reasonable opportunity of being heard.
Revision
14. (1) Any order passed in appeal under section 13 may, on an application being made in this behalf, be revised by—
(a) the Deputy Commissioner, if the order is passed by the Assistant Commissioner;
(b) the Tribunal, if the order is passed by the Deputy Commissioner.
(2) The Commissioner may, of his own motion, revise any order passed by any authority other than the Tribunal under this Act.
(3) Any order passed by the Deputy Commissioner under sub-section (1) or by the Commissioner under sub-section (2) may be revised by the Tribunal.
(4) No revision shall be entertained under sub-section (1) or sub-section (3) after the expiry of sixty days from the date of the receipt of the order:
Provided that, no order shall be revised by the Commissioner under this sub-section after the expiry of three years from the passing of that order.
(5) No order under this section shall be passed without giving the applicant or the assessee a reasonable opportunity of being heard.
Rectification of mistakes
15. (1) Any authority under this Act may, of his own motion or on an application being made in this behalf, rectify any mistake apparent on the face of the record.
(2) Any authority under this Act may review its own order if any employer has been under-assessed for any period:
Provided that no order adversely affecting an employer or a person, shall be passed under this section unless a reasonable opportunity of being heard has been given to such employer or person:
Provided further that, no order shall be reviewed after the expiry of three years from the date on which it is passed.
Accounts
16. (1) If the Commissioner is satisfied that the books of accounts and other documents maintained by an employer in the normal course of his business are not adequate for verification of the returns filed by the employer under this Act it shell be lawful for the Commissioner to direct the employer to maintain the books of accounts or other documents in such manner as he may in writing direct, and thereupon the employer shall maintain such books of accounts or other documents accordingly.
(2) Where an employer wilfully fails to maintain the books of accounts or other documents as directed under sub-section (1), the Commissioner may, after giving him a reasonable opportunity of being heard, impose a penalty not exceeding five rupees for each day of delay.
Special mode of recovery
17. (1) Notwithstanding anything contained in any law for the time being force or contract to the contrary, the Commissioner may, at any time, by notice in writing, a copy of which shall be forwarded to the assessee at his last address known to the Commissioner, requires—
(a) any person from whom any amount of money is due, or may become due, to an assessee on whom a notice of demand has been served under this Act, or
(b) any person who holds or may subsequently hold money for or on account of such assessee,
to pay to the Commissioner, either forthwith upon the money becoming due or being held or at or within the time specified in the notice (but not before the money becomes due or is held as aforesaid), so much of the money as is sufficient to pay the amount due by the assessee in respect of the arrears of tax, penalty and interest under this Act, or the whole of the money when it is equal to or less than that amount.
Explanation.-For the purposes of this section, the amount of money due to an assessee from, or money held for or on account of an assessee by any person, shall be calculated after deducting therefrom such claims (if any) lawfully subsisting, as may have fallen due for payment by such assessee to such Person.
(2) The Commissioner may, at any time, amend or revoke any such notice, or extend the time for making any payment in pursuance of the notice.
(3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the assessee, and the receipt of the Commissioner shall constitute a good and sufficient discharge of the liability of such person, to the extent of the amount referred to in the receipt.
(4) Any person discharging any liability to the assessee after receipt of, the notice referred to in this section, shall be personally liable to the Commissioner to the extent of the liability discharged, or the extent of the liability of the assessee for tax, penalty and interest, whichever is less.
(5) Where a person to whom a notice under this section is sent proves to the satisfaction of the Commissioner that the sum demanded, or any part thereof is not due to the assessee or that he does not hold any money for or, on account of the assessee, then nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, to the Commissioner.
(6) Any amount of money which a person is required to pay to the Commissioner or for which he is personally liable to the Commissioner under this section, shall if it remains unpaid be recoverable as an arrear of land revenue.
Production and inspection of accounts and documents and search of premises
18: Any authority under this Act may inspect and search any premises, where any profession, trade, calling or employment liable to taxation under this Act is carried on or is suspected to be carried on and may cause production and examination of books, registers, accounts or documents relating thereto and may seize such books, registers, accounts or documents as may be necessary
Provided that, if the said authority removes from the said premises any book, register, account or document, he shall give to the person in charge of the place, a receipt describing the book; register, account or document so removed by him and retain the same only for so long as may be necessary for the purposes of examination thereof or for a prosecution.
Refunds
19. Any person who has paid any tax or penalty or interest or fee in excess of the amount due. under this Act may, within ninety days of the service of the order of assessment or, that passed on appeal or revision, as the case may be, apply to the prescribed authority for a refund and the amount paid in excess shall be refunded accordingly.
Offences and penalties
20. Any person or employer who, without sufficient cause, fails to comply with any of the Provisions of this Act or the rules framed thereunder shall, on conviction, be punished with fine not exceeding five thousand rupees and when the, offence is a continuing one, with fine not exceeding fifty rupees per day during the period of the continuance of the offence.
Offences by companies
21. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that, nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section—
(a) “company” means any body corporate and includes a firm or other association of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
Power to transfer proceedings
22. The Commissioner may, after giving the parties a reasonable, opportunity of being heard, wherever it is possible to do so, and after recording his reasons for doing so, by order in writing, transfer any proceedings or class of proceedings under any provision of this Act, from himself to any other officer, aid he may likewise transfer any such proceedings (including a proceeding pending with any officer or already transferred under this section) from any officer to any other officer or to himself:
Provided that nothing in this section shall be deemed to require any such opportunity to be given where the transfer is from any to any other officer and offices of both are situated in the same city, locality or place.
Explanation.—In this section, the word “proceedings”, in relation to any assessee whose name is specified in any order issued hereunder, means all proceedings under this Act in respect of any year, which may be pending on the date of such order or which may have been completed on or before such date, and includes also ail proceedings under this Act which may be commenced after the date of such order in respect of any year in relation to such assessee.
Compounding of offences
23. (1) Subject to such conditions as may be prescribed, the Commissioner may, either before or after the institution of proceedings for an offence under this Act, permit any person charged with the offence to compound the offence on payment of such sum, not exceeding double the amount of tax to which the offence relates, as the Commissioner may determine.
(2) On payment of such sum, as may be determined by the Commissioner under sub-section (1), no further proceedings shall be taken against the person in respect of the same offence.
Powers to enforce attendance etc.
24. All authorities under this Act shall, for the purposes of this Act, have same powers as are vested in a court under the Code of Civil Procedure, 1908, while trying a suit, in respect of enforcing the attendance of and examining, any person on oath or affirmation or for compelling the production of any document.
Bar to proceedings
25. (1) No suit shall lie in any civil court to set aside or modify any assessment made or order passed under this Act.
(2) No suit, prosecution, or other legal proceedings shall lie against any authority under this Act or against any employer for anything done or intended to be done in good faith under this Act or the rules made thereunder.
Power to delegate
26. The Commissioner may, subject to such conditions and restrictions as the State Government may by general or special order impose by order in writing delegate to any of the authorities subordinate to him, either generally or as respects any particular matter or class of matters any of his powers under this Act.
Power to make rules
27. (1) The State. Government may, by notification in the Official Gazette, make rules for, carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the manner in which an employer referred to in the proviso to section 4 shall discharge the liability under that section;
(b) the authority from which and the manner in which a certificate of registration and a certificate of enrolment shall be obtained under sub-sections (1) and (2) of section 5; and the authority to which and the form in which and the period within which an application for a certificate of registration or enrolment or a revised certificate of enrolment shall be made under sub-section (3) of section 5;
(c) the authority to be specified for the purposes of sub-sections (4), (5) and (6) of section 5, sub-section (3) of section 6, sections 7, 10 and 19;
(d) the authority to which and the form in which a registered employer shall furnish a return under sub-section (1) of section 6;
(e) the manner in which the tax shall be paid under sub-section (1) of section 8;
(f) persons or class of persons from whom the Collecting Agent shall be responsible for the levy and collection of tax and the manner in which and the functions which the Collecting Agent shall carry out, under sub-section (3) of section 12; and the other powers which an officer authorised by the Collecting Agent shall have for the purposes of levy and collection of tax under sub-section, (4) of section 12;
(g) rules subject to which an appeal may be made under section 13;
(h) the conditions subject to which the Commissioner may permit any person charged with an offence to compound the offence, under sub-section (1) of section 23;
(i) the fees payable in respect of any application to be made, forms to be supplied, certificates to, be granted and appeals and applications for revision to be made under this Act;
(j) any other matter which is or may be prescribed under this Act.
(3) The rules made under this section shall be subject to the condition of previous publication:
Provided that if the State Government is satisfied that circumstances exist which render it necessary to take immediate action, it may dispense with the previous publication of any rules to be made under this Act.
(4) All rules made under this section shall be laid for not less than thirty days before the State Legislature as soon as may be after they are made and shall be subject to rescission by the State Legislature or to such modification as the State Legislature may make during the session in which they are so laid or the session immediately following.
(5) Any rescission or modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.
Amendment of certain enactments
28. (1) The enactments specified in column 2 of Schedule II are hereby amended in the manner and to the extent specified in column 3 thereof:
Provided that nothing in the said amendments shall affect or be deemed to affect—
(i) any right, obligation or liability already acquired, accrued or incurred for anything done or suffered, in respect of any period preceding the date of coming into force of these amendments;
(ii) any legal proceeding or remedy whether initiated or availed of before or after date of coming into force of these amendments, in respect of any such right, obligation or liability.
(2) The levy, assessment or recovery of any tax or the imposition or recovery of any penalty, in respect of such period, under the provisions of the enactments referred to in sub-section (1) and all proceedings under them, in respect of all matters aforesaid, shall be initiated and disposed of, or continued and disposed of, as the case may be, as if this Act had not been enacted.
Grants to local authorities for loss of revenue
29. Out of the proceeds of the tax and penalties and interest and fees recovered under this Act, there shall, under appropriation duly made by law, be paid annually to such local authorities as were levying a tax on professions, trades, callings and employments, immediately before the commencement of this Act, and whose power to levy such tax has been withdrawn under the provisions of this Act, such amounts on the basis of the highest collections made by them in any year during the period of three years immediately preceding the commencement of this Act, as may be determined by the State Government in this behalf.
SCHEDULE-I
[See section 3 and section 5(3)]
Rates of tax on professions, trades, callings and employments
Sl. No.
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Class of persons
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Rate of tax
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1
|
2
|
3
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1
|
Salary and wage earners, whose monthly salaries or wages are—
(i) less than Rs.1,000
(ii) Rs.1,000 or more but less than Rs.1,500
(iii) Rs.1,500 or more but less than Rs.2,000
(iv) Rs.2,000 or more
|
Nil
Rs.10 per month
Rs.15 per month
Rs.20 per month
|
2
|
(a) Legal particulars including solicitors and notaries public.
(b) Medical practitioners including medical consultants
(c) Technical and professional Consultants, including Architects, Engineers, RCC Consultants, Tax Consultants, Chartered Accountants, Actuaries and Management Consultants.
(d) Chief Agents, Principal Agents, Special Agents, Insurance Agents and Surveyors or Loss Assessors, registered or licensed under the Insurance Act, 1938 (4 of 1938).
(e) Plumbers.
Where the standing in the profession or calling of any of the persons mentioned above—
(A) in any City is—
(i) five years or less
(ii) more than five years but not more than ten years
(iii) more than ten years but not more than fifteen years
(iv) more than fifteen years
|
Nil
Rs.150 per annum
Rs.200 per annum
Rs.250 per annum
|
|
(B) in a municipal borough the population of which as ascertained at the last preceding census and notified by the State Government in the Official Gazette after such census is more than 1,00,000 and in the area adjoining to such municipal borough to the extent of 3 Kilometres from its limits, is—
(i) five years or less
(ii) more than five yeas but not more than ten years
(iii) more than ten years but not more than fifteen years
(iv) more than fifteen years
|
Nil
Rs.100 per annum
Rs.150 per annum
Rs.200 per annum
|
|
(C) in a municipal borough the population of which as ascertained at the last preceding census and notified by the State Government in the Official Gazette after such census is more than 50,000 but not more than 1,00,000 and in the area adjoining to such municipal borough to the extent of 2 Kilometres from its limits, is—
(i) five years or less
(ii) more than five years but not more than ten years
(iii) more than ten years but not more than fifteen years
(iv) more than fifteen years
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Nil
Rs.75 per annum
Rs.100 per annum
Rs.150 per annum
|
3
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(i) Members of Associations recognised under the Forward Contracts (Regulation) Act, 1952 (74 of 1952)
(ii) Members of stock exchanges recognised under the Securities Contracts (Regulation) Act, 1956 (42 of 1956)
(iii) Owners of oil pumps and service stations
(iv) Licensed foreign liquor vendors and employers of residential hotels and theatres as defined in the Bombay Shops and Establishments Act, 1948 (Bom. LXXIX of 1948)
(v) Companies registered under the Companies Act, 1956 (1 of 1956) and engaged in any professions, trade, or calling
(vi) Individuals or institutions conducting chit funds
(vii) Banking companies as defined in the Banking Regulation Act, 1949 (10 of 1949)
(viii) Co-operative societies registered or deemed to be registered under the Gujarat Co-operative Societies Act, 1963 (Guj. X of 1962)—
(a) State level societies, and district level societies engaged in any professions, trades or callings, and
(b) Co-operative sugar factories and Co-operative spinning mills.
(ix) Firms registered under the Indian Partnership Act, 1932 (9 of 1932) and engaged in any professions, trades or callings.
(x) Estate agents or brokers or building contractors.
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Rs.250 per annum
Rs.250 per annum
Rs.250 per annum
Rs.250 per annum
Rs.250 per annum
Rs.250 per annum
Rs.250 per annum
Rs.250 per annum
Rs.250 per annum
Rs.250 per annum
|
4
|
Occupiers of factories as defined in the Factories Act, 1948 (63 of 1948) (not being dealers covered by entry 6)
Where on an average workers employed during a year are—
(i) not more than twenty-five
(ii) more than twenty-five but not more than one hundred
(iii) more than one hundred
|
Rs.150 per annum
Rs.200 per annum
Rs.250 per annum
|
5
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Employers of establishments as defined in the Bombay Shops and Establishments Act, 1948 (Bom. XXXIX of 1948) (not being dealers covered by entry 6)
Where on an average employers employed during a year are—
(i) note more than five
(ii) more than five but not more than ten
(iii) more than ten but not more than twenty-five
(iv) more than twenty-five
|
Nil
Rs.100 per annum
Rs.150 per annum
Rs.250 per annum
|
6
|
Dealers registered under the Gujarat Sales Tax Act, 1969 (Guj. I of 1970)
Whose annual gross turnover of all sales or of all purchases is—
(i) not more than Rs.50,00
(ii) more than Rs.50,000 but not more than Rs.1,00,000
(iii) more than Rs.1,00,000 but not more than Rs.2,50,000
(iv) more than Rs.2,50,000 but not more than Rs.5,00,000
(v) more than Rs.5,00,000 but not more than Rs.10,00,000
(vi) more than Rs.10,00,000
|
Nil
Rs.50 per annum
Rs.100 per annum
Rs.150 per annum
Rs.200 per annum
Rs.250 per annum
|
7
|
Holders of permits for transport vehicles granted under the Motor Vehicles Act, 1939 (4 of 1939), which are used or adapted to be used for hire or reward,
Where any such person holds permits for more than two transport vehicles (trucks or buses)
Explanation.—Persons residing together as members of one family and holding separate permits shall be deemed to be one person for the purposes of this entry.
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Rs.50 per annum per vehicle:
Provided that the total amount payable by the same holder shall not exceed Rs.250 per annum.
|
8
|
Money-lenders licensed under the Bombay Money-lenders Act, 1946 (Bom. XXXI of 1947)—
(i) (a) in a City,
(b) in a municipal borough the population of which as ascertained at the last preceding census and notified by the State Government in the Official Gazette after such census is more than 1,00,000 and in the area adjoining to such municipal borough to the extent of 3 kilometres from its limits
(ii) in other areas
|
Rs.250 per annum
Rs.150 per annum
|
9
|
Persons, other than those mentioned in any of the preceding entries, who are engaged in any professions, trades, callings or employments and in respect of whom a notification is issued under the second proviso to sub-section (2) to section 3.
Explanation.—For the purposes of this Schedule—
(i) “City” means a City as constituted from time to time, under the Bombay Provincial Municipal Corporation Act, 1949 (Bom. LIX of 1949) and includes the area adjoining to such city to the extent of 5 kilometres from its limits;
(ii) “municipal borough” means a municipal borough as constituted from time to time or deemed to be constituted under the Gujarat Municipalities Act, 1963 (Guj. XXXIV of 1964).
|
Rs.150 per annum
|
Where a person is covered by more than one entry in this Schedule the highest rate of tax specified under any of those entries shall be applicable in his case.
SCHEDULE-I
(See section 28)
Sl. No.
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Enactments
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Amendments
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1
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2
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3
|
1
|
The Bombay Provincial Municipal Corporations Act, 1949 (Bom. LIX of 1949)
|
In section 127, in sub-section (2)
(a) clause (b) shall be deleted;
(b) in clause (f) after the words “any other tax”, the brackets and words “(not being a tax on professions, trades, callings and employments) shall be inserted.
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2
|
The Gujarat Panchayats Act, 1961 (Guj. VI of 1962).
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In section 178—
(1) in sub-section (1),
(a) clause (vi) shall be deleted;
(b) in clause (ix) after the figures “1958”, the words “or a tax on professions, trades, callings and employments” shall be inserted;
(2) sub-section (5) shall be deleted.
2. In section 187, for the words “a tax on professions, trades, callings and employments, or any other tax or fee” the words “any tax or fee” shall be substituted.
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3
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The Gujarat Municipalities Act, 1963 (Guj. XXXIV of 1964).
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In section 99, in sub-section (1), in clause (xv), after the words “any other tax”, the brackets and words “(not being a tax on professions, trades, callings and employments)” shall be inserted.
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FAKHRUDDIN ALI AHMED,
President.
K.K. SNDARAM,
Secretary to the Government of India.
REASONS FOR THE ENACTMENT
This Bill seeks to provide for the levy and collection of a tax on professions, trades, callings and employments in the State of Gujarat for raising additional resources needed to accelerate the pace of development of the State. The classes of persons and the rates of tax at which they shall be liable to pay tax under this Bill are set out in Schedule I to this Bill.
2. In view of the urgency of the matter, it is not practicable to consult the Consultative Committee of Parliament on Gujarat Legislation to be constituted under the proviso to sub-section (2) of section 3 of the Gujarat State Legislature (Delegation of Powers) Act, 1976. The measure is accordingly being enacted without reference to the Consultative Committee.
H. N. RAY,
Secretary to the Government of India,
Ministry of Finance.
By order and in the name of the Governor of Gujarat,
S. L. TALATI.
Secretary to Government. |
