Updated: Sunday April 20, 2014/AlAhad
Jamada El Thaniah 20, 1435/Ravivara
Chaitra 30, 1936, at 04:18:53 PM
The
(Act XLI of 2012)
C O N T E N T S
Section Heading
1. Short
title, extent and commencement.
2. Amendment
in Act II of 1899.
3. Amendment
in Act V of 1958.
4. Amendment in Act XXXII of 1958.
5. Amendment in Act XV of 1977.
6. Amendment in Act VI of 2010.
7. Amendment in Act XV of 2011.
[1][1]The
(Act XLI of 2012)
[25 June 2012]
An
Act to
amend certain laws relating to taxes and duties in the
Preamble.– Whereas, it is
expedient to amend certain laws
relating to tax 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, 2012.
(2) It
extends to whole of the
(3) It shall
come into force on the first day of July 2012.
2. Amendment in Act II of 1899.– In the Stamp
Act, 1899 (II of 1899),---
(a) in
section 27-A, in sub-section (1), for the expression “Articles 23, 31 or 33”,
the expression “Articles 23, 27-A, 31 or 33” shall be substituted; and
(b) in
Schedule I, in Article 45, in column 3, after the proviso, the following
Exception shall be inserted:---
“Exception.–
Notwithstanding anything contained herein, a fixed stamp duty of five hundred
rupees shall be charged in respect of an instrument of partition relating to an
urban or rural property including agricultural land, which is partly or wholly
based on opening of inheritance.”
3. Amendment in Act V of 1958.– In the
(a) in
section 2, for clause (h), the following shall be substituted:---
“(h) “tax” means the tax leviable under the Act
and includes the late payment surcharge in terms of section 12;”
(b) in section 3, in sub-section (5), for the expression “31st
day of August”, the expression “30th day of September” shall be
substituted;
(c) for
section 12, the following shall be substituted:-
“12. Payment of Tax and late
payment surcharge.– (1) Subject to sub-section (2), the tax shall be paid
on yearly basis on or before 30th day of September of the year for
which the tax pertains.
(2) The Government may, by notification in
the official Gazette, direct that the tax in any rating area for any specified
period shall be paid separately.
(3) In addition to the proceedings for the
recovery of the tax under this Act, a late payment
surcharge at the rate of one per cent of the gross payable tax shall stand
imposed on the first day of every month of delay if the tax payable for any year is not paid by 30th
day of September of the said year:
Provided
the late payment surcharge on the arrears of tax as on 30th day of
June 2012 shall stand levied on and from 1st day of July 2012.”; and
(d) in section 16, after the expression “section
3”, wherever occur, the expression “or the late payment surcharge levied under
section 12” shall be inserted.
4. Amendment in Act XXXII of 1958.– In the
(a) in section 3, in sub-section (1), in the last
proviso, after the word “cabin”, the words “or a motor vehicle (motor car or
jeep) up to 1000 CC” shall be inserted; and
(b) in
the Schedule, in Sr. No. 4,---
(i) in column No.2, in para (b), for the entry at
(i), the following shall be substituted:---
“(i) A lump sum tax of rupees ten thousand shall
be charged for motorcars and jeeps up to 1000cc at the time of registration:
Provided
that in case of a motor vehicle registered before 1st day of July
2012, the amount of tax already paid shall be deducted from the payable tax of
rupees ten thousand and the remaining amount shall be paid lump sum at the time
of payment of the tax due.”; and
(ii) in
column No.3, the expression “Rs.600/- per annum” shall be omitted.
5. Amendment
in Act XV of 1977.– In the Punjab Finance Act 1977 (XV of 1977), in the Second Schedule, at S.No.1, in column 2, for
the expression “Companies registered under Companies Ordinance, 1984 with paid
up capital–“, the expression “Companies registered under the Companies Ordinance,
1984, modarbas, mutual funds or any other bodies corporate with the
paid-up capital or, as the case may be, the reserves in the preceding year–”
shall be substituted.
6. Amendment in Act VI of 2010.– In the Punjab
Finance Act 2010 (VI of 2010), for
section 6, the following shall be substituted:-
“6. Capital value tax on immovable property.– (1) This section shall have effect notwithstanding anything contained
in any other law.
(2) For purposes of this section,---
(a) “association of persons” includes a firm, a
Hindu undivided family, a juridical person and a body of persons formed under a
foreign law, but does not include a company;
(b) “Board of Revenue” means the Board of Revenue established under the
Punjab Board of Revenue Act, 1957 (XI of
1957);
(c) “Collector” means the Collector of the district appointed under the
Punjab Land Revenue Act, 1967 (XVII of
1967) and includes the Collector of a subdivision or any other officer
specially empowered by the Board of Revenue to exercise and perform the
functions of Collector;
(d) “company” means,---
(i) a company as defined in the Companies
Ordinance, 1984 (XLVII of 1984);
(ii) a body corporate formed by or under any law
in
(iii) a modarba;
(iv) a body incorporated by or under the law of a
country outside
(v) a trust, a co-operative society or a finance
society or any other society established or constituted by or under any law;
and
(vi) a foreign association, whether incorporated or
not, which the Government has, by general or special order, declared to be a
company for purposes of this section;
(e) “Government”
means Government of the
(f) “person”
includes,---
(i) an individual;
(ii) an association of persons;
(iii) a company;
(iv) a foreign government;
(v) a political subdivision of foreign
government; and
(vi) a public international organization;
(g) “recorded
value” means the value declared by the transferee in the instrument, provided
that the declared value of the property shall not be less than the value
specified in the valuation table notified by the Collector of the district;
(h) “registration authority” includes the person responsible for
registering or attesting or recording the transfer
of an immovable property or of the right to use an immovable property for more
than twenty years, and in the case of a cooperative society or a private housing society, its
principal officers including president, secretary, accountant or any similar
officer declared by the Collector as the principal officer of the society;
(i) “tax” means capital value tax and includes any penalty, fee and
charge or any sum or amount leviable or payable under this section;
(j) “urban area” means an area which is,---
(i) a rating area under the Punjab Urban
Immovable Property Tax Act, 1958 (V of
1958) except the area where the rate of tax is zero in terms of section 117
of the Punjab Local Government Ordinance, 2001 (XIII of 2001); or
(ii) an
area notified by the Board of Revenue in the official Gazette.
(3) A tax on the capital
value of an immovable property shall be payable by a person who acquires an
immovable property by purchase, gift, exchange or power of attorney, surrender
or relinquishment of right by the owner or a right to use thereof for twenty years or more or renewal of lease
so that the total period of lease in favour of the same lessee is twenty years
or more at the rates specified in sub-section (5).
(4) The tax shall not be payable if,---
(a) immovable property is acquired through inheritance; or
(b) immovable property is acquired through gift between spouses,
father, mother, son, daughter, grandparents and grandchildren, siblings, or from one wife or widow to another wife or
widow of the same husband; or
(c) power of attorney is
executed between spouses or from one
wife or widow to another wife or widow of the same husband, or father,
mother, son, daughter, grandparents, grandchildren and siblings.
(5) The rate of tax in respect of immovable
property is as under:-
(a) Immovable property other than commercial or industrial property, plaza or multi-storeyed
building situated in urban area measuring atleast two hundred and fifty
square yards or ten marla, whichever is less,---
|
No. |
Description |
Rate of tax |
|
(i) |
Where the value of the
immovable property is recorded. |
Two percent of the
recorded value of the landed area. |
|
(ii) |
Where
the value of the immovable property is not recorded. |
One hundred rupees per
square feet of the landed area. |
|
(iii) |
Where the immovable
property is a constructed property. |
Ten rupees per square
feet of the constructed area in addition to the value worked out above. |
(b) Commercial
or industrial immovable property
other than plaza or multi-storeyed
building of any size situated in an urban area,---
|
No. |
Description |
Rate of tax |
|
(i) |
Where the value of the
immovable property is recorded. |
Two per cent of the
recorded value of the landed area. |
|
(ii) |
Where
the value of the immovable property is not recorded. |
One hundred rupees per
square feet of the landed area. |
|
(iii) |
Where the immovable
property is a constructed property. |
Ten rupees per square
feet of the constructed area in addition to the value worked out above. |
(c) Immovable property whether commercial, residential or composite in plazas
and multi-storeyed buildings of any size situated in an urban area,---
|
No. |
Description |
Rate of tax |
|
(i) |
Where the value of the
immovable property is recorded. |
Two
percent of the recorded value of the immovable property or one hundred rupees
per square feet of the constructed area, whichever is higher. |
|
(ii) |
Where
the value of the immovable property is not recorded. |
One hundred rupees per
square feet of the constructed
area of the immovable property. |
(6) The tax shall be collected at the time of
registering or attesting the transfer by the person responsible for registering
or attesting the transfer of the immovable property for which the tax is
payable.
(7) The registration authority or any other
person mentioned in sub-section (6) shall submit to the Collector a monthly
statement by 10th of the succeeding month in such Form as may be
prescribed.
(8) In case the statement mentioned in
sub-section (7) is not submitted within the prescribed time, Collector of the
district may impose a penalty on the registration authority or any other person
mentioned in sub-section (6) up to rupees one hundred thousand.
(9) The Collector of the district or any
authority to whom he is subordinate, may himself or through a person or agent
appointed by him for the purpose conduct or cause to be conducted the audit of
the capital value tax including examination of accounts and records of that
registration authority or any other person mentioned in sub-section (6) and may
make an assessment of the tax on the basis of such audit.
(10) The
Collector may, by notice in writing, require any person,---
(a) to furnish to the Collector or an officer authorised by him any
information or produce any accounts, documents or computer stored information
in his possession and relevant to the tax specified in the notice; and
(b) to attend at such time and place as mentioned in the notice for
purposes of examining him on oath by the Collector or the authorised officer in
respect of the matters relating to the tax.
(11) The
Collector may impound any accounts or documents produced in terms of
sub-section (10) and retain the documents so long as may be deemed necessary
for purposes of examination.
(12) Where
a hard copy or computer disk of information stored on a computer is not made
available as required under sub-section (10), the Collector may require
production of the computer on which the information is stored, and impound and
retain the computer for such period as may be necessary.
(13) For purposes of this section, the Collector
shall have the same powers as are vested in a Court under the Code of Civil
Procedure, 1908 (V of 1908), in
respect of the following matter:---
(i) enforcing the attendance of any person and
examining the person on oath or affirmation;
(ii) compelling the production of any accounts,
records, computer stored information, or computer;
(iii) receiving evidence on affidavit; or
(iv) issuing commissions for the examination of
witnesses.
(14) Where
a registration authority or any other person mentioned in sub-section (6) fails
to,---
(i) furnish prescribed monthly statement; or
(ii) provide information or produce documents or
record in terms of sub-section (10) within the stipulated time, Collector of
the district may make an assessment of the tax on the basis of the information
or material available to him.
(15) As
soon as may be after making an assessment under sub-section (9) or sub-section
(14), Collector of district shall issue the assessment order to the
registration authority or any other person, stating,---
(i) the amount of tax due;
(ii) the time, place and manner of filing an appeal
against the assessment order.
(16) The powers under sub-section (9) or
sub-section (14) shall not be exercised after the expiry of five years from the
conclusion of the financial year to which the assessment relates.
(17) Where
the tax is not collected from the person liable to pay it, the tax may be
collected by an officer designated by the Board of Revenue in this behalf from
the said person and the provisions of the Punjab Land Revenue Act 1967 (XVII of 1967) shall, so far as may be,
apply to the collection of the tax as they apply to the recovery of arrears of
land revenue.
(18) Where
any person fails to collect the tax or having collected fails to deposit the
tax into the Government Treasury, he shall be personally liable to pay the tax
along with default surcharge at the rate of fifteen percent per annum for the
period for which such tax or part thereof remains unpaid, and the Collector may
recover it from the said person as arrears of land revenue after giving him an
opportunity of hearing.
(19) Where,
at the time of recovery of tax under sub-section (18), it is established that
the tax collected from the person has meanwhile been paid by the person liable
to tax, no recovery shall be made from the person who had failed to collect the
tax but the said person shall be liable to pay default surcharge at the rate of
fifteen percent per annum from the date he failed to collect the tax to the
date the tax was paid.
(20) A
person personally liable for any amount of tax under sub-section (18) as a
result of failing to collect the tax shall be entitled to recover the tax from
the person from whom the tax should have been collected.
(21) The recovery of tax under sub-section (17)
does not absolve a person who failed to collect the tax from any other legal
action in relation to the failure or from a charge of default surcharge.
(22) The
order passed by an officer under this section shall be deemed to be an order
passed by a Revenue Officer under the Punjab Land Revenue Act, 1967 (XVII of 1967).
(23) The
provisions of sections 13 and 14 of the Punjab Land Revenue Act 1967 (XVII of
1967), shall apply to the cases under this section.
(24) For purposes of appeal, review or revision,
an order passed under this section shall be deemed to be an order of a Revenue
Officer within the meanings of sections 161, 162, 163 and 164 of the Punjab
Land Revenue Act 1967 (XVII of 1967).
(25) Where
the tax has been recovered from a person not liable to pay the same or in
excess of the amount actually payable, an application may, in writing, be made
to the Collector for the refund of the tax or the excess amount.
(26) The
proceeds of the tax collected under this section shall be credited to the
Provincial Consolidated Fund under the head specified by the Government.
(27) The
Board of Revenue may, by notification in the official Gazette, make provisions
relating to the collection and recovery of the tax or regarding any ancillary
matters.
(28) The Government may, by notification in the
official Gazette, exempt a class of immovable property or a class of persons or
a mode of transfer of property from the levy or recovery of the tax subject to
such conditions as may be specified in the notification.
7. Amendment in Act XV of 2011.– In the
(a) in
section 6,---
(i) for
sub-section (1), the following shall be substituted and shall be deemed to have
always been so substituted–
“(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).”
(ii) in sub-section (2), in clause (c), the full
stop shall be replaced by a semi-colon and the following new clause shall be
inserted:---
“(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.”;
(b) in
section 7,---
(i) in
sub-section (2), for clauses (b) and (c), the following shall be substituted:---
“(b) “amenities” include facilities of sports, swimming, gymnasium,
fitness, conferences, ceremonies, musical concerts and other social amenities;
(c) “club” means an association or organization
offering members amenities, services, meals or temporary residence with initial
membership fee of rupees two hundred thousand for any category of members and
notified as club by the Government;
(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.”;
(ii) after
sub-section (3), the following shall be inserted:---
“(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.”
[1][1]This Act was passed by the
Punjab Assembly on 21 June 2012; assented to by the Governor of the
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