The Punjab Professions, Trades, Callings and Employments Taxation Act, 1956

(i) This Act may be called the Punjab Professions, Trades, Callings and Employments Taxation Act, 1956. (ii) It extends to the whole of the Union territory of Chandigarh. (iii) It shall come into force in the State of Punjab on such date as the State Government may by notification in the Official Gazette appoint.

In this Act, unless there is anything repugnant in the Subject or Context,— (a) “Prescribed” means prescribed by rules under this Act; (b) “total gross income” means aggregate of gross income derived from various professions, trades, callings and employments; (c) “previous year” means twelve months ending on the 31st March next proceeding the year of assessment; (d) “person” includes Hindu undivided family or an incorporated Company; (e) “assessing authority” means any person authorised by the Central Government to make any assessment under this Act.

Every person who carries on trade, either by himself or by an agent or representative, or who follows any profession or calling, or who is in employment, either wholly or in part within the Union territory of Chandigarh shall be liable to pay for each financial year a tax in respect of such profession, trade, calling or employment: provided that for the purpose of this section a person in representative capacity shall be deemed to be a person in employment.

The tax shall be levied at the rates specified in the schedule annexed to this Act.

The tax payable by any person under this Act shall be determined with reference to his total gross income during the previous year; provided that the tax payable by any person shall not exceed two hundred and fifty rupees for any financial year. Explanation.—In computing the total gross income of any person under this section—. (a) the following expenses incurred by him in respect of a manufacturing concern shall be excluded,— (1) productive wages, that is to say, expenses on direct labour which can be measured and directly charged to a job, order or product; (2) materials consumed, that is to say, expenses on direct materials, with all charges thereon, including carriage inwards, freight, dock dues; (3) direct expenses of production, that is to say, expenses consisting of: (i) rent, rates, taxes, insurance of factory, (ii) gas, fuel, lighting and heating, (iii) patent fees and royalties; (iv) non-productive wages of store-keepers, firemen, enginemen, time-keepers, factory clerks, superintendents and managers; and (v) repairs, renewals and depreciation of machinery, tools, lands and buildings; (b) the following expenses incurred by him in respect of a trading concern shall be excluded :— (i) purchases; (ii) carriage inwards; (iii) wages; and (iv) other direct expenses not being selling and office expenses; and (c) an amount equal to five per centum of the aggregate gross income derived by a person from the profession of calling, if he maintains an office or establishment in connection therewith in the ordinary course of such profession or calling, shall be excluded.

The provisions of this Act shall not apply to a member of the Armed Forces of India.

Any tax payable under this Act is not paid within such time as may be fixed by rules under this Act shall be recoverable as an arrear of land revenue.

In the case of persons serving under the State Government or in the employment of local authority the tax which any such person in employment is liable to pay shall be deducted at the source in the manner prescribed with reference to his total gross income. The amount of the tax deducted in respect of such persons shall be credited into Government Treasury by the Treasury Officer or by the local authority concerned within fifteen days of such deduction, failing which it shall be liable to pay interest on the amount so deducted at 6 per cent per annum.

(1) The assessing authority may require any person to file a return of his total gross income and to attend before him and to give evidence or produce documents in the manner prescribed for the purpose of determining such person's liability under this Act. (2) Such person shall be legally bound to attend and give evidence or to produce the document if in his possession or power, as the case may be, at the place and time specified in the notice, and whoever is required to produce a document may either attend to produce it or cause it to be produced.

Any person liable to pay tax under this Act who— (a) fails to submit a return as required by sub-section (1) of section 8 or submits a false return; or (b) fails to appear and given evidence or to produce documents either in person or through his agent before the Assessing Authority; or (c) knowingly produces incorrect accounts, registers or documents, or knowingly furnishes incorrect information; shall be assessed summarily to the maximum rate specified in the Schedule annexed to this Act.

If in consequence of definite information which has come into his possession, the assessing authority discovers that a person has escaped assessment or under-assessed for any financial year, the assessing authority may, at any time within three years of the end of the year to which the tax relates, assess or re-assess him.

Where any person fails to pay within such time as may be fixed by rules under this Act any amount due from him on account of the tax assessed on him under this Act, the assessing authority may recover from such person the penalty in addition to the tax so assessed: Provided that no such penalty shall be recovered from such person without affording a reasonable opportunity to him and unless the assessing authority is satisfied that he has wilfully failed to pay the tax.

(1) Any person who has been informed of his liability to pay the tax under this Act or the penalty recoverable under section 8-C or who is otherwise aggrieved by an order, passed under this Act or the rules made thereunder may, within thirty days from the date of receipt by him of the information of the order, make an appeal to such authority as may be prescribed in this behalf by the Central Government and that authority shall, thereupon, pass such order as it may think fit after affording a reasonable opportunity to the parties affected thereby of being heard: provided that no appeal shall be entertained unless the appellate authority is satisfied that the amount of tax and the penalty, if any, recoverable assessed on the assessee has been paid. (2) Any person aggrieved by an order made under sub-section (1) may, within thirty days from the date of the receipt by him of the order apply to Central Government or to such authority as the Central Government may, by notification, appoint in this behalf, for its revision. The Central Government or the authority so appointed, as the case may be, may thereupon pass such order in relation thereto as it may think fit after giving the applicant and such other person as may be affected by the order a reasonable opportunity of being heard. (3) Subject to the provisions of sub-section (2), the Central Government or the authority appointed in this behalf by the Central Government may, on its own motion or on an application made to it, call for the record of any proceedings which are pending before or have been disposed of by any assessing or appellate authority under this Act for the purpose of satisfying itself as to the legality or propriety of such proceedings or of any order made therein and pass such order in relation thereto as it may deem fit: Provided that no order shall be made under this sub-section which adversely affects the rights of a person without giving such person a reasonable opportunity of being heard.

Any proceeding before any authority under this Act shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purpose of section 196 of the Indian Penal Code.

Where the Central Government is of the opinion that it is necessary or expedient, in the public interest so to do, it may, by notification and subject to such conditions, if any, exempt any person or class of persons from the operation of this Act.

No civil court shall entertain any suit instituted or application made to obtain a decision or orders on the liability of any person to pay the tax and no prosecution, suit or other proceedings shall lie against any servant for anything done, or intended to be done in good faith under this Act or any rule made thereunder.

(1) The Central Government may make rules for carrying into effect the provisions of this Act. (2) In particular and without prejudice of the foregoing power, the Central Government may make rules in regard to— (a) all matters which are required to be prescribed under this Act; (b) the manner in which persons liable to pay the tax and the penalty shall be informed of his liability; (c) the time at which, and the manner in which the tax and the penalty if any, payable under this Act shall be paid; (d) the conditions subject to which the tax payable under this Act or part thereof may be refunded; (e) the procedure for claiming a refund of the tax payable under this Act or part thereof; (g) the remission in whole or in part of the tax payable under this Act; and (h) the procedure to be followed in hearing appeals and applications for revision under this Act, the fees to be paid in respect of, and the documents which shall accompany, such appeals and applications and the period within which they shall be filed.