Amendment status not verified — confirm the current text below against the official source.
After Chapter VI of the principal Act, the following Chapter shall be inserted, new Chapter namely:- VI-.A. "CHAPTER - VI-A. TAX ON PROFESSION, TRADE, CALLING AND EMPLOYMENT. 1 17-A. Definitions.-For the purposes of this Chapter,- (a) "employee" means a person employed on salary and includes,- (i) a Government servant receiving pay from the revenue of the Central Govem- ment or any State Government; (ii) a person in the service of a body whether incorporated or not, which is owned or controlled by the Central Government or any State Government, where such body operates within the municipal area even though its headquarters may be outside the municipal area; and (iii) a person engaged in any employment by an employer, not covered by sub- clauses (i) and (ii); (b) "employer" in relation to an employee earning any salary on a regular basis under him means, the person or the officer who is responsible for disbursement of such salary and includes the head of the office or any establishment as well as the Manager,or Agent of the employer; ' : (c) "half-year" shall be from the 1 st day ofApril to the 30th day of September and from the 1st day of October to the 3 I st day of March of a year; k' " (d) LLm~nth" means a calendar month; " (e) "person" means any person who 'is engaged actively or otherwise in any profession, trade, calling or employment in the State of Tamil Nadu and includes a Hindu undivided family, firm, company, corporation or other corporate body, any society, club. body of persons or association, so engaged, but does not include any person employed on a casual basis; u> "tax" means the tax on profession, trade, calling and employment levied under this Chapter. 11.7-B,Levy ofprofession tax.- (1) There shall be levied by the council a tax on profession, trade, calling and employment. , ;, (2) Every company which transact business and every person, who is engaged actively or otherwise in any profession, trade, calling or employment within the municipal area on the first day ofthe half-year for which return is filed, shall pay half-yearly tax at the rates specified in the Table below in such manner as may be prescribed:- Seriol Average half-yearrly income. Ha&yearly tar. Number. (1) (2) (3) I From To I Rs. Rs. Rs. i I Upto Rs.2 1,000 Nil 2 21,001 30,000 60 ! 3 30,OO 1 45,000 150 6 75,OO 1 and above 600 (3) The rate of tax payable under scb-section (2) shall Ire pllblished by the Commissioner 1 in such manner as may be prescribed. (4) Where a company or person proves that it or he has paid the sum due on account of the tax levied under this Chapter or any tax of the nature of a profession tax imposed under the Central Act 11 Cantonments Act, 1924 for the same half-year to any local authori or cantonment authority of 1924. in the State of Tamil Nadu, such company or person shall not be !' 1 able by reason merely of change of place of business, exercise of profession, trade, calling or employment, or residence, - to pay the tax to any other local authority or cantonment authority. , .. (5) The tax leviable from a firm, association or Hindu undivided family may be levied on any adult member of the firm, association or family. ! (6) Where a person doing the same business in the same name in one or more places within -. the municipal area, the income of such business in all places within the municipal area shall be computed for the purpose of levy of tax and such person shall pay the tax in accordance with the provisions of this Chapter. (7) Where any company, a corporate body, society, firm, body of persons or association pays the tax under this Chapter, any director, partner or member, ds the case may be, of such company, corporate body, society, firm, body of persons or association shall not be liable to pay tax under this Chapter, for the income derived by such director, partner or member from such company, corporate body, society, firm, body of persons or association: Provided that such director, partner or member shall be liable to pay tax under this 1 Chapter for the income derived from other sources. TP) IV-2 EX. (945 )--2 246 TAMIL NADU GOVERNMENT GAZETE EXTRAORDWARU (8) Every person who is liable to pay tax. other than a person earning salary or wage shall furnish to the Commissioner a return in such form, for such period within such date and in such manner as may be prescribed: Provided that subject to the provisions of sub-sections (1 0) and (1 I), such person may make a self-assessment on the basis of average half-yearly income of the previous financial year and the return filed by him shall be accepted without calling for the accounts and without any inspection. (9) Every such return shall accompany with the proof of payment of the 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. C (10) Notwithstanding anything contained in the proviso to sub-section (8), the Commis- sioner may select ten per cent of the total number of such assessment in such manner as may be prescribed for the purpose of detailed scrutiny regarding the correctness of the return submitted by aperson in this connection and in such cases final assessment order shall be passed in accordance with the provisions of this Chapter. (1 1) If no return is submitted by any person under sub-section (8) within the prescribed period or if the return submitted by him appears to the Commissioner to be incomplete or incorrect, the Commissioner shall, after making such enquiry as he may consider necessary, assess such person to the best of his judgment: Provided that' before taking action under this sub-section, the person shall be given a reasonable opportunity of proving the correctness or completeness of any return submitted by him. (12) Every person who is iiable to pay tax under this section, other than a person earning salary or wage,- (a) shall be issued with a pass book containing such details relating to such payment of tax as may be prescribed and if the pass book is lost or accidentally destroyed, the Commis- sioner may, on an application made by the pwnn accompanied by such fee as may be fixed by the Council, issue to such person a duplicate of the pass boob.; (b) shall be allotter' a permanent account number and such person shall,- (i) quote such number in all his returns to, or correspondence with, the Commissioner; (ii) quote such number in all chalans for the payment of any sum due under this Chapter. (13) The rate of tax specified under sub-section (2) shall be revised by the Council once in every five years and such revision of tax shall be increased not less than twenty-five per cent and not more than thirty-five per ceat of the tax ievied immcdiaiely before the date of revisiorl. 1 17-C. Employer's liabilip to deduct and pay tar on behalfof the employees.-The tax 1 I payable by any person earning a salary or wage shall be deducted by his employer from the salary payable to such person, before such salary or wage is paid to him, in such manner as may be prescribed and such employer shall, irrespective of whether such deduction has been made or not when the salary or wage is paid to such person, be liable to pay tax on behalf of such person: Provided that if the employer is an Officer of the State or Central Government, the Government may, notwithstanding anything contained in this Chapter, prescribe the manner in which such employer shall discharge the said liability. 1 17-D. Filing ofreturns by employer.-(l) Every employer'liable to pay tax under this Chapter shall file a return to the Commissioner, in such form, for such period and by such rate as may be prescribed, showing therein the salaries paid by him to the employees and the amount of tax deducted by him in respect of such e~npioyees. TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY --. 247 (2) Every such return shall accompany with the proof of payment of the full amount of tax due according to the return and a return without such proofof payment shall not be deemed to have been duly filed. t 17-E. Assessment of the employer.--( I) The Commissioner. if satisfied that any return filed by any employer under sub-section (I) of section 1 17-D is correct ard complete, shall accept the return. (2) Where an employer has failed to file any mum &subsection ( I ) of section 1 17-D within the time or if the return filed by him appears to the Commissioner to be incorrect or incomplete, the Commissioner shall, after making such enquiry as he considers necessary, determine the tax due and assess tlle employer to the best of his jhdgment and issue a notice of demand for the tax so assessed: Provided that before assessing the tax due, the Commissioner shall give the employer a reasonable opportunity of being heard. 117-F. Penalty and interest.---(I) In addition to the tax assessed under sub-section (1 I) of section I 17-B or sub- section (2) ofsection I 17-E in the case ofsubniission of incorrect or incomplete return, the Commissioner shzll diiect the person or enlployer to pay by way of penalty of one hundred per cent of the difference of the tax assessed and the tax paid as per I return: Provided that no penalty under this sub-section shall be imposed atterthe period ofthree years from the date of the order of the assessment under this Chapter and unless the person affected has had a reasonable opportunity of showing cause against such imposition. (2) On any amount remaining unpaid aAer the dates specified for its payment the person or employer shall pay, in addition to the amount due, interest at such rate not exceeding one percent per mensem of such amount for the entire period of default, as may be prescribed. 1 17-G. Appeal.--(I ) Any person or employer aggrieved by any order or decision of the Commissioner in relation tothe payment oftax (includingpenalty, fe~,and int:rest)may, within such time as may be prescribed, appeal,-- (a) to the Taxation Appeals Tribunal, In rile case of C~rporation; (b) to the Taxation Appeals Committee, in the case of municipality or town panchayat. (2) The decision of the Taxation Appeals Tribunal or the Taxation Appeals Committee, as the case may be, shall be final and shall not be questioned in any court of law: Provided that no suck decision shall be made except after giving the person affected a reasonable opportunity of being heard. I 17-H. Exemptions.-Nothing contained in this Chapter shall apply to,- (a) the members of the Armed Forces of the Union serving in any part of this State, to whom the provisions of the A n y Act. 1950. the Air Force Act. 1950 or the Navy Act, 1957 applies; (b) the members of the Central Reserve Police Force to whom the Central Reserve Police Force ~ c t , 1949 applies and serving in any part of this State; (c) physically disabled persons with total disability in one or both the hands or legs, spastics, totally dumb or deaf persons or totally blind persons: . . Provided that such physical disability shall beduly certified by a Registered Medical Practitioner in the service of the Government not below the rank of a Civil Surgeon; 2-4 I . I. I . - P Y ' L ---. --- -. (d) the members ofthc Central Industrial Security Force to whom the Central Industrial Central .4ct!f Security Force Act, 1968 applies and serving in any part of this State. of 1968 6.1 17-1. Co//ee,ion of fiofes.yion tm during ccr~rliti periods.- (1 ) Notwithstanding the NaduM repeal ofthe Tamil Nadu Tar on Professions, Trades. Callings and Employments 1992 24 (hereakr in this section referred to as the 1992 Act) by the Tamil Nad" Laws (Second Amendment) Act, 1998 (Tamil Nadu Act 59 of 19981, the rates oftax on ~~~~~~~~~~~l trades, callings and employlnents specified in the Schedule to the 1992 Act shall contique to apply for the period commencing on the I st dil\ of April 1')'12 and ending with the 30th day of~eptember 1998 forthe levy and collection of such tax for the said period, where the tax due under the 1992 Act has not been paid for the said,?eriod. (2) The provisions of this chapter, other than the rates of tax specified in sub-section (2) ofsection 1 17-B and the provisions relating to penalty and irW2reSt, Shall mutatis ~ ~ t a ~ ~ d i s apply to the levy and collection of tax for the period mentioned in sub-section (1). - (3) The arrears of tas under the 1992 Act. shall be paid in six equal half-yearly instalments in such manner and within such period as may be ~rescribed.". Amendment of