Updated: Sunday April 20, 2014/AlAhad
Jamada El Thaniah 20, 1435/Ravivara
Chaitra 30, 1936, at 09:16:48 PM
The
(Act XV of 2011)
C O N T E N T S
Section Heading
1. Short
title, extent and commencement.
2. Amendment
in Act X of 1958.
3. Amendment
in Act XXXII of 1958.
4. Amendment in Ordinance II of 2000.
5. Amendment in Ordinance XIII of 2001.
6. Farm house tax.
7. Education cess on clubs.
[1][1]The
(Act XV of 2011)
[27 June 2011]
An Act to levy tax and
alter the rate of
certain taxes and duties
in the
Preamble.– Whereas, it is
expedient to levy tax and alter the rate of certain taxes and duties in the
It is enacted as follows:---
1. Short title, extent and commencement.– (1) This Act may be
cited as the Punjab Finance Act, 2011.
(2) It
extends to whole of the
(3) It shall
come into force on the first day of July 2011.
2. Amendment in Act X of 1958.– In the
(a) in
section 3, in sub-section (1), for the words “sixty-five”, the word “twenty”
shall be substituted; and
(b) for
section 3-A, the following shall be substituted:---
“3-A. Duty on special classes of entertainments.– Notwithstanding
anything contained in section 3, the duty on the entertainments mentioned in
column No.2 of the following Table shall be charged at the rate mentioned
against each entertainment in column No.3:---
|
Sr. No. |
Entertainment |
Rate of Duty |
|
1. |
Admission to horse racing |
Two hundred percent of
the payment for admission or two hundred rupees per admission ticket,
whichever is higher. |
|
2. |
Circus |
Twenty
percent of the payment for admission; provided that the Government may, by
notification, require the proprietor of the circus to pay the duty on annual
fixation basis, on such terms and conditions as the Government may determine. |
|
3. |
Fashion show or musical show |
Sixty-five
percent of the payment for admission or
sixty five percent of the total amount paid to the owner or management of the
premises or total expenditure made by organizer or sponsor, whichever is
higher; provided that no exemption in entertainment duty shall be allowed to
any of these entertainments under this Act.” |
3. Amendment in Act XXXII of 1958.– In the
(a) in
section 2,---
(i) in clause (g), the word “and”, occurring at
the end, shall be omitted;
(ii) in clause
(h), for the full stop at the end, a semi-colon shall be substituted and,
thereafter, the word “and” shall be inserted; and
(iii) after clause (h), the following clause (i)
shall be inserted:-
“(i)
“Schedule” means the Schedule appended to the Act.”; and
(b) in the
Schedule, at Sr.No.4, for the rider clause and sub-clauses (a) and (b), the
following shall be substituted:---
|
Sr. No. |
Description of Motor
Vehicles |
Annual Rate of Tax |
|
“4. |
Motor vehicles (motor cars or jeeps) other
than those mentioned above and having– |
|
|
|
(a) seating capacity of not more
than three persons. |
Rs.500/- per annum |
|
|
(b) seating capacity of more than three persons
but not more than six persons– |
|
|
|
(i) with engine power not exceeding 1000 cc. |
Rs.600/- per annum |
|
|
(ii) with engine power exceeding 1000 cc but not exceeding 1300 cc. |
Rs.1800/- per annum |
|
|
(iii) with engine power exceeding 1300 cc but not exceeding 1500 cc. |
Rs.3000/- per annum |
|
|
(iv) with
engine power exceeding 1500 cc but not exceeding 2000 cc. |
Rs.4500/- per annum |
|
|
(v) with
engine power exceeding 2000 cc but not exceeding 2500 cc. |
Rs.6000/- per annum |
|
|
(vi) with
engine power exceeding 2500 cc. |
Rs.10,000/- per annum |
|
|
(vii) three
door 4x4 vehicle with engine power exceeding 2500 cc. |
Rs.4,500/- per annum” |
4. Amendment in Ordinance II of 2000.–
In the Punjab Sales Tax Ordinance, 2000 (II of 2000), in section 3, in
sub-section (1), for the words “seventeen per cent”, the words “sixteen per
cent” shall be substituted.
5. Amendment in Ordinance XIII of 2001.–
In the Punjab Local Government Ordinance, 2001 (XIII of 2001), in the Second
Schedule, in Part-II, after entry at Sr. No.14, the following entry at Sr.
No.15 shall be inserted:---
“15. Water
conservancy charge at the rate of sixty thousand rupees per annum from the
owner or occupant of a house or any other building, except an educational
institution, having a swimming pool with a minimum surface area of two hundred
and fifty square feet.”
6. Farm house tax.– [2][2][(1) This section shall have effect, notwithstanding anything
contained in any other law.
(1A) The
provisions of this section shall not apply to the rating areas in terms of the
Punjab Urban Immovable Property Tax Act, 1958 (V of 1958) where
the property tax is levied but shall apply to the rating areas which are zero
rated in terms of section 117 of the Punjab Local Government Ordinance, 2001 (XIII
of 2001).]
(2) In this
section,---
(a) “farm house” means a house constructed after
the year 1980 on a total minimum area of four kanals with a minimum covered
area of five thousand square feet, used as a single dwelling unit with or
without an annexe;
Explanation: Where there are more than one dwelling units in a
compound and the average area of the compound is more than four kanals for a
dwelling unit, each one of such dwelling units shall be treated as a separate
farm house;
(b) “Government”
means Government of the
(c) “tax”
means the farm house tax levied under the section [3][3][;]
[4][4][(d) “total
minimum area” means the total land area including the area under farming even
though the farm house is constructed on a portion of such area of land.]
(3) The
Government shall levy, assess, collect and recover tax from the owner or
occupant of a farm house at the following rate:---
|
Sr.
No. |
Category
of Farm Houses |
Rate
of Tax |
|
1. |
A farm
house with covered area between 5000 to 7000 square feet. |
Rs.10/-
per square foot of the covered area per annum |
|
2. |
A farm house with covered area between 7001 to 10,000
square feet. |
Rs.15/-
per square foot of the covered area per annum |
|
3. |
A farm
house with covered area of more than 10,000 square feet. |
Rs.20/-
per square foot of the covered area per annum |
(4) The tax
under this section shall, as far as possible, be assessed, collected and
recovered in accordance with the provisions of the Punjab Urban Immovable
Property Tax Act, 1958 (V of 1958).
(5) Any
person aggrieved by the assessment of tax on his property may, within thirty
days of the communication of the notice of assessment, prefer an appeal to an
officer notified by the Government.
(6) The
Government may delegate any of its powers under this section to an officer,
body or authority subordinate to the Government.
(7) The
Government may, by notification in the official Gazette, make rules[5][5] for carrying out the purposes of this
section.
7. Education cess
on clubs.– (1) This section shall
have effect notwithstanding anything contained in any other law.
(2) In this
section,---
(a) “cess” means a cess for purposes of education
levied under the section;
[6][6][(b) “amenities”
include facilities of sports, swimming, gymnasium, fitness, conferences,
ceremonies, musical concerts and other social amenities;
[7][7][(c) “club” means
an association or organization offering members amenities, services, meals or
temporary residence with initial membership fee of two hundred thousand rupees
for any category of members and notified as club by the Government but does not
include fitness centre or gymnasium without provision of ancillary services of
eateries, outdoor sports, conferences, ceremonies, musical concerts or any
other such service;]
(d) “initial membership fee” includes all
subscriptions or payments, charges, donations made by an applicant for
membership of the club;
(e) “Government”
means Government of the
(f) “services”
means all types of services provided by the club and includes goods sold at the
club premises.]
(3) Notwithstanding
any tax or duty levied under any other law, the Government shall levy cess on
clubs at the following rates:---
|
Sr. No. |
Activity on which cess is levied |
Rate of cess |
|
1. |
Initial membership fee |
10% of the initial
membership fee |
|
2. |
Services rendered by
the club |
10%
of the charge for a service rendered |
[8][8][(3A) Notwithstanding any reduction of initial
membership fee after the club has been notified under sub-section (2), the club
shall remain notified and the cess under this section shall continue to be
levied on such club.
(3B) If a club is
notified for purposes of this section, the cess shall be levied on actual
initial membership paid by the applicant.
(3C) The cess shall be
levied on the services provided to any person or a member regardless of the
date of membership.]
(4) The cess
shall be assessed and recovered in the prescribed manner.
(5) Any
person aggrieved by the assessment of cess may, within fifteen days of the
communication of notice of assessment of cess, prefer an appeal to an officer
notified by the Government.
(6) The
Government may, by notification in the official Gazette, make rules for
carrying out the purposes of this section.
[1][1]This Act was passed by the
Punjab Assembly on 23 June 2011; assented to by the Governor of the
[2][2]Substituted by the
[3][3]Substituted ibid, for the full-stop.
[4][4]Inserted ibid.
[5][5]For Rules, see Government of the
[6][6]Substituted by the
[7][7]Substituted by the
[8][8]Inserted by the
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