An Act to provide for the levy of a tax on advertisements exhibited by cinematograph at certain places of entertainment in the State of Maharashtra.
WHEREAS, it is expedient to provide for the levy of a tax on advertisements exhibited by cinematograph at certain places of entertainment in the State of Maharashtra, and for matters connected with the purpose aforesaid; It is hereby enacted in the Eighteenth Year of the Republic of India as follows :-
STATEMENT OF OBJECTS AND REASONS MAHARASHTRA GOVERNMENT GAZETTE JUL.8,1992 The Maharashtra Advertisements Tax Act, 1967 provides for levy of tax on advertisements exhibited for payment at any place of entertainment by means of cinematograph through slides, trailers of films or films at such rate not exceeding twenty-five per cent out of such payment made or to be made to the proprietor as the State Government may, by notification in the Official Gazette, specify in this behalf. It also provides that on every advertisement exhibit as aforesaid, but without any payment made or to be made therefore, the advertisement tax shall be levied in the corporation and cantonment areas at the rate of one rupee per day, per trailer of a film and thirty paise per day, per slide or film and in any other areas at one-half of the rates specified therefore in the corporation and cantonment areas and where the length of a film other than a trailer of film exceeds thirty metres, the advertisement tax shall be levied at double the rates specified in the corporation and cantonment areas. As a measure towards raising resources for augmenting the revenue, it is proposed to bring the Act into force in the whole of the State of Maharashtra and to increase and rationalise the rates of advertisement tax by increasing the maximum limit of twenty-five per cent to fifty per cent of the payment made as aforesaid as also the rates of tax, where payment is not made, within the limits of the cities and towns divided into three groups, namely, corporations, cantonments, cities and towns having population of 1.5 lakhs and above and all other remaining cities, towns and villages having population of twenty-five thousand and below. Opportunity is also taken to clarify the expression "trailer of a film" to mean trailer of For Statement of Objects and Reasons, see Maharashtra Government Gazette, 1967, Part V, Extra ord. pages 195. Feature film which has had been always taxable under the Act from its commencement. 2. The Bill seeks further to amend the Maharashtra Advertisements Tax Act, 1967 to achieve the abovementioned objectives.
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called the Maharashtra Advertisements Tax Act, 1967.
(2) It shall come into force in such areas 2 and on such date 3 as the State Government may by notification in the official Gazette appoint in this behalf; and different dates may be appointed for different areas of the State.
(3) The State Government may, at any time by like notification, direct that the provisions of the Act shall cease to be in force in such area and on such date as may be specified in the notification; and on such date the provisions of this Act shall cease to be in force in such area.
(4) section 7 of the Bombay General Clauses Act, 1904, shall apply upon this Act ceasing to be in force in any area, as if it had then been repealed by a Maharashtra Act.] 4
SECTION 02: DEFINITIONS
In this Act, unless the context requires otherwise,-
(a) "business" in relation to a proprietor means so much of his business as a proprietor as is concerned with exhibition of advertisements at his place of entertainment;
(b) "cinematograph" includes any apparatus for the representation of moving pictures or series of pictures ;
(c) 5 "place of entertainment" means a place licensed under the Bombay Cinemas (Regulation) Act, 1953 ;
(d) "film" means a cinematograph film ;
(e) "proprietor" in relation to a place of entertainment includes any person responsible for, or for the time being in charge of, the management thereof.
SECTION 03: RATE NOT EXCEEDING TWENTY FIVE PERCENT
(1) On advertisements exhibited for payment at any place of entertainment by means of a cinematograph through slides, trailers of films or films, there shall be levied and collected an advertisement tax at such rate not exceeding twenty-five per cent, out of such payment made or to be made 1st day of September 1967 in those areas of the State in which the Bombay Entertainment's to the proprietor as the State Government may, by notification in the Official Gazette, specify in this behalf.
(2) On every advertisement exhibited as aforesaid, but without any payment made or to be made therefor, there shall be levied and collected an advertisement tax
(a) in the areas within the limits of Greater Bombay and of the cities and Cantonments of Poona, Sholapur and Nagpur at the rate of one rupee per day per trailer of a film, and thirty paise per day per slide, or film (not being a trailer of a film).
(b) in any other area, at one -half the rates specified in clause (a):
Provided that, where the length of a film (other than a trailer of a film) exceeds thirty meters, the advertisement tax shall be levied and collected at double the rate provided for in clause (a), or as the case may be, clause (b).
(3) The tax shall be charged on, and paid by, the proprietor; but (subject to any agreement to the contrary), the amount borne by the proprietor in respect of the advertisement tax shall be recoverable by him from any person liable to him for the payment so made or to be made.
(4) For the purposes of this section, "payment" includes any valuable consideration 6[but excludes all payments made by way of commission to agents or other persons.]
(5) In computing the tax payable under sub-section (1), the tax leviable shall, wherever necessary, be rounded off to the nearest paisa, fractions of half a paisa and over, being counted as one, and less than half being disregarded.
SECTION 04: PAYMENT OF ADVERTISEMENT TAX WHEN DUE AND PAYABLE
(1) The advertisement tax payable by a proprietor in respect of any advertisement exhibited at his place of entertainment shall be due on the exhibition o f the advertisement, and shall be paid in cash within such period as may be prescribed ; and he shall before the expiry of such period make to the State Government a return showing the amount payable, in such form, and giving such particulars, as may be prescribed.
(2) Where for any exhibition of an advertisement, a proprietor receives or is entitled to an entire consideration not solely referable to the exhibition of that advertisement the advertisement tax payable in respect of the exhibition shall be calculated on so much only of the consideration as is referable to that exhibition according to an apportionment in such manner as the State Government may direct.
(3) Where a proprietor fails to make a return required by this section, or makes a return appearing to the State Government to be incomplete or These words were added by Mah. 40 of 1967, s.3.inaccurate, the State Government may estimate the amount of advertisement tax to the best of its judgement, and the amount estimated shall be treated as payable, unless the contrary is proved.
(4) Any estimate made under this section shall be without prejudice to any prosecution for an offense under this Act.
SECTION 05: PROPRIETOR TO KEEP BOOKS OF ACCOUNT, ETC.
FOR A MINIMUM SIX MONTHS
(1) A proprietor shall:-
(a) keep such books, records and accounts in relation to the business as the State Government may direct, and (except in so far as the State Government dispenses with this requirement) preserve for six months or any longer period required by the State Government all books, records, accounts or documents relating to the business ;
(b) permit any officer to inspect and take copies of or extracts from any books, records, accounts or other documents in his possession or power which relate or appear to relate to the business.
(2) The State Government may require the proprietor or any person employed or having any functions in connection with the business of a proprietor to give such information relating to his business as the State Government may require, and in particular, to produce at a specified time and place books, records, accounts or documents relating to the business.
SECTION 06: PUNISHMENT FOR NON --COMPLIANCE OF SECTIONS 4 AND 5
A person who fails to comply with a requirement imposed on him by or under section 4 or section 5 shall, on conviction, be punished with fine which may extend to five hundred rupees.
SECTION 07: PUNISHMENT FOR NON --COMPLIANCE WITH OTHER PROVISIONS
Any person who contravenes any of the provisions of this Act or any rules there under for which no other provision has been provided for in this Act shall, on conviction, be punished with a fine which may extend to five hundred rupees.
SECTION 08: COMPOUNDING OF OFFENSES
Any officer authorised by the State Government in this behalf may recover from any person who has committed or has reasonably been suspected of having committed an offense against this Act or rules there under, by way of composition of such offense-
(a) where an offense consists of the failure to pay, or the evasion of, any advertisement tax payable under this Act, in addition to the tax so payable, a sum of money not exceeding five hundred rupees or double the amount of the tax payable, whichever is greater and
(b) in other cases, a sum of money not exceeding five hundred rupees.
SECTION 09: EXEMPTION FROM PAYMENT OF ADVERTISEMENT TAX
(1) Nothing in section 3 shall apply in relation to any advertisement which is exhibited without any payment made or to be made therefore -
(a) for or on behalf of any Government,
(b) for or on behalf of any local authority if the advertisement in the opinion of the State Government is for philanthropic or charitable purposes or wholly educational in character and is not exhibited or intended to be exhibited for purposes of profit.
(2) If the Commissioner of Police in any area where a Commissioner of Police has been appointed, or the District Magistrate elsewhere, is of opinion that any advertisement which is exhibited is of the character mentioned in clause (b) of sub-section (1) and
is not exhibited or intended to be exhibited for purposes of profit, he shall exempt such advertisement from payment of the advertisement tax.
(3) The State Government may, by general or special order, exempt any advertisement or class of advertisements from payment of advertisement tax, subject to such terms and conditions as may be specified in the order.
SECTION 10: POWER TO ENTER PLACE OF ENTERTAINMENT FOR PURPOSES OF THIS ACT
(1) The Commissioner of Police in any area for which a Commissioner of Police has been appointed, or the District Magistrate elsewhere, or any officer other than a police officer below the rank of head constable duly authorised by them in this behalf, may enter any place of entertainment where any advertisement is being exhibited at any reasonable time with a view to seeing whether the provisions of this Act or the rules made there under are being complied with.
(2) The proprietor of every place of entertainment shall give every reasonable assistance to the inspecting officer in the performance of his duties under sub-section (1).
(3) If any person prevents or obstructs the entry of the inspecting officer, he shall, in addition to any other punishment to which he is liable under any law for the time being in force on conviction be punished with fine which may extent to five hundred rupees.
SECTION 11: RECOVERY OF ADVERTISEMENT TAX
Any sum due on account of the advertisement tax shall be recoverable as an arrear of land revenue.
SECTION 12: DELEGATION OF POWERS BY THE STATE GOVERNMENT
Any of the powers and duties conferred or imposed upon the State Government by this Act may be exercised or performed, subject to such conditions as the State Government may prescribe, by any officer not below such rank as may be prescribed whom the State Government may by general or special order empower in this behalf.
SECTION 13: BAR OF CERTAIN PROCEEDINGS
(1) No prosecution, suit or other proceeding shall, without the sanction of the State Government, lie against any officer or servant of the State Government for any act done or purporting to be done under this Act.
(2) No prosecution, suit or other proceeding shall lie against any such officer or servant for anything in good faith done or intended to be done under this Act.
SECTION 14: LIMITATION
No suit shall be instituted against the State Government and no prosecution, suit or other proceeding shall be instituted against any officer or servant of the State Government in respect of any act done or purporting to be done under this Act after six months from the date of the commission of the act.
SECTION 15: RULES
(1) The State Government may, by notification in the Official Gazette, make rules for the purpose of carrying out the object of this Act.
(2) The rules to be 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 rules to be made under this section.
(3) Every rule made under this Act shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, and notify such decision in the Official Gazette, the rule shall from the date of publication of such notification have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done under that rule.
THE MAHARASHTRA ADVERTISEMENTS TAX RULES, 1967
Dated 26th August, 1967
Amended by G.N R. &F.D No ADV 1068-N, dated 22nd March, 1969
(MG., Pt. IV-B, p. 417)
Whereas the Government of Maharashtra is satisfied that circumstances exist which tender it necessary to take immediate action to make the rules hereinafter appearing; and to dispense with the previous publication thereof:
Now therefore in exercise of the powers conferred by section 15 of the Maharashtra Advertisements Tax Act. 1967 Mah XVIII of 1967), the Government of Maharashtra hereby makes the following rule, namely :
1. Short title and extent.-(I) These rules may be called the Maharashtra Advertisements Tax Rules, 1967.
(2)They extend to the whole of the State of Maharashtra.
2. Definitions :-In these rules,-
(a) "Act" means the Maharashtra Advertisements Tax Act, 1967
(b) "Authorised Officer" means the collector or any officer nominated by him in that behalf;
(c) "Section" means a section of the Act.
3. Return under section 4 Every proprietor who is liable to pay the advertisement tax under section 3 of the Act shall submit a return under section 4 to the Athorised Officer in the Form hereto. The return shall be submitted within ten days of the date of exhibition of any slide, trailer or film referred to it, section 3 at this place or entertainment, and shall indicate the number of slides, trailers of films so exhibited, the length of each of them if any payment is charged therefore the rate at which the payment is made or to be made for each slide, trailer or film: the gross amount received for the exhibition of such slides trailers or films, and the amount of duty payable to the State Government.
4. Payment under section 4. The advertisement tax shall be paid in ,ash to the Authorised Officer along with the return '[in his office during 10-30 a.m. to 1-30 p.m. on all week days, except Sundays and Holidays]
5. Inspection of books contracts, issue of Posses etc.-- The Authorized Officer may require any proprietor who is liable to pay the advertisement tax under the Act to produce for inspection all his books, records accountsand other documents including contracts in relation to his business in his possession or power, and to issue passes in favour of officers referred to in section 5 and section 10.
6. Prescription of rank of Officer under section 12.—The Officer tot the purpose of section 12 shall be any officer who is not below the rank of an Additional Collector.
