THE GUJARAT STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS (AMENDMENT) ACT, 1989
PART IV
Acts of the Gujarat Legislature and Ordinances promulgated and Regulations made by the Governor.
The following Act of the Gujarat Legislature having been assented to by the Governor on the 31st March, 1989 is hereby published for general information.
R. M. MEHTA,
Secretary to the Government of Gujarat,
Legal Department.
GUJARAT ACT NO. 14 OF 1989
(First published, after having received the assent of the Governor in the “ Gujarat Government Gazette” on the 31st March, 1989)
AN ACT
further to amend the Gujarat State Tax on Professions, Trades, Callings and
Employments Act, 1976.
It is hereby enacted in the Fortieth Year of the Republic of India as follows:—
Short title and commencement
1. (1) This Act may be called the Gujarat State Tax on Professions, Trades, Callings and Employments (Amendment) Act, 1989.
(2) It shall come into force on the 1st April, 1989.
Amendment of section 3 of Presidents Act No.11 of 1976
2. In the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976 (hereinafter referred to as “the principal Act”), in section 3,—
(1) in sub-section (2),—
(a) in the first proviso, for the words “two hundred and fifty rupees”; the words “two thousand and five hundred rupees” shall be substituted;
(b) for the second proviso, the following shall be substituted, namely:—
“Provided further that the State Government may, from time to time, by notification in the Official Gazette, specify the class of persons other than those mentioned in entries 1 to 9 in Schedule I to whom entry 10 in that Schedule shall apply and the rate (not exceeding two thousand rupees every year) at which the tax shall be payable by the class of persons so specified.”;
(2) after sub-section (2), the following sub-sections shall be added, namely:—
“(3) Where a person falls under more than one entry in Schedule I, he shall be liable to pay to the State Government the tax under such One of these entries where the rate of tax specified is the highest.
(4) A person falling under any of the entries 2 to 10 in Schedule I shall be liable to pay the tax for the year irrespective of whether he is engaged in the profession, trade, calling or employment during the whole of such year or any part thereof.”.
Substitution of section 26 of President’s Act No.11 of 1976
3. In the principal Act, for section 26, the following shall be substituted, namely:—
“26. (1) The State Government may, by notification in the Official Gazette, Power to delegate to the Commissioner,—
(a) its powers of appointment of officers (not being powers relating to the appointment of Deputy Commissioners of Profession Tax) and persons, under paragraph (iii) of clause (a) of sub-section (1) of section 12, and
(b) its powers of specifying areas under clause (b) of sub-section (1) of section 12 in respect of officers appointed by the Commissioner under the powers delegated to him under clause (a); and
the Commissioner shall exercise the powers delegated to him under this sub-section subject to such conditions and restrictions as may be specified in the notification.
(2) 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.”.
Substitution of Schedule I to President’s Act No.11 of 1976
“SCHEDULE I
[See section 3 and section 5(3)]
Raters of Tax on Professions, Trades, Callings and Employments
Sr. No.
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Class of persons
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Rate of Tax
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1
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2
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3
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1.
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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 but less than Rs.2,500
(v) Rs.2,500 or more but less than Rs.3,000
(vi) Rs.2,500 or more but less than Rs.3,500
(vii) Rs.3,500 or more but less than Rs.4,000
(viii) Rs.4,000 or more but less than Rs.6,000
(ix) Rs.6,000 or more but less than Rs.8,000
(x) Rs.8,000 or more
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Nil
Rs. 10 per month
Rs. 15 per month
Rs. 20 per month
Rs. 25 per month
Rs. 30 per month
Rs. 35 per month
Rs. 50 per month
Rs. 70 per month
Rs. 90 per month
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Explanation 1.—Where any salary or wages are payable according to any period other than a month, the monthly salary or wages shall, for the purpose of this entry, be reckoned on the basis of the actual amount of salary or wages paid or payable for a month.
Explanation 2.—Where a person ceases to be a salary or wage earner before the end of any month his liability to pay the tax for that month shall be proportionately reduced.
2. (1) (a) Legal practitioners including solicitors and notaries public.
(b) Medical practitioners including medical consultants and dentists.
(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 licenced under the Insurance Act, 1938 (4 of 1938).
(e) Plumbers
(f) All contractors other than building contractors.
(g) Commission agents, Dalals and brokers other than estate brokers—
where the standing in the profession or calling of any of the persons mentioned above in a specified area is—
(i) upto file years
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Nil
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(ii) more than five years but not less than ten years
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Rs.300 every year
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(iii) more than ten years
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Rs.750 every year
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Explanation I.—For the purpose of determining the sanding in the profession or calling of any person mentioned in this entry in any specified area, the previous standing of such person in any other area in the Sate shall be taken into account.
Explanation II.—For the purpose of this entry, the expression “specified area” means—
(a) a city,
(b) (i) a municipal borough, or
(ii) a local area,
the population of which as ascertained in the last preceding census is more than 25,000;
(c) (i) a district headquarter, or
(ii) a taluka headquarter,
irrespective of its population.
Explanation III.—In Explanation II—
(a) The expression “local area” means—
(i) a notified area as constituted from time to time or deemed to be constituted under the Gujarat Municipalities Act, 1963,
(ii) a cantonment as declared from time to time under the Cantonments Act, 1924;
(b) the expression “district headquarter” means a city, town or village where the office of a Collector who exercises throughout the district all the powers and discharges all the duties conferred and imposed on a Collector under the Bombay Land Revenue Code,1879, is situate;
(c) the expression “taluka headquarter” means a city, town or village where the office of the Mamlatdar entrusted with the local revenue jurisdiction of a taluka, is situate.
(2) Nothing in this entry shall apply to a person whose annual income exclusively earned out of the profession or calling or both of them in the year immediately preceding does not exceed Rs.10,000.
3. (i)
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Members of Associations recognised under the Forward Contracts (Regulation) Act, 1952 (74 of 1952.
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Rs.1000 every year
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(ii)
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Members of stock exchanges recognised under Securities Contracts (Regulation) Act, 1956 (42 of 1956).
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Rs.1000 every year
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(iii)
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Owners of oil pumps and service stations and where any oil pumps and service stations are leased, the lessees thereof.
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Rs.1000 every year
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(iv)
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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).
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Rs.2500 every year
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(v)
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Companies registered under the Companies Act, 1956 (1 of 1956) and engaged in any profession, trade or calling.
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Rs.2500 every year
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(vi)
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Individuals or institutions conducting chit funds.
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Rs.1000 every year
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(vii)
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Banking companies as defined in the Banking Regulation Act, 1949 (10 of 1949)
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Rs.2500 every year
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(viii)
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Co-operative societies registered or deemed to be registered under the Gujarat Co-operative Societies Ac, 1961 (Guj. X of 1962)
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(a) State level societies engaged in any professions, trades or callings
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Rs.2500 every year
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(b) District level societies, engaged in any professions, trades or callings
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Rs.1500 every year
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(c) Co-operative sugar factories and Co-operative spinning mills
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Rs.2500 every year
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(ix)
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Estate agents or estate brokers or building contractors
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Rs.2500 every year
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(x)
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Owners of video parlours or video libraries or both and where any video parlours or video libraries or both are leased, the lessees thereof.
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Rs.1000 every year
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4. Partners firms registered under the Indian Partnership Act, 1932, which are engaged in any professions, trades or callings,—
(a) where the place or principal place of business of he firm is in any City and the duration of the registration is—
(i)
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Upto five years
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Rs.400 every year
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(ii)
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More than five years but not more than ten years
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Rs.600 every year
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(iii)
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More than ten years
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Rs.750 every year
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(b) where the place or principal place of business of the firm is in any municipal borough and the duration of the registration is—
(i)
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Upto five years
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Rs.300 every year
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(ii)
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More than five years but not more than ten years
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Rs.500 every year
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(iii)
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More than ten years
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Rs.600 every year
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(c) where the place or principal place of business of the firm is in any area other than that referred to in item (a) or (b) and the duration of the registration is—
(i)
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Upto five years
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Rs.250 every year
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(ii)
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More than five years but not more than ten years
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Rs.400 every year
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(iii)
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More than ten years
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Rs.500 every year
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Explanation I.—Where a person is a partner in more than one firm registered under the Indian Partnership Act, 1932, he shall be liable to pay tax at the highest rate applicable to him as such partner.
Explanation II.—Where partners of a firm registered under the Indian Partnership Act, 1932 are liable to pay tax under this entry, the firm shall not be liable to pay tax under entries 2 and 3 and entries 5 to 10 of this Schedule:
Explanation III.—The liability of a partner to pay tax shall be limited to the extent of such liability of the firm of which he is a partner, to pay tax, as would have arisen under any of those entries if the firm had not been exempt under this explanation.
Exemption.—(1) Where the prescribed authority certifies that in a preceding year the annual gross turnover of all sales or of all purchases of a firm which is registered under the Indian Partnership Act, 1932 and which is a dealer as defined in the Gujarat Sales Tax Act, 1969 (Guj. 1 of 1970) has not exceeded one lakh of rupees, the partners of such firm shall not be liable to pay tax for the year.
(2) Where the prescribed authority certifies that the income of partner of a firm, which is not a dealer as defined in the Gujarat Sales Tax Act, 1969 (Guj. 1 of 1970), from any profession, trade or calling carried on by such firm, during the preceding year has not exceeded ten thousand rupees, such partner shall not be liable to pay tax for the year.
(5) Occupies of factories as defined in the Factories Act, 1948 (63 of 1948) (not being dealers covered by entry 7)—
(a)
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Small scale industrial undertaking
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Rs.750 every year
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(b)
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Industrial undertaking not falling under item (a)
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Rs.2500 every year
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Exemption: An occupier of a factory which is closed for the full year shall not be liable to pay tax for that year:
Provided that in the case of a factory to which section 25 FFA or 25-0 of the Industrial Disputes Act, 1947 applies the occupier thereof shall not fie exempt under this provision unless the factory is closed in pursuance of a notice given by such occupier as required under the said section 25 FFA, or, as the case may be, section 25-0.
6. Employers of establishments as defined in the Bombay Shops and Establishments Act, 1913 (Born. XXXIX of 1918 ) (not being dealers covered by entry-7), where on an average employees employed in the establishment during a year are more than five per day,-
if the establishment is situated in
(i)
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Any City
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Rs.750 every year
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(ii)
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A municipal borough, the population of which as ascertained at the last preceding census is more than 1,00,000 and in the area adjoining such municipal borough to the extent of 3 kilometers from its limits
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Rs.500 every year
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(iii)
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a specified area
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Rs.250 every year
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Explanation I.—For the purposes of item (iii) of this entry, the expression “specified area” means—
(a) (i) a municipal borough, or
(ii) a local area
the population of which as ascertained at the at the last preceding census is more than 25,000 but not more than 1,00,000;
(b) (i) a district headquarter, or
(ii) a taluka headquarter,
not falling under either a City referred to in item (i) or a municipal borough referred to in item (ii) of this entry,
Explanation II.—In Explanation I-
(a) the expression “local area” means—
(i) a notified area as constituted from time to time or deemed to be constituted under the Gujarat Municipalities Act, 1963;
(ii) a cantonment as declared from time to time under the Cantonments Act, 1924;
(b) the expression “district headquarter” means a city, town or village where the office of a Collector who exercises throughout the district all the powers and discharges all the duties conferred and imposed on a Collector under the Bombay Land Revenue Code, 1879, is situate.
(c) the expression “taluka headquarter” means a city, town or village where the office of the mamlatdar entrusted with the local revenue jurisdiction of a taluka, is situate.
7. Dealers as defined in the Gujarat Sales Tax Act, 1969, whose annual gross turnover of all sales or of all purchases is—
(i)
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Not more than Rs.50,000
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Nil
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(ii)
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More than Rs.50,000 but not more than Rs.1,00,000
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Rs.150 every year
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(iii)
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More than Rs.1,00,000 but not more than Rs.2,50,000
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Rs.300 every year
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(iv)
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More than Rs.2,50,000 but not more than Rs,5,00,000
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Rs.500 every year
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(v)
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More than Rs.5,00,000 but not more than Rs,10,00,000
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Rs.800 every year
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(vi)
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More than Rs.10,00,000 but not more than Rs.20,00,000
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Rs.1000 every year
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(vii)
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Moe than Rs.20,00,000
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Rs.1500 every year
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Explanation.—For the purpose of this entry, the term “year” shall mean the year as defined in clause (37) of section 2 of the Gujarat Sales Tax Act, 1969.
8. Holders of permits for transport vehicles granted under the Motor Vehicles Act, 1939 (4 of 1939), which are used or adapted to be use for hire or reward. Where any such person holds permits for more than two transport vehicles buses, taxis, trucks or three wheelers goods vehicles.
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Rs.150 every year per Vehicle provided that the total amount payable by the same holder shall not exceed Rs.2400 in any year.
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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
9. Money-lenders licensed under the Bombay Money Lenders Act, 1946 (Bom XXXI of 1947).
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Rs.2000 every year
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10. 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) of section 3.
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Such amount not exceeding Rs.2000 every year as may be specified in the said notification.
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Explanation.—For the purposes of this Schedule-
(i) “City” means a city as constituted from time to time under the Bombay Provincial Municipal Corporations Act, 1949 (Bom. LIX of 1949) and includes the area adjoining such city to the extent of 5 kilometers 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).
Exemptions: The following persons shall be exempt from payment of tax under any of the entries 2 to 10 of this Schedule—
(1) Companies in respect of which orders for winding up are passed under the Companies Act, 1956, from the date of such orders.
(2) Co-operative societies under liquidation from the date of the commencement of liquidation proceedings.
(3) A primary co-operative society, the members of which are workers who are carrying on the activity of the society by their own labour.”. |
