THE MAHARASHTRA STATE TAX ON PROFESSIONS, TRADERS CALLINGS AND EMPLOYMENTS ACT 1975

10th June 1975

An Act to Provide for the Levy and Collection of a Tax on Professions, Trades, Callings and Employments for the benefit of the State.

WHEREAS it is expedient to provide for the levy and collection of a tax on professions, trades, callings and employments for the benefit of the State for raising additional resources needed for implementing the Employment Guarantee Scheme of the State Government and to provide for establishment of the Employment Guarantee Fund and for matters connected therewith ; It is hereby enacted in the he Twenty-sixth Year of the Republic of India, as follows :

SECTION 01: SHORT TITLE EXTENT AND COMMENCEMENT

(1) This Act may be called the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

(2) It extends to the whole of the State of Maharashtra.

(3) It shall be deemed to have come into force on the Ist day of April 1975.

SECTION 02: DEFINITION

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) " corporation area " racers in area within the limits of a municipal corporation constituted under the Bombay Municipal Corporation Act, the Bombay Provincial Municipal Corporations Act, 1949 or the City of Nagpur Corporation Act, 1948;

[(ba) " employee "means a person employed on salary or wages, and includes

(i) a Government servant receiving pay from the revenues of the Central Government or any State Government or the Railway Fund ;

(ii) a person in the service of a body, whether incorporated or not, which is owned or controlled by the Central Government or any State Government, where the body operates in any part of the State, even though its headquarters may be outside the State ;

(iii) a person engaged in any employment of an employer, not covered by items (i) and (ii) above

(c) " employer ", in relation to in employee earning any salary or wages on regular basis under him, means the person or the officer who is responsible for disbursement S such salary or wages, and includes the head of the office or any establishment as well as the manager or agent of the employer ;

(d) " month” means a month reckoned according to the British calendar

(e) " person " means any person who is engaged in any profession, trade, calling or employment in the State of Maharashtra, 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;

(f) " prescribed” means prescribed by the rules made under this Act ;

(g) " profession tax " or 11 tax " means the tax on professions, trades, callings and employments levied under this Act ;

(h) “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 but does not include bonus in any form and on any account or gratuity];

(i) " Schedule " means a Schedule appended to this Act

(j) "Tribunal” means the Maharashtra Sales Tax Tribunal constituted under section 21 of the Bombay Sales Tax Act, 1959, and discharging the functions of the Tribunal assigned to it by or under this Act

(k) "year" means the financial year.

SECTION 03: LEVY AND CHARGE OF TAX

(1) Subject to the provisions of article 276 of the Constitution of India 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 the second column of Schedule I shall be liable to pay to the State Government the tax at the rate mentioned against the class of such persons in the third column 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 tiny year:

Provided further that, entry 20 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.

SECTION 04: EMPLOYER’S LIABILITY TO DEDUCT AND PAY TAX ON BEHALF OF EMPLOYEES

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 persons, 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:

Provided further that, where any person earning a salary or wage

(a) is also covered by one or more entries other than entry I in Schedule I and the rate of tax under any such other entry is more than the rate of tax under entry I in that Schedule, or

(b) is simultaneously engaged in employment of more than one employer,

and such person furnishes to his employer or employers a certificate in at the prescribed bed form declaring, inter cilia, that he shall get enrolled under Subsection (2) Of Section 5 and pay the tax himself, then the employer or employers of such person hall not deduct the tax from the salary or wage payable to such person and such employer or employers, as the case may be, shall not be liable to pay tax on behalf of such person.

SECTION 05: REGISTRATION AND ENROLLMENT

(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.

(2A) Notwithstanding anything contained in this section and the last preceding section, where a person is a citizen of India and is in employment of any diplomatic or consular office or trade commissioner of any foreign country situated in any part of the State, such person, if liable to pay tax, shall obtain a certificate of enrolment as provided to sub-section (2) and pay the tax himself.

(3) Every employer or person required to obtain a certificate of registration or enrolment shall, within thirty days from the date of first publication of this Act in the Official Gazette, or, if he was not engaged in any profession, trade, calling or employment on that date within thirty days of his becoming liable to pay tax) or, a respect of a person referred to in sub-section (2) or (2A), within thirty days of his becoming liable to pay tax at a rate higher or lower than the one mentioned in his certificate of enrolment, 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 or 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.

(4) The prescribed authority shall mention in every certificate of enrolment the amount of tax payable by tile holder according to Schedule 1, and the date by which it shall be paid, and such certificate shall serve as a notice or demand for purposes of section 10.

(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 penalty not exceeding rupees twenty for each day of delay in case of an employer and not exceeding rupees five 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 rupees one thousand.

SECTION 06: RETURNS

(1) Every employer registered under this Act shall furnish to the prescribed I authority a return in such form, for such periods and by such dates as may be prescribed showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof.

(2) Every such return hall be accompanied by a treasury challan 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 air employer has '[without reasonable cause 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 rupees five for each day of delay.

SECTION 07: ASSESSMENT OF EMPLOYERS

(1) If the prescribed authority is satisfied that tire return filed by any employer er is correct and complete, he shall accept the return.

(2) (a) If the prescribed authority is not satisfied that tire return filed is correct and complete, he shall serve  c upon the employer a notice requiring  him, on a date specified in the notice, to attend in person, or through an authorised representative, and to produce accounts and papers in support of the return.

(b) The prescribed authority shall, on examination of accounts and papers, assess the amount of tax payable by the employer.

(c) If the employer talk to comply with the terms of the notice, or if in tire opinion of the prescribed authority the accounts and papers are incorrect or incomplete or unreliable, the said authority shall, after such inquiry as he (teems fit, or otherwise assess the tax due to the best of his judgment.

(2A) The amount of tax due from any employer shall be assessed separately for each year during which he was liable to pay tax:

Provided that, the prescribed authority may, subject to such conditions as may be prescribed and for reasons to be recorded in writing, assess the tax due from any employer during any part of a year:

Provided further that, where a registered employer fails to furnish a return for any part of a year, the prescribed authority may, if it thinks fit, the tax due from such employer separately for different parts of such year.

(3) if aft employer has    failed to get himself register, d of 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 lie deems fit, or otherwise, pass air 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 tire prescribed authority.

SECTION 08: PAYMENT OF TAX

(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 respect of a person who stands enrolled before the commencement of a year or is enrolled on or before the 31st August of a year. Before 30th September of that year.

(b) in respect of a person who is enrolled after the 31st August of a year. Within one month of the date of enrolment.

SECTION 09: CONSEQUENCES OF FAILURE TO DEDUCT OR TO PAY TAX

(1) If an employer not being an officer of Government 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 deemed to be an assessee in default in respect of the tax.

(2) Without prejudice to the provisions of subsection (1), an employer referred to in that sub-section shall be liable] to pay simple interest at 2 per cent of the amount of the tax due for each month or part thereof for the period for which the tax remains unpaid.

(3) If an enrolled person fails to pay the tax as required by or under this Act, lie shall be liable to pay simple interest at the rate and in the manner laid down in subsection (2).

SECTION 10: PENALTY FOR NON-PAYMENT OF TAX

If an enrolled person or a registered employer fails, without reasonable muse, 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 heard, impose upon him a penalty tot exceeding fifty per cent of the amount of tax due.

SECTION 11: RECOVERY OF TAX ETC

All arrears of tax, penalty, interest and fees under this Act shall be recover able as an arrear of land revenue.

SECTION 12: AUTHORITIES FOR IMPLEMENTATION OF THE ACT

(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 Maharashtra ;

(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 designation) as the State Government thinks necessary

(b) An officer appointed under paragraph (ii) or (iii) of clause (a) above shall, within tire him is of such area as the State Government may specify, by notification in the Official Gazette, 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 21 of the Bombay Sales Tax Act, 1959, shall be the Tribunal for the purposes of hearing appeals and revision application, and discharging other functions of the Tribunal tinder this Act, and accordingly, the provisions of section 21 of that Act (including any regulations made thereunder with such modifications, if any, therein as circumstances may require) and other provisions relating to the Tribunal under that Act shall also apply to and 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, municipal Council or Zilla Parishad (hereinafter  called "the Collecting Agent") as its agent responsible for 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 tender full and complete account of the tax levied and collected to the Commissioner in such matter and at such time as that officer may require.

(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 is may be prescribed.

(5) A Municipal Corporation, Municipal Council or Zilla Parishad 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 daily authorised by him, to have access to, arc 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.

SECTION 12A: DETERMINATION OF CERTAIN DISPUTED QUESTIONS

(1) If any question arises, otherwise than in proceedings before a Court or before the prescribed authority has commenced assessment of an employee under section 7, about the interpretation or the scope of any expression define in section 2 or of any entry in Schedule 1, the Commissioner shall make an order determining such question.

Explanation.-For the purposes of this sub-sections the prescribed authority shall be deemed to have commenced assessment of an employer under section 7, when the employer is served with a notice under that section.

(2) The Commissioner may direct that the determination shall not affect the liability of any person under this Act, as respects the period prior to the determination.

(3) If any such question arises from any order already passed under this Act no such question shall be entertained for determination under this section; but such question may be raised in appeal against, or by way of revision of, such order

SECTION 13: APPEAL

(1) Subject to 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 or receipt of demand notice or receipt of the order:

Provided that, the appellate authority may admit the appeal after the expiry of the above period, if he 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.

(4) The appellate authority in disposing of an appeal, may

(i) 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.

SECTION 14: REVISION

(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) Any order passed by the Deputy Commissioner under sub-section (1) or by the Commissioner under subsection (4) of this section, or any order made by the Commissioner under section 12A, may, on an application being made to the Tribunal against such order, be revised by the Tribunal.

(3) No revision shall be entertained under sub-section (1) on (2) after the expiry of sixty days from the date of the receipt of the order.

(4) The Commissioner my, of his own motion, revise any order passed by any authority other than the Tribunal under this Act

Provided that, no order shall be revised by the Commissioner under this subsection after the expiry of three years from the passing of the impugned order.

(5) No order under this section shall be passed without giving the applicant or the assesses a reasonable opportunity of being heard.

SECTION 15: RECTIFICATION OF MISTAKES

(1) Any authority tinder 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 his own order if any employer has been under-assessed for any period:

Provided that, if an order under this section has an adverse effect on an employer at a person, no inch order &halt be passed unless a reasonable opportunity of being heard has been given to such employer or person :

Provided further that, no order under this section shall be passed after the expiry of three years from the passing of the impugned order.

SECTION 16: ACCOUNTS

(1) If the Commissioner is satisfied that the books of account 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 shall be lawful for the Commissioner to direct the employee, to maintain the books of account or other documents in such manner as he may in writing direct, and thereupon the employer shall maintain such books of account 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 rupees five for each day of delay.

SECTION 17: SPECIAL MODE OF RECOVERY

(1) Notwithstanding anything contained in any law or contract to the contrary writing a Commissioner may, at any time, or from time to time, by notice in copy of which shall be forwarded to the assessee at his last address known to the Commissioner, require

(a) any person from whom any amount of money is due, or may become due, to an assessee on whom 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 assessese to pay 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 all 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, a, May have fallen due for payment by such assessee to such person.

(2) The Commissioner may, at any time or from time to 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 seat proves to the satisfaction of the Commissioner that the man 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 ally Such SLIM 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.

SECTION 18: PRODUCTION AND INSPECTION OF ACCOUNTS AND DOCUMENTS AND SEARCH OF PREMISES

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 promise, 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.

SECTION 19: REFUNDS OF EXCESS PAYMENT

The prescribed authority shall refund to a person the amount of tax, I penalty, interest and fees (if any) paid by such person in excess of the amount due 'from him. The refund may be made either by cash payment or, at the option of the person, by deduction of such excess from the amount of tax, penalty, interest and fee due in respect of any other period

Provided that, the prescribed authority shall first apply such excess towards the recovery of any amount due in respect of which a notice under section 7 has been served, and shall then refund the balance, if any.

SECTION 20: OFFENCES AND PENALTIES

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.

SECTION 21: OFFENCES BY COMPANIES

(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 fie 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 oil 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 shell 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.

SECTION 22: POWER TO TRANSFER PROCEEDINGS

The Commissioner may, after giving the parties a reasonable opportunity of being board, wherever it is possible to do so, and after recording his reason 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, and 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 officer to any other officer and the 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 thereunder means all proceedings under this Act in respect of any year, which may be pending on the date of such order or which in may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after the date of such order in respect of any year in relation to such assessee

SECTION 23: COMPOUNDING OF OFFENCES

(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 an payment of such sum, not exceeding double the amount of tax to which the offence relates, as  he 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.

SECTION 24: POWERS TO ENFORCE ATTENDANCE

All authorities under this Act shall, for the purposes of this Act, have the 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.

SECTION 25: BAR TO PROCEEDINGS

(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 in proceedings, bull lie against any authority under this Act or against any employer for any thing done or intended to be done in good faith under this Act or the rules framed thereunder.

SECTION 26: POWER TO DELEGATE

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 the authorities subordinate to him, either generally or as respects any particular matter or class of matters any of his powers tinder this Act.

SECTION 27: POWER TO MAKE RULES

(1) The power to make all rules under this Act shall be exercisable by the State Government intent by notification in the Official Gazette.

(2) Without prejudice to any power to make rules contained elsewhere in this Act, the State Government may make rules consistent with This Act generally to carry out the purposes of this Act and to prescribe fees payable in respect of any applications to be made, forms to be supplied certificates to be granted and appeal, and applications for revision to be made under this Act and also any applications for certified copies of documents filed and orders laid-, under this Act.

(3) Rules Trade under this Act 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) Every rule made under this Act shall be laid, as soon as only be after it is made, before each House of the State Legislature while it is in session for a total 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 at 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.

SECTION 27A: EXEMPTIONS

Nothing contained in section 3 and other provisions of this Act shall apply to

(a) the members of the armed forces of the Union serving in any part of the State;

(b) the badli workers in the textile industry.

SECTION 28: AMENDMENT OF CERTAIN ENACTMENTS

(1) The enactments specified in the second Column of Schedule 11 are hereby amended in the in the manner and to the extent specified in the third column 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 coining into force of these amendments;

(ii) any legal proceedings or remedy whether initiated or availed of before or after the 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 relevant enactments 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.

SECTION 29: GRANTS TO LOCAL AUTHORITIES FOR LOSS OF REVENUE

Out of the proceeds of the tax and penalties and interest and fees recovered under this Act, there shall, under Appropriation duly an, de by law, be paid annually to such local authorities as were levying a tax on professions, trades, callings and employment, immediately before the commencement of this Act, and whose power , to levy such tax has bee, 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.

SECTION 30: ESTABLISHMENT OF A FUND AND UTILIZATION OF THE FUND FOR EMPLOYMENT GUARANTEE SCHEME OF STATE GOVERNMENT

(1) On the commencement of this Act, there shall be established a Fund to be called the Employment Guarantee Fund The proceeds of the tax levied and collected under this Act, together with penalties and interest and fees recovered thereunder, hall first be credited to the Consolidated Fund of the State, and, after deducting the expenses of collection and recovery as determined by the State Government and the amounts of grants made to the local authorities under section 29 the remaining amount shall, under appropriation duly made by law in this behalf be entered into, and transferred to, that Fund,

(2) Under appropriation duly made by law in this behalf the State Government shall contribute annually to the Fund air amount equal to the amount transferred to the Fund under sub-section (1).

(3) Any amount transferred to the Fund shall be charged on the Consolidated Fund of the State.

(4) From and out of the Employment Guarantee Fund establishment under sub-section (7), no sum shall be paid or applied, except in the manner and for the purpose hereinafter provided.

(5) The amount standing to the credit of the Employment Guarantee Fund shall be expended, in such manner and subject to such condition, as may be prescribed, for the Purpose of implementing the Employment Guarantee Scheme of the State Government.

(6) The Employment Guarantee Fund shall be, held and administered on behalf of the Government of Maharashtra by on officer not below the rank of a Secretary to the Government of Maharashtra subject to such general or special directions as may be given by the State Government, from time to time.