THE PUNJAB FORWARD CONTRACTS TAX ACT, 1961, TABLE OF CONTENTS Sections
1. Short title, extent and commencement, Definitions. Taxing authorities. Rate of tax. Registration of dealers. Payment of tax and returns.
2.
3.
4.
5. Liability for taxation.
6.
7.
8. Assessment of tax.
9. Refunds.
10. Accounts.
11. Production and inspection of accounts and documents.
12. Delegation of powers. Information to be furnished regarding change of business.
13.
14. Tax payable by transferee of business.
15. Bar of certain proceedings.
16. Appeal.
17. Revision. ©
18. Offences and penalties.
19. Compounding of offences.
20. Indemnity.
21. Returns, etc., to be confidential.
22. Power to make rules.. 1THE PUNJAB FORWARD CONTRACTS TAX ACT, 1951. PunyaB AcT No. VII oF 1951. [Received the assent of His Excellency the Governor of Punjab on the 20th April, 1951 and was first published in the Punjab Government Gazette (Extraordinary) of the 23rd April, 1951.] 1 | 2 3 4 Year No. Short title Whether repealed or otherwise affected by legislation 1951 VII The Punjab Forward | Extended to the territories which, im- Contracts Tax Act, | mediately before the Ist November,
1951. 1956, were comprised in the State of Patiala and East Punjab States Union by Punjab Act No. 7 of 19573. Amended by the Punjab Reorganisation (Chandigarh) (Adaptation of Laws on State and Concurrent Subjects) Order, 1968. An Act to provide for the levy of a tax on forward contracts in Punjab. IT is hereby enacted as follows :—
1. (J) This Act may be called the Punjab Forward Contracts Tax Act, 1951.
(2) It extends to the whole of the *[Union territory of Chandigarh].
(3) It shall come into force on such date as the Government may, by notification in the official Gazette, specify. _ 2. In this Act, unless there is anything repugnant in the subject or context,—
(a) ‘‘assessing authority’? means any person authorised by the Government to make any assessment under this Act ;
(6) “Commissioner” means the person appointed as such by the Government under sub-section
(1) of section 3 ; 1For Statement of Objects and Reasons, see Punjab Government Gazette (Extra- Ordinary), 1950, page 238. For State of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1957, page 551. *Substituted for the words ‘State of Punjab’? by the Punjab Reorganisation (Chandigarh) (Adaptation of Laws on State and Concurrent Subjects) Order, 1968, Short title, exe tent and commencement. Definitions. AB FORWARD CONTRACTS TAX [ V PUN] : 2 THE act, 1951 ’ ans any person, firm, Hindu Joint a nited concern, including an qr htj Family oh ” or association formed for the or “cham P conducting business in forwar d purpose 0 ho conducts such business in the contracts, Mite in the State either on his own po of oh behalf of any other person, arhti, Pehamber™ or association ;
(c) ‘dealer’ } erson residing outside the meal an tre business of forward contracts in the State through an agent, such agent shall, in respect of such business, be deemed to be a dealer for the purposes of this Act ;
(d) “forward contract”? means an agreement, ora or written, for sale of goods on a future date but on the basis of which actual delivery of goods is not made or taken but only the differ- ence between the price of the goods agreed upon and that prevailing on the date mentioned In the agreement or any other date is paid or received by the parties ;
(e) “goods” means an
(f) “prescribed” means . under this Act Prescribed by rules made
(8) “registereq? means registered under this Act ; (h) “sale” Means th € final sett] an agreement to sel] ement in respect of oods mentioned in a rward contract an » € It sha t ave been completes ; hall be deemed. to nN the date originally ma Other q tend Contract for this purpose or made ; Ich the fina] Settlement is [Central Govern- Substit yy “d n Aibba C lor the Words G , Nis QO a di 7 oO yer men . ad ion Of the S . runiad i ate of Puniah” by the Punja On of Laws ane ubab” by air of 1951 ] THE PUNJAB FORWARD CONTRACTS TAX 3 ACT, 1951
3. (/) For carrying out the purposes of this Act, the T@*ing authorities. Government may appoint a Commissioner and such other persons to assist him as may be deemed necessary.
(2) The person appointed under sub-section (/) shall exercise such powers as may be conferred, and perform such duties as may be required, by or under this Act.
(3) All persons appointed under sub-section (J) shall Act XLV of be deemed to be public servants within the meaning of section 21 of the Indian Penal Code. Rate of Tax. 4. Subject to the provisions of this Act, there shall be levied each year on the business in forward contracts of a dealer a tax at such rates as the Government may by notification direct. Liability for taxa 5. Every dealer shall be liable to pay the tax under inti this Act as long as he continues his business in forward ; contracts.
6. (J) No dealer shall carry on business in forward Rfsistration of contracts unless he has been registered and possesses a registration certificate.
(2) Every dealer required by sub-section (J) to be registered shall make an application in this behalf in the prescribed manner to the assessing authority.
(3) Ifthe assessing authority is satisfied that the appli-° cation for registration is in order, he shall, in accordance with such rules and on payment of such fees as may be prescribed, register the applicant and grant him a certificate of registration in the prescribed form, which may be renewed in such manner or on payment of such fees as may be prescribed.
(4) The Commissioner may from time to time amend or cancel any certificate of registration in accordance with information furnished under section 13 or otherwise received.
7. (1) Tax payable under this Act shall be paid in Payment of tax the manner hereinafter provided and at such intervals as and returns. may be prescribed. ARD CONTRACTS TAX [Act No, vy AcT, 1951 equired so to do by t 2) Such dealers as may be require: y the onening authority, by notice served in the prescribed manner, and every registered dealer shall furnish such returns to the assessing authority by such dates as may be prescribed. 4 THE PUNJAB FORW 3) Before an registered dealer furnishes the returns rene by Rib-section (2), he shall in the prescribed manner, pay into a Government Treasury or the Reserve Bank of India the full amount of tax due from him under this Act according to such returns, and shall furnish along with the returns, 4 receipt from such Treasury or Bank showing the payment of such amount.
(4) If any dealer discovers any omission or other error in any return furnished by him, he may, at any time before the date prescribed for submission of the next return by him, furnish a revised return, and if the revised return shows a greater amount of tax as due than was shown in the original return, it shall be accompanied by a receipt showing payment of the extra amount in the manner provided in sub-section (3). Assessment of tax. 8. (J) Ifnoreturns aref urnished by a registered dealer in respect of any period by the prescribed date, or if the assessing authority is not satisfied that the returns furnished are correct and complete, the assessing authority shall, within two years after the expiry of such period, after giving the dealer a reasonable opportunity of being heard, pro- ° ceed, in such manner as may be prescribed, to assess to the best of his judgment the amount of tax due from the dealer. _. (2) Ifupon information received the assessing authority is satisfied that a dealer who was liable to pay tax under this Act in respect of any period had nevertheless wilfully failed to apply for registration, the assessing authority shall, at any time within two years from the expiry of such period, after giving the dealer a reasonable opportunity of being heard, proceed, in such manner as may be prescribed, to assess to the best of his judgment the amount of tax due from the dealer in respect of such period and all subsequent periods, and the assessing authority may direct that the dealer shall pay by way of penalty, in addition to the amount of tax so assessed, a sum not exceedin d a half times that amount. 5 ae of 1951] THE PUNJAB FORWARD CONTRACTS TAX 5 Act, 1951
(3) The amount of tax—
(a) due where the returns are furnished without receipt showing full payment thereof, or
(b) assessed. under sub-section O), less the sum, if any, already paid by the dealer in respect of the said period, or
(c) assessed under sub-section (2), together with the penalty directed to be paid under that subsection, shall be paid by the dealer into a Government Treasury or the Reserve Bank of India by such date as may be specified in a notice issued by the assessing authority for this purpose, and thedate to be so specified shall not be less than 30 days from the date of service of such notice :
Provided that the assessing authority may, in respect of any particular dealer and for reasons to be recorded in writing, extend the date of such payment or allow such dealer to pay the tax due and the penalty (if any) by instalments.
(4) Any amount of tax, which remains unpaid after the date specified in the said notice, shall be recoverable as arrears of land revenue. __ (5) An assessment made under this section shall be without prejudice to any prosecution instituted for an offence against this Act. 9, The assessing authority shall, in the prescribed manner, refund to a registered dealer applying in this behalf any amount of tax paid by such dealer in excess of the amount due from him under this Act, either by a ref und voucher or, at the option of the dealer, by deduction of such excess from the amount of tax due in respect of any other period.
10. Every dealer, whether registered or not, upon whom a notice to furnish returns has been served under sub-section (2) of section 7, shall keep a full and correct Refunds. Accounts. JAB FORWARD CONTRACTS TAX (Act No. Vi 6 THE PUNJA AWARDS tracts in respect of each class account of al fora nroUBh him ; and if the assessing ority Rslders that such account ke forages veaeant i telligible to enable him to ma te p a: on vet fs referred to in that sub-section, * mre 4 eauire of the rota by notice in writing to keep suc S as may be prescribed. Production and 11. The assessing authority or an officer authorised hori subject to s inspection of ac- jn writing by the assessing authority may, subj o Such couts and docun- i dealer to iti ay be prescribed, require any _ reduce before. him any accounts or documents or to furnish any information as may be necessary for the purposes of this Act. In case of default, the assessing authority may draw such inference against the dealer as the assessing authority may deem fit. i ‘icti itions as Delegation of 12. Subject to such restrictions and condi vee may be seseribed, the Commissioner may by order in writing delegate any of his powers under this Act to any person appointed under section 3 to assist him. Information to be --13._-«If any dealer to whom sub-section (2) of section 7 furnished regard- + . ing change of applies— business, .
(a) sells or otherwise disposes of his business or any - place of business, or
(b) discontinues his business or changes his place of business or opens a new place of business, or
(c) changes the name or nature of his business, he shall within the prescribed period inform the assessing authority accordingly ; and if any such dealer dies, his legal representative shall in like manner inform the said authority. Tax payable by
14. W hen the Ownershi i i ed fe . rship of the ster business. ‘4 dealer is transferred, P business ofa eee cet any tax payable in respect of his business in forward contracts remaining unpaid at the time of the transfer shall be payable by the transferee as if he pace the repistered dealer. The transferee shall be liable in my | as fom the date of transfer and he shall, within 7 The transfe tansfer, apply for tegistration under section 6. until the a spl shall be competent to carry on the business have res pplication is disposed of, and the registration shall e!rospective effect from the date of transfer. of 1951] THE PUNJAB FORWARD CONTRACTS — TAX 7 AcT, 1951
15. Save as provided in this Act, no assessment made Ba, of certains and no order passed under this Act or the rules made "**""* thereunder by the Commissioner or any person appointed under section 3 to assist him shall be called in question in any Civil Court ; and, save as provided in sections 16 and17, no appeal or revision shall lie against any such assessment or order.
16. (/) Within 30 days from the receipt of a notice Appeal. ‘ssued under sub-section (3) of section 8, any dealer may, in the prescribed manner, appeal against such assessment to such authority as may be prescribed :
Provided that no appeal shall be entertained by such authority unless he is satisfied that the amount of tax assessed on the dealer has been paid.
(2) Subject to such rules of procedure as may be prescribed, the said authority in disposing of any appeal under sub-section (/) may—
(a) confirm, reduce, enhance or annul the assessment ; or
(b) set aside the assessment and direct the assessing authority to make a fresh assessment after such further enquiry as may be Cirected.
17. (J) The Commissioner may, of his own motion Revision. or on application made to him, call for the record of any proceedings which are pending before, or have been disposed of by, any assessing or appellate authority appointed under ' this Act, for the purpose of satisfying himself as to the legality or propriety of such proceedings or of any order made therein, and may pass such orders in relation thereto as he may think fit :
Provided that no order which adversely affects the rights of an assessee or other person upon whom an obligation is imposed by or under this Act shall be passed without giving such assessee or other person a reasonable opportunity of being heard. eee Offences penalties. and = n FORWARD CONTRACTS TAX [Act No, Vir THE PUNJA Ker, 1951 notification, ¢ ~ At nt may, by veh OO, Confer 2) The Govel nme ws of the Commissioner re aes yowe ° ry: upon any officer the | ed subject to such conditions, : be exercis ‘ P oat ate At oF such areas, as may be specified in the and 1 notification.
18. (/) Whoever—
(a) carries on business as a dealer in contravention of sub-section (J) of section 6; or b) fails, ‘without sufficient cause, to submit any return as required by sub-section (2) of section 7 or submits a false return ; or
(c) not being a registered dealer, falsely represents that he is a registered dealer ; or
(d) fails, when required so to do under section 10 to keep prescribed accounts ; or
(e) refuses to comply with any requirements made of him under section 11 ; or
(7) knowingly produces incorrect accounts, registers or documents, or knowingly furnishes incorrect information ; or
(g) neglects to furnish any j i section [3 ny information required by ae Bre with fine not exceeding one thousand pees, en the offence is a continuing one, with a auy fine not exceeding ff; i . g fifty rupees Period during Which the offence S contin ny O On a complaint m ude the rules made thereunder except shall wt Mferior to that or), (ee Assessing authority, and all try any such offence agistrate of the first class
872. st XLV of
1860. of 1951] THE PUNJAB FORWARD CONTRACTS TAX 7 Act, 1951
19. (J) Subject to such conditions as may be prescribed, the Commissioner may accept from any person charged with an offence under sub-section (/) of section 18 or under any rules made under this Act, by way of composition of the offence, a sum not exceeding one thousand rupees or, where the offence charged is under clause (a) or clause (b) of that sub-section, not exceeding double the amount of tax which would have been payable by the dealer had he complied with the provisions of this Act, whichever is greater.
(2) On payment of such sum as may be determined by the Commissioner under sub-section (/ ), the accused person shall be discharged or acquitted, as the case may be, and no further proceedings shall be taken against him in respect of the same offence. ecution or other legal proceedings shall lie against the Government or any officer or servant of the Government for anything which is in good faith done or intended to be done under this Act or the rules framed thereunder.
21. (J) All particulars contained in any statement made, return furnished or accounts or documents produced ‘n accordance with this Act, or in any record of evidence oceedings under this Act, given in the course of any pr other than proceedings before a Criminal Court, shall save as provided in sub-section (3), be treated as confidential ; i d in the Indian and notwithstanding anything containe Evidence Act, 1872, no court shall, save as aforesaid, be entitled to require any officer of the Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it 10 respect thereof.
20. No suit, pros
(2) Save as provided in sub-section (3), if any officer of the Government discloses any of the particulars referred to in sub-section (/); he shall be punishable with imprisonmen t which may extend to six months, and shall also be liable to fine. . = ane section shall apply to the disclosure
(3) Nothing in this secu" PP» pesection (1) for of any of the particulars referred to 1D sub-s Code the purposes of @ prosecution under the Indian Pen Compounding of offences. Indemnity. Retyms, . etCey to be confidential. Power to make rales, 10 THE PUNJAB FORWARD CONTRACTS TAX [Agt No, V | | act, 1951 tI i such statement, geturn, account in respect of any such ile » dog, in bis or evidence, or for the purposes of 5 Proseeyie under this Act or for the departme he officia. ery Income-tax Department of the Governmen oO > Inc t 9 India. he Government may, subject to the cong. tion ot vievions publication, make rules for carrying « " the purposes of this Act. | articular and without prejudice to the genera lit of hs elepoiig power, such rules may prescribe—_ y the procedure for the payment of feés in t @ of, and other matters incidental to, the re tion of dealers or the grant of certific registration and the form of such Certific spect 21stra. ates of ates ;
(6) the intervals at which, and the manner in which the tax under this Act shall be Payable under section 7 ; ) (c) the returns to be furnished under sub-section (2 of section 7, and the dates by which, and the authority to which, such returns Shall be fur- nished ; € furnished and the Procedure to be followed Or assessment under section 8 ;
(e) the manner in which refunds under section 9 Shall be made
(f) the accounts and forms thereof required by section 10 ; Connie ‘one, ouditions subject to which un .§810ner idiots under section 19 : May delegate his p of 1951] THE PUNJAB FORWARD CONTRACTS TAX 1 AcT, 1951
(i) the manner in which appeals against assessment may be preferred under section 16 ;
(j) the procedure for and other matters (including fees) incidental to the disposal of appeals and applications for revisions under sections 16 and 17 ;
(k) the conditions under which offences may be compounded under section 19 ; (J) the mannet in which, and the period within which, the applications shall be made, information furnished, and notices served under this Act.
(3) In making any rule the Government may direct that a breach thereof shall be punishable with fine not exceeding five hundred rupees; and, when the offence 1s a continuing one, with a daily fine not exceeding twenty-five rupees during the continuance of the offence.