The manipur professions, trades, callings and

EMPLOYMENTS TAXATION ACT, 1981.

(MANIPUR ACTS OF 1981)

CHAPTER – I

1. 
   (
   Short title, extent and commen-cement
   1) This Act may be called the Manipur Professions, Trades, Callings and Employments Taxation Act, 1981.
   

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazettee, appoint and different dates may be appointed for different areas and for different provisions of this Act.

2. 
   I
   Defini-tions
   n this Act unless there is any thing repugnant in the subject or content, –
   

1. 
   “assessing authority” in a particular area means (any one of the taxing authorities)¹ referred to in section 6 exercising jurisdiction in that area;
   
2. 
   “assessee” means a person by whom tax is payable under the provisions of this Act;
   
3. 
   “assessment years” means the period of twelve months commencing on the 1^st day of April every year;
   
4. 
   (“person” means any person who is engaged in any profession, trade, calling or employment in Manipur, and includes a Hindu undivided family, firm, company, corporation or other corporate body, any society, club or association so engaged, but does not include any person who earns wages on a casual basis;)²
   
5. 
   “prescribed” means prescribed by rules made under this Act;
   
6. 
   for the purpose of this Act “previous year” means :-
   

1. 
   the twelve months ending on 31^st March immediately preceeding the assessment year; or
   
2. 
   if the accounts of the assessee have been made upto-date within the said period of twelve months then at the option of the assessee the twelve months ending on such date:
   

3. 
   in the case of any person or business or class of persons or business not falling within sub-clauses (i) or (ii) such period as may be determined by the Commissioner or by an authority authorised by the Commissioner in this behalf;
   

7. 
   (“principal officer” means with reference to –
   

(ii) a local authority, firm, company, corporation or other corporate body, society, club or association of persons, the Chairman, Secretary, Treasurer, Manager or Agent of such local authority, firm, company, corporation or other corporate body, society, club or association of person;)¹

8. 
   (“total gross income” means aggregate of income derived from salary or wages earned by an employee in respect of his employment, but shall not include overtime wages, pensions, local allowances, sumptuary allowances, medical allowances house rent allowances conveyance, travelling or such other allowances of compensatory nature as may be specified by the State Government by notification in the official Gazette”;)²
   
9. 
   “employee” means a person employed on salary or wages and includes, –
   

1. 
   a Government servant receiving pay from the revenues of the Central Government or any State Government;
   
2. 
   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 the body operates in any part of the State, even though its head-quarters may situate outside the State; and
   

10. 
    “Sate Government” means the State Government of Manipur.
    
11. 
    “Sate” means State of Manipur.
    
12. 
    “tax” means the tax payable under this Act.)³
    

LIABILITY TO AND CHARGE OF TAX

3. 
   (1) As from assessment year commencing from the 1^st day of April of every year and subject to the provisions of this Acts, 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 in employment either wholly or in part within the State shall be liable to pay for each assessment year a tax (with reference to his total gross income of the previous year)¹ with regard to such professions, trade, calling or employment and in addition to any tax, rate, duty or fee which he is liable to pay under any other enactment for the time being in force :
   

(Provided further that the entry 2(xvi) in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification in the Official Gazettee from time to time.)³

(2) (The tax payable by any person for an assessment year under sub-section (1) shall be deducted at source or paid in advance where it is so deductible or payable under any provision of this Act.

Explanation (I) – The tax payable by an employer for an assessment year shall be determined with reference to his total gross income during the previous year.

Explanation (II) – (a) a person on leave shall be deemed to be continuing in the employment.

(b) an employee of the State Government or a Corporation owned or controlled by the State Government shall be deemed to be employment within the State even though he is working for the time being outside the State)⁴

4. 
   The tax shall be levied at the rates specified in the Schedule annexed to the Act.
   
5. 
   (Exemption –
   
   1. 
      Nothing contained in this Act shall apply to the members of the armed forces of the Union serving in any part of Manipur.
      
   2. 
      The State Government may by notification in the Official Gazette, exempt from levy of the tax under this Act any class or persons, if it considers necessary to do so, in the public interest.)¹
      

TAXING AUTHORITIES

6. 
   (
   Taxing authorities and their appointment
   1) There shall be the following classes of taxing authorities for the purposes of this Act, namely –
   
   1. 
      Commissioner of Taxes,
      
   2. 
      Deputy Commissioner of Taxes,
      
   3. 
      Taxation Officer,
      
   4. 
      Additional Taxation Officer,
      
   5. 
      Inspectors,
      
   1. 
      Commissioner of Taxes shall be the Commissioner under this Act and shall exercise such powers and perform such duties as may be required by him by the Act or the rules made thereunder.
      
   2. 
      The State Government may by notification in the Official Gazette, appoint as many Taxation Officer, Additional Taxation Officer and Inspectors as may be necessary for carrying out the purposes of this Act and may in the same or like notification define the local limits of their jurisdiction.
      
   3. 
      The powers and duties of the Commissioner, Taxation Officer, Additional Taxation Officer and Inspectors and their relation with one another shall be such as may be prescribed.
      

(1) Every principal officers or employer (not being an officer of the Government) liable to pay tax under sub-section (1) of Section 11 shall obtain a certificate of registration from the prescribed authority in the prescribed manner.

(2) Every person liable to pay tax under this Act (other than a person earning salary or wages, in respect of whom the tax is payable by his employer), shall obtain a certificate of enrolment from the prescribed authority in the prescribed manner.

(3)Every employer or person required to obtain a certificate of registration or enrolment shall, within ninety days from the date of coming into force of this Act or if he was not engaged in any profession, trade, calling or employment on that date, within ninety days of his becoming liable to pay tax, or, in respect of any person referred to in sub-section (2), within ninety days of his becoming liable to pay tax at a rate higher or lower than the one mentioned in his certificate of enrolment apply for a certificate of registration or enrolment, or a revised certificate of enrolment, as the case may be, in the prescribed form, and prescribed authority shall, after making such enquiry as may be necessary within thirty days of the receipt of the application, grant him such certificate if the application is in order. The application, if not in order, shall be rejected.

(4) The prescribed authority shall mention in every certificate of registration or enrolment, the amount of tax payable by the holder according to the Schedule to this Act and the date by which it shall be paid, and such certificate shall serve as a notice of demand for the purposes of sub-section (4) of Section 15.

(5) Where a principal officer or an employer or a person liable to registration or enrolment, willfully fails to apply for such certificate as provided in sub-section (3), the prescribed authority may after giving him a reasonable opportunity of being heard, impose upon him a penalty not exceeding rupees twenty for each day of delay in case of an employer and not exceeding rupees five for each day of delay in case of others.

(6) Where a principal officer or an employer or a person liable to registration or enrolment has deliberately given false information in any application submitted under this section, the prescribed authority may after giving him a reasonable opportunity of being heard, impose upon him a penalty not exceeding rupees one thousand”.

CHAPTER – IV

7. 
   Returns –
   
   1. 
      Every (Principal officer or employer registered or person enrolled)¹ under this Act shall submit to the assessing authority a return in such form and within such time as may be prescribed.
      

2. 
   In 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 thereupon furnish the return within the period specified in the notice.
   

8. 
   Assessments.
   
   1. 
      If the assessing authority is satisfied that return furnished under Section 7 is correct and complete he shall by an order in writing, make assessment and determine the tax payable by the assessee on the basis of such return.
      
   2. 
      If the assessing authority is not satisfied that return furnished under Section 7 is correct and complete he shall serve on the person concerned a notice requiring him, on the date, and at the hour and place to be specified therein, either to attend in person or to produce or cause to be produced evidence in support of the return.
      
   3. 
      On the days specified in the notice under sub-section (2) or as soon afterward as may be, the assessing authority, after hearing such evidence as may be produced and such other evidence as may require, shall, by an order in writing, assess the income and determined 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 under sub-section (2), the assessing authority shall, by an order in writing, assess, to the best of his judgement, the income and determine the tax payable by him.
      

9. 
   I
   Assessment of escaped tax
   f for any reason, the income of any person has not been assessed or has been under assessed 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 end of that year, serve on the person liable to pay the tax, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of Section 7 and may proceed to assess or reassess his income and the provision of this Act shall, so far as may be apply accordingly as if the notice were a notice issued under that sub-section.
   

10. 
    (
    Rectification of mistakes
    1) The authority which made an assessment or passed an order of 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 record of the case.
    

(2) Where any such rectification has the effect or 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 18 and provisions of this Act shall apply accordingly.

11. 
    [(1) The tax shall be payable in advance under this Act by any person earning salary or wage within the financial year next preceding the assessment year and shall be deducted by his principal officer, or employer from the salary or wage payable to such person before such salary or wage is paid to him and such principal officer or 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 all such persons.
    

Provided further that in case of a salaried employee, the tax shall be deducted or paid in equal monthly instalments.]¹

(2) The principal officer making any deduction under sub-section (1) shall submit to the assessing 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 by sub-section (2) of Section 7 and by Section 8, in the case of any person in respect of whom he is satisfied that no return under sub-section (3) 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 to any other consequences he may incur under this Act, be deemed to be a person in default in respect of the tax deducted or paid and all the provisions of 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 that such person has willfully failed to deduct and pay the tax.

12. 
    Requisition for deduction of tax. –
    

13. 
    Indemnity. –
    

14. 
    Payment of advance tax on case not covered by Section 11. –
    

15. 
    Appeals. –
    

Provided that no appeal against an order of assessment or penalty shall be entertained by the Taxation Officer unless he is satisfied that the amount of tax assessed or penalty levied, if not otherwise directed by him, has been paid.

Provided further that the Taxation Officer before whom the appeal is filed may admit it after the expirations of thirty days, if he is satisfied that for reasons beyond the control of the appeallant or any other sufficient cause it could not be filed within time.

Provided also that no such appeal shall be admitted after a period, of six months from the date of service of the notice or demand relating to the assessment on the date of service of the order, as the case may be.

(2) Every appeal under sub-section (l) shall be presented in such form with such fees and shall be verified in such manner as may be prescribed.

(3) The Taxation Officer shall fix a day and place for hearing of the appeal, and may from time to time adjourn the hearing and make or cause to be made, such further enquiry as may be deemed necessary.

(4) In disposing of the appeal under sub-section (l) against an order of assessment or penalty the Taxation Officer may -

(a) confirm, reduce, enhance of annual the assessment, or

(5)The appeallate authority shall, on-the conclusion of the appeal communicate the orders passed by it to the appeallant and the assessing authority.

16. 
    Revision. –
    
    1. 
       The-Commissioner of Taxes may call for and examine the record of any proceeding under the Act and if he con­siders that an order passed therein by any officer other than himself, is erroneous in so far as It is prejudicial to the interest of revenue he may after giving the assessee an opportunity of being heard and after making or causing to be made such enquiry as ho dooms necessary, pass such orders thereon as the circumstances of the cases justify, Including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.
       
    2. 
       In the case of any order other than an order to which sub-section (l) applied, passed under this Act by any officer other than himself, the Commissioner of Taxes may of his own motion, and in the case of an order passed under Section 15 also, subject to such rules as may be prescribed, on a petition by an assessee for revision, call for the record of any proceeding under this Act in which any such order has been passed and may make such enquiry or cause such enquiry to be made, and subject to the provision of this Act may pass such order thereon not being an order prejudi­cial to the assessee, as he thinks fit:
       

3. 
   In the case of a petition for revision under sub­-section (2) by an assessee, the petition shall be made within ninety days from the date on which the order in question was communicated to him or the date on which the order in question was communicated to him or the date on which he otherwise comes to know of it, which­ever is earlier:
   

Explanation : An order by the Commissioner of Taxes declining to interfere shall, for the purpose of this section, be deemed an order prejudicial to the assesses.

17. 
    Delegation of powers. –
    

CHAPTER- VI

DEMANDS, PAYMENT & RECOVERY

18. 
    Notice of demand. –
    

19. 
    Dues when payable. –
    

1. 
   The tax or penalty payable under this Act shall be paid in the manner hereinafter provided.
   
2. 
   Every person liable to furnish a return under sub­section (l) of Section 7 shall, before he furnished 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 returns a receipts from such treasury in token of such payment.
   
3. 
   The principal officer deducting any tax under Section 11 shall pay the amount to a Government Treasury within thirty days of such deduction and shall furnish along with the returns 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;
   

(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.

20. 
    Mode of recovery. –
    
    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.
       
    2. 
       Where a person is in default, the assessing authority may in his discretion direct that, in addition to the amount due a sum not exceeding the amount of tax in arrear shall be recovered from the defaulter by way of penalty;
       

1. 
   Where a person is in default, the assessing authority shall unless action has been taken under Section 12 order that the amount due shall be recoverable as an arrear of land revenue and shall proceed to realise the amount due as such.
   
1. 
   Refund. –
   

CHAPTER- VII

MISCELLANEOUS

22. 
    Powers to take evidence on oath, etc. 5 of 1908. –
    

(a) enforcing the attendance of any person and examining him on oath or affirmation;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavit;

(d) issuing commissions for the examination of witnesses.

23. 
    Information to be furnished by the principal officer. –
    

24. 
    Suits in Civil Courts to be barred. –
    

25. 
    Computing the period of limitation. –
    

26. 
    Place of assessment. –
    

27. 
    Power to make rules. –
    

(2) Every rule made by the State Government under this Act shall be laid as soon as may be after It Is made, before the Legislative Assembly while it is in session for a total period of not less than fourteen 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 successive sessions aforesaid the Legislative Assembly agree in making any modification In the rule or the Legislative Assembly agree that the rule should not be made, 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 predudice to the validity of any -thing previously done under that rule.