Section 8

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Holders of permits for transport vehicles granted under the Motor Vehicles Act, 1988 (59 of 1988) which are used or adapted to be used for hire or reward : (i) in respect of each three wheeler passenger or goods vehicle Rs. 400* (ii) in respect of each taxi, four wheeler light passenger or goods vehicle Rs. 800* (iii) in respect of each heavy passenger or goods vehicle Rs. 1000* *Subject to the maximum of Rs. 2500 1[9. Such persons other than those mentioned in any of the preceding entries, who are engaged in any profession, trade, calling or employment at such rate as the State Government may, by notification, specify] Explanation - For the purposes of this Schedule population means the population as ascertained at the last preceding census of which the relevant figures have been published. ⇒ (i) Less than Rs. 5,00,000 Nil (ii) Rs. 5,00,000 or more but less than Rs. 10,00,000 Rs. 500 (iii) Rs. 10,00,000 or more but less than Rs. 50,00,000 Rs. 1000 (iv) Rs. 50,00,000 or more Rs. 2500 1 Sr. No. 9 substituted by Professional Tax (Amendment) Act, 1999 w.e.f. 1.5.99. Earlier to substitution Sr. No. 9 read as under : “Such persons not covered by any of the preceding entries, as the State Government may, by notification, specify” Madhya Pradesh Professional Tax Rules, 1995 1Notification. No. A-5-6-95-ST-V(58) Dated 17th July 1995 In exercise of the powers conferred by Section 28 of the Madhya Pradesh Vritti Kar Adhiniyam, 1995 (No. 16 of 1995), the State Government hereby makes the following rules, namely : Rule 1 : Short title These rules may be called the Madhya Pradesh Vritti Kar Niyam, 1995. Rule 2 : Definitions In these rules, unless the context otherwise requires : (a) Act means the Madhya Pradesh Vritti Kar Adhiniyam, 1995 (No. 16 of 1995); (b) Form means a Form appended to these rules; (c) Place of Work in relation to a person or employer means the place where such person or employer ordinarily carries on his profession, trade, calling or employment; (d) Quarter means a period of three months commencing from 1st April, 1st July, 1st October and 1st January; (e) Section means a Section of the Act; (f) Treasury in respect of a person or an employer 2[whose principal place of work] is situated within the jurisdiction of a Profession Tax Assessing Authority, means the branch of a scheduled bank transacting business of the Government of Madhya Pradesh or any Government Treasury or sub-treasury as the case may be, located within the jurisdiction of the said authority. Rule 3 : Grant of certificate of registration (1) (a) An application for obtaining a certificate of registration under sub-section (1) of Section 8 shall be made in Form I. 3(b) Where an employer has more than one place of work within the State of Madhya Pradesh, he shall make a single application in respect of all such places, declaring therein one of such places as the principal place of work and others as additional places of work for the purpose of these rules and submit such application to the Profession Tax Assessing Authority in whose jurisdiction the said principal place of work is situated. (2) (a) An application for obtaining a certificate of registration under sub-section (2) of Section 8 shall be made in Form 3. 1 Published in Madhya Pradesh Rajpatra dt. 17.7.95. 2 Subs. for the words ‘whose place of work’ by Noti. No. 12, dt. 27.3.96 w.e.f. 27.3.96. 3 Subs. by Noti. No. 12, dt. 27.3.96 w.e.f. 27.3.96. Prior to substitution clause (b) read as under : ‘An employer having places of work within the jurisdiction of more than one Profession Tax Assessing Authority shall make an application for registration separately to each such authority in respect of each such place of work within the jurisdiction of the said Authority.’ X LAWS IN M.P. (b) Where a person has more than one place of work within the State of Madhya Pradesh, he shall make a single application in respect of all such places, declaring therein one of such places as the principal place of work and others as additional places of work for the purpose of these rules and submit such application to the Profession Tax Assessing Authority in whose jurisdiction the said principal place of work is situated. (3) (a) On receipt of an application for registration the Profession Tax Assessing Authority shall, if it is satisfied that the application is in order and the necessary particulars have been furnished, grant a certificate of registration in Form 2 in respect of application filed under sub-rule (1) and in Form 4 in respect of application filed under sub-rule (2). (b) If the Profession Tax Assessing Authority finds that the application is not in order or that all necessary particulars have not been furnished it shall direct the applicant to furnish such additional information as may be considered necessary. After considering the additional information, the Profession Tax Assessing Authority shall grant a certificate of registration in Form 2 or 4 as the case may be. Rule 4 : Amendment of certificate of registration Where an employer or a person holding a certificate of registration granted under rule 3 desires it to be amended, he shall submit an application to the Profession Tax Assessing Authority specifically stating the amendments desired with reasons therefor, together with the certificate of registration and thereupon such authority shall, if satisfied with the reasons given, amend the certificate of registration accordingly. 1Rule 4-A : Option to pay tax on the Annual Income An application to exercise option to pay tax on the annual income under sub-section (3) of Section 3 shall be made in Form 4-A.] Rule 5 : Intimation regarding cessation of liability to pay tax In the event of cessation of liability to pay tax because of closure of business or for any other reason, the employer or the person holding the certificate of registration shall send an intimation in writing to that effect to the Profession Tax Assessing Authority within thirty days of the cessation of liability to pay tax. Rule 6 : Cancellation of certificate On receipt of an intimation under rule 5, the certificate of registration granted under rule 3, may be cancelled by the Profession Tax Assessing Authority after satisfying itself that the liability to pay tax of the employer or the person to whom such certificate was granted, has ceased. Rule 7 : Exhibition of certificate The employer or the person holding a certificate of registration shall display conspicuously at his place of work the certificate of registration or a copy thereof issued by the Profession Tax Assessing Authority. Rule 8 : Issue of a duplicate copy of certificate 1 Rule 4-A inserted by Noti. No. 12, dt. 27.3.96 w.e.f. 27.3.96. PART - IV PROFESSIONAL TAX RULES, 1995 323 If a certificate of registration granted under these rules is lost, destroyed or defaced or becomes illegible, the holder of the certificate shall apply to the Profession Tax Assessing Authority for grant of a duplicate copy of such certificate and thereupon such authority shall, after such verification as it may consider necessary, issue to the holder of certificate a copy of the original certificate after stamping thereon the words “Duplicate Copy”. Rule 9 : Certificate to be furnished by an employee to his employer The certificate to be furnished by a person to his employer under sub-section (2) of Section 4 shall be in Form 5 or 6 as the case may be. Rule 10 : Shifting of place of work (1) If the holder of certificate of registration in one area, shifts his place of work in another area, he shall within fifteen days of such shifting, give notice thereof to the Profession Tax Assessing Authority by whom the certificate was issued and shall, at the same time, send a copy of such notice to the Profession Tax Assessing Authority exercising jurisdiction over the area to which the place of work is being or has been shifted. (2) With effect from the commencement of the quarter immediately following the quarter in which the notice is given, the Profession Tax Assessing Authority having jurisdiction over the area to which the place of work has been shifted shall exercise all powers and perform all functions pertaining to the determination and recovery of tax and matters ancillary thereto in respect of the sender of such notice. Rule 11 : Furnishing of returns and payment of tax by employer (1) Every employer registered under the Act shall furnish return in Form 7 for each quarter on or before the fifteenth day of the month following the quarter to which such returns relates showing therein the salaries and wages paid by him during such quarter and the amount of tax deducted by him from the said salaries and wages. Provided that where an employer pays to his employee, salary or wages in respect of a month falling in any quarter on any date after the expiry of such quarter, then such payment and the tax deducted in respect thereof may be accounted for in the return for the quarter during which such payment has been made and tax deducted. (2) Notwithstanding anything contained in sub-rule (1), every employer shall furnish the return for every quarter by the due date even if no tax is payable by the person in his employment. (3) Every return to be furnished under sub-rule (1) shall be accompanied by receipted challans in token of the payment in accordance with the provisions of sub-rule (1) of rule 13 of the tax payable by the employer according to such return. (4) Notwithstanding anything contained in sub-rule (1), an employer registered under the Act, may, on his application to the Profession Tax Commissioner in Form 8 for permission to furnish annual return, be permitted to furnish such return subject to the conditions as specified in the order granting permission to file annual return. Rule 12 : Furnishing of return and payment of tax by registered persons (1) Every registered person required to furnish return under sub-section (1) of Section 10 shall furnish such returns in Form 9 to the Profession Tax Assessing Authority along with a copy of challan in proof of payment of tax payable according to such return. X LAWS IN M.P. (2) A registered person who derives income from any profession, trade or calling other than agriculture at places located within the territorial jurisdiction of more than one Profession Tax Assessing Authority shall file the return under sub-rule (1) to the Profession Tax Assessing Authority having jurisdiction over his principal place of work so declared by him under clause (b) of sub-rule (2) of rule 3. Rule 13 : Deduction of tax by employers from the salaries and wages (1) Every employer other than an officer of the Central Government or a State Government responsible for deduction of the due amount of tax from the salary or wages of the employees as defined in clause (c) of Section 2 shall deduct every month from the salaries or wages payable to the employees an amount equal to 1/12th of the tax payable by each employee for the relevant year. (2) In the case of employee of the Central Government or a State Government the drawing and disbursing officer shall be responsible for the deduction of the amount of tax payable from the pay bill of employee as defined in clause (c) of Section 2. The deduction shall be made every month from the salaries or wages payable to the employees and the amount of tax to be so deducted in each month shall be equal to 1/12th of the amount of tax payable by the employee for the relevant year. (3) The drawing and disbursing officer in the case of employees of the Government of Madhya Pradesh shall deduct the tax from the salaries or wages of the employees in the pay bills. The drawing and disbursing officer of the Central Government or any State Government (other than the State of Madhya Pradesh) shall deduct in cash the tax while disbursing salaries or wages to the employees. (4) The drawing and disbursing officer in the case of employees of the Government of Madhya Pradesh shall enclose a statement with the pay bill for the month of February showing deductions of the tax due for the period from March to February or part thereof or from the month in which the employees has become liable to pay the tax upto the month of February, as the case may be. In case any deduction in respect of any employee has not been made the salary or wage of such employee for the month of February shall not be drawn without deducting the amount of tax that remains to be deducted for the aforesaid period. (5) The drawing and disbursing officers shall furnish to the Profession Tax Assessing Authority, having jurisdiction over their places of work, not later than 30th April, a certificate that the tax payable in respect of the employees for whom they drew the pay bills during the year immediately preceding has been deducted in accordance with the provisions of the Schedule appended to the Act. (6) The Profession Tax Assessing Authority may, if it considers necessary, require any drawing and disbursing officer to furnish to him a statement relating to the payment of salaries or wages to the Government employees during any specific period. Such statement shall show the name of the employee, the details of salary drawn, the amount of tax deducted therefrom and the period to which the tax relates. (7) Notwithstanding the provisions of rule 11 and sub-rules (1), (2), and (3) of this rule, the liability of an employee to pay tax shall not cease unless the amount of tax due in respect of him has been fully paid to the Government account, and without prejudice to the aforesaid provisions, the said amount may be recovered from him if the employer or the Profession Tax Assessing Authority is satisfied that the amount has not been deducted from his salary or wages. PART - IV PROFESSIONAL TAX RULES, 1995 325 Rule 14 : Employer to keep account of deduction of tax from the salary of the employees Every employer responsible to deduct and pay tax shall maintain a register in which the amount of salary and wages paid to each of the persons in his employment and the amount deducted from the salary and wages of the employee on account of tax shall be entered. Rule 15 : Method of payment (1) Every employer, other than the Government of Madhya Pradesh, and every person shall pay the amount of tax, penalty or any other amount due from or imposed upon him direct into the treasury. No payment of any such amount shall be accepted in the office of the Profession Tax Assessing Authority or any other Authority appointed under the Act. (2) Every payment under sub-rule (1) shall be made by challan in Form 10 under the head 028-Other Taxes on Income and Expenditure B-Taxes on Professions, Trade, Callings and Employments. The challan shall be in quadruplicate. Rule 16 : Reconciliation of payment In the first week of the month following each month, the Profession Tax Assessing Authority shall prepare a statement in Form 11 and forward it to the Treasury Officer concerned for verification. If any discrepancy is discovered on verification, the Profession Tax Assessing Authority shall send the necessary records to the Treasury Officer for reconciliation of accounts. Rule 17 : Notice under Section 8(4), 8(5), 9(3), 10(4) or 13 The notice for giving reasonable opportunity of being heard under sub-section (4) or sub-section (5) of Section 8 or sub-section (3) of Section 9 or sub-section (4) of Section 10 or Section 13 shall be issued by the Profession Tax Assessing Authority in Form 12. Rule 18 : Notice under Sections 11(3), 11(4) and 16 (1) The notice under clause (a) of sub-section (3) of Section 11 shall be issued by the Profession Tax Assessing Authority in Form 13. (2) The notice under sub-section (4) of Section 11 and Section 16 shall be issued by the Profession Tax Assessing Authority in Form 14. Rule 19 : Order of assessment The order of assessment under Section 11 or under sub-section (2) of Section 16 shall be passed in Form 15. Rule 20 : Notice of demand The notice of demand under Section 14 relating to any tax or penalty payable in consequence of any order passed or in pursuance of any provision of the Act shall be issued by the Profession Tax Assessing Authority in Form 16. Rule 21 : Appeal (1) An appeal under Section 17 shall - (a) be made in Form 17; (b) be presented to the appropriate Profession Tax Appellate Authority by the appellant in person or by his duly authorised agent or legal practitioner or be sent by registered post to such authority; X LAWS IN M.P. (c) contain a clear statement of the relevant facts and state precisely the relief prayed for; (d) be accompanied by an authenticated copy of the order against which appeal is filed, as well as other relevant papers; (e) be duly signed and verified by the appellant; and (f) be accompanied by a treasury receipted challan in proof of having paid in full the amount of tax or penalty in respect of which the appeal is being preferred. (2) An appeal may be summarily rejected on any of the following grounds : (a) non-compliance of the provisions of Section 17; (b) filing of the appeal after the expiry of the period specified in sub-section (2) of Section 17; and (c) non-compliance of any requirement of sub-rule (1). (3) If the Profession Tax Appellate Authority does not reject the appeal summarily under sub-rule (2), it shall fix a date for hearing the appellant or his duly authorised agent. (4) If on the date fixed for hearing or any other date to which the hearing may be adjourned, the appellant does not appear before the said authority either in person or through a person duly authorised by the appellant, the said authority may dismiss the appeal or may decide it ex-parte, as it thinks fit. (5) A copy of the order passed in appeal shall be sent to the appellant and another copy shall be sent to the authority who had passed the impugned order. Rule 22 : Order sanctioning refund of tax (1) When the Profession Tax Assessing Authority is satisfied that a refund of any amount of tax or penalty is due either because of excess payment or the order of the appellate or the revisional authority or any other court, it shall, if the employer or person desires payment in cash, issue to him a refund payment order in Form 18. (2) The Profession Tax Assessing Authority issuing the refund payment order shall intimate the numbers of the books thereof in use for the time being to the Treasury Officer within his jurisdiction. (3) Where the amount of refund is required to be adjusted against any arrears of tax, penalty or any other amount due under the Act, the Profession Tax Assessing Authority shall issue a refund adjustment order in Form 19 in respect of the refund so adjusted authorising the employer or person to deduct that amount from the arrears of tax outstanding against him. (4) In support of any claim for deduction according to sub-rule (3) the employer or person shall attach his copy of refund adjustment order to the challan showing the credit into the treasury of the balance of the amount in respect of which a notice of demand has been issued under Section 14. Rule 23 : Authority sanctioning prosecution The Profession Tax Commissioner shall be the authority for the purpose of sub- section (2) of Section 23. Rule 24 : Order accepting composition money (1) Where the Profession Tax Assessing Authority accepts under Section 25 from any employer or person a sum by way of composition of an offence, it shall make an order PART - IV PROFESSIONAL TAX RULES, 1995 327 in writing in that behalf specifying therein : (i) the sum determined by way of composition; (ii) the date on or before which the sum shall be paid into the treasury; (iii) the authority before whom and the date by which a receipted challan shall be produced in proof of such payment; and (iv) the date by which the employer or person shall report the fact of such payment to the Profession Tax Assessing Authority. (2) The Profession Tax Assessing Authority shall send a copy of such order to the employer or person from whom the said sum is accepted by way of composition. Rule 25 : Restrictions and conditions subject to which powers may be delegated by the Profession Tax Commissioner under sub-section (2) of Section 20 The Profession Tax Commissioner may delegate his powers under sub-section (1) of Section 20 subject to the following restrictions and conditions : (i) The powers under sub-section (1) of Section 20 shall not be exercised in respect of the following: (a) Drawing and Disbursing Officers of the Central Government and the State Government; (b) Persons paying tax at the highest rate leviable under the Act. (ii) The Commercial Tax Inspectors shall not exercise the powers under sub-section (1) of Section 20 delegated to them unless specifically directed, in writing, by the Profession Tax Assessing Authority concerned. Rule 26 : Service of Notices (1) Notice under the Act or the rules made thereunder may be served by any of the following methods namely : (i) by delivering or tendering a copy of the notice to the addressee or any adult member of his family residing with him or to a person regularly employed by him; or (ii) by post : Provided that if upon an attempt being made to serve any such notice by any of the above mentioned methods the authority under whose orders the notice was issued is satisfied that the addressee is keeping out of the way for the purpose of avoiding service or that, for any other reason, the notice cannot be served by any of the above mentioned methods, the said authority shall order the service of the notice to be effected by affixing a copy thereof on some conspicuous part of the addressee’s office or the building in which his office is located or where he habitually resides, or upon any conspicuous part of any place of profession, trade, calling or employment last notified by him and such service shall be deemed to have been duly served on the addressee personally. (2) When the serving officer delivers or tenders a copy of the notice to the addressee personally or to any of the persons referred to in clause (i) of sub-rule (1), he shall require the signature or thumb impression of the person to whom the copy is so delivered or tendered as an acknowledgment of service endorsed on the original notice. (3) When a notice is served by affixing a copy thereof in accordance with the proviso X LAWS IN M.P. to sub-rule (1), the serving officer shall return the original to the authority which issued the notice with the report endorsed thereon or annexed thereto stating that he so affixed the copy, the circumstances under which he did so and the name and the address of the person, if any, by whom the addressee’s office or building in which his office is or was located or his place of profession, trade, calling or employment or residence was identified and in whose presence the copy was affixed. The serving officer shall also state in his report how the signature or thumb impression of the person identifying the addressee’s office or building or place of profession, trade, calling or employment or residence was obtained. (4) When service is made by post, the service shall be deemed to be effective if the notice has been properly addressed and sent by registered post acknowledgment due and unless the contrary is proved, the service shall be deemed to have been effected at the time at which the notice would have been delivered in the ordinary course of postal business. (5) The authority under whose orders the notice was issued shall, on being satisfied from the report of the serving officer or the postal acknowledgement or by taking such evidence as it deems proper that the notice has been served in accordance with the provisions of this rule, record the fact and make an order to that effect. (6) If the authority is not satisfied that the notice has been properly served, it may, after recording as order to that effect, direct the issue of a fresh notice. _______________ FORM - 1 [See rule 3(1)] Application for registration (for employers) To, The Profession Tax Assessing Authority ............................................................ I, hereby apply for a certificate of registration under the Madhya Pradesh Vritti Kar Adhiniyam, 1995 as per particulars given below :-