The Nagaland Professions,Trades,Calling & Employment Taxation (4th Amendment) Act,2012

TheNagaland Professions, Trades, Callings and Employment Taxation 
(4thAmendment),Act 2012 (Act No. 5 of 2012) 
Received the assent of the Governor ofNagaland on 3 .I 1.20 12 and published 
in theNagaland Gazette Extra ordi on 9" January 2013. 
To further amend the Nagaland Professions, Trades, Calling and Employements 
TaxationAct. 1968. 
Whereas it is expedient to amend the Nagaland Profession, Trades, Callings 
and Employments Taxations Act, 1968 (hereinafter referred to as the principal Act) in 
the manner hereinafter appearing; 
It is hereby enacted in the sixty second year of the Republic of India as 
follows; 
1. 'short title, extend and commencement: 
(1) this Act may be called the Nagaland Profession, Trades, Calling and 
Employment Taxation (fourth amendment) Act, 201 2 
(2) it shall have the same extend as the principal effect. 
2. Amendment of Section2: 
(1) in the Principal Act, in Section 2 for clause (2) for clause (a), the following 
shall be subtitled, namely: 
(a) "assessee" means a person or employer by whom tax is payable under this 
Act;" 
(2) in the Principal Act, in Section 2, after clause (a), the following clause shall 
be inserted, namely: 
(a) "assessing authority" in a particular area means the Profession Tax officer 
referred to in Section 7" 
(3) inthe Principal Acf in Section2, for clause (b) the following shall subtitled, 
namely: 
(b) 'Commissioner" means the Commissioner ofl'rofessionTax appointed under 
Section 7" 
(4) in the Principal Act, in Section 2, for clause (c) and (d), respectively the 
following shall be subtitled, namely: 
(c) "employee" means a person employed on salary or wages and includes: 
(i) a Government servant receiving pay from the revenue of the Central 
Government or any State Government or the railway hd; 
(u) a person in the service of a body, whether incorporation 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 headquarter 
may be outside the State; 
a person engaged in any employment ofan employer, not covered by items 
(i) and (ii) above; 
"employer" in relation to an employee earning any salary or wages on 
regular basis under him, means the person or the officer who is responsible 
for disbursement of such salary or wages, and includes the head of the 
office or any establishment as well as the manager or agent of the 
employer," 
in the Principal Act, in Section 2, for the clause (e) and (f) , respectively the 
following shall be substituted, namely: 
"month" means a month reckoned accordingly to the En;':sh 
calenderer." 
"notification" means a notification published in the Official Gazette," 
in the Principal Act, in Section 2, clause (g) shall be deleted. 
in the principal act,, in section 2, after clause (g) so deleted, the following 
new clause shall be inserted, namely: 
'person" means any person who 1s engaged in any profession, trade, calling 
or employment in Nagaland, and includesa Hindu Undivided family, firm, 
company, corporation or any other corporate body and society, club or 
association, so engaged, but does not include any person who earns wages 
on a casual basis; 
'prescribed" means prescribed by rules made under this Act; 
"profession tax" means the tax on professions, trades, callings and 
employments levied under this Act; 
" 
salary or wages" includes pay, dearness allowance and all other 
remuneration received by an person on regular basis, whether payable in 
cash or in kind, and also includes perquisites and profits in cash or in kind, 
and also includes perquisites and profits in lieu of salary, as defined in 
Section 17 ofthe Income Tax Act, 1961 (43 of 1961) 
W means the profession tax" 
''year" means a financial year" 
3. Amendment of Section 3: 
Inthe PrincipalAcf for Section 3 and the mar& heading thereof, the following 
shall be substituted, namely:- 
3. Levy and charge of tax: 
(1) - as ii-omthef~st day ofOctober, 201 1 subject to the provisions ofArticle 
276 ofthe Constitution of India there shall be levied and collected a tax on 
professions, kades, callings and employments in accordance with the 
provisions ofthis 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 
shall be liable to pay to the State Government a tax at the rate mentioned 
against the class of suchpersons in the third column ofthe Schedule annexed 
to this Act: 
Provided that Entry 21 in the Schedule shall apply only to .t uch clus e \ of 
persons as may be speciJied by the State Governrnent by notificationfi-om 
time to time 
(2) Notwifhstanding anythmg contained inhs section the provisions ofthis Act 
shall not apply to the members who are subject to the ArmyAct, 1950, the 
air Force Act, 1950 or the Navy Act, 1957 and are serving in any part of 
Nagaland. 
4. Deletion of Section 4: 
In the principal Act, for Section4 
5. Amendment of Section :- 
In the Principal Act, for section 5 and the margoinal heading thereof, the following 
shall be substituted, namely. 
5. Employer's liability to deduct and pay tax on behalf of employees: 
The tax payable under this Act b any person earning a salary or wage shall be 
deducted by his employer &om the salary or wage payable to such person before 
such salary orwage is paid to him, and such employer shall kspectively ofwhether 
such deduction has been made or not when the salary or wage is paid to such 
persons, be liable to pay the tax on behalf of all such persons: 
Provided that where the employer is an oscer of the State Government or 
the Central Government the manner in which such employer shall discharge 
the said liability shall be such as may be prescribed 
Provided further that where any person earning a salary or wage is also 
covered by one or more entire other than entry I in the rchedule or IS 
simultaneously engaged in the employment of more than one employer, and 
such person furnishes to his inter-alia, that he shall obtain a certificate of 
enrolment under sub-section (2) of Section 6 and pay the tax from the salary 
or wage payable to such person andsuch employer or employers, as the case 
may be, shall not be liable to pay tax on behayof such person 
6. Amendment of Section 6: 
Inthe principal Act, for Section 6, the following shall be substituted, namely: 
6. Registered and enrolment: 
(1) Every employer (not being an officer of the Government) liable to pay tax 
under Section 5 shall obtain acertificate ofregistration from the assessing 
authority inthe prescribed manner. 
(2) Eve~y 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 assessing authority in the 
prescribed manner. 
(3) Notwithstanding anything contained in this Section and Section 5. where 
a person is a citizen of India and is in employment of any diplomatic or . . consular office or trade Commissioner of any foreign country situatid UI 
any part of Nagaland such person, if liable tpo pay tax, shall obtain a 
certificate of enrolment a provided in sub-section (2) and pay the tax 
himseIf. 
(4) (a) Every employer required to obtain a certificate of registration shall within 
ninety date of his beconling liable to pay tax, apply for a certificate of 
regstrabon tothe assess- authority inthe prescribed form, and the assessing 
authority, shall after making such enquuy ass may be necessruy, within thiny 
days of the receipt of the application. grant him, such certificate, if the 
application is in order. 
(b) Every person referred to in sub-section (2) or sub-section (3) shall, within 
ninety days of his becoming liable to pay tax, pay into Government treasury, 
the tax payable by him under this Act and apply for a certificate of enrolment 
to the assessing authority in the prescribed form along with a receipt copy 
of the challan as a proof of payment of such tax. 
(c) The assessing authority within thirty days of the receipt of the application 
referred to in clause @), shall, grant the person a certificate of enrolment in 
the prescribed manner. 
(d) The assessing authority may from time to time amend any certificate of 
registration or enrolment in the prescribed manner when a registered 
employer or enrolled person applies to the assessing authority in the 
prescribed form of such amendment. 
(5) The assessing authority shall remaininevery certificate of registration or 
enrolment the amount of tax payable by the holder according to the 
schedule and the date by which it shall be paid, and such certificate shall 
serve as a notice of demand for the purposes of Section 18. . - 
(6) Where an employer or aperson liable for registration or enrolment wilklly 
fails to apply for such certificate within the required time as provided for 
LA . 
in sub-section (4) the assessing authority may, after giving him a reasonable 
opportunity of being heard, impose upon him a penalty not exceeding 
nlpees hundred for each colander month of delay in case of an employer 
and not exceeding rupees fifty for each calendar of delay in the case of 
others. 
(7) Where an employer or a person liable for registration or enrolment has 
deliberately given false information in any application submitted under this 
section the assessing authority may, after giving him areasonable opportunity 
of being heard, impose upon him a penalty not exceeding rupees one 
thousand. 
7. Amendment of Section 7: 
In the Principal Act, for section 7, the following shall be substituted namely: 
7. Taxine authorities: - 
(1) For carrying out the purposes of this Act, the State Government shall 
appoint an officer to be the Commissioner of Profession Tax and such >. 
other officers as mentioned in sub-section (2) to assist the 
Commissioner. 
(2) There shall be the following taxing authorities to assist the Commissioner 
(a) Addlt~oonal Commissioner of Profession Tax 
(b) Deputy Commissioner of ProfessionTax 
(c)Assistant Commissioner ofProfession Tax. 
(d) Profession tax officer 
(e) Inspector of Profession Tax. 
(3) Delegation of powers: An officer appointed under sub-section (2) shall, 
withinthe limits of such area as the State Government may be notification 
specify, exercise such powers and perform such duties as may be delegated 
by the Commissioner, subject to such conditions as may be imposed by the 
State Government. 
(4) The Superintendence and control for the proper execution ofthe provisions 
ofthisAct and rules made hereunder relating to the levy and collection 
of tax shall vest in the Commissioner. The Commissioner shall 
exercise such other powers and perform such other duties under this 
Act or rules made there under as may he conferred or imposed on 
him 
(5) Any person appointed as the Comrnissioner of Taxes under sub-section (1) 
of Section 3 of the Nagaland Value Added Tax Act, 2005 (Act 4 of 2005) 
and continuing in office as such immediately before coming into force of this 
Act shall, on and from the first day of October, 201 1 be deemed to have 
been appointedunder this Act to be Commissioner of Profession Tax for 
carrying out the purposes of this Act. 
(6) Any person appointed to assist the Cornmlssioner of Taxes under the 
NagalandValueAdded Tax Act, 2005 (Act 4 of 2005) such as the Addtionid 
Commissioner of Taxes, Deputy Commissioner of Taxes, Assistant 
Commiss~oner of Taxes Superintendent of Taxes, Inspector of taxes and 
any other officer and continuing in office as suchimmediately before coming 
into force of this Act, shall, on and from the first day of October, 201 1 be 
deemed have been appointed under this Act to be the Additional 
Commissioner of ProfessionTax, Deputy Commissioner of Profession Tax, 
Assistant Commissioner of Profession Tax, Profession Tax Officer and 
Inspector of Profession Tax. 
(7) All officers and persons employed in the execution of this Act shall be subject 
to the supervision and control of the State Government and the 
Comrnissioner. 
8. Insertion of new Section 7A in Nagaland act 4 of 1986. 
In the Principal Act after Section 7 the following new Section 7A shall be inserted, 
namely: 
7A. Instruction to sub-ordinate authorities 
(1 ) The State Government and the Commissioner may fiom time to time issue 
such orders, instructions and directions to all officers and persons employed 
in the execution of this Act, and all such officers and persons shall observe 
and follow such orders, instructions and directions of the State Government 
and the Commissioner. 
Provided that no such orders, instructions or directions shall be issued 
so as to interfere with the discretion of any appellate authority in the 
exercise of its appellate functions. 
(2) Without prejudice to the generality of the foregoing power, the 
Commissioner may, on his own motion, or on an application by an 
employer who has obtained a certificate of registration or by a person 
who has obtained a certificate of enrolment under this Act, if he 
considers it necessary or expedient so to do, for the purpose of 
maintaining uniformity in the work of assessment and collection of 
revenue, clarify the rate of tax payable under this Act and all officers 
and persons employed in the execution of this Act shall observe and follow 
such clarification: 
Provided that no such application shall be entertained unless it is 
accompanied by proofof payment offee, paid in such mannel; as may 
be prescribed. 
(3) Any officer and person employed in the execution of this Act shall observe 
and follow such administrative instruction as may be issued to him for his 
guidance by the Assistant Commissioner within whose jurisdiction he 
performs hisfunctions. 
9. Amendment of Section 8: 
In the Principal Acf for Section 8, and the marginal heading thereof, the following 
shall be substituted, namely:- 
8. Returns 
I) Every employer registerediperson enrolled under this Act shall finish to 
the assessing authority a return in such form, for such periods and by such 
dates as may be prescribed, showing therein the salaries andwages paid by 
employer and the amount of tax deducted by him in respect thereof, and in 
the like manner taxes paid by enrolled person. 
(2) Every return shall be accompanied by a Treasury Challen in proof of 
payment of the full amount of tax due according to the return, and a 
return without such proof of payment shall not be deemed to have been 
duly tiled. 
(3) Where an employer, without reasonable cause, fads to file such return with 
the prescribed time, the assessing authority may, after giving himareasonable 
oppohty of being heard, impose upon a penalty not exceeding rupees 
ten for each calendar month of delay. 
10. Amendment of Section 9: 
In the Principal Act, for Section 9, the following shall be substituted, namely:- 
9. Assessment of an assessee. 
(1) If the assessing authority is satisfied that the return filed by any assessee is 
correct and complete, it shall accept the return. 
(2) (a) If the assessing authority is not satisfied that the return filed is correct 
and complete, it shall serve upon the assessee anotice requiring him, on a 
date and time and place specified in the notice, to attend in person or through 
authorized representative and to produce or caused to be produced account 
and papers in support of the return. 
(b) the assessing authority shall on examination ofthe account and papers, by 
an order in writing, assess the amount of tax payable by the assessee. 
(c) If the assessee fails to comply with the terms of notice, or if in the opinion 
of the assessing authority the accounts and papers are incorrect or 
incomplete or unreliable such authority shall, after such inquiry as it may 
deemed fit or otherwise, by an order in writing assess the tax to the best 
of its judgment. 
(3) The amount of tax due fiom any assessee shall be assessed separately for 
each year during which he is liable to pay tax: 
Provided that the assessing authority may, subject to such conditions 
as may be prescribed andfor reasons to be recorded in writing, assess 
the tux due from any assessee during any part of a year: 
Providedhrther that where a registered assessee fails to furnzsh a 
return for any part of a year; the assessing authority may, fit thinh 
Jit, assess the tax due from such assessee separately for diSferentparts 
of such year 
(4) If any assessee fails to get himselfregistered or beingregistered fails to file 
any return, the assessing authority shall, after giving the assessee areasonable 
opportunity of being heard and after holdmg such inquiry as it may deem fit 
or otherwise, pass an order assessing the amount of tax due to the best of 
its judgment. 
(5) No assessment under sub-section (2), sub-section (30 or sub-section (4) 
shall be made after expiry of four years Gom the end of the year in respect 
ofwhich or part ofwhich the assessment is made: 
Provided that any assessment in respect of a~ of the years or parfs of 
years ending on or before the 30" day of September,, 2011, shall, 
nohvzthstanding the provisions of this sub-section, be made on or before 
the 3P' duy of March, 2015. 
(6) In making an assessment under sub-section (2) or sub-section (4), the 
assessing authority if it is satisfied that the default was due to willful non- 
disclosure of information or attempt to evade the tax by the assessee, the 
assessing authority may also diict to pay in addition to the tax assessed but 
which shall not exceed three times the tax so assessed: 
Provided that no penalty under this sub-section shall be imposed unless 
the assessee affected has had a reasonable opportunity of showing 
cause against the imposition of such penalty. 
(7) The amount of tax so assessed, shall be paid within fifteen days of receipt of 
the notice of demand from the assessing authority. 
11. Deletion of Section 9A: 
In the Principal Act, Section 9Ashall be deleted. 
12. Amendment of section 10: 
Inthe Principal Acf for Section 10 andthe& headmgthereof, the following 
shallbe substitute4 namely:- 
10. Assessment of escaped or under assessed tax: If for any reason any tax 
payable under this act, has escaped assessment or has been under 
assessed or assessed at lower rate than the rate at which it is assessable, 
the assessing authority may at any time within four years from the expiry 
of the year to which the tax relates, proceed to assess or reassess the 
tax, as the case may be to the best of its judgment after issuing a notice 
to the assessee concerned and after making such inquiry as it considers 
necessary. 
Provided that the tax shall be charged at the rate at which it would 
have been charged ifsuch tax had not escaped assessment or as the 
case may be had not been under assessed or assessed at a rate lower 
than the rate at which it was assessable. 
13. Amendment ofsection 11:- 
Inthe Principal Act, in Section 11 the word "three " betweenthe words "within " 
and "years" the following shall be substituted, namely:- 
'jtour '' 
14. Deletion of Section 12 and 13:- 
In the Principal Act, Sections 12 and 13 shall be deleted. 
15. Amendment of Sections 14:- 
In the Principal Act, forthe existing Section 14 and the marginal heading thereof, 
the following shall be substituted, namely:- 
14. Appointment of collecting agent: 
(1) For carryingout the purposes ofthis Act, the State Government may appoint 
any of its department officer as its agent (hereinafier called "the collecting 
agent ") responsible for levy and collection of the tax under this act from 
such person or class of persons as may be prescribed. 
(2) Upon such appointment, it shall be the duty of such collecting agents to 
cany out such functions under this Act in the manner prescribed, and to 
render full and complete account of the tax levied and collected to the 
Commissioner in such manner and at such time as he may require. 
(3) The collecting agent and every officer authorized by it in this behalf shall for 
the purposes of collecting of the tax, have all the powers of the assessing 
authority and also any ofthe powers that may be prescribed. 
(4) It shall lawful for the Commissioner or any officer duly authorized by him to 
have access to and to require production and examination of any books 
register, accounts or documents maintained orrequired to be maintained by 
the collecting agent for the produce such books, register, account or 
documents for inspection. 
16. Amendment of Section 15:- 
15. Appeals 
(1) Any assessee (nof being an oflcer of the State Governmen: or Ce '-.a1 
Government) Aggrieved by any order passed by any authority under ihe 
provisions of this Act, not being an order passed under sub-section (4) of 
Section 9, may within thirty days fiom the date on which the order was 
served on him, appeal to the appellate authority. 
Provided that the appellate authority may for sufficient curse showrz 
admit an appeall~referred afrer the expjry of the period of ~hirty days 
aforesaid 
(2) No appeal shall be entertained, unless the amount oftax or penalty or 
interest in respect of which the appeal has been preferred has been paid 
in M. 
(3) The appeal shall be in such form and verified in such manner as may be 
prescribed and shall be accompanied by a fee calculated at the rate oftwo 
percent ofthe tax, penalty or interest under dispute, subject to a minimum 
ofmpees fifty and amaximum of rupees one thousand. 
(4) The appellate authority may afler givingthe appellate an oppofmity ofbeing 
heard and subject to such rules of procedure as may be prescribed 
(a) confirm, reduce, enhance or annual or otherwise modify the assessment, 
penalty or interest as the case may be; 
(b) set-aside the assessment, penalty or interest as the case may be and direct 
the assessing authority to pass a fiesh order after such further inquiry as 
may be directed; or 
(c) Pass such other orders as it may think fit. 
(5) Every order passed in appeal under this Section shall, subject to the 
provisions of Section 16, be fmal. 
17. Amendment of Section 17: 
In the p~cipal Act, for Section 17 and the marginal heading thereof, the following 
shall be substituted, namely:- 
17. Revision by Additional Commissioner, Deputy Commissioner and Assistant 
Commissioner:- 
(1) The Assistant Commissioner may, onhis own motion call for and examine 
records of any proceeding under this Act, and if he considers that any order 
passed therein by any officer who is not above the rank of profession tax 
officer is erroneous and in so far as it is prejudicial to the interest of revenue, 
he may, ifnecessary, stay the operation of such order for such period as he 
deems fit and after giving the assessee an opporlunity of being heard and 
after order thereon as the circumstances of the case justify, including an 
order enhancing or modifying the assessment or cancelling the assessment 
or directing desh assessment. 
(2) The Deputy Commissioner (other than Appellate Authorrty) may, on 
his own motion call for and examine records of any proceeding under this 
Act, and if he considers that any order passed therem by any sub-ordmate 
offlce who is not above the rank ofAssistant Commissioner is erroneous 
and in so far as it is prejudicial to the interest of revenue, he may, if necessary 
stay the operation of such for such period as he deems fit and after giving 
the assessee an opporturuty of belng heard and after making or causing to 
be made such inquiry as he deems necessary, pass such order thereon as 
the cucumstances of the case justify, including an order, enhancing or 
modifying the assessment or cancelling the assessment or directing afiesh 
assessment. 
(3) TheAdditional Commissioner may, on his ownmotion call for and examme 
records of any proceeding under this Act, and if he considers that any order 
passed therein by any sub-ordinate officer who is not above the rank of 
Deputy Commissioner is erroneous and in so far as it IS prejudicial to the 
interest of revenue, he may, if necessary, stay the operation of such order 
for such period as he deems fit and after giving the assessee an opportunity 
of being heard and after making or causing to be made such inquiry as he 
deems necessary, pass such order thereon as the circumstances ofthe case 
jusbfy, includinganorder enhancing or mcd@q theassessment or cancelling 
assessment or diiecting afresh assessment. 
18. Amendment of Section 18: 
In the Principal Act, in Section 18, between the words "Penalty" and "is" the 
following shall be inserted, namely:- 
"Or Interest" 
19. Amendment of Section 19:- 
In the Principal& for Section 19 and the mar& heading thereoc the following 
shall be substituted, namely:- 
(1) the tax payable under this Ad by enrolled persons for each year as specified 
their certificate of enrolment shall be paid:- 
(a) In respect of a person who Before the 30" day of 
stands enrolled before the of September; 
commencement of a year 
and is enrolled on or before 
the 32st day ofAugust 
of a year, 
(b) in respect of aperson who is W1h one month of 
enrolled after the 3 Is' 
day ofAugust of a year. the date of enrollment; 
Provided that aperson liable to be enrolIedshal1 be deemed to have enrolled 
for the purpose ofpayment of tax under this Act, notwithstanding that he 
has failed to do so. 
(2) Payment of tax by certain assessee: In other cases the amount of tax 
due shall be paid in accordance with the provisions of sub-section (5) of 
Section 6 or, as the case may be, sub-section (2) of Section 8. 
(3) The tax payable shall be paid in the prescribed manner. 
(4) All other dues under this Act shall be paid in the prescribed manner by such 
date as may be specifies in the notice of demand and where no such date is 
specified, it shall be paid within 15 days from the date of the notice of 
demand. 
20. Insertion of new Section 19A and 19B: 
Inthe Principal Act, after Section 19 so substituted, the following shall be inserted 
as new Section 19Aand 19B, namely:- 
19A. Consequence of failure to deduct or to pay tax: 
(1) If an employer (not being an oflcer of the Governmeno fails to pay the 
tax as required by orunder thisAct, he shall without prejudice to any other 
consequences and liabiities which he may incur, be deemed to be an assessee 
in default inrespect of such tax. 
(2) Without prejudice to the provisions of sub-section (I), an employer referred 
to in that sub-section shall be liable to pay simple interest at two per centum 
of the amount of tax due for each month or part thereof for the period for 
which the tax remainsunpaid. 
(3) If an enrolled person fails to pay the tax as required by or under this Act, he 
shall be liable to pay simple interest at the rate and in the manner laid down 
in sub-section (2) above; 
19B. Penalty for non payment of tax: 
If an enrolled person or a registered employer fails, without reasonable 
cause to make payment of any amount of tax within the time or date specified in 
the notice of demand, the assessing authority may, after giving him a reasonable 
opportunity of being heard, impose upon him a penalty not exceeding fifty per 
centum of the amount of the tax due. 
21. Amendment of Section 20:- 
In the Principal Act, for the following shall be substituted, namely:- 
20. Mode recovery: 
All arrears of tax, penalty, interest and fees due under this Act fi-om any person 
shall, without prejudice to any mode of collection, be recovered; 
(a) as if it were an amear of land, or 
(b) on application to any Magistrate, by such Magistrate, as if it were a fine 
imposed by him 
22. Insertion of new Section 20A: 
In the Principal Act, after Section 20 so substituted, the following shall be inserted 
as new Section 20A and 20B, namely:- 
20A. Special mode of recovery: 
(1) Notwithstanding anything to the contrary contained in any law or in any 
contract, the assessing authority may, at any time or from time to time by 
notice in writing, a copy ofwhich shall be forwarded to the assessee at his 
last address known to the assessing authority, require:- 
(i) any person from whom any amount of money is due or may become due 
to an assessee on whom notice of demand has been served under this 
Act, or; 
(in any person who holds may subsequently hold money for or on account of 
such assessee, to pay the assessingauthority, eitherforthwithupon the money 
becoming due or being held at or within the time specified in the notice (but 
not money becomes due or is held as aforesaid), so much of the money as 
is sufficient to pay the amount due by the assessee in respect of arrear of 
tax, penalty and interest under this Act, or the whole of the money when it is 
equal to or less than that amount. 
Explanation: For the purposes of this Section, the amount of money due to an assessee 
from, or money held for or on account of an assessee by, any person, shall be 
calculated after deductingthereon such clams (ifany) ladly subsisting, as may 
fallen due for payment by such assessee to such person. 
(2) The assessing authority may, at any time or from time to time, amend or 
revoke any such notice or extend the time for making any payment in 
pursuance of the notice. 
(3) Any person making any payment in compliance with a notice under this 
section shall be deemed to have made the payment under authority of the 
assessee; the receipt of the assessing authority shall constitute agood and 
sutficient discharge ofthe liability of such person, to the extent of the amount 
referred to in the receipt. 
(4) Any person discharging any liability to the assessee after receipt of 
the notice referred to in this section, shall be personally liable to the 
assessing authority to the extent of the liability discharged, or the extent 
of the liability of the assessee for tax, penalty and interest, whichever 
is less. 
(5) Where a person to whom a notice under this section is sent proves to the 
satisfaction of the assessing authority that the sum demanded or any part 
thereof is not due to the assessee or that he does not hold any money for or 
on account of the assessee, then, nothing contained in this section shall be 
the case may be, to the assessing authority. 
(6) Any amount of money which a person is required to pay to the assessing 
authority or for which he is personally liable to the assessing authority under 
this section, if it remains unpaid, be recovered from such person as an mar 
of land revenue. 
20B. Recovery of tax where trade, calling etc. of employer is transferred: 
Where the ownership of the profession, trade, calling or employment of an 
assessee liable to pay tax is transferred, any tax, penalty or interest or other 
amount payableunder this Act, in respect of such business, remainingunpaid 
at the time of the transfer, may without prejudice to any action that may be 
taken for its recovery kom the transferor, be recoverable fiom the transferee 
as if he were the assessee liable to pay such tax, penalty, interest or any 
other; 
23. Amendment of Section 21: 
In the principal Act, for the Section 21, the following shall be substituted, namely:- 
21. Refunds:- The assessing authority shall refund to aperson the amount of tax, 
penalty, interest and fees (if any) paid by such person in excess of the amount 
due from him, the refund may be made either by cash payment or at the 
option of such person, by deduction of such excess form the amount of tax, 
penalty, interest and fee due fiom him. 
Provided that such excess shall first be applied towards the recovery 
of any amount due in respect ofwhich a notice under Section 18 has 
been served and thereafter the balance, ifany, shall be re@nded. 
24. Insertion of new Section 22A and 22B in NagalandAct 4 of 1968: 
In the Principal Act, after Section 22, the following shall be inserted as Section 
22A and 22B, namely: 
22A. Offence by companies:- 
(1) Where an offence under this Act has been committed by a company, every 
person who at the time when the offence was committed was incharge of, 
and was responsible to, the company for the conduct of business of the 
company as well as the company, shall be deemed to be guilty of the 
offence and shall be liable to be proceeded against and punished 
accordingly:- 
Provided that nothinp contained in this sub-section shall render anv - , 
such person liable to any punishment, ifhe proves that the offence was 
committedwithout his knowledpe or that he has exercised due diligence 
b 
to prevent the commission of such offence. 
(2) Notwithstanding anything contained in subsection (1 0, where any offence 
under this Act has been committed by a company and it is proved that the 
offence has been committed with the consent or connivance of, or is 
attributable to any neglect on the part of, any Director, Manager, Secretary 
or other officer, such Director, Manager, Secretary or other officer shall be 
deemed to be guilty of that offence and shall be liable to be proceeded 
against and punished accordingly. 
Explanation: For the purpose of this Section: 
(a) "Company" means anybody corporate and includes firmor other association 
of individuals; and 
(b) LLDire~t~r" in relation to a finn means a partner in the fm. 
22B. Composition of offences:- 
(1) Subject to such conditions as may be prescribed the assessing authority 
may either before or after the institution of a criminal proceeding under the - 
~ct, acceptedfiom the who has committed or iireasonably suspected 
ofhaving committed an offence under this act or the rules made thereunder, - 
by way of composition of suchoffence, 
(a) where the offence consists of the failure to pay or the evasionof any tax 
recoverable under this Act in addition to the tax so recoverable, a sum of 
money not exceeding one thousand rupees or double the amount of tax 
recoverable, if any, whichever is greater, and 
(b) in any other case a sum of money not exceeding one thousand rupees in 
addition to the tax recoverable. 
(2) On payment of such sum, no Merproceeding shall be taken against the 
person in respect of the same offence; 
25. Insertion of new Section 23A and 23B:- 
In the Principal Act, after Section 23, the following shall be inserted asnew sections 
23A and 23B, namely; 
(1) If the assessing authority is satisfied that the books of account and other 
documents maintained by an employer in the normal course ofhis business 
are not adequate for verification ofthe returns filed by the employer under 
thisAct, it shall be lawful forthe assessing authority to direct the employer - 
to maintain the books of account or other documents in such manner as 
he may, in writing direct and thereupon the employer shall maintain such 
books of account or other documents accordingly, 
(2) Where anemployer fails to maintainthe books ofaccount or other documents 
as directedunder sub-section (1), the assessing authority may, after giving 
him an opportunity ofbeig heard, impose uponhim a penalty not exceeding 
rupees fifteen for each day of delay. 
23B. Production and inspection of accounts and documents and search of 
premises: 
Any authority referred to in Section 7 of this Act may inspect and search 
any perniseswhere any profession trade, calling or employment liableto taxation 
under this Act is carried on or is suspected to be cmied on and may require 
productionand examination of books, registers, accounts or documents relating 
thereto, and may seize such books, registers, accounts or documents as may be 
necessary 
Provided that ifsuch authorify removes form such premises any book, 
registel; account or documents, it shall give to the person incharge of the 
place, a receipt describing the book register, account or documents so 
removed by it and removed by it and retain the same only for so long as may 
be necessary for the purposes of examination thereof or for prosecution; 
26. Amendment of Section 24:- 
In the Principal Act, for the exisfing Section24 and the marginal headiig thereof, 
the following shall be substituted, namely 
24. Information to be furnished by employer: the assessing authority may demand 
from any employer the names and complete addresses of all or any of the persons 
in relation to whom he is the employer and such employer shall thereuponfurnish 
the assessing authoritywiththe names andaddresses so demanded. 
27. Insertion of new Section 24A. 
Inthe Pricipal Act, after Section 24, the following shall be inserted as a new 
Section244 namely: 
24A. Power to transfer proceedings:- 
The Commissioner or Profession Tax may, after giving the parties concerned an 
opportunity ofbeing heard, whenever it is possible so do to, and after recording 
his reasons for doing so, by order in writing, transfer any proceedings or class 
of proceedings under this Act, from himself to any other officer, and he may 
likewise transfer any such proceedis (including a proceeding pendig with 
any officer or already transferred under this Section) from any officer to any 
other officer or to himself. 
Provided that nothing in this Section shall be deemed to requires any such 
opportunzty to be given where the transfer is from any officer to any officer 
to any other officer and the offices of both are situated in same place or 
locality 
28. Insertion of new Section 28A and 28B:- 
In the Principal Act, after Section28, the following shall be inserted as new Section 
28Aand28B,namely:- 
28A. Local authorities not to levy profession tax: Notwithstanding anything 
contained in any enactment Government the constitution or establishment of a 
local authority, no local authority shall, on or afterthe commencement of this Act, 
levy and tax onpmfessions, trades, callings or employments. 
28B Appearance before any authority in proceedings: Any person who is 
entitled to appear before any authority other than the High Court , in 
connection with any proceedings under this Act, may be represented becore 
such authority. 
a) by legal practitioner; or 
b) by achartered Accountant; or 
c) by aTax Consultant enrolled as such undertheNagaland ValueAddedTax 
Act, 2005 
29. Insertion of aprovhion of Section 29:- 
In the Principal Act, after sub-section (1) of Section 29, the following shall be 
inserted as a proviso to that section, namely:- 
Provided that it shall not he necessav to make previous publication, as 
aforesaid of any rules required to be made on the first occasion in order to 
give effect to the provisions of the Nngaland Professions, Dudes, Callings 
and Employments Taration (Fourth Amendmend Act, 2011. 
30. Amendment of Schedule: " 
In the Principal Act, for the existing entries 1 to 13 in the Schedule, the following 
shall be substituted and thereafter added the following new entries as entry 14, 
The schedule 
(see Section 3) 
Rates of Tax ............................. 
Serial No. Class of person Rate of tax 
............................. 
1 2 3 ............................. 
1. Salary and wage earners. Such persons whose monthly salaries or wages 
are: 
Rs 
(i) Less than Rs. 40001- Ni 
(ii) Rs. 40001- or more, Rs. 50001- 35 per 
but less than mensem 
i Rs. 50001- or more, Rs. 70001- 75 per 
but less than mensem 
(iv) Rs. 70001- or more, Rs. 90001- 110 per 
but less than mensem 
(v) Rs 90001- or more, Rs. 120001- 1870 per 
but less than mensem 
(vi) Rs. 120001- or more 208 per 
mengem 
2. (a) Legal practitioners including Solicitors and Notaries Public; 
(b) Medical Practitioners including Medical Consultants, Dentists, Radiologist, 
Pathologists and persons engaged in similar other professions or calling of 
Para Medical nature. 
(c) Technical and Professional Consultants other than those mentioned in 
item (b), but including Architects, Engineers, RCC Consultants, 
Plumbers, Electricians, Tax Consultants including Income Tax and Sale 
Tax Practitioners, Chartered Accountants and Management 
Consultants. 
Where the standing in the profession of any of the person mentioned above 
is- 
(i) less than two years ... 500 
(n) two years or more 
but less than five years . . . 1000 
I) five years or more .. . 2000 
3. (i) Chief Agents, Principal Agents, Special Agents, Insurance Agents and 
Surveyors or loss assessors registered or licensed under Insurance Act, 
1938 
u) PigmyAgents or UTIAgents 
Wherethe annual gross income of the person mentioned above is- 
Rs. 
(i) Rs 360001- or less/- - NIL 
(ii) Rs 36001/- or more, 
but less than Rs 950001- - 1500perannum 
(ii) Rs 95001/- or above - 2OOOperannum 
Explanation: For the purposes of the entries against serial Nos. 2 and 3 "annual 
gross income" in relation to apersonmeans the aggregate of the amount of fee, 
remuneration, commission or any other charge, by whatever name called relating 
to his profession or calling inNagaland, receivable by him duringthe immediately 
preceding year. 
4. (a) Members ofAssociations 
recognized under the Forward 
Contracts (Regulation)Act, 1952 - 2500 per annum 
(b) (i) Member of Stock Exchange 
recognized underthe Securities 
Contracts (ECegulation) Act, 1956 - 1800 per aruuun 
5. (a) Estate Agent or Promoters or 
Brokers or CommissionAgents 
or del credereAgents or Mercantile 
Agents. Advertising Agents, Clearing 
and FodingAgents - 25OOperannum 
(b) Contractors of all descriptionengaged in any work such contractors whose 
gross business in any yearis- 
(i) Less the Rs 7000001- - NIL 
(ii) Rs. 400000/- or more, 
but less than Rs 700000/- - 100Operannum 
(ij) Rs 7000001- or more, 
but less than Rs 100000/- - 15OOperannum 
(iv) Rs 1000000/- or more - 2500 per annum 
Explanation: For the purposes ofthis entry gross business shall mean the 
aggregate of the amounts of the valuable consideration or part thereof 
receivable during the immediately proceeding year in respect of a contract 
or contracts executed. 
(c) Auctioneers - 25OOperannum 
(d) Suppliers of machineries 
and all other materials on hire - 25OOperannum 
6. Directors (other than those nominated by Government) of companies registered 
under the Companies Act, 1956 
- 2500perannum 
7. Dealers under the Nagaland Value Added Tax Act, 2005 and the Nagaland 
Sales Tax Act, 1967 whether registered or not whose gross turnover in any 
year is 
(i) Less than Rs. 1000001- - NIL 
(ii) Rs. 100000/- to Rs. 3000001- - 35Operannum 
(iii) Rs. 3000001- to Rs. 5000001- - 750perannum 
(N) Rs. 500000/- to Rs. 1000000/- - 1000 per mum 
(v) Rs. 10000001- to Rs. 25000001- - 1500per annum 
(vi) Rs. 2500000/- to Rs. 1 crore - 2OOOperannum 
(vii) Above 1 crore - 25OOperannum 
8. Owners or lessess ofpetrolldiesel filling 
stations (oil pumps) and agents and distri- 
butors including retail dealers of Liquefied 
Petroleum Gas, Service Stations, Garages 
and Workshops of automobiles 2500 per annum 
9. (a) Owner (or lessees) of Rice Mills, Attd 
Flour Mills, Oil Mills Stone Crushers, 
Bottling Units Tiles, Factories, Biscuit Facto- 
ries, Chemical and Pharmaceutical Laborat- 
ories, Furniture making Unit Printing Presses 
(with power), Fruit Canning Units, Dry 
Cleaners, Interior Decorators 2500 per annnm 
(b) Owner or (lessees) ofNursing Homes, 
Hospitals, X-ray Cliics, Pathological Labora- 
tories, Tutorial Homes1 Colleges or Institutions, 
Shorthand and Computer Institutions, Training 
Institute of any Description. 
(c) Owners, licensees or lessees as the case 
may be of premises let out social functions 2500 per annum 
(d) Owners or occupiers of cold storages 2500 per mum 
(e) Photo laboratories, film processing 
laboratories and photo studios 2500 per mum 
(Q Persons owning/running STD/ISD/ 
FAX Booths 1 500 per mum 
(g) Persons using photo copying machines 
forjob work l000permum 
10. Owners or lessees of- 
(a) Beauty Parlours (non air conditioned ) 1000 per annum 
@) Beauty Parlours (airconditioned) 2500 per mum 
(c) Air-conditioned hairdressing Saloons 2500 per annum 
(d) Hair cutting Saloons 900 per annum 
(e) Air-conditioned Restaurants 2500 per annum 
(f) Ownerloccupier or lessee of residential 
hostel of 3 Star category and above 2500 per mum 
(g) Ownerloccupier or lessee of resid- 
ential hostel below 3 star category 1500 per annum 
I I. (i) Cinema Houses and Theatres 1000 per annum 
(ii) Video Parlors andvideo Rental Libraries 2500 per mum 
12. (i) Individuals or Institutions conducting Chlt 
FundsandLotteries I000 per annum 
(ii) Authorised Stockiest of Lottery Tickets 2500per annum 
(iii) Persons providing entertainment using 
Dish Antennae & Cable TV 2000 per annum 
(iv) Persons operating Courier Service 2500 per annum 
(v) Persons operating Mobile Phones 2500 per annum 
(vi) Persons operating Internet Service 
& Internet Cafes and e-commerce business 2500 per mum 
13. (1 ) Co-operative Societies registered or deemed to Be registered undertheAssam 
Co-operative Societies Act, 1945 (AssamAct 1 of 1950) and engaged in any 
profession, trades or calling- 
(a) Apex Societies (State Level) 2500 per mum 
(b) Central Societies (Dist

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