The Mizoram Professions, Trades, Callings and Employments Taxation Act, 1995

Regd. No. NE 907

Vol XXIV Aizawl, Thursday 16.11.1995 Kartika 25. S.E. 1917 Issue No. 514

NOTIFICATION

No. H.12018/63/95-LJD, the 15th November, 1915. The following Act of the Mizoram Legislative Assembly which received the assent of the Governor of Mizoram is hereby published for general information.

THE MIZORAM PROFESSIONS TRADES, CALLINGS AND EMPLOYMENTS TAXATION ACT, 1995, (The Mizoram Act No. 7 of 1995) Received the assent of the Governor of Mizoram“November, 1995.

AN ACT

to levy an a tax on professions, trades, callings and employments in the State of Mizoram to make an additional resources to the revenue of Mizoram and, for that purpose, it is expedient to impose a tax on professions, trades, callings and employments.

Be it enacted by the Legislative Assembly of Mizoram in the Forty Sixth Year of the Republic of India as follows:-

(1) This Act may be called the Mizoram Professions, Trades, Calling Employment Taxation Act, 1995. (2) It shall extend to the whole of Mizoram excluding the areas Lai, Mara and Chakma Autonomous District Councils in Chhimtuipui District. (3) It shall come into force on such date as the State Government notification in the Official Gazette, appoint.

In this Act, unless the context otherwise requires – (a) “Appellate Assistant Commissioner of Taxes” means a person to be an Appellate Assistant Commissioner of Taxes under sub-(2) of Section 7: (b) “assessee” means a person whom tax is payable under the provision of this Act; (c) “assessing authority” in a particular area means the Superintendent of Taxes referred to in section 7 exercising jurisdiction in that area; (d) “persons” include a company, firm or other association of persons; (e) “prescribed” means prescribed by rules made under this Act: (f) “previous Year” means twelve months ending on the 31st March next preceeding to the year for which assessment is to be made; (g) “principal officer” means with reference to- (i) a Government, the head of an office or the disbursing officer; (ii) a local authority, company, firm or other association of persons, the Chairman, Secretary, Treasurer, Manager or Agent of such local authority, company, firm or other association of persons; (h) “State” means the State of Mizoram; (i) “total gross income” means aggregate of income derived from all sources.

As from the date which may be notified by the State Government in the Official Gazette and subject to the provisions of this Act, every person who carries on a trade either by himself or by an agent or representative, or who follows a profession or calling or who is employment either wholly or in part within State shall be liable to pay or each financial year a tax in respect of such profession trade calling or employment and in addition to any tax rate duty of fee which he is a liable to pay under any other enectment for the time being in force; Provided that for the purposes of this section, a person on leave shall be to be deemed to be a person in employment.

The tax shall be levied at the rates specified in the Schedule annexed to this Act Provided that the tax payable by any person shall not exceed two thousand five hundred rupees for any financial year.

The tax payable by any person under this Act shall generally be determined with reference to his total gross income during the previous year from his profession, trade, calling or employment; or with reference to his standing in the profession, trade, calling or employment, as the case may be, and as specified in the Schedule annexed to this Act; Provided that the provisions of this Act shall not apply to a member of the Armed Forces of India or to a Co-operative Society registered or deemed to have been registered under the Mizoram Co-operative Societies Act, 1991

(1) There shall be the following classes of Taxing Authorities for the purposes of this Act, namely :- (a) Commissioner of Taxes; (b) Deputy Commissioner of Taxes; (c) Appellate Assistant Commissioner of Taxes; (d) Assistant Commissioner of Taxes; (e) Superintendent of Taxes; (f) Inspector of Taxes. (2) The State Government may appoint one Commissioner of Taxes and as many Deputy Commissioner of Taxes, Appellate Assistant Commissioner of Taxes, Assistant Commissioner of Taxes, Superintendent of Taxes and Inspector Taxes. as it thinks fit. (3) The Commissioner of Taxes shall perform his functions in respect of whole of the State of Mizoram and the Deputy Commissioner of Taxes, Assistan Commissioner of Taxes, Superintendent of Taxes and Inspector of Taxes shall perform their functions in respect of such areas or of such persons of classes of persons or of such income or classes of income or of such cases or classes of cases as the Commissioner of Taxes may by notification in the Official Gazette direct.

(1) Every person liable to pay tax under this Act shall submit to the assessing authority a return in such form and within such time as may be prescribed : Provided that a person in respect of whom the tax has been deducted under the provisions of section 12 shall, subject to the provisions in sub-section (3) thereof, be exempted from the liability to submit a return under this sub-section. (2) In the case of any person who has not furnished a return under sub-section (1) inspite of his liability to pay tax under this Act for any financial year the assessing authority may serve in that year a notice, in the prescribed form on such person requiring him to furnish the return, and such person shall there upon furnish the return within the period specified in the notice : Provided that any person offering to pay tax at the highest rate specified in the Schedule shall not be required to submit any return or to produce any evidence.

(1) If the assessing authority is satisfied that a return furnished under section 7 is correct and complete, he shall by an order in writing, assess the person and determine the tax payable by him on the basis of such return. (2) If the assessing authority is not satisfied that a return furnished under section 7 is correct and complete, he shall serve on the person concerned a notice requiring him, on such date, hour and place to produce evidence in support of the return. (3) On the day specified in the notice under sub-section (2) or as soon after wards as may be, the assessing authority, after hearing such evidence as may be produced and such other evidence as he may require, shall by an order in writing, assess the person and determine the tax payable by him. (4) If any person fails to make a return as required by section 7 or having made the return fails to comply with the terms of the notice issued under sub-section (2), the assessing authority shall, by an order in writing, assess to the best of his judgement the person and determine the tax payable by him: Provided that before making assessment, the assessing authority may allow the person such further time as he thinks fit to make the return or comply with the terms of the notice issued under sub-section (2).

If for any reason any person has not been assessed or has been under-asseseed for any financial year the assessing authority may, notwithstanding anything contained in sub-section (2) of section 7, at any time within three years of the and of that year, serve on the person liable to pay the tax, a notice containing all or any of the requirement which may be included in a notice under sub-section (2) of section 7 and may proceed to assess or reassess him and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were issued under that sub-section :

Provided that the tax shall be charged at the rate at which he would have been charged if the person would not have escaped assessment or full assessment, as the case may be.

(1) The authority which made an assessment or passed an order on appeal or revision in respect thereof, may of his own motion, and shall if an application is filed in this behalf within three years from the date of such assessment or order rectify any mistake apparent from the records of the case:

Provided that no such rectification having adverse effect upon as assessee shall be made unless the assessee has been given a reasonable opportunity of being heard.

(2) Where any such rectification has the effect of reducing the assessment, the assessing authority shall order any refund which may be due to such person.

(3) Where any such rectification has the effect of enhancing the assessment or reducing the refund, the assessing authority shall serve on the person a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 17 and the provisions of this Act shall apply accordingly.

(1) The tax payable under this Act by any person in the employment of any Government, local authority, company, firm or other association of persons shall in the manner prescribed, be deducted by the principal officer thereon from any amoun payable to such person on behalf of such Government, local authority company, firm or other association of persons.

(2) The principal officer making any deduction under sub-section (1) shall submit to the as-sessing authority such return and within such time as may be prescribed.

(3) The assessing authority may take action, if he thinks fit in the manner provided under sub-section (2) of section 7 and under secdon 8, in the case of any person in respect of whom he is satisfied that no return under sub-section (2) of section 7 has been furnished or a return furnished under that sub-section is inaccurate or deficient.

(4) Where any principal officer fails to deduct any tax or after deducting fails to pay it as required by or under this Act, he shall, without prejudice any other consequences he may incur under this Act, be deemed to be a person in default in respect of the tax not deducted or paid and all the provisions section 19 shall apply to him

Provided that the assessing authority shall not make a direction under sub-section (2) of section 19 for the recovery of any penalty from such person unless it is satisfied after giving the person reasonable opportunity of being heard to that such person has wilfully failed to deduct and pay the tax.

The assessing authority may require a principal officer to deduct from any payment to a person, any tax or penalty due from him and the principal officer shall comply with such requisition.

The principal officer deducting or paying any tax under the provisions of this Act is bereby indemnified for such deduction of payment thereof.

(1) Any person aggrieved by an order passed under this Act by an assessing authority not being an order passed under this section, may appeal to the Appellate Assistant Commissioner of Taxes against such order within sixty days from the date of service of such order, in the manner prescribed :

Provided that no appeal against an order of an assessment or penalty shall be entertained by the Appellate Assistant Commissioner of Taxes unless he is satisfied that the amount of Tax assessed or penalty imposed if not otherwise directed by him, has been paid :

Provided further that the Appellate Assistant Commissioner of Taxes before whom the appeal is filed, may admit it after expiration of sixty days, if he is satisfied that for reasons beyond the control of the appelant or any other sufftcient cause it could not be filed within the specified time.

(2) The Appellate Assistant Commissioner of Taxes shall fix a day and place for hearing the appeal, and may from time to time, adjourn the hearing and make such further enquiry as he thinks fit.

(3) In disposing of the appeal under sub-section (1) against an order of assessment or pen-alty the Appellate Assistant Commissioner of Taxes may,

(a) confirm, reduce, enhance, or annul the assessment;

(b) set aside the assessment and direct a fresh assessment after such cnquiry as may be ordered:

(c) confirm, reduce or annul the order of penalty.

(1) The Commissioner may, out of his own motion call for and examine the records of any proceedings which have been taken under this Act by any Officer subordinate to him and revise, subject to the provisions of this Act, and after such enquiry as may be deemed necessary, any order passed in such proceedings:

Provided that no order prejudicial to a person shall be passed under this sub-section without giving him a reasonable opportunity of being heard.

(2) The Commissioner may, also on petition filed within sixty days of the Service of the order passed under section 15 and after giving the petitioner an opportunity of being heard, pass such order as he thinks fit:

Provided that the Commissioner before whom the petition is filed may admit if after the expiry of the period of sixty days if he is satisfied that for reason beyond the control of the petitioner or for any other sufficient cause, it could not be filed within time.

The Commissioner may, by notification in the official Gazette, delegate the powers under section 15 to any other officer not below the rank of Deputy Commissioner of Taxes.

Where any tax or penalty is payable in consequence of any order passed under or in pursuance of this Act, the assessing authority shall serve on the person concerned a notice of demand in the prescribed form specifying the amount so payable.

(1) The Tax or penalty under this Act shall be paid in the manner hereinafter provided.

(2) Every person liable to furnish a return under sub-section (1) of section 7 shall, before he furnishes the return. pay into a Government treasury the full amount of tax due on the basis of such return and shall furnish, along with the return, a receipt from such treasury in token of such payment.

(3) The Principal officer deducting any tax under section 11 shall pay the amount to a Gov-ernment treasury within thirty days of such deduction and shall furnish, along with the return required to be made under sub-section (2) thereof a receipt from such treasury in token of such payment.

(4) The amount of tax or penalty due under this Act-

(a) in excess of payment already made or

(b) where no payment has been made shall be paid by such date as may be specified in the notice of demand and, where no such date is specified, it shall be paid within thirty days of service of the notice of demand.

(1) Where any tax or other dues payable under this Act is not paid on or before the due date the person shall be deemed to be in default:

Provided that where a person has presented an appeal or petition for revision which has been admitted, he shall not be deemed, for so long as the appeal or petition for revision remain pending, to be in default in respect of the portion of the dues in dispute.

(2) Where a person is in default, the assessing authority may, after giving him reasonable opportunity of being heard in his discretion direct that, and in addition to the amount due a sum not exceeding that amount shall be recovered from the defaulter by way of penalty.

(3) Where a person is in default, the assessing authority shall order that the amount due shall be recoverable as an arrear of land revenue and shall proceed to realise the amount due as such.

Any person who has paid any tax or penalty in excess of the amount due under this Act, may, within ninety days of the service of the order of assessment or that passed on appeal or revision as the case may be apply for a refund and the amount paid in excess shall be refunded accordingly.

Whoever -

(a) fails, without reasonable cause, to submit in due time any return required by or under the provisions of this Act or submits a false return ; or

(b) fails or neglects, without reasonable cause, to comply with any requirement made of, or any obligation laid on him under the provisons of this Act; or

(c) fraudulently evades payment of any tax due under this Act, or conceals his liability to tax;

shall, on conviction before a magistrate and in addition to any tax or penalty or both that may be due from him; be punishable with imprisonment which may extend to six months or with fine not exceeding five hundred rupees or with both.

(1) The assessing authority may, by a written notice require any person to attend before him and give evidence or produce documents, as the case may be, for the purpose of determining the liability of himself or of any other person liable to taxation under this Act.

(2) Such person shall on such requisition be legally bound to attend and give evidence or produce documents, if in his power and possession, as the case may be, at the place and time specified in such notice, and whoever is required to produce a document may eitheir attend and produce it or cause it to be produced.

The assessing authority may demand from the principal officer of any Government, local authority, company, firm or other association of persons the names and complete address of all or any of the persons who have been, or are, in the employment of such Government, local authority, company, firm or other association of persons and such principal officer shall thereupon furnish the assessing authority with the names and addresses so demanded.

No suit shall be brought in any civil court to set aside or modify assessment made or order passed under the provisions of this Act, and no prosecution suit or other proceedings shall lie against any officer of the Government for anything in good faith done or intended to be done under this Act or the rules made thereunder.

In computing the period of limitation prescribed for an appeal or a revision the day on which the order complained of was made and the time requisite for obtaining a copy of such order shall be excluded.

Any person liable to pay tax under this Act shall ordinary be assessed by the assessing authority of the area in which he carries on a trade, or follows a profession or calling or is in employment.

The State Government may, by notification in the Oficial Gazette, either wholly or partially and subject to such condition as it may think fit to prescribe exempt any person from the payment of tax under this Act, for any specified period or occasion or as regards any specified class of persons.

(1) The State Government may make rules for carrying out the provisions of this Act. (2) Every rule made under this section shall be laid, as soon as may be after it is made, before the Mizoram Legislative Assembly while it is in session for a total period of seven days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session in which it is so laid or the session immediately following, the Mizoram Legislative Assembly agree in making any modification in the rule or the Mizoram Legislative Assembly agree that the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

On and from the commencement of this Act, the Mizo District (Professions, Trades, Callings and Employments Taxation) Regulation, 1963 as adapted and amended from time to time shall stand repealed: Provided that anything done or any action taken under the said Regulation so repealed shall be deemed to have been done or taken under the corresponding sections of this Act.

Sl. No. Class of person Rate of tax. 1 2 3 1. Salary and wage earners where the total gross Amount of tax per annum (1) Does not exceed Rs. 10,000/- -NIL- (2) Exceeds Rs. 10,000/- but does not Rs. 100/exceed Rs. 15,000/- (3) Exceeds Rs. 15,000/- but does not Rs. 150/exceed Rs. 20,000/- (4) Exceeds Rs. 20.000/- but does not Rs. 200/exceed Rs. 25,000/- (5) Exceeds Rs. 25,000/- but does not Rs. 250/exceed Rs. 35,000/- (6) Exceeds Rs. 35,000/- but does not Rs. 300/exceed Rs. 50,000/- (7) Exceeds Rs. 50,000/- but does not Rs. 500/exceed Rs. 75,000/- (8) Exceeds Rs. 75,000/- but does not exceed Rs. 750/exceed Rs. 1,00.000/- (9) Exceeds Rs. 1,00,000/- but does not Rs. 1,000/- exceed Rs. 1,50,000/- (10) Exceeds Rs. 1,50,000/- but does not Rs. 1,500/- exceed Rs. 2,00,000/- (11) Exceeds Rs. 2,00,000)- but does not Rs. 2,000/exceed Rs. 2,50,000/- (12) Exceeds Rs. 2,50,000/- Rs. 2,500/- 2. (1) Legal practitioners including solicitors and notaries public; (2) Medical practitioners including medical consultants and dentists; (3) Teclinical and professional consultants including Architects, Engineers, Chartered Accoun- tants, Actuaries, management consultants, Accountants, whose standing in any of the professions mentioned is- (a) 3 years or less Rs. 300/- per annum. (b) above 3 years but less than 5 years. Rs. 500/- per annum. (c) 5 years or more but less than Rs. 750/- per annum. (d) 10 years and above Rs. 1,000/- per annum. 3. Chief Agents, Principal Agents, Special Agents, Insurance Agents and Surveyors or loss Assecors registered or licensed under the Insurance Act, 1938 whose standing in any such professions is - (i) 3 years or less - NIL - (ii) above 3 years but less than 5 years Rs. 250/- per annum. (iii) 5 year or more but less than 10 years Rs. 500/- per annum (iv) 10 years above Rs. 1,000/- per annum 4. (i) Estate Agents or Rs. 1,000/- per annum. promoters or Brokers or Commission Agents or delcredere agents or mercantile agents. (ii) Directors (other than Rs. 1,000/- per annum. nominated by Government) of Companies registered under the Companies Act, 1956. 5. (a) Contractors of all descriptions 0.5 per cent of the total contracted or classes engaged in any work. amount subject to a maximum of Rs. 2,500/- per annum. (b) Suppliers of all descriptions 0.5 per cent of gross business in engaged in any supply work. a year subject to a maximum of Rs. 2,500/- per annum. EXPLANATION : For the purpose of this entry “gross business” shall mean the aggregate of the amount of the valuable consideration or part thereof receivable during the immediately preceeding year in respect of a contractor supply works executed wholly or partly during such year. 6. Any dealer whose annual gross turnover or income on all sales is - (1) Less than Rs. 20,000/- -NIL - (2) Exceeds Rs. 20,000/- 0.5 per cent of such annual gross turnover subject to a maximum of Rs. 2,500/- EXPLANATION : For the purpose of this entry, “annual gross turnover” shall mean the turnover of sales made during the year immediately preceeding the year of assessment. 7. (1) Owners or lessees of petrol/diesel Rs. 1,200/- per annum filling stations and service stations, agents and distributors (2) Mills owners of Rice Atta/Flour Rs. 500/- per annum. Oil other than cottage and tiny units as notified by Government (3) Owner/occupier of distilleries, Rs. 1,200/- per annum. breweries and botling plants. (4) Licensed foreign liquors vendors Rs. 2,000/- per annum. and employer of residential hotels of three starred category and above. (5) Employers of residential hotels Rs. 1,000/- per annum. below three starred category. (6) Owners of Restaurants/Hotels “Rs. 500/- per annum.“ (Where food is served) 8. Owners, licensees or lessees as the case may be of (a) Video parlours and video rental Rs. 500/- per annum.“ Libraries. (b) Cinema Hous s and Theatres Rs. 1,500/- per annum. (c) Cold Storages Rs. 1,000/- per annum. (d) Meat processing units Rs. 1,000/- per annum. 9. Holders of permits for transport vehicles, granted under Motor Vehicles Act,1988. which are issued or adopted to be used for hire or reward where any such person holds permit or permits for any Taxis, It is Commercial Vehicles, Trucks or Buses (i) In respect of each Taxi or Light Rs. 300/- per annum. Commercial Vehicle. (ii) In respect of each Truck or Bus. Rs. 500/- per annum. 10. Individuals, Clubs, Association/ Rs. 1,000/- per annum. Organisation or Institutions conducting chit Funds and Lotteries. Banking Companies as defined in the Banking Regulation Act, 1949. 11. Banking Companies as defined in Rs. 2,000/- per annum. the Banking Regulation Act, 1949 12. Companies registered under the Rs. 2,000/- per annum. Companies Act, 1956 and engaged in any Professions, Trades or Callings. 13. Partnership firms when engaged Rs. 1,500/- per annum. in any Professions, Trades or Callings. 14. Person other than mentioned in Rate of Tax shall be as may be fixed any professions, trades, callings or by notification not exceeding Rs. 2,500/employments and in respect of per annum. whom notification is issued under section 3 of this Act. Notwithstanding anything contained in this Schedule where a person is covered by more than one entry in this Schedule, the highest rate of tax specified under any of these entries shall be applicable in his case. P. Chakraborty, Secretary to the Govt. of Mizoram. Law, Judicial & Parliamentary Affairs Department. Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C-1,000