Gujarat act 014 of 1989 : Gujarat State Tax on Professions, Trades, Callings and Employments (Amendment) Act, 1989

Section 1. Short title and commencement

1. Short title and commencement.- (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.

Section 2. Amendment of section 3 of President' Act No. 11 of 1976

2. Amendment of section 3 of President' Act No. 11 of 1976.- In the Gujarat State Tax on Professions Trades, Callings and Employments Act, 1976 (President' Act No. 11 of 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."

Section 3. Substitution of section 26 of President's Act No. 11 of 1976

3. Substitution of section 26 of President's Act No. 11 of 1976.- In the principal Act, for section 26, the following shall be substituted, namely:-

"26. Power to delegate.- (1) The State Government may, by notification in the Official Gazette, 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 a

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."

Section 4. Substitution of Schedule 1 to President's Act No. 11 of 1976

4. Substitution of Schedule 1 to President's Act No. 11 of 1976.- In the principal Act, for Schedule I, the following Schedule shall lie substituted, namely:-

"SCHEDULE I

[See section 3 and section 5(3)]

Rates of Tax on Professions, Trades, Callings and Employments.

Sr. No.	Class of person	Rate of tax
1	2	3
1.	Salary and wage earners, whose monthly salaries or wages are-
	(i) less than Rs. 1,000 (ii) Rs. 1,000 or more but leas 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. 3000 (vi) Rs. 3,000 or more but less than Rs. 3,500 (vii) Rs. 3,600 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. 6,000 (x) Rs. 8,000 or more	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

Explanation 1.- Where any salary or wages are payable according to any period other than a month, the monthly salary or wages shall, for 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, Spacial Agenta, Insurance Agenta 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, Dalala 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 five years.	Nil
(ii) more than five years but not more than ten years.	Rs. 300 every year.
(iii) more than ten years.	Rs. 750 every year.

Explanation I.- For the purpose of determining the standing 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 urea in the State 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 (Guj. 34 of 1964),

(ii) a cantonment as declared from time to time under the Cantonments Act, 1924 (11 of 1924);

(b) the expression "district headquarter" means a city, town or village where the office of a Collector who exorcises throughout the, district all the powers and discharges all the duties conferred and imposed on a Collector under the Bombay Land Revenue Code, 1879 (Bom. V of 1879), is situate;

(c) the expression "taluka headquarter" means a city, town or village where the office of the Maralatdur entrusted with the local revenue jurisdiction of a taluka, is situate.

(2) Nothing in this entry shall apply to a person whose annual income elusively earned out of the profession or calling or both of them in the year immediately preceding does not exceed Rs. 10,000.

3.	(i) Members of Associations recognised under the Forward Contracts (Regulation) Act, 1952 (74 of 1952). (ii) Members of stock exchanges recognised under Securities Contracts (Regulation) Act, 1956 (42 of 1956). (iii) Owners of oil pumps and service stations and where any oil pumps and service stations are leased, the lessees thereof. (iv) Licenced foreign liquor vendors and employers of residential hotels and the acres 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 profession, trade or calling. (vi) Individuals or institutions conducting chit funds. (vii) Banking companies as defined in the Banking Regulation Act, 1949 (10 of 1949).	Rs. 1000 every year. Rs. 1000 every year. Rs. 1000 every year. Rs. 2500 every year. Rs. 2500 every year, Rs. 1000 every year. Rs. 2500 every year.
	(viii) Co-operative societies registered or deemed to be registered under the Gujarat Co-operative Societies Act, 1961 (Guj. X of 1962)
	(a) State level societies engaged in any professions, trades or callings (b) District level societies, engaged in any professions, trades or callings (c) Co-operative sugar factories and Co-operative spinning mills (ix) Estate agents or estate broke or building contractors (x) Owners of video parlours or video libraries or bothand where any video parlours or video libraries or both are leased, the lessees thereof.	Rs. 2500 every year. Rs. 1500 every year. Rs. 2500 every year. Rs. 2500 every year. Rs. 1000 every year.

4. Partners of 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 the firm is in any City and the duration of the registration is-
(i) upto five years, (ii) more than five years but not more than ten years. (iii) more than ten years.	Rs. 400 every year. Rs. 600 every year. Rs. 750 every year.
(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) upto five years. (ii) more than five years but not more than ten years. (iii) more than ten years.	Rs. 300 every year. Rs. 500 every year. Rs. 600 every year.
(c) where the place or principal place of business of the firm is in any ares other than that referred to in item (a) or (b) and the duration of the registration is-
(i) upto five years. (ii) more them five years but not more than, ten years. (iii) more than ten years.	Rs. 250 every year. Rs. 400 every year Rs. 500 every year.

Explanation I.- Where a person is a, partner in more than one firm registered under the Indian Partnership Act, 1932 (IX of 1932), no 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 (IX of 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 at 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 is 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. Occupiers of factories as defined in the Factories Act, 1948 (63 of 1948) (not being dealers covered by entry 7)-

(a) Small scale industrial undertaking	Rs. 750 every year.
(b) Industrial undertaking not falling under item (a)	Rs. 2500 every year.

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 suction 25 FFA or 25-0 of the Industrial Disputes Act, 1917 (XIV of 1947) applies the occupier thereof shall not be exempt under this provision unless the factory is closed in pursuance of a notice given by such occupier as required under the said section 25FFA, or, as the case may he, section 25-0.

6. Employers of establishments as defined in the Bombay Shops and Establishments Act, 1013 (Bom. XXXIX of 1013) (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) any City	Rs. 750 every year.
(ii) 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 ox tent of 3 kilometers from its limit.	Rs. 500 every year
(iii) a specified area	Rs. 250 every year

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 a ascertained 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, 1903 (Guj. 34 of 1964);

(ii) a cantonment as declared from time to time under the Cantonments Act, 1924 (11 of 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 (Bom. V of 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 (Guj. 1 of 1970), whose annual gross turnover of all sales or of all purchases is-

(i) Not more than Rs. 50,000	Nil
(ii) More than Rs. 50,000 but not more than Rs. 1,00,000	Rs. 150 every year
(iii) more than Rs. 1,00,000 but not more than Rs. 2,50,000	Rs. 300 every year
(iv) more than Rs. 2,50,000 but not more than Rs. 500 every year	Rs. 500 every year
(v) more than Rs. 5,00,000 but not more than Rs. 10,00,000	Rs. 800 every year
(vi) more than Rs. 10,00,000 but not more than Rs. 20,00,000	Rs. 1000 every year
(vii) more than Rs. 20,00,000.	Rs. 1500 every year.

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 (Guj. 1 of 1970).

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.

Rs. 150 every year per Vehicle provided that the total amount payable by the same holder shall not exceed Rs. 2400 in any year.

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).	Rs. 2000 every year
10. Persons other than those mentioned in any of the proceeding 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.	Such amount not exceeding Rs. 2000 every year as may be specified in the said notification.

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 (1 of 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.".