The Gujarat Finance Act, 1932

The Gujarat Finance Act, 1932

Government of Gujarat

Legislative and Parliamentary Affairs Department

Bombay Act No. II of 1932

The Gujarat Finance Act, 1932

( As modified up to the 31st May, 2012 )

[1932 : Bom. II Gujarat Finance Act, 1932

THE GUJARAT FINANCE ACT, 1932. CONTENTS. PREAMBLE. SECTIONS.

This Act may be called the Gujarat Finance Act, 1932.

(1) Except where it is otherwise provided in this Act, this Act extends to the pre-Reorganisation State of Bombay, excluding the transferred territories. (2) It shall come into force on the 1st day of April 1932.

[Savings] Rep. by Bom. 36 of 1959 s. 49. Sch.

COURT-FEES.—[Repealed.]

This Part extends to- (i) Greater Bombay; (ii) the Cities of Ahmedabad and Poona ; (iii) the limits of the municipal borough of Thana ; (iv) the notified areas of Malad, Kandivali, Borivali and Mulund in the Bombay Suburban District, Bhayandar in the District of Thana and Sabarmati in the District of Ahmedabad, and (v) the limits of the Cantonments of Ahmedabad, Poona and Kirkee.

Unless there is anything repugnant in the subject or context- ; (1) " Annual letting value " means- (a) in Greater Bombay and in the City of Ahmedabad and the City of Poona, the rateable value of buildings or lands as determined in accordance with the provisions of the Bombay Municipal Corporation Act, or the Bombay Provincial Municipal Corporations Act, 1949, as the case may be; (b) in the other Municipal areas, the annual letting value of buildings or lands as determined in accordance with the provisions of section 78 of the Bombay Municipal Boroughs Act, 1925, or section 63 of the Bombay District Municipal Act, 1901, as the case may be ; (c) in the areas of the Cantonments of Ahmedabad, Poona and Kirkee, the annual value as defined by section 64 of the Cantonments, Act, 1924 ; Provided that if in any case the property tax is assessed on any building or land on its capital value, such percentage of the capital value as may be determined by the State Government shall be deemed to be the annual letting value. (2) " Buildings " and "lands " have the same meanings as they have in the Bombay Municipal Corporation Act, the Bombay Provincial Municipal Corporations Act, 1949, the Bombay Municipal Boroughs Act, 1925, the Bombay District Municipal Act, 1901, or the Cantonments Act, 1924, as the case may be; (2A) " City of Ahmedabad " and " City of Poona " respectively means the City of Ahmedabad and the City of Poona as constituted under the Bombay Provincial Municipal Corporations Act, 1949 ; (3) "Urban Immovable Property tax " means a tax leviable under the provisions of section 22; (4) "Municipality " includes a Notified Area Committee ; (5) "Municipal area " means an area within the limits of a municipality (6) "Prescribed" means prescribed by rules ; (7) "Property tax "means in Greater Bombay and in the City of Ahmedabad and the City of Poona, the general tax levied under section 143 of the Bombay Municipal Corporation Act or under section 132 of the Bombay Provincial Municipal Corporations Act, 1949, as the case may be and in other Municipal areas and in the areas of the Cantonments of Ahmedabad, Poona and Kirkee a tax or rate on buildings or lands or a tax or rate in the form of such tax or rate on buildings or lands levied under the Bombay Municipal Boroughs Act, 1925, or the Bombay District Municipal Act, 1901, or the Cantonments Act, 1924, as the case may be ; and (8) " Rules" means rules made under section 29.

There shall, subject to the provisions of section 23, be levied and paid to the State Government a tax on buildings and lands, hereinafter called the " Urban Immovable Property tax " at such rate not exceeding seven per cent. of the annual Letting value of the buildings or lands in such area or areas as may be notified by the State Government in the Official Gazette: Provided that (1) such tax shall be levied and paid to the State Government at such rate not exceeding three and half per cent. of the annual letting value of the buildings or lands not exceeding such amount and in such area or areas as may be specified by the State Government by notification in the Official Gazette ] ; (2) that if any building consists of more than one tenement and

The Urban Immovable Property Tax shall not be leviable in respect of the following:-(a) buildings and lands or portions thereof exclusively occupied for public Worship or for charitable purposes ;(b) buildings and lands vesting in the Central Government;(c) buildings and lands vesting in the State Government or belonging to a Municipality or a local board or a Cantonment Board and used solely for public purposes and not used or intended to be used for purposes of profit ;(d) (i) buildings and lands vesting in the trustees of the Port of Bombay and not used or intended to be used for purposes of profit: and(ii) wharves, docks, piers, Railways and lighthouses (as defined in the Bombay Port Trust Act, 1879) vesting in the Trustees of the Port of Bombay, and used as such and such other properties vesting in the said Trustees as the State Government may notify in this behalf ; and(e) open lands within the limits of the Bombay Suburban and Thana Districts.Explanation.-For the purposes of this section—(1) the following buildings and lands or portions thereof shall not be deemed to be exclusively occupied for public worship or for charitable purposes, namely :-(a) those in which trade or business is carried on ; and (b) those in respect of which rent is derived, whether rent is or is not applied exclusively to religious or charitable purposes;(2) where any portion of any building or land is exempt from the Urban Immovable Property tax by reason of its being exclusively occupied for public worship or for charitable purposes, such portion shall be deemed to be a separate property;(3) " open land " shall mean land which is not built upon or enclosed.

(1) The Urban Immovable Property tax shall be collected—(a) in the areas within the limits of a municipality to which this Part extends under section 20, by the municipality concerned, notwithstanding any law under which such municipality is constituted.(b) in the area of the Cantonment of Ahmedabad, by the Collector of Ahmedabad and in the areas of the Cantonments of Poona and Kirkee, by the Collector of Poona.(2) The collection of the Urban Immovable Property tax shall be made(a) in any area within the limits of a municipality in the same manner in which the property tax collected in the said area, and(b) in the areas of the Cantonments of Ahmedabad, Poona and Kirkee, as an arrear of land revenue:Provided that if in any area within the limits of a municipality no property tax is levied by the municipality concerned, the Urban Immovable Property tax, shall be collected in such manner as may be prescribed.

Notwithstanding anything contained in any law and notwithstanding any rights arising out of any contract or otherwise howsoever, all sums due on account of the Urban Immovable Property tax levied under section, 22 or as a penalty imposed under section 24A for failure to pay such tax, in respect of any building or land, shall, subject to the prior payment of the land revenue, if any due to the State Government thereon, be a first charge upon the said building or land and upon the movable property, if any, found within or upon such building or land and belonging to the person liable for such tax or penalty.

The collection of the Urban Immovable Property tax under section 24 and the recovery of the penalty under section 21A on behalf of any municipality shall be made by the appropriate municipal authority appointed to collect the property tax on behalf of such municipality under the law under which such municipality is constituted

A Municipality required to collect the Urban Immovable Property tax under this Part shall be entitled for its cost of collection to such rebate as may be prescribed.

(1) The Urban Immovable Property tax shall be leviable primarily on the actual occupier of the buildings or lands upon which the said tax is assessed, if he is the owner of the buildings or lands, or holds them on a building or other lease granted by or on behalf of Government, or on a building or other lease from any person or local authority.(2) In other cases the Urban Immovable Property tax shall be primarily leviable as follows:-(a) if the property is let, "upon the lessor;(b) if the property is sublet, upon the superior lessor;(c) if the property is unlet, upon the person in whom the, right to let vests.(3) On failure to recover any sum due on account of the Urban Immovable Property tax from the person primarily liable, there may be recovered from the occupier of any part of the buildings or lands in respect of which the tax is due such portion of the sum due as bears to the whole amount due the same ratio which the rent annually payable by such occupier bears to the aggregate amount of the annual letting value thereof.(4) An occupier who makes any payment for which he is not primarily liable under this section shall be entitled to be reimbursed by the person primarily liable for the payment and may deduct the amount so paid from the amount of any rent from time to time becoming due from him to such person.

(1) If any premises assessed to Urban Immovable Property tax are let and their rateable value exceeds the amount of rent payable in respect thereof to the person from whom, under the provisions of sub-sections (1) to (4) of section 26, the said tax is leviable, the said persons shall be entitled to receive from his tenant the difference between the amount of the Urban Immovable Property tax levied from him, and the amount which would be leviable from him if the said tax were calculated on the amount of rent payable to him.(2) If the premises are sub-let and their rateable value exceeds the amount of rent payable in respect thereof to the tenant by his sub-tenant, or the amount of rent payable in respect thereof to a sub-tenant by the person holding under him, the said tenant shall be entitled to receive from his sub-tenant or the said sub-tenant shall be entitled to receive from the person holding under him, as the case may be, the difference between any sum recovered under sub-section (1) from such tenant or sub-tenant and the amount of Urban Immovable Property tax which would be leviable in respect of the said premises if the rateable value thereof were equal to the difference between the amount of rent which such tenant or sub-tenant receives and the amount of rent which he pays.(3) Any person entitled to receive any sum under sub-sections (1) and (2) shall have, for the recovery thereof the same rights and remedies as if such sum were rent payable to him by the person from whom he is entitled to receive the same.

otherwise than by order of the Municipal Commissioner for Greater Bombay on or after 1st April 1939 and notice in respect of such demolition or removal has been given to the Commissioner under section 153 of the Bombay Municipal Corporation Act, the Municipal Corporation of Greater Bombay shall remit or refund such portion of the Urban Immovable Property tax, in such manner and subject to such conditions as may be prescribed.

(1AA) When any building or land assessed to Urban Immovable Property tax is situated in the City of Ahmedabad or City of Poona-

(a) if a drawback of the property tax is sanctioned in respect of such building or land; (b) if a refund of the property tax is sanctioned in respect of such building or land or any portion thereof;

(c) if such building or any portion thereof is demolished or removed, other-wise than by order of the Municipal Commissioner and notice in respect of such demolition or removal has been given to the Municipal Commissioner, under the provisions of the Bombay Provincial Municipal Corporations Act, 1949, the Municipal Corporation concerned shall remit or refund such portion of the Urban Immovable Property Tax, in such manner and subject to such conditions as may be prescribed.

(1A) When any building or land assessed to Urban Immovable Property tax is situated in any Municipal area other than Greater Bombay, City of Ahmedabad and City of Poona if a remission or refund of the property tax is granted in respect of such building or land under sub-section (2) of section 69 of the Bombay. District Municipal Act, 1901, or sub-section (2) of section 86 of the Bombay Municipal Boroughs Act, 1925, as the case may be, the Municipality concerned shall remit or refund such portion of the Urban Immovable Property tax, in such manner and subject to such conditions as may be prescribed.

(1B) When any building or land assessed to Urban Immovable Property tax is situated in the Cantonment of Ahmedabad, Poona or Kirkee if a remission or refund of the property tax is granted is respect of such building or land under section 75, 76 or 77 of the Cantonments Act, 1924, the Collector of Ahmedabad or Poona, as the case may be, shall remit or refund such portion of the Urban Immovable Property tax, in such manner and subject to such conditions as may be prescribed.

(2) The burden of proving facts entitling any person to claim relief under this section shall be upon him.

(1) If any municipality makes default in the collection or payment to the State Government of any sum due in respect of the Urban Immovable Property tax, the State Government may, after holding such inquiry as it thinks fit, fix a period for the collection or payment of such sum.

(2) If the collection or payment of such amount is not made within the period so fixed, the State Government may, notwithstanding any law relating to the funds vesting in such municipality or any other law for the time being in force, direct any bank in which any moneys of the municipality are deposited or the person in charge of the Government treasury or of any other place of security in which the moneys of the municipality are deposited to pay such sum from such moneys as may be standing to the credit of the municipality in such bank or as may be in the hands of such person or as may from time to time be received from or on behalf of the municipality by way of deposit by such bank or person ; and such bank or person shall be bound to obey such order.

(3) Every payment made pursuant to an order under sub-section (2) shall be a sufficient discharge to such bank or person from all liability to the municipality in respect of any sum so paid by it or him out of the moneys of the municipalities so deposited with such bank or person.

(1) The provisions of this Part shall continue to extend to any area specified in clause (iv) of section 20 notwithstanding such area ceasing to be a notified area, and being declared to be a municipal district under section 4 of the Bombay District Municipal Act, 1901, or a village under section 4 of the Bombay Village Panchayats Act, 1933.

(2) If such area is declared to be a municipal district, the provisions of this Part shall, after such declaration, apply to such area in such manner as they apply to any municipal district constituted under the Bombay District Municipal Act, 1901.

(3) If such area is declared to be a village under section 4 of the Bombay Village Panchayats Act, 1933, the provisions of this Part shall after such declaration apply to such area subject to the following modifications :-

(i) in section 21—

(1) after sub-clause (b) in clause (1), the following new sub-clause shall be inserted, namely :-

" (bb) in villages the annual letting value determined in the manner prescribed ;"

(2) in clause (2)-

(a) after the word "have" where it occurs for the first time the words "in the municipal areas and in the areas of the Cantonments of Ahmedabad, Poona and Kirkee" shall be inserted ; and

(b) after the words " as the case may be " the following shall be inserted, namely:-

" and in village the same meanings as the words houses and lands have in the Bombay Village Panchayats Act, 1933."

(3) after clause (5), the following new clause shall be inserted, namely:-"(5A) 'Panchayat' means a panchayat established under the Bombay Village Panchayats Act, 1933 " ; and

(4) after clause (8) the following new clause shall be inserted, namely :-

"(9) 'Village' means a village as defined in clause (16) of section 3 of the Bombay Village Panchayats Act, 1933 " ;

(ii) in section 22 in the second proviso after the words " Provided further that " the words "in the municipal areas and in the areas of the Cantonments of Ahmedabad, Poona and Kirkee" shall be inserted ;

(iii) in section 23 in clause (c) after the words "local board " the words "or a Panchayat" shall be inserted ;

(iv) in section 24-

(1) in sub-section (1) after clause (b) the following new clause shall be inserted, namely:-

" (c) in the areas within the limits of a village by the Collector or by such officer as he may authorise in this behalf" ; and

(2) in sub-section (2) in clause (b) after the word "Kirkee" the words "and in any area within the limits of a village" shall be inserted ;

(v) in section 24A in sub-section (1) for the words "Collector of Ahmedabad or Poona" the words "Collector concerned " shall be substituted;

(vi) in section 27 after sub-section (1B) the following new sub-section shall be inserted, namely:-

"(1C) When any building or land assessed to Urban Immovable Property tax is situated in any village, if a remission or refund of the tax, levied on the owner or occupier of such building or land under the Bombay Village Panchayats Act, 1933, is granted under the said Act or the rules made thereunder, the Collector concerned shall remit or refund such portion of the Urban Immovable Property Tax, in such manner and subject to such conditions as may be prescribed "; and

(vii) in section 29 in sub-section (2), after the words ''following matters" the following new clause shall be inserted, namely:-

" (aa) the manner in which the annual letting value of buildings and lands in villages shall be determined; "

(4) If any portion of the Urban Immovable Property tax due in respect of any building or land situate within any such notified area for any period prior to its ceasing to be a notified area has remained in arrears on the date on which such area ceased to be a notified area, such portion shall notwithstanding anything contained in this Part or any law for the time being in force, be collected by the same authority by which and in the same manner in which such tax due in respect of the said building or land after such date may be collected.

(1) The State Government may make rules for carrying out the purposes of this Part.

(2) Without prejudice to the generality of the foregoing provision such rules shall provide for the following matters :-

(a) the manner in which the Urban Immovable Property tax shall be collected in any municipal area a which no property tax is levied;

(b) the amount of rebate to which a municipality or other authority would be entitled under section 25 for the cost of collection of the Urban Immovable Property tax;

(c) the time at and the manner in which the amount of the Urban Immovable Property tax collected shall be paid to the State Government;

(d) the portion of the Urban Immovable Property tax which shall be refunded or remitted, and the manner in which, and the conditions subject to which, such remission or refund shall be granted;

(e) such other matters which in the opinion of the State Government are required to be prescribed by rule

(3) The rules made under this section shall be subject to the condition of previous publication.

In the Bombay Entertainments Duty Act, 1923, for sub-section (1) of section 3, the following shall be substituted, namely :— "(1) There shall from the 1st day of April 1948 be levied and paid to the Government of Bombay on all payments for admission to any entertainment a duty (hereinafter referred to as 'entertainments duty') at the following rate, namely :— Where the payment, excluding the amount of duty, is made for admission to a race course licensed under the Bombay Race Course Licensing Act, 1912, 371/2 per cent, of such payment and in any other case, where the payment excluding the amount of the duty- (i) does not exceed four annas ... one anna. (ii) exceeds four annas but does not exceed eight annas ... two and half annas. (iii) exceeds eight annas but does not exceed one rupee ... five annas. (iv) exceeds one rupee but does not exceed two rupees ... ten annas. (v) exceeds two rupees but does not exceed four rupees ... one rupee and four annas. (vi) exceeds four rupees but does not exceed five rupees ... two rupees. (vii) exceeds five rupees but does not exceed ten rupees ... two rupees and eight annas. (viii) exceeds ten rupees, for every five rupees or part thereof in excess of the first ten rupees, in addition to the payment on the first ten rupees ... two rupees and eight annas."

In the Bombay Betting Tax Act, 1925,- (a) in section 5, for the figures and words " 10 per cent." the figures and words "12 1/2 per cent." shall be substituted; (b) in section 8, for the figures and words " 10 per cent." the figures and words " 121/2 per cent." shall be substituted.