(1) This Act may be called the Government Trading Taxation Act, 1926.

(2) It shall come into force on such date6 as the Central Government may, by notification in the Official Gazette, appoint.

(1) Where a trade or business of any kind is carried on by or on behalf of the Government of any part of His Majesty's Dominions, 7[* * *] that Government shall, in respect of the trade or business and of all operations connected therewith, all property occupied in 8[India] and all goods owned in 9[India] for the purposes thereof, and all income arising in connection therewith, be liable

(a) to taxation under the Indian Income-tax Act, 1922 (11 of 1922), in the same manner and to the same extent as in the like case a company would be liable;

(b) to all other taxation for the time being in force in 10[India] in the same manner as in the like case any other person would be liable.

11[* * *]

(2) For the purposes of the levy and collection of income-tax under the Indian Income-tax Act, 1922 (11 of 1922), in accordance with the provisions of sub-section (1), any Government to which that sub-section applies shall be deemed to be a company within the meaning of that Act, and the provisions of that Act shall apply accordingly.

(3) In this section the expression His Majesty's Dominions includes any territory which is under His Majesty's protection or in respect of which a mandate is being exercised by the Government of any part of His Majesty's Dominions 12[* * *].

13Where any Acceding State or other Indian State was liable for any tax under this Act in respect of any period before the 26th day of January, 1950, and such liability has, after that date, devolved 14[upon a Part B State], the provisions of Section 2 shall apply in relation to that Part B State as they applied in relation to the corresponding Acceding State or other Indian State.]

1. The Act has been extended to the whole of India except the State of Jammu and Kashmir by the Opium and Revenue Laws (Extension of Application) Act, 1950 (33 of 1950), Section 2. This Act has also been extended to the State of Jammu and Kashmir by the Taxation Laws (Extension to Jammu and Kashmir) Act, 1954 (41 of 1954), Section 2.

2. The words in the Provinces of India omitted by the A.O. 1950.

3. The words in the Provinces of India omitted by the A.O. 1950.

4. The words exclusive of India omitted by the A.O. 1950.

5. The words or the Government of any Acceding State or other Indian State omitted by Act 33 of 1950, Section 2 and Schedule.

6. 1-4-1926; see Gazette of India, Extraordinary, 1926, p. 60.

7. The words exclusive of India omitted by the A.O. 1950.

8. Substituted by Act 33 of 1950, Section 2 and Schedule, for Part A States and Part C States .

9. Substituted by Act 33 of 1950, Section 2 and Schedule, for Part A States and Part C States .

10. Substituted by Act 33 of 1950, Section 2 and Schedule, for Part A States and Part C States .

11. Sub-section (1-A) inserted by the A.O. 1948 omitted by Act 33 of 1950, Section 2 and Schedule.

12. The words and India means the territory of India excluding the State of Jammu and Kashmir inserted by Act 33 of 1950, Section 2 and Schedule omitted by Act 41 of 1954, Section 2 and Schedule.

13. Inserted by the A.O. 1950.

14. Substituted by Act 33 of 1950, Section 2 and Schedule, for upon an Acceding State or other Indian State .