LexThe Telangana Tax on Professions, Trades, Callings and Employments Act, 1987.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA TAX ON PROFESSIONS, TRADES, CALLINGS
AND EMPLOYMENTS ACT, 1987.
(ACT NO. 22 OF 1987)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement.
2. Definitions.
3. Appointment of a Commissioner and other officers.
4. Levy and charge of tax.
5. Employer’s liability to deduct and pay tax on behalf of
employees.
5A. Licensing Turf Club’s liability to collect and pay tax on
behalf of the licensed persons.
5B. …
6. Registration and enrolment.
7. Returns.
8. Assessment of an assessee.
9. Assessment of escaped or under assessed tax.
10. Payment of tax by certain assesses.
11. Consequences of failure to deduct or to pay tax.
12. Penalty for non-payment of tax.
13. Recovery of tax etc.
14. Appointment of collecting agents.
15. Appeals.
16. Revision.
17. Accounts
18. Special mode.
2 [Act No. 22 of 1987]
18A. Special powers of Deputy Commissioner under the
Revenue Recovery Act.
19. Recovery of tax where trade, calling etc., of employee is
transferred.
20. Production and inspection of accounts and documents
and search of premises.
21. Refund of excess.
22. Offences and penalties.
23. Offences by Companies.
24. Power to transfer proceedings.
25. Compounding of offences.
26. Power to enforce attendance, etc.
27. Bar of jurisdiction of courts.
28. Protection of acts done in good faith.
29. Power to delegate.
30. Power to make rules.
30A. Clarification and Advance Rulings.
31. Power to exempt.
32. Local authorities not to levy profession tax.
33. Amendment of certain enactments.
34. Cesses not be levied in certain cases.
35. Grant to local authorities for loss of revenue.
36. Power to remove difficulties.
37. Power to amend First Schedule.
First Schedule.
Second Schedule.
THE TELANGANA TAX ON PROFESSIONS, TRADES,
CALLINGS AND EMPLOYMENTS ACT, 1987.1
ACT No.22 OF 1987.
1. (1) This Act may be called the 2Telangana Tax on
Professions, Trades, Callings and Employments Act, 1987.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall come into force on such date as the
Government may, by notification, appoint.
2. In this Act, unless the context otherwise requires:–
(a) “appellate authority” means the appellate authority
appointed under section 3;
(b) “assessee” means a person or employer by whom
tax is payable under this Act;
(c) “assessing authority” means an assessing authority
appointed under section 3;
(d) “Commissioner” means the Commissioner of
profession tax appointed under section 3;
(e) “employee” means a person employed on salary or
wages and includes,–
1. The Andhra Pradesh Tax on Professions, Trades, Callings and
Employments Act, 1987 received the assent of the Governor on the 16th
April, 1987. The said Act in force in the combined State, as on
02.06.2014, has been adapted to the State of Telangana, under section
101 of the Andhra Pradesh Reorganisation Act, 2014 (Central Act 6 of
2014) vide. the Notification issued in G.O.Ms.No.169, Revenue
(Commercial Taxes-II) Department, dated 18.09.2015.
2. Substituted by G.O.Ms.No.169, Revenue (CT.II) Department, dated
18.09.2015.
Definitions.
Short title, extent
and
commencement.
2 [Act No.22 of 1987]
(i) an employee of the Central Government or any
State Government to whom the salary is paid either from the
Consolidated Fund of India or of a State;
(ii) a person in the service of a body, whether
incorporated or not, which is owned or controlled by the
Central Government or any St ate Government where the
body operates in any part of the State, even though its
head-quarters may be situated outside the State; and
(iii) a person engaged in any employment of an
employer, not covered by items (i) and (ii) above;
(f) “employer” in r elation 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 a gent of the
employer;
(g) “Government” means the State Government of
3Telangana;
(h) “local authority” means–
(i) in the City of Hyderabad and in the City of
Secunderabad, excluding the Cantonment area, the
Municipal Corporation of Hyderabad 4[xxx] and in any other
Municipality, the Municipal Council concerned;
(ii) in any area which is comprised within the
jurisdiction of Gram Panchaya t, the Gram Panchayat
concerned; and
3. Substituted by G.O.Ms.No.169, Revenue (CT.II) Department, dated
18.09.2015.
4.Omitted by G.O.Ms.No.169, Revenue (CT-II) Department, dated
18.09.2015.
[Act No.22 of 1987] 3
(iii) in any other area, the authority legally entitled to
or entrusted by the Government with the control or
management of a profession tax;
(i) “notification” means a notification published in the
5Telangana Gazette, and the word „notified‟ shall be
construed accordingly;
(j) “person” means any person who is engaged in any
profession, trade, calling or employment in the State of
5Telangana 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;
Explanation: Every branch of a firm, company,
corporation or other corporate body, any society, club or
association shall be deemed to be a person;
(k) “prescribed” means prescribed by rules made by the
Government under this Act;
(l) “profession tax” means a tax leviable under this Act;
(m) “salary or wages ” includes pay or wages, dearness
allowances and all other remunerations received by any
assessee on regular basis, whether payable in cash or kind
and also includes requisitions and profits in lieu of salary as
defined in section 17 of the Inc ome-tax Act, 1961, but does
not include bonus in any form and on any account or
gratuity;
(n) “Schedule” means a Schedule appended to this Act;
5. Substituted by G.O.Ms.No.169, Revenue (CT.II) De partment, dated
18.09.2015.
Central Act 43 of 1961.
4 [Act No.22 of 1987]
(o) “Year” means the twelve months ending on the 31 st
day of March.
3. (1) The Government may, by notification, appoint a
Commissioner of Profession Tax to exercise the powers and
perform the functions conferred on or entrusted to him by or
under this Act.
(2) The Government may also appoint an assessing
authority, appe llate authority and such number of other
officers as they deem fit for the purpose of exercising the
powers and performing the functions respectively conferred
on or entrusted to them by or under this Act.
4. (1) There shall be levied and collected a tax on
professions, trades, callings and employments for the
benefit of the State.
(2) Every person engaged in any profession, trade,
calling or employment in the State and falling under any one
or other of the classes specified in column (2) of the First
Schedule, shall be liable to pay a tax at the rate specified in
the corresponding entry in column (3) thereof.
5. (1) The tax payable under this Act, by any person
earning a salary or wage, shall be deducted by his employer
from the salary or wage p ayable to such person, before
such salary or wage is paid to him, and such employer shall,
irrespective of whether such deduction has been made or
not, when the salary or wage is paid to such persons, be
liable to pay tax on behalf of all such persons:
Provided that, where the employer is an officer of the
State Government or the Central Government, the manner in
which such employer shall discharge the said liab ility shall
be such as may be prescribed:
Appointment of a
Commissioner
and other officers.
Levy and charge
of tax.
Employer‟s
liability to deduct
and pay tax on
behalf of
employees.
[Act No.22 of 1987] 5
Provided further that, where any person earning a salary
or wage–
(a) is also covered by one or more entries other than
entry 1 in the First Schedule and the rate of tax under any
such other entry is more than the rate of tax under entry 1 in
that Schedule; or
(b) is simultaneously engaged in emplo yment of
more than one employer;
and such person furnishes to his employer or employers a
ceritificate in the prescribed form declaring, inter-alia, that he
shall get enrolled under sub-section (2) of section 6 and pay
the tax himself; then the employer or employers of such
person shall not deduct the tax from the salary or wage
payable to such person and suc h employer or employers,
as the case may be, shall not be liable to pay tax on behalf
of such person.
6[5A. The tax payable under this Act by the licensed horse
owners, trainers, book -markers and jockeys shall be
collected by the turf clubs, and such clubs shall, irrespective
of whether such collection has been made or not, be liable
to pay tax on behalf of the above cases of perso ns licensed
by it, and the tax so collected or due shall be received by
the stewards of the club on behalf of the Government and
remit the same in the Governmen t Tresuary as may be
prescribed.]
7[5B. The Chief Agents, Princi pal Agents, Special Agents
and I nsurance Agents, registered or licensed under the
Insurance Act, 1938 and who are l iable to tax under this Act
at the rate specified in entry 2 of Schedule -I to this Act, the
6. Inserted with marginal heading by Act No.17 of 2003.
7. Inserted by G.O.Ms.No.169, Revenue (CT -II) Department, dated
18.09.2015.
Licensing Turf
Club‟s liability to
collect and pay
tax on behalf of
the licensed
persons.
6 [Act No.22 of 1987]
tax payable by them under this Act shall be deducted by the
insurer registered as per the provisions of Insurance Act,
1938 or under the provisions of Insurance Regulatory and
Development Authority of India Act, 1999 or under the
provision of any other law for time being in force, from the
commission payable or due to be payable by the insurer to
the Chief Agents, Pr incipal Agents, Special Agents and
Insurance Agents. The amount of tax deducted shall be
remitted to the State Government on the next working day
from the date of deduction in the manner as may be
prescribed:
Provided that if the insurer does not remit the tax
deducted to the State Government in the manner prescribed
above, the insurer shall pay in addition to the a mount of
such tax, interest at the rate of two rupees for every one
hundred rupees or part thereof for every month or part
thereof from the day/date specified for its payments.]
6. (1) Every assessee (not being an officer of the State
Government or the Central Government) liable to pay tax
under section 5 shall obtain a certificate of registration from
the assessing authority in the prescribed manner.
(2) Every assessee (other than a person earning salary
or wages, in respect of whom the tax is payable by his
employer), liable to pay tax under this Act, shall obtain a
certificate of enrolment from the asse ssing authority in the
prescribed manner.
(3) Every assessee required to obtain a certificate of
registration or enrolment under this section shall,–
(a) within thirty days from the date of commencement
of this Act; or
Registration and
enrolment.
[Act No.22 of 1987] 7
(b) if he was not engaged in any profession, trade,
calling or employment on the date of such commencement,
within thirty days of his becoming liable to pay tax;
apply for a ce rtificate of registration or enrolment or a
revised certificate of enrolment, as the case may be , to the
assessing authority in the prescribed form and, the
assessing authority shall after making such enquiry as may
be necessary within thirty days of the rece ipt of the
application (which period in the first year from the
commencement of this Act, shal l be extended to ninety
days) if the application is in order, grant him such certificate
of registration or enrolment.
8[(4) [xxx]]
(5) Where an assessee liable to registration or
enrolment has wilfully failed to apply for such certificate
within the t ime specified in sub -section (3), the assessing
authority may, after giving him a reasonable opportunity of
being heard, impose a penalty which shall not be less than
rupees ten but which shall not exceed 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 an assessee liable to registration or
enrolment has deliberately given false information in any
application submitted under this section, the assessing
authority may, after giving him a reasonable opportunity of
being heard, impose a penal ty which shall not be less than
rupees one hundred but which shall not exceed rupees one
thousand.
7. (1) Every assessee registered under this Act, shall
submit to the assessing authority a return in such form, for
8. Omitted by Act No.14 of 2012.
Returns.
8 [Act No.22 of 1987]
such period or periods and by such dates as may be
prescribed showing therein the salaries and wages paid by
him and the amount of tax deducted by him in respect
thereof.
(2) Every suc h return shall be accompanied by a
treasury challan in proof of payment of full amount of tax
due according to the return, and return without such proof
of payment shall not be deemed to have been duly
submitted.
(3) Where an assessee has without reasonable cause
failed to submit such return within the specified period, the
assessing authority may, after giving him a reasonable
opportunity of making representation impose upon him a
penalty which shall not be less than rupees five but which
shall not exceed rupees one hundred for each day of delay.
8. (1) If the assessing authority is satisfied that the return
submitted by an assessee is correct and complete, it may
accept the return. If the return appears to it to be incorrect or
incomplete it shall, after giving the assessee a reasonable
opportunity of proving the correctness or completeness of
the return submitted by him and making such enquiry as it
deemed necessary, assess to the best of its judgment, the
amount of tax due from the assessee.
(2) The amount of tax due from any assessee shall be
assessed separately for each year within a period of four
years from the expiry of the year to which the assessment
relates.
(3) If any assessee has failed to get himself registered or
having been registered, has failed to submit any return, the
assessing authority shall, after giving the assessee a
reasonable opportunity of making representation and after
Assessment of an
assessee.
[Act No.22 of 1987] 9
making such inquiry as he deems n ecessary pass an order
assessing the amount of tax due, to the best of its judgment.
(4) The amount of tax so assessed shall be paid within
fifteen days of receipt of the notice of demand from the
assessing authority.
(5) In making an assessment under sub-section (1), the
assessing authority if it is satisfied that the escaped
assessment was due to wilful non -disclosure of information
or attempt to evade the tax by the assessee, the assessing
authority may also direct to pay in addition to the tax
assessed, a penalty which shall not be less than one and
half times the tax so 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.
9. If for any reason any tax payable under this Act, has
escaped assessment or has been under assessed or
assessed at a 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 issui ng a notice to
the assessee concerned and after making such enquiry as it
considers necessary:
Provided that the tax shall be charged at the rate at
which it would have been charged if such tax had not
escaped assessment or, as the case may be, had not been
under assessed or assessed at a rat e lower than the rate at
which it was assessable.
Assessment of
escaped or under
assessed tax.
10 [Act No.22 of 1987]
10. The amount of tax due from the assessees for each year
as specified in their enrolment certificate shall be paid,–
(a) before 30th June, in respect of an assessee who
stands enrolled before the commencement of a year or is
enrolled on or before the 31st May of a year; and
(b) within one month of the date of enrolment in respect
of an assessee who is enrolled afrer the 31 st May of a year;
in the prescribed manner.
9[(c) Notwithstanding anything contained in clauses (a)
and (b), the amendment mad e to the F irst Schedule except
serial No.1 relating to salary and wage earners in the First
Schedule, shall be deemed to have come into force from 1st
April, 199 6 and the tax paid by any assessee for the year
1996-97 as p er the pre -amended S chedule shall be
deducted from the amount due from the assessee as per
the rate s under the amended Schedule and the balance
amount shall be paid on or before 30th September, 1996.]
10[(d) in the case of licenced horse owners, trainers,
jockeys, book -makers shall be paid within a week of the
commencement of the racing at the turf -clubs in the
prescribed manner.]
11. (1) if an assessee (not being an officer of the State
Government or the Central Government) does not deduct
the tax at the time of payment of salary or wages or after
deducting, fails to pay the tax as required by or under this
Act, he shall-
(a) be deemed to be an assessee in default in respect
of the tax; and
9. Inserted by Act No.29 of 1996.
10. Inserted by Act No.17 of 2003.
Payment of tax by
certain assessees.
Consequences of
failure to deduct
or to pay tax.
[Act No.22 of 1987] 11
(b) be liable to pay such interest as may be
prescribed on the amount of tax due for each month or part
thereof for the period for which the tax remains unpaid.
(2) If an enrolled person fails to pay the tax as required
by or under this Act, he shall be liable to pay interest at the
rate and in the manner laid down in sub-section (1).
12. If any assessee fails, without, reasonable cause to make
payment of any amount of tax within the time specified in
the notice of demand, the assessing authority may, aft er
giving him a reasonable opportunity of making his
representation, impose upon him a penalty which shall not
be less than twenty -five per cent but not exceeding fifty
percent of the amount of tax due. This penalty shall be in
addition to the interest payable under sub -section (1) or
sub-section (2) of section 11.
13. The arrears of tax, penalty, interest or any other amount
due under this Act, shall be recoverable as an arrear of land
revenue.
14. (1) The Government may, for carrying out the purposes
of this Act, appoint any Government Department officer, or
local authority as its agent (hereinafter called “the collecting
agent”) who shall be responsible for the collection of the tax
under this Act, from such assessees or class of assessees
as may be prescribed and thereupon it shall be the duty of
such collecting agent to carryout the functions under this
Act, in such manner as maybe prescribed and to render full
and complete account of the tax coll ected, to the
Commissioner in such manner and at such time as may be
prescribed.
(2) The collecting agent and every Officer authorised by
it in this behalf shall, for the purposes of collection of the tax,
Penalty for non-
payment of tax.
Recovery of tax,
etc.
Appointment of
collecting agents.
12 [Act No.22 of 1987]
have all the powers of the assessing authority a nd also any
other powers that maybe prescribed.
(3) A local authority appointed as a collecting agent
under sub-section (1), shall be paid such collection charges
as may be determinded by the Government.
(4) It shall be lawful for the Commissioner or a ny Officer
duly authorised by him, to have access to and to require
production and examination of books, registers, accounts or
documents maintained or required to be maintained by the
collecting agent for the purposes of this Act and the,
collecting agent shall, whenever called upon so to do
produce, such books, registers, accounts or documents for
inspection.
15. (1) Any assessee 11[xxx] aggrieved by any order passed
by 12[any assessing authority] under the provisions of this
Act, 13[xxx] may within thirty days from the date on which the
order was served on him, appeal to the appellate authority:
Provided that the appellate authority may for sufficient
cause shown admit an appeal preferred after the exp iry of
the period of thirty days aforesaid.
14[(2) No appeal shall be entertained, unless 12.5% of
the amount of disputed tax or penalty or interest besides the
admitted tax, in full is paid.
(3) The appeal shall be in such form and verified in such
manner as may be prescribed.]
11. Omitted by Act No.14 of 2012.
12. Substituted for the words ''any authority" by Act No.14 of 2012.
13. Omitted by Act No.16 of 2008.
14. Sub-section (2) and (3) substituted by Act No.16 of 2008.
Appeals.
[Act No.22 of 1987] 13
(4) The appellate authority may after giving the appellant
an opportunity of being heard and subject to such rules of
procedure as may be prescribed:-
(a) confirm, reduce, enhance, or annul 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 fresh order after such further inquiry as may be directed;
or
(c) pass such other orders as it may think fit.
(5) Before passing orders under sub -section (4), the
appellate authority may make such inquiry as it deems fit or
remand the case to any subordinate officer or authority for
an inquiry and report on any specified point or points.
(6) Every order passed in appeal under thi s section
shall, subject to the provisions of section 16, be final.
16. 15[(1) The Commissioner may, call for and examine the
record of the proceedings of any orde r made by the
assessing authority, or, the appellate authority for the
purpose of satisfying himself as to the legality or propriety of
such order and pass such order not prejudicial to the
interests of revenue.]
16[(2) [xxx]]
15. Substituted by Act No.16 of 2008.
16. Sub-section (2) omitted by Act No.16 of 2008.
Revision.
14 [Act No.22 of 1987]
(3) The powers of revision shall be exercised within such
period not exceeding four years from the date o n which the
order was served on the assessee.
(4) No order which adversely affects any assessee shall
be passed under this section, unless such assessee has
been given a reasonable opportunity of being heard.
17[(5) [xxx]]
17. (1) If the assessing authority is satisfied that the books
of account and other documents maintained by an assessee
in the normal co urse of his business are not ad equate for
verification of the returns submitted by the employe r under
this Act, it shall be lawful for the 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 assessee shall maintain such books or other
documents accordingly.
(2) Where an assessee wilf ully fails to maintain the
books of accounts or other documents as directed under
sub-section (1), the assessing authority may, after giving
him a reasonable opportunity of being heard, impose a
penalty not exceeding rupees five for each day of delay.
18. (1) Notwithstanding anything contained in any law or
contract to the contrary, 18[the Commissioner or the Deputy
Commissioner (CT) or the Commercial Tax Officer or the
Deputy Commercial Tax Officer or the Profession Tax Officer
may,] by notice in writing a copy of which shall be
forwarded to the assessee at his last address known to the
assessing authority, require,-
17. Sub-section (5) omitted by Act No.16 of 2008.
18. Substituted by Act No.3 of 2003.
Accounts.
Special mode.
[Act No.22 of 1987] 15
(a) 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
(b) any person who holds or may subsequently hold
money for or on account of such assessee, to pay the
assessing authority, either forthwith upon the money
becoming due or being held or at or within the time
specified in th e notice (but not before the 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 the arrears of tax, penalty or interest under this Act, or the
whole of the money when it is equal to or less than that
amount.
Explanation:–For the purpose 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 deducting therefrom such claims if any
lawfully subsisting, as may have fallen due for payment by
such assessee to such person.
(2) 19[The Commissioner or the Deputy Commissioner
(CT) or the Commercial Tax Officer or the Deputy
Commercial Tax Officer or the Profession Tax Officer may]
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 the authority of the assessee a nd the
receipt of the assessing authority shall constitute a good
and sufficient discharge of the liability of such a person, to
the extent of the amount referred to in the receipt.
19. Substituted by Act No.3 of 2003.
16 [Act No.22 of 1987]
(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 or the liability of the
assessee for the amount due under this Act, whichever is
less.
(5) Where any 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 by him 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 deemed to require, such
person to pay any such sum or part thereof, as 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 whi ch he is personally
liable to the assessing authority under this section, shall if it
remains unpaid, be recoverable, as an arrear of land
revenue.
20[18A. (1) A Deputy Commissioner shall have the powers
of a Collector under the 21[Telangana Revenue Recovery
Act, 1864 ] for the purpose of recovery of any amount due
under this Act.
(2) Subject to the provisions of sub -section (3), all
Deputy Commercial Tax Officers shall, for the purposes of
recovery of any amount due under this Act, have the powers
of the Mandal Revenue Officer under the 22[Telangana Rent
and Revenue Sales Act, 18 39] for the sale of property
distrained for any amount due under this Act.
20. Inserted with marginal heading by Act No.3 of 2003.
21. Adapted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
22 Adapted by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016.
Special powers of
Deputy
Commissioner
under the
Revenue
Recovery Act.
Act VII of 1839.
[Act No.22 of 1987] 17
(3) Notwithstanding anything contained in the
23[Telangana Rent and Revenue Sales Act, 1839 ], the
Deputy Commercial Tax Officer in exercise of the power s
conferred by sub -section (2) shall be subject to the control
and superintendence of the Deputy Commissioner.]
19. 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 payable under
this Act, in respect of such business and remaining unpaid
at the time of the t ransfer, may without prejudice to any
action that may be taken for its recovery from the transferor,
be recoverable from the transferee as if he were the
assessee liable to pay such tax, penalty or interest or other
amount.
20. Any officer or authority under this Act, may inspect and
search any premises, where any profession, trade, calling or
employment liable to tax under this Act is carried on or is
suspected to be carried on and may require production and
examination of books, registers, accounts or documents
relating thereto and may seize such books, registers,
accounts or documents as may be necessary:
Provided that, if the said officer or authority removes
from the said premises any book, register, account or
document, he or it shall give to the person incharge of the
place, a receipt describing the book, register, account or
document so removed and retain the same only for so long
as may be necessary for the purpose of e xamination thereof
or for the prosecution.
21. The assessing authority shall refund to the assessee the
amount of tax, penalty, interest or other amount, if any, paid
by such assessee in excess of the amount due from him.
23. Adapted by G.O.Ms.No.46, Law(F) Department, dated 01.06.2016.
Recovery of tax
where trade,
calling etc., of
employee is
transferred.
Production and
inspection of
accounts and
documents and
search of
premises.
Refund of excess.
18 [Act No.22 of 1987]
The refund may be made either by cash or, at the option of
the assessee by deduction of such excess from the amount
of tax, penalty interest or other amount due in respect of any
other period:
Provided that, the assessing authority shall first apply
such excess towards the recovery of any amount due in
respect of which a notice under section 8 has been served,
and shall then refund the balance, if any.
22. Any assessee wh o, without sufficient cause, fails to
comply with any of the provisions of this Act or the rules
made thereunder shall, on conviction, be punished with fine
which shall not be less than five hundred rupees but shall
not exceed five thousand rupees, and, when the offence is a
continuing one, with fine which shall not be less than ten
rupees but shall not exceed fifty rupees per day during the
period of the continuance of the offence.
23. (1) Where an offence under this Act, has been
committed by a company, every person who at the time the
offence was committed was in charge of and was
responsible to the company for the conduct of the 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, nothing contained in this sub -section
shall render any such person liable to any punishment, if he
proves that the offence was committed without his
knowledge or that he had exercised all due deligence to
prevent the commission of such offence.
(2) Notwithstanding anything contained in sub -section
(1), 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 or is attributable
Offences and
penalties.
Offences by
Companies.
[Act No.22 of 1987] 19
to any neglect on the part of, any director, man ager,
secretary or other officer of the company, such director,
manager, Secretary or other officer shall be deemed to be
guilty of that offence shall be liable to be proceede d against
and punished accordingly.
Explanation.–For the purposes of this section:–
(a) “company” means any body corporate and
includes a firm or other association of individuals; and
(b) “director” in relation to a firm means a partner in
the firm.
24. The Commissioner may, after giving the parties a
reasonable opportunity of being heard, wherever it is
possible so to do, and after recording his reason for doing
so, by order in writing transfer any proceedings or class of
proceedings under any provision of t his Act, from himself to
any other officer, and he may likewise transfer any such
proceedings (including a proceeding pending 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
require any such opportunity to be given where the transfer
is from any officer and the offices of both are situated in the
same city, locality or place.
Explanation.–In this section, the word “proceedings” in
relation to any assessee concerned is specified in any order
issued thereunder means all proceedings under this Act, in
respect of any year, which may be pending on the date of
such order or which may have been completed on or before
such date, and includes also all proceedings under this Act,
which may be commenced after the date of such order in
respect of any year in relation to such assessee.
Power to transfer
proceedings.
20 [Act No.22 of 1987]
25. (1) The assessing authority may, either, before or after
the institution of proceedings for an offence under this Act,
permit any assessee, charged wit h the offence to
compound the offence on payment of such sum, not
exceeding five thousand rupees or double the amount of tax
recoverable, whichever is greater.
(2) On payment of such sum as may be determined by
the assessing authority under sub -section (1), no further
proceedings shall be taken against the person in respect of
the same offence.
(3) Any order passed or proceeding recorded by the
assessing authority under sub -section (1), shall be final and
no appeal or application for revision shall lie therefrom.
26. The Commissioner, and other authorities under this A ct,
shall have the same powers as are vested in a court under
the Code of Civil Procedure, 1908 while trying a suit, for the
purpose of enforcing the attendance of and examining any
person on oath or affirmation or for compelling the
production of any document.
27. No court shall entertain any suit, or other proceeding to
set aside or modify, or question the validity of any
assessment, order or decision made or passed by any
officer or authority under this Act or the rules made
thereunder or in respect of any other matter falling within its
or his scope.
28. No suit, prosecution, or other proceedings shall lie
against the Government or any offic er, authority or person
empowered to exercise the powers and perform the
functions by or under this Act, for anything which is in good
faith done or intended to be done under this Act or the rules
or orders made thereunder.
Compounding of
offences.
Power to enforce
attendance, etc.
Central Act V of 1908.
Bar of jurisdiction
of courts.
Protection of acts
done in good
faith.
[Act No.22 of 1987] 21
29. The Commissioner may, subject to such conditions and
restrictions as the Government may by general or special
order impose, by order in writing delegate to any officer or
authority subordinate to him, either generally or as respects
any particular matter or cl ass of matters any of his powers
under this Act.
30. (1) The Government may, by notification, make rules to
carry out all or any of the purposes of this Act.
(2) In particular and without prejudice to the generality
of the foregoing power, such rules may provide for the fees
payable in respect of any applications to be made, forms to
be supplied, certificates to be granted and appeals and
applications for revision to be made under this Act and also
any applications for certi fied copies of documents filed and
orders made under this Act.
(3) Every rule made under this Act shall immediately
after it is made, be laid before the Legislature of the State if it
is in session, and if it is not in session, in the session
immediately following for a total period of fourteen days
which may be comprised in one session or in two
successive sessions and if, before the expiration of the
session in which it is so laid or the session immediately
following the Legislature agrees in making any modification
in the rule or in the annulment of the rule, the rule shall, from
the date on which the modification or annulment is notified,
have effect only in such modified form or shall stand
annulled, 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.
Power to
delegate.
Power to make
rules.
22 [Act No.22 of 1987]
24[30-A. (1) (i) The Commissioner may constitute a State
Level Authority for Clarification and Advance Rulings
comprising 3 officers not below the rank of Joint
Commissioner to clarify, in the manner prescribed any
aspect of the implementation of the Act.
(ii) The State Level Authority for Clarification and
Advance Rulings constituted under section 67 of the
25Telangana Value Added Tax Act, 2005 shall also function
as State Level Authority for issue of Clarification and
Advance Rulings on issues raised under this Act.
(2) No application shall be entertained where the
question raised in the application,-
(i) is already pending before any officer or authority of
the Department or any Court;
(ii) relates to a transaction or issue which is de signed
apparently for the avoidance of tax:
Provided that no application shall be rejected under
this sub-section unless an opportunity has been given to the
applicant of being heard and where the application is
rejected, reasons for such rejections shall be recorded in
the order.
(3) No officer or any other authority of the Department
shall proceed to decide any issue in respect of which an
application has been made by an applicant under this
section and is pending.
(4) The order of the authority shall be binding:-
24. Inserted with marginal heading by Act No.13 of 2016.
25. Substituted by G.O.Ms.No.32, Revenue (CT.II) Department, dated
15.10.2014.
Clarification and
Advance Rulings.
[Act No.22 of 1987] 23
(i) on the applicant who had sought clarification;
(ii) in respect of the transaction in relation to which a
clarification was sought; and
(iii) on all the officers other than the Commissioner:
Provided the applicant does not file an appeal before
the Telangana Value Added Tax Appellate Tribunal within 30
days of the Ruling in the manner prescribed.
(5) (i) The authority for clarifications shall have power to
review, amend or revoke its rulings at any time for good and
sufficient ca use by giving an opportunity to the affected
parties.
(ii) An order giving e ffect to such review or
amendment or revocation shall not be subject to the period
of limitation.
(6) The Commissioner may also prefer any matter for
opinion of the Authority for clarification without prejudice to
his authority.]
31. The Govern ment may, by notification, make an
exemption or reduction in the rate of tax payable under this
Act by any specified class of assesses subject to such
restrictions and conditions as may be specified in the
notification.
32. Notwithstanding anything in any enactment governing
the constitution or establishment of a local authority, no
local authority shall, on or after the commencement of this
Act, levy any tax on professions, trades, callings or
employments.
Power to exempt.
Local authorities
not to levy
profession tax.
24 [Act No.22 of 1987]
33. (1) The enactments specified in column (2) of the
Second Schedule are hereby amended in the manner and
to the extent specified in the corresponding entry in column
(3) thereof:
Provided that , nothing in the said amendment shall
affect or be deemed to affect,–
(i) any right, obligation or liability already acquired ,
accrued or incurred or anything done or suffered, in respect
of any period preceding the date of coming into force of
these amendments;
(ii) any legal proceedings or remedy whether initiated
or availed of before or after the date of coming into force o f
these amendments, in respect of any such right, obligation
or liability.
(2) The levy, assessment or recovery of any tax or the
imposition or, recovery of any penalty in respect of such
period, under the provisions of the relevant e nactments and
all pr oceedings un der them in respect of all matters
aforesaid shall be initiated and disposed of, or continued
and disposed of, as the case may be, as if this Act had not
been enacted.
34. Notwithstanding anything in any law for the time being
in force no cess shall be levied, on tax on professions,
trades, callings and employments under any such law and
the provision in such law authorising such levy and
collection shall, on and from the date of commencement of
this Act, stand repealed.
35. Out of the proceeds of the tax, penalities, interest or
other amounts recovered under this Act, there shall be paid
annually to such local authorities except Municipalities and
Municipal Corporations whose employees are getting
Amendment of
certain
enactments.
Cesses not be
levied in certain
cases.
Grant to local
authorities for loss
of revenue.
[Act No.22 of 1987] 25
salaries and pensions through Government treasuries as
were levying a tax on professions, trades, callings and
employments, immediately before the commencement of
this Act, such amounts on the basis of the highest
collections of such taxes, penalities and interest made by
them in any year during the perio d of three years
immediately pre ceding such commencement as may be
determined by the Government in this behalf.
36. If any difficulty arises in giving effect to the provisions of
this A ct, the Government may by notification, make such
provisions, not inconsistent with this Act, as appears to them
to be necessary or expedient for removing the difficulty.
37. (1) The Government may, by notification, alter, add to or
cancel any item or entry in the First Schedule.
(2) Where a notification has been issued under sub -
section (1), there shall, unless the notification is in the
meantime rescinded, be introduced in the Legislature as
soon as may be, but in any case during the next session of
the Legislature following the date of the issue of the
notification, a Bill on behalf of the Government, to give effec t
to the alteration, addition or cancellation, as the case may
be, of the said Schedule specified in the notification and the
notification shall cease to have effect when such Bill
becomes law, whether with or without modifications, but
without prejudice to the validity of anything previously done
thereunder:
Provided that if the notification under sub -section (1) is
issued when the Legislature is in session, such Bill shall be
introduced in the Legislature during that session:
Provided further that whe re for any reason a Bill as
aforesaid does not become law within six months from the
date of its introduction in the Legislature the notification shall
Power to remove
difficulties.
Power to amend
First Schedule.
26 [Act No.22 of 1987]
cease to have effect on the expiration of the said period of
six months.
(3) All references made in th is Act, to any items or
entries of the said Schedule shall be construed as relating to
the item of the ScheduleExcerpt shown. Open the full act in Lexace.