KARNATAKA MUNICIPALITIES TAXATION (AMENDMENT) RULES, 1966

 

PREAMBLE

In exercise of the powers conferred by Sections 94 and 323 of the Karnataka Municipalities Act/1964 (Karnataka Act 22 of 1964), the Government of. Karnataka hereby makes the following amendments to the Karnataka Municipalities Taxation Rules, 1965, the draft of the same having been published as required by sub-section (1) of Section 323 of the said Act in Notification No. PLM 32 MLR 65, dated 5th January, 1966 published as GSR 799 in Part IV, Section 2-C(i) of the Karnataka Gazette, Extraordinary, dated 20th January, 1966, namely:--

Rule - 1. Title and commencement.

These rules may be called the Karnataka Municipalities Taxation (Amendment) Rules, 1966.

Rule - 2. Insertion of new Rule 5-A.

After Rule 5 of the Karnataka Municipalities (Taxation) Rules, 1965 (hereinafter called the said rules), the following rule shall be inserted, namely.--

"5-A. Remission of other taxes and dues.--

(i)       (a) Subject to the provisions of sub-rule (ii), the grant of remission of taxes other than those referred to in Rule 5, shall be at the discretion of the Municipal Council and shall not be claimed by any person as of right;

(b) Where the right to collect fees in respect of the use of any market, cart-stand or slaughter house is leased out and in case of lease of municipal buildings, the lessee or contractor shall be liable according to the terms of the agreement and no remission shall be granted except in cases in which it is proved that the lessee or contractor has suffered loss on account of unforeseen events beyond his control;

(c) The remission when granted by a Municipal Council shall bear a reasonable proportion to the loss incurred;

(d) The Municipal Council shall not consider any request for remission unless all taxes due to the Municipal Council have been paid;

(e) Where the remission has been sanctioned, particulars as to the nature of the tax, assessment number, amount of tax remitted, the period to which it relates shall be entered in the minute book or in a separate register. The total amount authorised to be remitted in each case shall be entered in, words;

(f) No remission shall be made which has the effect of reduction of demand permanently.

(ii)      (a) A Town Municipal Council and a City Municipal Council may grant remission up to a maximum of fifty rupees and two hundred rupees in each case respectively/provided the total demand of such remission granted in a year in respect of such tax shall not exceed one per cent of the total demand of the Municipality in respect of such tax for that year;

(b) Where in the case of a Town Municipal Council the amount to be remitted exceeds fifty rupees but does not exceed two hundred rupees, the Municipal Council shall obtain the previous sanction of the Deputy Commissioner in each case;

(c) Where in the case of any Municipal Council the amount to be remitted exceeds two hundred rupees, the Municipal Council shall obtain the previous sanction of the Commissioner in each case;

(d) Where the remission proposed under clauses (a), (b), (c) above, exceeds five per cent of the total demand of the Municipality in respect of such tax for the year the previous sanction of the Government shall be obtained."

Rule - 3. Insertion of new Chapters.

After Rule 54 of the said rules, the following rules shall be added, namely.--

 

"CHAPTER XII

Tax on Professions, Trades, Callings and Employments

55. Definitions.--

In this part "tax" means a tax on profession, trade, calling or employment levied under Section 116 of the Karnataka Municipalities Act, 1964.

56. Rate of tax.--

Whenever a tax is decided to be levied by a Municipal Council such tax on any class shall bear proportion to the minimum income of that class and shall not be lower than the proportion, the tax on any lower class bears to the income of such lower class.

57. Exemptions.--

Whenever a Municipal Council decides to grant exemption to any class from payment of the tax, no exemption shall be granted to any class specified in Schedule V of the Karnataka Municipalities Act, 1964, when a class lower to it in the said schedule is not exempted.

58. Payment of tax.--

The tax shall be payable in advance in two equal instalments in April and October every year provided that the assessee if he so desires, may pay the same in a lumpsum.

59. Preparation of assessment list.--

On or before the 1st April or 1st of October every year, the Municipal Commissioner or Chief Officer as the case may be, shall prepare an assessment list of all persons liable to profession tax, the list being subject to revision half yearly or yearly as may be decided by the Municipal Council.

60. Income how determined.--

(i)       Where a person transacts business; other than money lending, in any half year within the limits of a. Municipality, the income of such person from the transaction of such business, shall, for the purpose of levying the tax for the half year, be calculated in the following manner, namely.--

(a)      If he is assessed to income-tax for the year comprising the half year, one half of the amount at which the profits and gains of such business are computed under the Income-tax Act, 1961 for the purpose of assessing the income-tax shall be taken to be the income for the purposes of levying tax under these rules;

(b)      If such person is not' assessed to income-tax and the amount of the profits and gains is not otherwise ascertainable, the income shall be the percentage or percentages, referred to in Rule 61 of the turnover of such business transacted within the Municipal limits during the half year, or where this is also unascertainable during the corresponding half year of the previous year.

(ii)      In the case of a person transacting any business other than money-lending partly in the area of a Municipality and partly outside such area, the income of such person from the transactions of such business in the area of the Municipality shall, for the purpose of levying tax under these rules shall, be the same percentage referred to in clause (b) above of the turnover of such business transacted in such area during the half-year or the corresponding half-year of the previous year, as the case may be.

Explanation.-- (1) For purposes of sub-rules (i) and (ii), the turnover of business in any Municipality means, the aggregate money value of the goods produced, manufactured, purchased or sold or any other business except money lending transacted within the limits of a Municipality.

(2) For determining the turnover of business.--

(a)      where the delivery of any goods on account of any purchase made by any person and the delivery on account of the sale thereof by the same person are effected in the State of Karnataka, only the latter transaction shall be taken into account;

(b)      where the delivery of any goods on account of any purchase made by any person is effected in any place outside the said State and the delivery on account thereof by the same person is effected in any place in the State, the latter transaction shall be taken into account; and

(c)      where the delivery of any goods on account of any purchase made by any person is effected in any place in the State and the delivery on account of the same thereof by the same person is effected in any place outside the State the former transaction shall be taken into account.

61. Calculation of income.--

The percentage of turnover of business under Rule 60 for the purposes of calculating the income, shall be as specified in column (2) in respect of business specified in column (1) of the following tables.--

62. Notice to submit return.--

(1)     If in the opinion of the Municipal Commissioner or Chief Officer, any person is liable to pay tax for any half-year, he shall serve a notice on such person either in that half-year or in the succeeding half-year requiring the person to furnish within fifteen days, a return in Form DC showing the income during the concerned half-year.

(2)     The person on whom the notice under sub-rule (1) is served shall submit a return showing the income derived by him during the half-year or for the corresponding half-year of the previous year and shall produce any evidence in support of the return made:

Provided that where in pursuance of Section 121, a statement regarding the income of a company or the salary or income of an employed person has been furnished to the Municipal Commissioner or Chief Officer, nothing in this sub-rule shall be deemed to require that authority to serve a notice on such company or person.

(3)     Where a return is made as required under sub-rule (1) or a statement regarding the income or salary is furnished under Section 121 and the Municipal Commissioner or the Chief Officer is satisfied about the correctness thereof he shall proceed to levy the tax.

(4)     If no return is made as required under sub-rule (1) or if no statement is furnished under Section 121, or if the Municipal Commissioner or Chief Officer is satisfied that any return so made or any statement so furnished is incorrect or incomplete, the Municipal Commissioner or Chief Officer shall assess the tax assigning to the person such class specified in Schedule V of the Karnataka Municipalities Act, 1984 as is appropriate to half-yearly income of such person.

(5)     The Municipal Commissioner or Chief Officer may, classify any person, other than a person in receipt of fixed salary or remuneration under sub-rule (4), on general considerations with reference to the nature and reputed value of the business transacted, the size and rental or residential and business premises, the quantity and number of articles dealt with, the number of persons employed and the income-tax paid to Government.

(6)     The Municipal Commissioner or the Chief Officer shall not be entitled to call for accounts of any company or person.

63. Intimation of change in designation to be given.--

Every person who is liable to tax shall whenever there is a change in the designation of the firm or the nature of the profession, trade or calling, office, appointment or his place of business, within fifteen days of such -change, give intimation thereof to the Municipal Commissioner or the Chief Officer, or other person authorised in this behalf.

64. Refund of tax.--

Any person who has paid the tax for the whole half-year and who ceases during such period to be liable to assessment shall be entitled to refund of not less than half the tax paid:

Provided that no such refund shall be granted unless notice in writing of the fact of giving up the profession, trade or calling has been given to the Municipal Commissioner or Chief Officer and no refund shall be granted in respect of the period previous. to the day of the delivery of such notice.

 

CHAPTER XIII

TAX ON SHOPS AND OTHER PLACES OF BUSINESS

65. Definition.--

In this part "tax" means tax on shops and other places of business levied under Section 94 of the Act.

66. Payment of tax.--

Whenever a Municipal Council has levied a tax, the same shall be payable in advance in two equal half-yearly instalments in April and October of every year or if the assessee so desires, in one lumpsum.

67. Refund of tax.--

A person who has paid the tax for the whole year and who ceases during such period to be liable to assessment shall be entitled to refund of tax of not less than half the assessment, provided that no refund shall be granted unless notice in writing of the fact of his giving up the business or profession has been given to the Municipal Commissioner or Chief Officer and no refund shall have effect previous to the day of delivery of such notice.

68. Application of certain rules.--

For determining the class of any shop referred to in Schedule VI of the Act the procedure laid down in Rules 59 to 64 of these rules shall, as far as possible, be applicable.

 

CHAPTER XIV

ADVERTISEMENT TAX

69. Levy tax.--

Subject to the provisions of the Act, when an advertisement tax is decided to be levied by a Municipal Council, the rate of tax shall not exceed the rates specified in Schedule VII of the Act.

70. Collection of tax.--

The tax shall be collected in advance at the Office of the Municipal Council after the Municipal Council has approved the proposed advertisement and granted permission in accordance with the bye-laws.

 

FORM IX

[See Rule 62]

Return of income for assessment to profession tax during half-year ending

Date........

Place.........

Signature of assessee.

(a)      affixing copies thereof on the notice board of the office of the Municipal Council and its sub-offices if any; and

(b)      exhibiting copies thereof in all Municipal Reading Rooms and places considered by the Municipal Council to be conspicuous within the Municipality."