[1][THE ORISSA STATE TAX ON PROFESSIONS,
TRADES, CALLINGS AND EMPLOYMENTS ACT, 2000] [Act
No. 7 of 2000] [28th
September, 2000] AN ACT TO PROVIDE FOR THE
LEVY AND COLLECTION OF TAX ON PROFESSIONS, TRADES, CALLINGS AND
EMPLOYMENTS AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO The following Act of the
Orissa Legislative Assembly having been assented to by the Governor on the 25th
September, 2000 is hereby published for general information. Be it enacted by the
Legislature of the State of Orissa in Fifty-first Year of the Republic of India
as follows: (1)
This Act may be called the Orissa State Tax
on Professions, Trades, Callings and Employments Act, 2000. (2)
It extends to the whole of the State of
Orissa. (3)
It shall come into force on such date as the
State Government may, by notification, appoint. In this Act, unless the context otherwise requires,- (a)
"appellate
authority" means the appellate authority appointed under Section 3; (b)
"assessee" means
a person or employer by whom tax is payable under this Act; (c)
"assessing
authority" means an assessing authority appointed under Section 3; (d)
"Commissioner"
means the Commissioner of Profession Tax appointed under Section 3; (e)
"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 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 head-quarters may be situated outside the State;
and (iii)
a person engaged in any
employment of an employer not covered by items (i) and (ii) above; (f)
"employer" in
relation to an employee earning any salary or wages on regular basis under him,
means the person or the officer who is responsible for disbursement of such
salary or wages, and includes the head of the office or any establishment as
well as the manager or agent of the employer; (g)
"Government"
means the State Government of Orissa. (h)
"person" means
any person who is engaged in any profession, trade, calling or employment in
the State of Orissa 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 casual basis; Explanation - For the purposes of this clause, every branch
of a firm, company, corporation or other corporate body, any society, club or
association shall be deemed to be a person ; (i)
"prescribed"
means prescribed by rules made under this Act; (j)
"profession tax"
means the tax on profession, trade, calling and employment leviable under this
Act; (k)
"salary or
wages" includes pay or wages, dearness allowance and all other
remunerations received by any person on regular basis, whether payable in cash
or in kind, and also includes perquisites and profits in lieu of salary as
defined in Section 17 of the Income Tax Act, 1961; (l)
"tax" means the
profession tax; (m)
"year" means a
financial year. (1)
The Government may, by
notification, appoint an officer to be the Commissioner of Profession Tax,
Orissa who shall exercise such powers and discharge such functions as are or
may be conferred or imposed by or under the provisions of this Act. (2)
The Government may also
appoint an assessing authority, appellate authority and such number of other
officers under any prescribed designation as they deem fit and they shall
exercise such powers and perform such duties as may be conferred or imposed by
or under the provisions of this Act within such local area as may be assigned
to them by the Commissioner. (3)
Subject to such
restrictions and conditions as may be prescribed, the Commissioner may, by
order in writing, delegate any of his powers and duties under this Act to any
officer appointed under Sub-section (2). (1)
Subject to the provisions
of Article 276 of the Constitution of India, there shall be levied and
collected a tax on professions, trades, callings and employments in accordance
with provisions of this Act. (2)
Every person engaged in
any profession, trade, calling or employment and falling under one or the other
of the classes mentioned in column (2) of the Schedule shall be liable to pay
to the Government tax at the rate mentioned against the class of such person in
column (3) of the said Schedule. The tax payable under this Act by any person earning a
salary or wages shall be deducted by his employer from the salary or wages
payable to such person before such salary or wages is paid to him, and such
employer shall, irrespective of whether such deduction has been made or not,
when the salary or wages 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 the State
Government or the Central Government, the manner in which the employer shall
discharge the said liability shall be such as may be prescribed: Provided further that where any person earning a salary or
wages. (a)
is also covered by one or
more entries other than entry 1 in the Schedule and the rate of tax under any
such other entry is more than the rate of tax under the said entry 1; or (b)
is simultaneously engaged
in employment of more than one employer, and such person furnishes to his
employer or employers a certificate in the prescribed form declaring, inter
alia, that he shall obtain a certificate of enrolment under Sub-section (2) of
Section 6 and pay the tax himself, then the employer or employers of such
person shall not deduct the tax from the salary or wages 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. (1)
Every employer (not being
an officer of the State Government or the Central Government) liable to pay tax
under Section 5 shall obtain a certificate of registration from the assessing
authority in the prescribed manner. (2)
Every assessee 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 assessing authority in the prescribed manner. (3)
Every assessee required to
obtain a certificate of registration or enrolment shall, within ninety days
from the date of coming into force of this Act, or if he was not engaged in any
profession, trade, calling or employment on that date, within ninety days of
his becoming liable to pay tax, or in respect of any assessee referred to in
Sub-section (2), within ninety 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 or
enrolment, as the case may be, to the assessing authority, in the prescribed
form, and the assessing authority shall, after making such enquiry as may be
necessary within thirty days of the receipt of application, grant him such
certificate of registration or enrolment, if the application is in order; and
where the application is not in order, it shall be rejected : Provided that the assessing authority may, if he is
satisfied that any employer or assessee has failed to register or enrol himself,
as the case may be, within the said period of ninety days for good and
sufficient reasons he may allow such employer or assessee, as the case may be,
further time not exceeding thirty days for the required registration or
enrolment as he may deem appropriate. (4)
The assessing authority
shall mention in every certificate of registration or enrolment, as the case
may be, the amount of tax payable by the holder according to the Schedule, and
the date by which it shall be paid, and such certificate shall serve as a
notice of demand for purposes of Section 12. (5)
Where an assessee liable
to registration or enrolment deliberately neglects or wilfully fails to apply
for such certificate within the time as provided in Sub-section (3), the
assessing authority may, after giving him a reasonable opportunity of being
heard, impose upon him a 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)
When an assessee liable to
registration or enrolment has deliberately given false information in any
application submitted under this Section, the assessing authority may, after
giving him a reasonable opportunity of being heard, impose upon him a penalty not
exceeding rupee one thousand. (1)
Every employer registered
under this Act and every enrolled person shall furnish to the assessing
authority a return in such form, for such period or periods and by such dates
as may be prescribed showing therein the salaries or wages paid by him and the
amount of tax deducted by him in respect thereof. (2)
Every such return shall be
accompanied by a treasury challan or a banker's cheque or manager's cheque
issued by a scheduled bank or a cheque marked or certified by such bank as good
for payment or by a crossed bank draft, 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 an employer or
enrolled person without reasonable cause, fails to file such return within the
prescribed time, the assessing 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. (1)
If the assessing authority
is satisfied that the return furnished by an assessee is correct and complete,
he may accept the return, and if the return appears to him to be incorrect or
incomplete he shall, after giving the assessee reasonable opportunity of
proving the correctness or completeness of the return furnished by him and
making such enquiry as he deems necessary, assess to the best of his judgment,
the amount of tax due from the assessee. (2)
The amount of tax due from
any assessee shall be assessed separately for each year within a period of five
years from the expiry of the year to which the assessment relates. (3)
If any assessee has failed
to get himself registered or having been registered, has failed to furnish the
required return, the assessing authority shall, after giving the assessee a
reasonable opportunity of making representation and after making such enquiry
as he deems necessary, pass an 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 the assessing authority. (5)
In making an assessment
under Sub-section (1), the assessing authority, if he is satisfied that the
escaped assessment was due to wilful non-disclosure of information or attempt
to evade the tax by the assessee, may also direct to pay in addition to the tax
assessed, a penalty which shall not be less than one and half times the tax so
assessed but which shall not exceed three times the tax so assessed: Provided that no penalty under this subjection shall be
imposed, unless the assessee affected has had a reasonable opportunity of
showing cause against the imposition of such penalty. If for any reason any tax payable under this Act has
escaped assessment or has been under assessed or assessed at a lower rate than
the rate at which it is assessable, the assessing authority may, at any time
within five years from the expiry of the year to which the tax relates, proceed
to assess or reassess the tax, as the case may be, to the best of his judgment,
after issuing a notice to the assessee concerned and after making such enquiry
as he considers necessary : Provided that the tax shall be charged at the rate at which
it would have been charged if such tax had not escaped assessment or, as the
case may be, had not been under-assessed or assessed at a rate lower than the
rate at which it was assessable. The amount of tax due from the assessees for each year as
specified in their enrolment certificates shall be paid in the prescribed
manner - (a)
before 30th June, in
respect of an assessee who stands enrolled before the commencement of a year or
is enrolled on or before the 31st May of a year; and (b)
within one month of the
date of enrolment in respect of an assessee who is enrolled after the 31st May
of a year. (1)
If an assessee (not being
an officer of the State Government or the Central Government) fails to pay 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 such tax. (2)
Without prejudice to the
provisions of Sub-section (1), an assessee referred to in that Sub-section
shall be liable to pay simple interest at two per centum of the amount of 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, he shall be liable to
pay simple interest at the rate and in the manner laid down in Sub-section (2). If any assessee fails, without reasonable cause, to make
payment of any amount of tax within the time specified in the notice of demand,
the assessing authority may, after giving him a reasonable opportunity of
making his representation, impose upon him a penalty which shall not be less
than twenty-five per centum but not exceeding fifty per centum of the amount of
tax due and the penalty so imposed shall be in addition to the interest payable
under Sub-section (2) or Sub-section (3) of Section 11. The arrears of tax, penalty, interest or any other amount
due under this Act, shall be recoverable as an arrear of land revenue. (1)
For carrying out the
purposes of this Act, the Government may appoint any of its departments or
officers as a collecting agent responsible for levy and collection of the tax
under this Act from such person or class of persons as may be prescribed. (2)
Upon such appointment, it
shall be the duty of such collecting agents to carry out such functions under
this Act in the manner prescribed and to render full and complete account of
the tax levied and collected to the Commissioner in such manner and at such
time as he may require. (3)
Any officer authorised by
the collecting agent in this behalf shall have, for the purposes of levy and
collection of tax, such powers as may be prescribed. (4)
It shall be lawful for the
Commissioner, or an officer duly authorised by him, to have access to, and 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 any officer authorised by him in this behalf. (1)
Any assessee (not being an
officer of the State Government or the Central Government) aggrieved by any
order passed by any authority under the provisions of this Act, not being an
order passed under Sub-section (3) of Section 8, may within thirty days from
the date on which the order was served on him, appeal to the appellate
authority : Provided that the appellate authority may, for sufficient cause
shown, admit an appeal preferred after the expiry of the period of thirty days
aforesaid. (2)
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. (3)
The appeal shall be in
such form and verified in such manner as may be prescribed and shall be
accompanied by a fee calculated at the rate of two per centum of the tax,
penalty or interest under dispute, subject to a minimum of rupees fifty and a
maximum of rupees one thousand. (4)
The appellate authority
may, after giving the appellant an opportunity of being heard and subject to
such rules of procedure as may be prescribed, (a)
confirm, reduce, enhance,
or annul or otherwise modify the assessment, penalty or interest, as the case
may be; (b)
set aside the assessment,
penalty or interest, as the case may be, and direct the assessing authority to
pass a fresh order after such further enquiry as may be directed; or (c)
pass such other orders as
he may think fit. (5)
Before passing orders
under Sub-section (4), the appellate authority may make such enquiry as he
deems fit or remand the case to any subordinate officer or authority for an
enquiry and report on any specified point or points. (6)
Every order passed in
appeal under this Section shall, subject to the provisions of Section 16, be
final. (1)
The Commissioner may,
either suo motu or on an application made to him, call for and examine the
record of the assessing, authority or, as the case may be, of the appellate
authority in respect of any proceeding to satisfy himself as to the regularity
of any such proceeding or the correctness, legality or propriety of any
decision taken or order passed therein and may pass such order thereon as he
deems fit. (2)
No application under
Sub-section (1) shall be entertained if it is not made within a period of four
months from the date of receipt of the order and unless it is accompanied by a
fee calculated at the rate of two per centum of the tax, penalty or interest
under dispute subject to a minimum of rupees one hundred and a maximum of
rupees two thousand. (3)
The powers of revision
shall be exercised within a period not exceeding five years from the date on
which the order was served on the assessee. (4)
No order which adversely affects
any assessee shall be passed under this Section, unless such assessee has been
given a reasonable opportunity of being heard. (5)
Where the Commissioner
rejects any application for revision under this Section, he shall record the
reasons for such rejection. (1)
If the assessing authority
is satisfied that the books of accounts and other documents maintained by an
employer or enrolled person in the normal course of his business, profession,
trade or calling are not adequate for verification of the return or such
statements as may be prescribed furnished by the employer or enrolled person
under this Act, he may direct the employer or enrolled person to maintain the
books of accounts or other documents in such manner as he may, in writing,
direct and thereupon the employer or enrolled person shall maintain such books
of accounts or other documents accordingly. (2)
Where an employer or
enrolled person wilfully fails to maintain the books of accounts or other
documents as directed under Sub-section (1), the assessing authority may, after
giving him an opportunity of being heard, impose upon him a penalty not
exceeding rupees five for each day of delay. (1)
Notwithstanding anything
contained in any law or contract to the contrary, the assessing authority may,
by notice in writing, a copy of which shall be forwarded to the assessee at his
last address known to the assessing authority, 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 assessee, to pay the
assessing authority, 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 for
payment of 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 purpose of this Sub-section the
amount of money due to an assessee from or money held for or on account of an
assessee by, any person shall be calculated after deducting there from such
claims, if any, lawfully subsisting, as may have fallen due for payment by such
assessee to such person. (2)
The assessing authority
may 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
assessing authority shall constitute a good and sufficient discharge of the
liability of such a 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 assessing authority to the extent of
the liability discharged, or the extent of the liability of the assessee for
the amount due under this Act, whichever is less. (5)
Where any person to whom a
notice under this Section is sent proves to the satisfaction of the assessing
authority that the sum demanded or any part thereof is not due by him 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 any such sum or part thereof, as the case may be, to the assessing
authority. (6)
Any amount of money which
a person is required to pay to the assessing authority or for which he is
personally liable to the assessing authority under this Section shall, if it
remains unpaid, be recoverable as an arrear of land revenue. Where the ownership of the profession, trade, calling, or
employment of an assessee liable to pay tax is transferred, any tax, penalty or
interest or other amount payable under this Act in respect of such business and
remaining unpaid at the time of transfer may, without prejudice to any action
that may be taken for its recovery from the transferrer, be recoverable from
the transferee as if, he were the assessee liable to pay such tax, penalty or
interest or other amount. (1)
Any authority under this
Act may, for the purposes of this Act, require any person or any employer to
produce before him any accounts or documents relating to his professions,
trades, callings or employments, or disbursement of salaries or wages to his
employees, as the case may be. (2)
All accounts, registers
and other documents, either relating to professions, trades, callings or
employments or disbursement of salaries or wages to the employees, as the case
may be, shall at all reasonable time be open to inspection by an authority
under this Act. (3)
If the Commissioner or an
officer appointed under Sub-section (1) of Section 3 has reason to suspect that
any person or employer is attempting to evade payment of any tax under this
Act, he may, for reasons to be recorded in writing, inspect and search any
place of work or any other place where the Commissioner or the officer has,
upon information received, reasons to believe that records relating to
professions, trades, callings or employments or disbursement of salaries or
wages to the employees are being kept by the person or the employer, as the
case may be, and seize such accounts, registers and documents as may be
necessary for determination of tax payable under this Act. (4)
The Commissioner or the
officer exercising the power under Sub-section (3) shall give to the person in
charge of the place of work or other premises searched, a receipt describing
the accounts, registers and documents seized and removed from such place of
work or premises, as the case may be, and shall retain the accounts, registers
and documents seized only for so long as may be necessary for the purposes of
examination thereof or prosecution : Provided that such officer shall not retain the registers,
accounts or documents seized by him under Sub-section (3) for a period
exceeding one year from the date of seizure, unless he states the reason
therefor in writing and obtains sanction in writing from the Commissioner. (5)
The occupant of the place
of work or premises searched or some person in his behalf shall, in every
instance, be permitted to be present during the search and the receipt referred
to in Sub-section (4) shall be countersigned by the occupant or any person
witnessing the search and seizure. The assessing authority shall refund to assessee the amount
of tax, penalty, interest and fees, if any, paid by such assessee in excess of
the amount due from him, either by cash payment or, at the option of such
person, by deduction of such excess from the amount of tax, penalty, interest
and fee due from him in respect of any other period: Provided that such excess shall first be applied towards
the recovery of any amount due in respect of which a notice under Section 8 has
been served and thereafter the balance, if any, shall be refunded. Any person or employer who, without reasonable cause, fails
to comply with any of the provisions of this Act or the rules made there under
shall, on conviction, be punishable with fine which may extend to five thousand
rupees, and where the offence is a continuing one, with a further fine which
may extend to fifty rupees for every day during which the offence continues. (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 he proves that the offence
was committed without his knowledge or that he had exercised 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 on the
part of, any Director, Manager, Secretary or other Officer of the company, such
Director, Manager, Secretary or other Officer shall also be deemed to be guilty
of that offence and shall be liable to be proceeded against and punished
accordingly. Explanation - For the purposes of this Section, - (a)
"Company" means
anybody corporate and includes a firm or other association of individuals; and (b)
"Director" in
relation to a firm, means a partner in the firm. The Commissioner may, after giving the parties a reasonable
opportunity of being heard, wherever it is possible so to do, 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
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 there under means all proceedings under this Act, in respect
of any year which may be pending on the date of such order or which 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. (1)
The assessing authority
may, either before or after the institution of proceedings for an offence under
this Act, permit any assessee, charged with the offence, to compound the
offence on payment of such sum, not exceeding five thousand rupees or double the
amount of tax recoverable, whichever is greater. (2)
On payment of such sum as
may be determined by the assessing authority under Sub-section (1), no further
proceedings shall be taken against the person in respect of the same offence. (3)
Any order passed or proceeding
recorded by the assessing authority under Sub-section (1), shall be final and
no appeal or application for revision shall lie therefrom. The Commissioner and the other authorities under this Act
shall have the same powers as are vested in a Court under the Code of Civil
Procedure, 1908 while trying a suit, for the purpose of enforcing the
attendance of, and examining, any person on oath or affirmation or for
compelling the production of any document. No Court shall entertain any suit or other proceeding to
set-a-side or modify, or question the validity of any assessment, order or
decision made or passed by any officer or authority under this Act or the rules
made thereunder or in respect of any other matter failing within its or his
scope. (1)
Nothing contained in this
Act shall apply to the members of the armed forces of the Union serving in any
part of Orissa. (2)
The Government may, by notification,
exempt from the levy of tax under this Act any class of persons, if it
considers necessary so to do in the public interest. (3)
Every notification issued
under Sub-section (2) shall, as soon as it is published, be laid before the
Assembly for a total period of fourteen days which may be comprised in one or
more sessions. Notwithstanding anything in any enactment governing the
constitution or establishment of a local authority, no local authority shall,
on or after the commencement of this Act, levy, any tax on professions, trades,
callings or employments. (1)
The Government may, by
notification, alter, add to or cancel any item or entry in the Schedule. (2)
Every notification issued
under Sub-section (1) shall, as soon as it is published, be laid before the
Assembly for a total period of fourteen days which may be comprised in one or
more sessions. (3)
References made in this
Act to the Schedule, or any Entry, or item thereof shall be construed as
references to the Schedule or, as the case may be, the Entry or item thereof as
for the time being amended in exercise of the powers conferred by this Section. No suit, prosecution or Other legal proceedings shall lie
against the Commissioner or. any other officer appointed under Section 3 for
anything which is in good faith done or intended to be done under this Act or
the rules made thereunder. (1)
The Government may, by
notification, make rules to carry out all or any of the purposes of this Act. (2)
In particular and without
prejudice to the generality of the foregoing power, such rules may provide for
the fees payable in respect of any applications to be made, forms to be
supplied, certificates to be granted and any applications for certified copies
of documents filed and orders made under this Act. (1)
If any difficulty arises
in giving effect to the provisions of this Act, the Government may, by order
published in the Gazette, make such provisions not inconsistent with the
provisions of this Act, as may appear to be necessary for removing the
difficulty: Provided that no such order shall be made after the expiry
of a period of two years from the date of commencement of this Act. (2)
Every order made under
this Section shall, as soon as it is made, shall be laid before the Assembly
for a period of fourteen days which may be comprised in one or more sessions.THE ORISSA
STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 2000
PREAMBLE
Section 2 – Definitions.
Section 7 – Returns.
Section 8 – Assessment.
Section 15 – Appeals.
Section 16 – Revision.
Section 17 – Accounts.
Section 21 – Refund.
Section 28 – Exemptions.