The MIZORAM PROFESSIONS TRADES, CALLINGS AND EMPLOYMENTS TAXATION ACT, 1995

NOTIFICATION
No. H.12018/63/95-LJD, the 15th November, 1915. The following Act of the Mizoram Legislative As-
sembly which received the assent of the Governor of Mizoram is hereby published for general informa-
tion.
THE MIZORAM PROFESSIONS TRADES, CALLINGS AND EMPLOYMENTS
TAXA TION 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. SHORT TITLE, EXTENT AND COMMENCEMENT
(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 Autono-
mous District Councils in Chhimtuipui District.
V ol XXIV Aizawl, Thursday 16.11.1995 Kartika 25. S.E. 1917 Issue No. 514
Regd. No. NE 907
(3) It shall come into force on such date as the State Government notification in the Official Gazette,
appoint.
2. DEFINITIONS ; 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 sec-
tion 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.
CHAPTER-I
LIABILITY TO AND CHARGE OF TAX
3. LIABILITY TO TAX : 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.
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4. RA TES OF TAX : 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.
5. DETERMINA TION OF TAX : 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
CHAPTER-II
TAXING AUTHORITIES
6. Taxing Authorities :
(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.
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CHAPTER - III
ASSESMENT
7. RETURN :
(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.
8. ASSESSMENT :
(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 fur-
ther time as he thinks fit to make the return or comply with the terms of the notice issued under sub-section
(2).
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9.  ASSESSMENT OF ESCAPED TAX.
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.
10. RECTIFICA TION OF MISTAKES.
(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 speci-
fying 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.
11. DEDUCTION OF TAX A T SOURCE:
(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.
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(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.
12. REQUISITION FOR DEDUCTION OF 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.
13. INDEMNITY : The principal officer deducting or paying any tax under the provisions of this Act
is bereby indemnified for such deduction of payment thereof.
CHAPTER-IV
APPEALS AND REVISON
14. APPEALS : –
(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.
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15. REVISION
(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.
16. DELEGA TION OF POWERS :
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.
CHAPTER-V
DEMAND, PA YMENT AND RECOVERY
17. NOTICE OF DEMAND :
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.
18. DUES WHEN PAY ABLE :
(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.
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(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.
19. 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:
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.
20. REFUNDS:
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.
CHAPTER-VI
OFFENCES AND PENALTIES
21. FAILURE TO MAKE RETURNS, ETC.
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
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(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.
CHAPTER-VII
MISCELLANEOUS
22. POWER TO COMPEL A TTENDANCE ETC.
(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.
23. INFORMA TION TO BE FURNISHED BY THE PRINCIPAL OFFICER:
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.
24. PROSECUTION, SUIT OR OTHER PROCEEDING :
   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.
25. PERIOD OF LIMITA TION:
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.
26. PLACE OF ASSESSMENT;
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.
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27. POWER TO EXEMPT;
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.
28. POWER TO MAKE RULES;
(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.
29. REPEAL AND SA VINGS:
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 re-
pealed:
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.
THE SCHEDULE
(See Section 4)
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/-
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(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 men-
tioned 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.
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(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.
EXPLANA TION : 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 im-
mediately 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/-
EXPLANA TION : 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.
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(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 is-
sued 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.
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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
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