THE MADHYA PRADESH VRITTI, VYAPAR, AJIVIKA AUR SEVAYOJAN KAR (SANSHODHAN)

[Act No. 24 of 1968]

[18th October, 1968]

PREAMBLE

An Act to amend the Madhya Pradesh Vritti, Vyapar, Ajivika Aur Sevayojan Kar Adhiniyam, 1966.

Be it enacted by the Madhya Pradesh Legislature in the Nineteenth Year of the Republic of India as follows:-

Section 1 - Short title

This Act may be called the Madhya Pradesh Vritti, Vyapar, Ajivika Aur Sevayojan Kar (Sanshodhan) Adhiniyam, 1968.

Section 2 - General amendment

Save as otherwise directed throughout the Madhya Pradesh Vritti, Vyapar, Ajivika Aur Sevayojan Kar Adhiniyam, 1966 (26 of 1966) (hereinafter referred to as the Principal Act),-

(a)      for the words "assessing authority" wherever they occur, the words "Profession Tax Assessing Authority" shall be substituted;

(b)      for the words "appellate authority" wherever they occur, the words "Profession Tax Appellate Authority" shall be substituted; and

(c)      for the words "revising authority" wherever they occur, the words "Profession Tax Revisional Authority" shall be substituted.

Section 3 - Amendment of section 2

 In section 2 of the Principal Act,-

(a)      clause (iii) as it stood immediately before the amendment made by clause (a) of section 3 of the Madhya Pradesh Vritti, Vyapar, Ajivika Aur Sevayojan Kar (Sanshodhan) Adhyadesh, 1968 (No. 3 of 1968) shall stand restored and clause (iii) of section 2 shall be read and construed as if no amendment was ever made therein at any time.

(b)      after clause (iii), the following clause shall be inserted, namely:-

"(iii-a) "local authority" means a municipal Corporation, Municipal Council, notified area committee, town area committee, cantonment board, Jana-pada Sabha, Kendra Panchayat, Mandal Panchayat, Gram Panchayat and such other local body or authority as may be notified by the State Government in this behalf;"

Section 4 - Insertion of new section 3-A

After section 3 of the Principal Act, the following section shall be inserted, namely:-

"3-A. Computation of profits and gains

For the purpose of computing the income from profits and gains in respect of a previous year, the following deductions shall be made, namely:-

(1)     cost price of all kinds of raw materials used in the manufacture of goods during the previous year reduced by the value of the closing stocks of the manufactured goods at the end of the said previous year;

(2)     cost price of the goods sold, during the previous year;

(3)     cost price of packing materials used in the goods sold during the previous year;

(4)     salary and wages of persons engaged in productive work;

(5)     salary and wages of other persons engaged in the profession, trade or calling;

(6)     rent in respect of building to house the business as well as rent on account of machinery, furniture and other similar goods taken on lease or hire;

(7)     rent of building taken on hire in connection with the profession or calling;

(8)     local rates and all kinds of taxes, excluding tax on income;

(9)     cost of insurance of factory, goods in trade and business premises;

(10)   repairs and renewals of plant, machinery and tools connected with the business;

(11)   repairs of lands and buildings in respect of the premises where the business is carried on;

(12)   repairs and renewals of immovable property let out on rent subject to a maximum of 6 1/2 of the annual rental value;

(13)   interest on borrowed capital;

(14)   electric charges in respect of the factory and business premises or the premises in connection with the profession or calling;

(15)   cost price of gas, fuel and lubricants;

(16)   such other deductions as may be prescribed."

Section 5 - Substitution of new section for section 5

For section 5 of the principal Act, the following section shall be substituted, namely:-

"5. Taxing Authorities.

(1)     The administration of the Act, shall vest in the Commissioner of Sales, Tax appointed under section 3 of the Madhya Pradesh General Sales Tax Act. 1958 (9 of 1959), who shall for the purpose of this Act, be designated as Profession Tax Commissioner.

(2)     The Profession Tax Commissioner shall exercise the powers of general superintendence and control over the authorities appointed under this Act.

(3)     The Profession Tax Assessing Authority, the Profession Tax Appellate Authority and the Profession Tax Revisional Authority shall exercise such powers and perform such duties as may be conferred or imposed upon them by or under this Act."

Section 6 - Substitution of new section for section 6

For section 6 of the Principal Act, the following section shall be substituted, namely:-

"6. Submission of returns and payment of Tax

(1)     Every person liable to pay tax under this Act shall in each financial year, file before the Profession Tax Assessing Authority by such date as may be prescribed, a correct and complete return setting forth his income in the previous year, in such form and, containing such particulars as may be prescribed:

Provided that the Profession Tax Assessing Authority may, for sufficient cause to be recorded in writing, extend the date for filing the return:

Provided further that where a person liable to pay tax under this Act derives income from any profession, trade, calling other than agriculture or employment at places located within, the territorial jurisdiction of more than one Profession Tax Assessing Authority, he shall file the return before such Profession Tax Assessing Authority as may be prescribed:

Provided also that-

(a)      any person who has deposited in the Government treasury in the prescribed manner the maximum amount of tax mentioned in the Schedule before such date as may be prescribed shall not be required to file any return in the financial year for which the tax has been so deposited;

(b)      the State Government may, subject to such conditions as may be specified, exempt any class persons from filing a return.

(2)     Every person liable to file a return under sub-section (1) shall, before he files a return, pay into the

Government treasury the full amount of tax due on the basis of such return in the prescribed manner and shall furnish along with the return a receipt in token of such payment, unless the tax payable by such person has been deducted at source by the principal officer"

Section 7 - Amendment of section 11

In section 11 of the Principal Act,-

(i)       for sub-section (1) and sub-section (2), the following subsections shall be substituted, namely.-

"(1)  The tax payable under this Act, by any person in the employment of any Government, local authority, corporation owned or controlled by any Government, company or society shall, in the manner prescribed, be deducted at source by the principal officer from the salary, allowance, commission or any other remuneration payable to him in respect of such employment and such tax shall be recovered in advance in the same year in which such salary, allowance, commission or any other remuneration is payable to him

(2)   The principal officer making any deduction under sub-section (1) shall, subject to such exceptions as may be prescribed, issue a receipt therefore to the employee in the prescribed form and shall submit to the Profession Tax Assessing Authority such statements within such rime and containing such particulars as may be prescribed."

(ii)      after sub-section (2), the following sub-section shall be inserted, namely:

"(2 a) The tax deducted under sub-section (1) by a principal officer, who is a Government servant, shall be credited by book transfer to Government account", and

(iii)     for sub-section (3), the following sub-section shall be substituted, namely:-

"(3)  The Principal Officer, other than a Government servant, deducting any tax under sub section (1) shall, in the prescribed manner, deposit the amount of tax in a Government treasury within fifteen days of such deduction and shall furnish, along with the statements required to be filed under sub-section (2), a receipt from such treasury in taken deposit."

Section 8 - Insertion of new section 14-A

After section 14 of the Principal Act, the following section shall be inserted, namely:-

"14-A. Composition of Tax.

(1)      Notwithstanding anything contained in this Act an assesses may compound the tax payable in any financial year under section 3 by paying in lieu thereof, before such date in the said financial year as may be prescribed an amount equal to the tax payable at the rate mentioned an the Schedule in respect of a sum which is ten per cent more than the taxable income as disclosed in the return of income filed by him before any income-tax authority for the purpose of Income Tax Act, 1961. (XLIII of 1961) for the Income tax assessment year corresponding to the said financial year:

Provided that an assess from whom tax has already been recovered at source in advance under section 11 shall be required to pay into a Government treasury only an amount equal to, the difference between the compounded tax as calculated under this sub-section and the tax already deducted at source-

(2)      The assessee paying the compounded tax under sub-section (1) shall furnish to the Profession Tax Assessing Authority a statement in such form and in such manner and within such time as may be prescribed along with a receipt from the treasury in token of such payment.

(3)      The provisions of sections 6, 7 and 14 shall not apply to any assessee who has paid the tax under sub-section (1).

(4)      If any person required to furnish a statement under sub-section (2) furnishes a false information about the taxable income disclosed in his return of income for the purpose of the Income Tax Act, 1961 (XLIII of 1961), the Profession Tax Assessing Authority may, after giving such person a reasonable opportunity of being heard, direct him to pay, by way of penalty, a sum not exceeding rupees fifty; and notwithstanding the provisions of sub-section (3) proceed to assess him to tax under section 7

Section 9 - Amendment of section 18

In section 18 of the Principal Act,-

(i)       after sub-section (1), the following sub-section shall be inserted, namely:-

"(1-A) If the Profession Tax Assessing Authority is satisfied that the amount of tax recovered at source under section 11 is in excess of the tax that ought to have been recovered, he shall cause refund to be made in cash, in the manner described of the amount that is found to have been recovered in excess"; and

(ii)      after sub-section (2), the following sub-section shall be added, namely:-

"(3)  Notwithstanding the provisions of sub-section (1) or sub-section (1-A), the amount of refund shall be adjusted in the prescribed manner against any arrears of tax due under this Act and in the case of an assessee entitled to a refund under sub-section (1-A), the Profession Tax Assessing Authority may direct its adjustment in the prescribed manner against the tax due in a subsequent financial year."

Section 10 - Amendment of section 22

To section 22 of the Principal Act, the following proviso shall be added, namely:-

"Provided that where the Principal Officer in relation to a person employed under any Government is a person outside the State, then such officer of the Government within the State as may be prescribed shall be deemed to be the Principal Officer in relation to such person for the purpose of this section"

Section 11 - Amendment of section 25

(i)       In section 25 of the Principal Act, in sub-section (2) for clause (b), the following clause shall be substituted, namely:-

"(b)  the form and the manner in which the returns of income shall be filed under sub-section (1) of section 6 and the Profession Tax Assessing Authority to whom the return shall be filed under the second proviso to sub-section (1) of section 6;"

(ii)      for clause (d), the following clause shall be substituted, namely:-

"(d)  the form and manner in which the notice shall be served on the person under sub-section (2) of section 7 or section 9 or section 14;"

(iii)     for clause (e), the following clause shall be substituted, namely:-

"(e)  the manner in which the principal officer shall deduct the tax at source, the exceptions where the principal officer need not issue a receipt for the tax collected at source, the manner in which the principal officer shall deposit the tax into the treasury and the form and the manner in which the statements shall be furnished under section 11;" and

(iv)    after clause (e), the following clause shall be inserted, namely:-

"(ee) the form and manner in which the statement, under sub-section (2) of section 14-A shall be furnished;".

Section 12 - Certain amendments to have retrospective effect

Amendments made by section 4 shall deemed to have formed part of the Principal Act from the commencement thereof.

Section 13 - Transitory provision for reassessment in certain cases

(1)     Any assessee who had income from profits and gains and who was assessed to tax prior to the commencement of this Act without the said profits and gains being computed in accordance with the provisions of section 3-A as inserted in the Principal Act, by section 4 may apply to the Profession Tax Assessing Authority within sixty days of such commencement for reassessment of tax after computing such profits and gains in accordance with the said section 3-A

(2)     Every application made under sub-section (1) shall contain the following particulars, namely:-

(a)      the income from profits and gains which was included in the total income assessed to tax prior to the commencement of this Act;

(b)      the deductions claimed from the income referred to in clause (a) under the provisions or section 3-A;

(c)      total income on which the assessee is liable to pay tax.

(3)     On receipt of the application the Profession Tax Assessing Authority shall deal with it as, if it was a return filed under section, 6 of the Principal Act.

(4)     The revisions of sections 15 and 16 of the Principal Act, shall apply to an order passed; under sub-section (3).

Section 14 - Repeal

The Madhya Pradesh Vritti, Vyapar, Ajivika Aur Sevayojan Kar (Sanshodhan) Adhyadesh, 1968 (No. 3 of 1963), is hereby repealed.