AS PASSED BY LOK SABHA

ON 6th MAY, 1994

Bill No. 15-C of 1994

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THE FINANCE BILL, 1994

----ARRANGEMENT OF CLAUSES

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CHAPTER I

PRELIMINARY

CLAUSES

1. Short title and commencement

CHAPTER II

RATES OF INCOME-TAX

2. Income-tax.

CHAPTER III

DIRECT TAXES

Income-tax

3. Amendment of Section 2.

4. Insertion of new section 5A.

5. Amendment of Section 6.

6. Amendment of Section 10.

7. Amendment of Section 10B.

8. Amendment of Section 12A.

9. Amendment of Section 13.

10. Amendment of Section 17.

11. Amendment of Section 24.

12. Amendment of Section 33AB.

13. Amendment of Section 35.

14. Amendment of Section 36.

15. Amendment of Section 37.

16. Insertion of new sections 44AD and 44AE.

17. Amendment of Section 44D

18. Amendment of Section 55.

19. Amendment of Section 57.

20. Amendment of Section 64.

21. Amendment of Section 71.

22. Substitution of new section for section 71A. 23. Insertion of new section 80E.

24. Amendment of Section 80G.

25. Amendment of Section 80HHD.

26. Amendment of Section 80HHE.

27. Amendment of Section 80-IA.

28. Omission of Section 80V.

29. Amendment of Section 88.

30. Amendment of Section 88B

31. Amendment of Section 112

(ii)

CLAUSES

32. Amendment of Section 115A

33. Amendment of Section 115K

34. Amendment of Section 115N

35. Amendment of Section 116.

36. Amendment of Section 139.

37. Amendment of Section 143.

38. Amendment of Section 154.

39. Amendment of Section 194C.

40. Insertion of new Section 194-I. 41. Amendment of Section 196A.

42. Amendment of Section 197.

43. Amendment of Sections 198 to 200 and 202 to 205. 44. Amendment of Section 211

45. Amendment of Section 234C

46. Amendment of Section 246.

47. Amendment of Section 269.

48. Amendment of Section 273A.

49. Amendment of Section 296.

50. Consequential amendments.

Wealth-tax

51. Amendment of Section 2.

52. Amendment of Section 4.

53. Amendment of Section 46. Gift-tax

54. Amendment of Section 2.

55. Amendment of Section 5. Interest-tax

56. Amendment of Section 3 of Act 45 of 1974. Expenditure-Tax

57. Amendment of Section 4.

58. Amendment of Section 6.

59. Amendment of Section 17.

CHAPTER IV

INDIRECT TAXES

CUSTOMS

60. Amendment of Act 52 of 1962.

61. Amendment of Act 51 of 1975.

Excise

62. Amendment of Act 5 of 1986.

63. Amendment of Act 58 of 1957.

CHAPTER V

SERVICE TAX

64. Extent, commencement and application. (iii)

CLAUSES

65. Definitions.

66. Charge of service tax.

67. Valuation of taxable services for charging service tax.

68. Collection and recovery of service tax.

69. Registration.

70. Person responsible for collecting service tax to furnish prescribed return

71. Assessment.

72. Best judgement assessment.

73. Value of taxable services escaping assessment. 74. Rectification of mistake.

75. Interest on delayed payment of service tax.

76. Penalty for failure to collect or pay service tax 77. Penalty for failure to furnish prescribed return. 78. Penalty for suppressing value of taxable service. 79. Penalty for failure to comply with notice.

80. Penalty not to be imposed in certain cases.

81. Offences by companies.

82. Power to search premises.

83. Application of certain provisions of Act 1 of 1944. 84. Revision of orders by the Collector of Central Excise. 85. Appeals to the Collector of Central Excise (Appeals). 86. Appeals to appellate Tribunal.

87. Wilful attempt to evade service tax, etc.

88. Failure to furnish prescribed returns.

89. False statement in verification, etc.

90. Abetment of false return, etc.

91. Certain offences to be non-cognizable.

92. Institution of proceedings.

93. Power to grant exemption from service tax.

94. Power to make rules.

95. Power to remove difficulties.

96. Consequential amendment.

CHAPTER VI

FOREIGN TRAVEL TAX

97. Amendment of Act 21 of 1979.

CHAPTER VII

INLAND AIR TRAVEL TAX

98. Amendment of Act 13 of 1989.

CHAPTER VIII

MISCELLANEOUS

99. Amendment of Act 2 of 1899.

THE FIRST SCHEDULE.

THE SECOND SCHEDULE.

THE THIRD SCHEDULE.

THE FOURTH SCHEDULE.

THE FIFTH SCHEDULE.

Bill No. 15-C of 1994

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THE FINANCE BILL, 1994

A

BILL

to give effect to the financial proposals of the Central Government

for the financial year 1994-95.

BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:--

CHAPTER I

PRELIMINARY

Short title and commencement.

1. (1) This Act may be called the Finance Act, 1994.

(2) Save as otherwise provided in this Act, sections 2 to 59 (except section 26) shall be deemed to have come into force on the 1st day of April, 1994.

CHAPTER II

RATES OF INCOME-TAX

Income-tax.

2. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1994, incometax shall be charged at the rates specified in Part I of the First Schedule and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act, 1961 (43 of 1961.) (hereinafter referred to as the Income-tax Act) shall be increased,--

(a) in the cases to which Paragraphs A,B,C and D of that Part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which Paragraph E of that Part applies, by a surcharge,

calculated in each case in the manner provided therein.

(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding six hundred rupees, in addition to total income, and the total income exceeds,--

(i) in a case to which the said Sub-Paragraph I applies, thirty thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, eighteen thousand rupees, then,--

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,--

(i) in a case to which the said Sub-Paragraph I applies, the first thirty thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, the first eighteen thousand rupees, of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and

(b) the income-tax chargeable shall be calculated as follows:--

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased,--

(A) in a case to which the said Sub-Paragraph I applies, by a sum of thirty thousand rupees; and

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(B) in a case to which the said Sub-Paragraph II applies, by a sum of eighteen thousand rupees,

and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in SubParagraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax determined in accordance with subclause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income:

Provided that the amount of income-tax so arrived at, as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act, shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax and the sum so arrived at shall be the income-tax in respect of the total income.

(3) In cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case ma be:

Provided that the amount of income-tax computed in accordance with the provisions of section 112 shall be increased by a surcharge for purposes of the Union or surcharge as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule:

Provided further that in respect of any income chargeable to tax under section 115B or section 115BB of the Income-tax Act,--

(a) the income-tax computed under section 115B shall be increased by a surcharge calculated at the rate of fifteen per cent. of such income-tax; and

(b) the income-tax computed under section 115BB shall be increased,--

(i) in the case of a person other than a company, being a resident in India, by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax; and

(ii) in the case of a domestic company, by a surcharge calculated at the rate of fifteen per cent. of such income-tax.

(4) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified in Part II of the First Schedule and shall be increased in the cases to which the provisions of sub-item (a) of item 2 of that Part apply, by a surcharge, calculated in the manner rovided therein.

(5) In cases in which tax has to be deducted under sections 194C, 194EE, 194F, 194G and 194-I of the Income-tax Act, the deduction shall be made at the rates specified in those sections and shall be increased in the case of an assessee, being a domestic company, by a surcharge calculated at the rate of fifteen per cent. of such deduction.

(6) In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection shall be made at the rate specified in that section and shall be increased in the case of a buyer, being a domestic company, by a surcharge calculated at the rate of fifteen per cent. of such collection.

(7) Subject to the provisions of sub-section (8), in cases in which income-tax has to be calculated under the first proviso to subsection (5) of section 132 of the Income-tax Act or charged under subsection (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax shall be increased in the cases to which Paragraph E of that Part applies, by a surcharge, calculated in the manner provided therein:

Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be:

Provided further that the amount of income-tax computed in accordance with the provisions of section 112 shall be increased by a surcharge as provided in Paragraph E of part III of the First Schedule:

Provided also that in respect of any income chargeable to tax under section 115B, or in the case of a domestic company, under section 115BB, of the Income-tax Act, the "advance tax" computed

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under the first proviso shall be increased by a surcharge calculated at the rate of fifteen per cent. of such "advance tax".

(8) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding six hundred rupees, in addition to total income and the total income exceeds,--

(i) in a case to which the said Sub-Paragraph I applies, thirtyfive thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, eighteen thousand rupees, then, in calculating income-tax under the first proviso to sub-section (5) of section 132 of the Income-tax Act or in charging income-tax under sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or in computing the "advance tax" payable under Chapter XVII-C of the said Act, at the rate or rates in force,--

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,--

(i) in a case to which the said Sub-Paragraph I applies, the first thirty-five thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, the first eighteen thousand rupees, of the total income but without being liable to tax], only for the purpose of calculating, charging or computing such income-tax or, as the case may be "advance tax" in respect of the total income; and

(b) such income-tax or, as the case may be, "advance tax" shall be so calculated, charged or computed as follows:--

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in Sub-paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased,--

(A) in a case to which the said Sub-Paragraph I applies, by a sum of thirty-five thousand rupees;

(B) in a case to which the said Sub-Paragraph II applies, by a sum of eighteen thousand rupees,

and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Sub-Paragraph I or, as the case may be, the said Sub-Paragraph II as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax or "advance tax" determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income.

(9) For the purposes of this section and the First Schedule,--

(a) "company in which the public are substantially intersted" means a company within the meaning of clause (18) of section 2 of the Income-tax Act, and includes a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year;

(b) "domestic company" means an Indian company, or any other company which, in respect of its income liable to income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1994, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194 of the Act;

(c) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);

(d) "net agricultural income" in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

(e) all other words and expressions used in this section or in the First Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.

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CHAPTER III

DIRECT TAXES

Income-tax Amendment of section 2.

3. In section 2 of the Income-tax Act,--

(a) in clause (19A), after the words "Deputy Commissioner of Income-tax", the words "or an Additional Commissioner of Income-tax" shall be inserted with effect from the 1st day of June, 1994;

(b) in clause (19B), after the words and brackets "Deputy Commissioner of Income-tax (Appeals)", the words and brackets "or an Additional Commissioner of Income-tax (Appeals)" shall be inserted with effect from the 1st day of June, 1994;

(c) after clause (19B), the following clause shall be inserted with effect from the 1st day of June, 1994, namely:--

(19C) "Deputy Director" means a person appointed to be a Deputy Director of Income-tax or an Additional Director of Income-tax under sub-section (1) of section 117;';

(d) in clause (21), after the words "that sub-section to be", the words "an Additional Director of Income-tax or" shall be inserted with effect from the 1st day of June, 1994;

(e) in clause (42A) with effect from the 1st day of April, 1995:-

(i) in the proviso, after the words "share held in a company", the words, figures, brackets and letter "or any other security listed in a recognised stock exchange in India or a unit of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) or a unit of a Mutual Fund specified under clause (23D) of section 10" shall be inserted;

(ii) the existing Explanation shall be renumbered as Explanation 1 and in Explanation 1 as so renumbered, in clause (i), after subclause (c), the following sub-clauses shall be inserted, namely:--

"(d) in the case of a capital asset, being a share or any other security (hereafter in this clause referred to as the financial asset) subscribed to by the assessee on the basis of his right to subscribe to such financial asset or subscribed to by the person in whose favour the assessee has renounced his right to subscribe to such financial asset, the period shall be reckoned from the date of allotment of such financial asset;

(e) in the case of a capital asset, being the right to subscribe to any financial asset, which is renounced in favour of any other person, the period shall be reckoned from the date of the offer of such right by the company or institution, as the case may be, making such offer;";

(iii) after Explanation 1 as so renumbered, the following Explanation shall be inserted, namely:--

`Explanation 2.--For the purposes of this clause, the expression "security" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;' (42 of 1956)

Insertion of new section 5A.

4. After section 5 of the Income-tax Act, the following section shall be inserted and, shall be deemed to have been inserted with effect from the 1st day of April, 1963, namely:--

Apportionment of income between spouses governed by Portuguese Civil Code.

`5A. (1) Where the husband and wife are governed by the system of community of property (known under the Portuguese Civil Code of 1860 as "COMMUNIAO DOS BENS") in force in the State of Goa and in the Union territories of Dadra and Nagar Haveli and Daman and Diu, the income of the husband and of the wife under any head of income shall not be assessed as that of such community of property (whether treated as an association of persons or a body of individuals), but such income of the husband and of the wife under each head of income (other than under the head "Salaries") shall be apportioned equally between the husband and the wife and the income so apportioned shall be included separately in the total income of the husband and of the wife respectively, and the remaining provisions of this Act shall apply accordingly.

(2) Where the husband or, as the case may be, the wife governed by the aforesaid system of community of property has any income under the head "Salaries", such income shall be included in the total income of the spouse who has actually earned it.'.

Amendment of section 6.

5. In section 6 of the Income-tax Act, in clause (1), in subclause (c), in the Explanation, in clause (b), for the words "one hundred and fifty days", the words "one hundred and eighty-two days" shall be substituted with effect from the 1st day of April, 1995.

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Amendment of section 10.

6. In section 10 of the Income-tax Act.--

(1) in clause (10C), with effect from the 1st day of April, 1995,--

(a) in sub-clause (iv), for the word "authority", the words "authority; or" shall be substituted;

(b) after sub-clause (iv), the following sub-clauses shall be inserted, namely:--

"(v) a co-operative society; or

(vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956; (3 of 1956.) or

(vii) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961; (59 of 1961.) or

(viii) such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf,";

(c) in the first proviso,--

(i) after the word "authorities", the words, brackets and figures "or societies or Universities or the Institutes referred to in subclauses (vii) and (viii)" shall be inserted;

(ii) after the word, brackets and figures "sub-clause (ii)", the words, brackets and figure "or coopeative societies referred to in sub-clause (v)" shall be inserted;

(2) after clause (22A), the following clause shall be inserted, namely:--

"(22B) any income of such news agency set up in India solely for collection and distribution of news as the Central Government may, by notification in the Official Gazette, specify in this behalf:

Provided that the news agency applies its income or accumulates it for application solely for collection and distribution of news and does not distribute its income in any manner to its members:

Provided further that any notification issued by the Central Government under this clause shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years (including an assessment year or years commencing before the date on which such notification is issued) as may be specified in the notification;";

(3) in clause (26), with effect from the 1st day of April, 1995,-

(i) in the opening portion, for the words "States of Nagaland, Manipur and Tripura or in the Union territories of Arunachal Pradesh and Mizoram", the words "States of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura" shall be substituted,

(ii) in sub-clause (a), for the words", States or Union territories aforesaid", the words "or States aforesaid" shall be substituted;

(4) in clause (26B), the following amendments shall be made and shall be deemed to have been made with effect from the 1st day of April, 1993, namely:-

(a) for the words "members of either the Scheduled Castes or the Scheduled Tribes or of both", the words "members of the Scheduled Castes or the Scheduled Tribes or backward classes or of any two or all of them" shall be substituted;

(b)for the Explanation, the following Explanation shall be substituted, namely:-

'Explanation.--For the purposes of this clause,-

(a) "Scheduied Castes" and Scheduled Tribes" shall have the meanings respectively assigns I to them in clauses(24) and (25) of article 366 of the Constitution;

(b) "backward classes" means such classes of citizens, other than the Scheduled Castes and the Scheduled Tribes, as may be notified-

(i) by the Central Government; or

(ii) by any State Government,

as the case may be, from time to time. Amendment section 10B.

7. In section 10B of the Income-tax Act,-

(a) in sub-section (2), after clause (i), the following clause shall be inserted, with effect from the 1st day of April, 1995, namely:-

"(ia) in relation to an undertaking which begins to manufacture or produce any article or thing on or after the 1st day of April, 1994, its exports of such articles and things are not less than

6

seventy-five per cent of the total sales thereof during the previous year;

(b) in the Explanation occurring at the end, after clause (iii), the following clause shall be insered namely:-

(iv)"produce", in relation to any article or thing referred to in

clause (i) of sub-section (2) includes production of computer programmes:-

Amendment of section 12A.

8. In section 12A of the Income-tax Act, in clause (b), for the words "twenty-five thousand", the words fifty thousand" shall be substituted with effect from the 1st day of April, 1995.

Amendment of section 13.

9. In section 13 of the Income-tax Act, in sub-section (3), in clause (b), for the words "twenty-five thousand", the words "fifty thousand" shall be substituted with effect from the 1st day of April, 1995.

Amendment of section 17.

10. In section 17 of the Income-tax Act, in clause (2), in the proviso, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted, with effect from the 1st day of April. 1993. namely:-

"(ii) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family-

(a) in any hospital maintained by the Government or any local authority or any other hospital approved by the Government for the purposes of medical treatment of its employees;

(b) in respect of the prescribed diseases or ailments, in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines:

Provided that, in a case failling in sub-clause (b), the employee shall attach with his return of income a certificate from the hospital specifying the disease or ailment for which medical treatment was required and the receipt for the amount paid to the hospital."

Amendment of section 24.

11. In section 24 of the Income- tax Act, in sub-section (2), in

the proviso, for the words "five thousand rupees", the words "ten thousand rupees" shall be substituted' with effect from the 1st day of April, 1995.

Amendment of section 33AB.

12. In section 33AB of the Income-tax Act, with effect from the Ist day of April, 1995.--

(1) in sub-section (1).--

(i) for the portion beginning with the words "whichever is earlier, deposited with the National Bank" and ending with the words "the assessee shall, subject to the provisions of this section," the following shall be substituted, namely:-

"whichever is earlier,-

(a) deposited with the National Bank any amount or amounts in an account (hereafter in this section referred to as the special account) maintained by the assessee with that Bank in accordance with, and for the purposes specified in, a scheme (hereafter in this section referred to as the scheme) approved in this behalf by the Tea Board; or

(b) deposited any amount in an account (hereafter in this section referred to as the Tea Deposit Account) opened by the assessee in accordance with, and for the purposes specified in, a scheme framed by the Tea Board (hereafter in this section referred to as the deposit scheme) with the previous approval of the Central Government, the assessee shall, subject to the provisions of this section,";

(ii) in the second proviso, after the words "in the special account", the words "or in the Tea Deposit Account" shall be inserted;

(2) in sub-section (3), for the words, "the special account shall not be allowed to be withdrawn except for the purposes specified in the scheme", the words "the special account or the Tea Deposit Account shall not be allowed to be withdrawn except for the purposes specified in the scheme or, as the case may be, in the deposit scheme" shall be substituted;

(3) in sub-section (5), after the words "the special account", the words "or in the Tea Deposit Account" shall be inserted;

(4) in sub-section (6),-

(i) after the words "the special account", the words "or in the Tea Deposit Account" shall be inserted;

(ii) after the words "the scheme", the words "or the deposit scheme" shall be inserted;

(5) in sub-section (7),-

(i) after the words "special account", the words "or in the Tea Deposit Account" shall be inserted;

(ii) after the words "National Bank", the words "or which is withdrawn by the assessee from the Tea Deposit Account" shall be inserted;

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(iii) affer the words "the scheme", the words "or the deposit scheme" shall be inserted;

(6) in sub-section (8), after the words "the scheme", at both the places where they occur, the words "or the deposit scheme" shall be inserted.

Amendment of section 35

13. In section 35 of the Income-tax Act, in sub-section (2AA), with effect from the Ist day of

5 April, 1995,-

(a) in the opening portion, after the words " a National Laboratory", the words "or a University or an Indian Institute of Technology" shall be inserted;

(b) in the first proviso, after the words "every National Laboratory", the words "or University or Indian Instiute of Technology " shall be inserted;

(c) in the second proviso,-

(i) after the words " the National Laboratory ", the words"or the

Unversity sdian Institute of Techonology " shall be inserted;

(ii) after the words "such Laboratory", the words "or University or

Institute, as the case may be" shall be inserted;

(d) for the Explanation. the following Explanation shall be substituted, namely:-

Expianation,For the purposes of this section,

(a) "National Laboratory"means a scientific laboratory functioning at the national level under the. aegis of the Indian Council of Agricultural Research, the Indian Council of Medical Research, the Council of Scientific and Industrial Research, the Defence Research and

Development Organisation, the Department of Electronics, the Department of Bio-Technology o the Department of Atomic Energy and which is approved as a National Laboratory by the prescribed authority in such manner as may be prescribed;

(b)"University" shall have the same meaning as in Explanation to clause (ix) of section 47;

(c)"Indian Institute of Technology" shall have the same meaning as that of "Institute" in clause (g) of section 3 of the Institutes of Technology ACt, 1961.'

Amendment of section 36.

14. In section 36 of the Income-tax Act, in sub-section (1), with effect from the Ist day of April, 1995,-

(a)in clause (viia), in sub-clause (a), -

(i) the words, brackets, figures and letter "a bank approved by the Central Government for the purposes of clause (viiia) or" shall be omitted;

(ii) for the words "four per cent.", the words "ten per cent." shall be substituted:

(b)clause (viiia) shall be omitted.

Amendment of section 37.

15. In section 37 of the, Inome-tax Act, in sub-section (2), for the words, figures and letters "an previous year commencing on the lst day of April, 1992", the words, figures and letters "any previou year commencing on or after the lst day of April, 1992" shall be substituted and shall be deemed to hav ?been substituted with effect from the lst day of April, 1993.

Insertion of new sections 44AD and 44AE.

16. In the Income-tax, before section 44B,the following section shall be inserted namely:-

Special provision for computing profits and gains of business of civiconstruction, etc.

44AD. (1) Notwithstanding anything to the contrary contained in section 28 to 43C, in the case of any assessee engaged in the business of civil construction or supply of tabour for civil construction, a sum equal to eight per cent. of the gross receipts paid or payable to the assessee in the previous year on account of such business or, as the case may be , a sum higher than the aforeasid sum as declared by the assessee in his retrun of income, shall be deemed to be the profits and gains of such business chargeable to tax under the head "profits and gains business or profession":

provided that nothing contained in this sub-section shall apply in case the aforesaid gross receipts paid or payable exceed an amount of forty lakh rupees.

(2) Any deduction allowable under provisions of section 30 to 38 shall, for the purposes of sub-section (1), be deemed to have already given full effect to andno futher dedcuction under those sections shall be allowed .

(3) The written down value of any asset used for the business referred to in sub-section (1) shall be deemed to have been calculated as if the assessee had been actually allowed the deduction in respect of the depreciation for each of the relevant assesment year.

(4) The provision of section 44AA and 44AB shall nbot apply in so far as they relate to the business referred to in dsub-section (1) and in computing the monetary limits under those sections, the gross recepits or , as the case may be, the income form the said business shall be excluded.

8

(5) Nothing contained in the foregoing provisions of this section shall apply, where the assessee claims and produces evidence to prove that the profits and gains from the aforesaid business are lower than the profits and gains specified in sub-section (1), and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee and determine the sum payable by the assessee on the basis of assessment made under sub-section (3) of section 143.

Explanation,-For the purposes of this section, the expression "civil construction" includes-

(a) the construction or repair of any building, bridge, dam or other structure or of any canal or road;

(b) the execution of any works contract.

special provision for computing prolits and gains of business of playing hiring or leasing goods carriages .

44AE. (1) Notwithstanding anything lo the contrary contained in sections 28 to 43C, in the case of an assessee, who owns not more than ten goods carriages and who is engaged in the business of plying, hiring or leasing such goods carriages, the income of such business chargeable to tax under the head "Profits and gains of business or profession" shall be deemed to be the aggregate of the profits and gains, from all the goods carriages owned by him in the previous year, computed in accordance with the provisions of sub-section (2).

(2) For the purposes of sub-section (1), the profits and gains from each goods carriage,--

(i) being a heavy goods vehicle, shall be an amount equal to two thousand rupees for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year or, as the case may be, an amount higher than the aforesaid amount as declared by him in his return of income;

(ii) other than a heavy goods vehicle, shall be an amount equal to one thousand eight hundred rupees for every month or part of a month during which the goods carriage is owned by the assessee in the previous year or, as the case may be, an amount higher than the aforesaid amount as declared by him in his return of income.

(3) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of subsection (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed.

(4) The written down value of any asset used for the purpose of the business referred to in sub-section (1) shall be deemed to have been calculated as if the assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years.

(5) The provisions of sections 44AA and 44AB shall not apply in so far as they relate to the business referred to in sub-section (1) and in computing the monetary limits under those sections, the gross receipts or, as the case may be, the income from the said business shall be excluded.

(6) Nothing contained in the foregoing provisions of this section shall apply, where the assessee claims and produces evidence to prove that the profits and gains from the aforesaid business are lower than the profits and gains specified in sub-sections (1) and (2), and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee and determine the sum payable by the assessee on the basis of assessment made under sub-section (3) of section 143.

Explanation.-For the purposes of this section,-

(a) the expressions "goods carriage" and "heavy goods vehicle" shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act 1988; (59 of 1988.)

(b) an assessee, who is in possession of a goods carriage, whether taken on hire purchase or on instalments and for which the whole or part of the amount payable is still due, shall be deemed to be the owner of such goods carriage.

Amendment section 44D.

17. In section 44D of the Income-tax Act, clauses (c) and (d) shall be omitted with effect from the lst day of April, 1995. 45

Amendment of section 55.

18. In section 55 of the Income-tax Act, in sub-section (2), for clause (a), the following clauses shall be substituted, with effect from the Ist day of April, 1995, namely:--

"(a) in relation to a captial asset, being goodwill of a business, tenancy rights, stage carriage permits or loom hours,-

(i) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and

(ii) in any other case [not being a case falling under subclauses (i) to (iv) of sub-section (1) of section 491, shall be taken to be nil;

(aa) in a case where, by virtue of holding a capital asset, being a share or any other security within the meaning of clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956.) (hereafter in this clause referred to as the financial asset), the assessee becomes entitled to subscribe to any additional financial asset, then subject to the provisions of

9

sub-clauses (i) and (ii) of clause (b),-

(i) in relation to the original financial asset, on the basis of which the assessee becomes entitled to any additional financial asset, means the amount actually paid for acquiring the original financial asset;

(ii) in relation to any right to renounce the said entitlement to subscribe to the financial asset, when such right is renounced by the assessee in favour of any person, shall be taken to be nil in the case of such assessee;

(iii) in relation to the financial asset, to which the assessee has subscribed on the basic of the said entitlement,means the amount actually y paid by him for acquiring such asset and

(iv) in relation to any financial asset, purchased by any person in whose favour the right to subscribe to cuch asset has been reounced, the aggregate of the amount of the purchase price paid by him to the person reouncing such right and the amount paid amount paid by him to the company or instiution,of the said entilemt , maeant the amount acoutllyh paid aby him for acqriingsuch asset and of the daid entilemtnt , means relation to any financial asset;

Amendment of section 57.

19.In section 57 of the Income-tax Act, the proviso shall be omitted with effect from the lst day of April, 1995.

Amendment of section 64

20. In section 64 of the Income-tax Act, in sub-section (1A), in the opening portion, after the words "arises or accrues to his minor child", the words, figures and letter', not being a minor child suffering from any disability of the nature specified in section 80U" shall be inserted with effect from the lst day of April, 1995.

Amendment of sction 71.

21. In section 71 of the Income-tax Act, for sub-section (4), the following sub-section shall be substituted with effect from the lst day of April, 1995, namely:-

(4) Where the net result of the computation under the head "Income from house property" is a loss, in respect of the assessment years commencing on the Ist day of April, 1995 and the lst day of April, 1996, such loss shall be first set off under sub-sections (1) and (2) and thereafter with the provisions of that section.

Substitution of new section for section 71.

22. For section 71A of the Income-tax Act, the following section shall be substituted with effect from the Ist day of April, 1995, namely:-

Transitional provisions for set off of loss under the head "Income form house property"

71A. Where in respect of the assessment year commencing on the Ist day of April, 1993 or 30the lst day of April, 1994, the net result of the computation under the head "Income from house property" is a loss, such loss in so far as it relates to interest on borrowed capital referred to in clause (vi) of sub-section(1) of section 24 and to the extent it has not been set off shall be carried forward and set off in the assessment year commencing on the 1st day of April, 1995, and the balance, if any, in the assessment year commencing on the lst day of April, 1996, against the 35income under any head.'

Insertion of new section 80E.

23.After section 80DD of the Income-tax Act, the following section shall be inserted with effect from the lst day of April, 1995, namely:-

Deduction in respect of repayment of loan taken for higher edcation.

80E. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan, taken by him from any financial institution or any approved

charitable institution for the purpose of pursuing his higher education, or interest on such loan:

Provided that the amount which may be so deducted shall not exceed twenty-five thousand rupees.

(2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the loan referred to in sub-section (1) together with interest thereon is paid by the assessee in full, whichever is earlier.

(3) For the purposes of this section,-

(a) "approved charitable institution" means an institution specified in, or, as the case be, an institution established for charitable purposes and notified by the Central Government under, clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;

(b) "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949.) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;

(c) "higher education" means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics;

(d) "initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts repaying the loan or interest thereon.'.

10

Amendment of section 80G.

24. In section 80G of the Income-tax Act,--

(a) in sub-section (1), in clause (i), after the words, brackets, figures and letter "or in sub-clause (iiif)", the words, brackets, figures and letter "or in sub-cluase (iiig)" shall be inserted;

(b) in sub-section (2), in clause (a), after sub-clause (iiif), the following sub-clause shall be inserted, namely:--

"(iiig) the Maharashtra Chief Minister's Relief Fund during the period beginning on the 1st day of October, 1993 and ending on the 6th day of October, 1993 or to the Chief Minister's Earthquake Relief Fund, Maharashtra; or";

(c) sub-section.,(3) shall be omitted;

(d) in sub-section (5),--

(i) the word' "and", occurring at the end of clause (iv), shall be omitted;

(ii) in clause (v), the word "and" shall be inserted at the end.

Amendment of section 80HHD.

25. In section 80HHD of the Income-tax Act, with effect from the 1st day of April, 1995,--

(a) in sub-section (2), in the Explanation, for the words "from a tour operator or, as the case may be, a travel agent", the words "from another hotelier, tour operator or travel agent, as the case may be," shall be substituted;

(b) in sub-section (3), after the words, brackets and figure "sub-section (2)", the brackets, words, figure and letter "[as reduced by any payment, referred to in sub-section (2A), made by the assessee]" shall be inserted;

(c) in sub-section (6),--

(i) the words "aggregate of the" shall be omitted;

(ii) after the words "foreign tourists", the words, brackets, figure and letter, "payments made by him to any assessee referred to in sub-section (2A)" shall be inserted.

Amendment of section 80HHE.

26. In section 80HHE of the Income-tax Act, in sub-section (1), in the proviso, for the figures "1995", the figures "1996" shall be substituted.

Amendment of section 80-IA.

27. In section 80-IA of the Income-tax,--

(a) in sub-section (2),--

(i) in clause (iii), in the proviso, after the words "a small scale industrial undertaking", the words, brackets, letters and figures "or an industrial undertaking referred to in sub-clause (b) of clause (iv) which begins to manufacture or produce an article or thing during the period beginning on the 1st day of April, 1993 and ending on the 31st day of March, 1998" shall be inserted;

(ii) in clause (iv), with effect from the 1st day of April, 1995,--

(1) in sub-clause (a), after the word, brackets and letter "subclause (b)", the words, brackets and letter "or sub-clause (c)" shall be inserted;

(2) after sub-clause (b), the following sub-clause shall be inserted, namely:--

"(c) in the case of an industrial undertaking located in such industrially backward district as the Central Government may, having regard to the prescribed guidelines, by notification in the Official Gazette, specify in this behalf, it begins to manufacture or produce articles or things or to operate its cold storage plant or plants at any time during the period beginning on the 1st day of October, 1994 and ending on the 31st day of March, 1999;";

(b) in sub-section (5), in clause (i), in sub-clause (b), after the word, brackets and letter "sub-clause (b)", the words, brackets and letter "or sub-clause (c)" shall be inserted with effect from the 1st day of April, 1995.

Omission of section 80V.

28. Section 80V of the Income-tax Act shall be omitted with effect from the 1st day of April, 1995.

Amendment of section 88.

29. In section 88 of the Income-tax Act, the following amendments [except amendment by sub-clause (iii) of clause (1)] shall be made and shall be deemed to have been made with effect from the 1st day of April, 1991, namely:--

(1) in sub-section (2),--

(i) in clause (xii), for the words "by any person", the words "in the name of any person" shall be substituted;

(ii) in clause (xii), for the words "by any individual", the words, brackets and figure "in the name of any person specified in sub-section (4)" shall be substituted;

(iii) in clause (xiiic), after the word and figures "section 10", the words and figures "or by the Unit Trust of India established under the Unit Trust of India Act, 1963" (52 of 1963.) shall be inserted with effect from the 1st day of April, 1995;

(2) in sub-section (4),--

(i) for ciause (a), the following clause shall be substituted, namely:--

"(a) for the purposes of clause (i), (v), (xii) and (xiii) of that sub-section,--

11

(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and

(ii) in the case of a Hindu undivided family, any member thereof;";

(ii) in clause (b), sub-clause (ii) shall be omitted;

(iii) in clause (c),-

(a) for the words, brackets and figures "clauses (v) and (viii)", the word, brackets and figures "clause (viii)" shall be substituted;

(b) sub-clause (iii) shall be omitted;

(iv) clause (d) shall be omitted;

Amendment of section 88b.

30. In section 88B of the Income-tax Act, with effect from the 1st day of April, 1995,-

(a) for the words "seventy-five thousand rupees", the words "one hundred thousand rupees" shall be substituted;

(b) for the words "twenty per cent.", the words "forty per cent." shall be substituted.

Amendment of section 112.

31. In section 112 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1995,-

(i) in clause (a), after the words "Hindu undivided family,", the words 88eing a resident," shall be inserted;

(ii) in clause (b),-

(a) for the word "company", the words "domestic company" shall be substituted;

(b) for the words "forty per cent.", wherever they occur, the words "thirty per cent." shall be substituted;

(iii) after clause (b), the following clause shall be inserted, namely:-

"(c) in the case of a non-resident (not being a company) or a foreign company,-

(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been its total income; and

(ii) the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent.";

(iv) the existing clause (c) shall be relettered as clause (d), and in clause (d) as so relettered, after the words "in any other case", the words "of a resident" shall be inserted.

Amendment of section 115A.

32. In section 115A of the Income-tax Act, with effect from the 1st day of April, 1995,-

(i) for sub-section (1), the following sub-section shall be substituted, namely:-

(1) Where the total income of-

(a) a non-resident (not being a company) or of a foreign company includes any income by way of-

(i) dividends; or

(ii) interest received from Government or an Indian concern on monies borrowed or debt incurred by Government or the Indian concern in foreign currency; or

(iii) income received in respect of units, purchased in foreign currency, of a Mutual Fund specified under clause (23D) of section 10 of the Unit Trust of India,

the income-tax payable shall be aggregate of--

(A) the amount of income-tax calculated on the amount of income by way of dividends, if any, included in the total income, at the rate of twenty per cent.;

(B) the amount of income-tax calculated on the amount of income by way of interest referred to in sub-clause (ii) if any, included in the total income, at the rate of twenty per cent;

(C) the amount of income-tax calculated on the income in respect of units referred to in sub-clause (iii) if any, included in the total income, at the rate of twenty per cent.; and

(D) the amount of income-tax with which he or it would have been chargeable had his or its total income been reduced by the amount of income referred to in sub-clause (i), sub-clause (ii) and sub-clause (iii),

(b) a foreign company, includes any income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976, and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a

12

matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy, then, subject to the provisions of sub-sections (1A) and (2), the income-tax payable shall be the aggregate of,-

(A) the amount of income-tax calculated on the income by way of royalty, if any, included in the total income, at the rate of thirty per cent;

(B) the amount of income-tax calculated on the income by way of fees for technical services, if any, included in the total income, at the rate of thirty per cent.; and

(C) the amount of income-tax with which it would have been chargeable had its total income been reduced by the amount of income by way of royalty and fees for technical services.

Explanation-For the purposes of this section,--

(a) "fees for technical services" shall have the same meaning as in explanation 2 to clause (vii) of subsection (1) of section 9;

(b) "foreign currency" shall have the same meaning as in the Explanation below item (g) of sub-clause (iv) of clause (15) of section 10;

(c) "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of 15 section 9;

(d) "Unit Trust of India" means the Unit Trust of India established under the Unit Trust of India Act, 1963.'; (52 of 1963.)

(ii) in sub-section (1A), for the words "approv ' ed by the Central Government or where the agreement relates to a matter", the words "the agreement is approved by the Central Government or where it

relates 2 to a matter" shall be substituted;

(iii) after sub-section (2), the following sub-sections shall be inserted, namely:-

"(3) No deduction in respect of any expenditure of allowance shall be allowed to the assessee under sections 28 to 44C and section 57 in computing his or its income referred to in sub-section (1).

(4) Where in the case of an assessee referred to in sub-section (1),-

(a) the gross total income consists only of the income referred to in clause (a) of that sub-section, no deduction shall be allowed to him or it under Chapter VI-A;

(b) the gross total income includes any income referred to in clause (a) of that sub-section, the gross total income shall be reduced by the amount of such income and the deduction under Chapter VI-A shall be allowed as if the gross total income as so reduced were the gross total income of the assessee

(5) It shall not be necessary for an assessee referred to in subsection (1) to furnish under sub-section (1) of section 139 a return of his or its income if-

(a) his or its total income in respect of which he or it is assessable under this Act during the previous year consisted only of income referred to in clause (a) of sub-section (1); and

(b) the tax deductible at source under the provisions of Chapter XVII-B has been deducted from such income.".

Amendment of section 115K.

33. In section 115K of the Income-tax Act with effect from the 1st day of April, 1995,-

(i) in sub-section (1), for the portion beginning with the words to whom this section applies, carrying on-", and ending with the words from such business or vocation", the following shall be substituted, namely:--

"to whom this section applies and who is--

(a)carrying on the business of retail trade in any goods or merchandise; or

(b) carrying on the business of running an eating place or of operating, hiring or leasing a motor cab, a maxicab or a three-wheeled motor vehicle or any other business as may be prescribed; or

(c) engaged in any vocation, and submits a statement in accordance with the provisions of sub-section (4), a sum of forty-two thousand rupees shall be deemed to be the profits and gains of such person from such business or vocation";

(ii) in sub-section (2),--

(a) In clause (b),--

(1) in sub-clause (i), for the words "thirty-seven thousand rupees", the words "forty-two thousand rupees" shall be substituted;

13

(2) for sub-clause (ii), the following sub-clause shall be substituted, namely,-

"(ii) clause (b) or clause (c) of sub-section (1), his income from the said business or vocation, during the relevant previous year does not exceed forty-two thousand rupees; and";

(b) in clause (c), for the words "of retail trade or from the business of running the eating place or from the business of operating, hiring or leasing a goods carriage, a motor cab, a maxicab or a three-wheeled motor vehicle or from the vocation", the words, brackets, letters and figure "or vocation referred to in clause (a), clause (b) or, as the case may be, clause (c) of sub-section (1)" shall be substituted.

(iii) in sub-section (4),-

(a) in clause (a),-

(1) in sub-clause (i), for the words "thirty-seven thousand", the words "forty-two thousand" shall be substituted;

(2) for sub-clause (ii), the following sub-clause shall be substituted, namely:-

"(ii) where he is carrying on the business or vocation referred to in clause (b) or, as the case may be, clause (c) of that subsection, his income during the relevant previous year from such business or vocation does not exceed forty-two thousand rupees,";

(b) in clause (b), the proviso shall be omitted;

(iv) sub-section (6) shall be omitted;

(v) in the Explanation, in clause (a), the words' "goods carriage", shall be omitted.

Amendment of section 115N.

34. In section 115N of the Income-tax Act, the words "in respect of his income from the business of retail trade or from the business of running an eating place or from the business of operating, hiring or leasing a goods carriage, a motor cab, a maxicab or a three-wheeled motor vehicle or from any vocation" shall be omitted with effect from the 1st day of April, 1995.

Amendment of section 116.

35. In section 116 of the Income-tax Act, after clause (c), the following clause shall be inserted with effect from the 1st day of June, 1994, namely:-

"(cc) Additional Directors of Income-tax or Additional Commissioners of Income-tax or Additional Commissioners of Income-tax (Appeals),".

Amendment of section 139.

36. In section 139 of the Income-tax Act, in sub-section (1), in the Explanation, in clause (a), for the figures, letters and words, "31st Day of December", the figures, letters and words "30th day of November" shall be substituted.

Amendment of section 143.

37. In section 143 of the Income-tax Act, in the Explanation, for the word and figures "section 264", the words and figures "sections 246 and 264" shall be substituted with effect from the 1st day of June, 1994.

Amendment of section 154.

38. In section 154 of the Income-tax Act, in sub-section (2), the proviso shall be omitted with effect from the 1st day of June, 1994.

Amendment of section 194C.

39. In section 194C of the Income-tax Act, the Explanation occurring below sub-section (2) shall be renumbered as Explanation II, and before Explanation II as so renumbered the following Explanation shall be inserted with effect from the 1st day of June, 1994, namely:-

`Explanation I.-For the purposes of sub-section (2), the expression "contractor" shall also include a contractor who is carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and the Government of a foreign State or a foreign enterprise or any association or body established outside India.'.

Insertion of new section 194-I

40. After section 194H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 1994, namely:-

Rent

`194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any person any income by way of rent, shall, at the time of credit of such income to the account of the

14

payee or at `the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of twenty per cent:

Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed one hundred and twenty thousand rupees.

Explanation.-For the purposes of this section,-

(i) "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee;

(ii) where any income is credited to any account, whether called "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.'.

Amendment of section 196A.

41. In section 196A of the Income-tax Act, in sub-section (2), for the words "twenty-five per cent." the words "twenty per cent." shall be substituted with effect from the 1st day of June, 1994.

Amendment of section 197.

42. In section 197 of the Income-tax Act, in sub-section (1), after the figures and letter "194D, the figures and letter", "194-I" shall be inserted with effect from the 1st day of June, 1994.

Amendment of section 198 to 200 and 202 to 205.

43. In sections 198, 199, 200, 202, 203, 203A, 204 and 205 of the Income-tax Act, after the word, figures and letter "section 194H," the word, figures and letter "section 194-I," shall be inserted with effect from the 1st day of June, 1994.

Amendment of section 211.

44. In section 211 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, with effect from the 1st day of April, 1994, namely:-

"(1) Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by-

(a) all the companies, who are liable to pay the same, in four instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table I below:

TABLE I

---------------------------------------------------------------------

Due date of instalment Amount payable ---------------------------------------------------------------------

On or before the 15th June Not less than fifteen per cent of su-

ch advance tax.

On or before the 15th September Not less than forty-five per cent, of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.

On or before the 15th December Not less than seventy-five per cent

of such advance tax, as reduced by

the amount or amounts, if any, paid

in the earlier instalment or instalments.

On or before the 15th March The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments.

---------------------------------------------------------------------

(b) all the assessees (other than companies), who are liable to pay the same, in three instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table II below:

TABLE II

---------------------------------------------------------------------

Due date of instalment Amount payable ---------------------------------------------------------------------

On or before the 15th September Not less than thirty per cent of

such advance tax.

On or before the 15the December Not less than sixty per cent. of

such advance tax, as reduced by

the amount, if any, paid in the 50

earlier instalment.

On or before the 15th March The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments:

---------------------------------------------------------------------

Provided that any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act.".

15

Amendment of section 234c.

45. In section 234C of the Income-tax Act, in sub-section (1), for the portion beginning with the words "Where in any financial year" and ending with the words "as the case may be, sixty per cent of the tax due on the returned income:", the following shall be substituted with effect from the 1st day of April, 1995, namely:-

"Where in any financial year,-

(a) the company which is liable to pay advance tax under section 208 has failed to pay such tax or-

(i) the advance tax paid by the company on its current income on or before the 15th day of June is less than fifteen per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less thanseventy-five per cent. of the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of one and one-half per cent. per month for a period of three months on the amount of the shortfall from fifteen per cent. or forty-five percent. or seventy-five per cent., as the case may be, of the tax due on the returned income;

(ii) the advance tax paid by the company on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of one and one-half per cent. on the amou.it of the shortfall from the tax due on the returned income:

Provided that if the advance tax paid by the company on its current income on or before the 15th day of June or the 15th day of September, is not less than twelve per cent. or, as the case may be, thirty-six per cent. of the tax due on the returned income, then, it shall not be liable to pay any interest on the amount of the shortfall on those dates;

(b) the assessee, other than a company, who is liable to pay advance tax under section 208 has failed to pay such tax or,-

(i) the advance tax paid by the assessee on his current income on or before the 15th day of September is less than thirty per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than sixty per cent. of the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one and one-half percent. per month for a period of three months on the amount of the shorfall from thirty per cent. or, as the case may be , sixty per cent. of the tax due on the returned income;

(ii) the advance tax paid by the assessee on his current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one and one-half per cent. on the amount of the shortfall from the tax due on the returned income;".

Amendment of section 246.

46. In section 246 of the Income-tax Act, with effect from the 1st day of June, 1994,-

(a) in sub-section (1), in clause (a), after the words "under this Act", the words, brackets, figures and letter,"or an intimation under sub-section (1) or sub-section (1B) of section 143, where the assessee objects to the making of adjustments," shall be inserted;

(b) in sub-section (2), in clause (a), for the words, brackets and figure "an order specified in sub-section (1) where such order", the words, brackets and figure "an intimation or order specified in sub-section (1) where such intimation is sent or such order" shall be substituted.

Amendments of section 269.

47. In section 269 of the Income-tax Act, with effect from the 1st day of April, 1995,-

(a) clause (iii) shall be omitted;

(b) in clause (vi), the word "Goa," shall be omitted.

Amendment of section 273A.

48. In section 273A of the Income-tax Act, after sub-section (6), the following sub-section shall be inserted, with effect from the 1st day of June, 1994, namely:-

"(7) Notwithstanding anything contained in sub-section (6), the provisions of sub-section (1), sub-section (2), or, as the case may be, sub-section (4) [as they stood immediately before their amendment by the Direct Tax Laws (Amendment) act, 1989], (3 of 1989) shall apply in the case of reduction or waiver of penalty or interest in relation to any assessment for the assessment year commencing on the 1st day of April, 1988 or any earlier assessment year, with the modifications that the power under the said sub-section (1) shall be exercisable only by the Commissioner and instead of the previous approval of the Board, the Commissioner shall obtain the previous approval of the Chief Commissioner or Director General, as the case may be, while dealing with such case."

Amendment of section 296.

49. In section 296 of the Income-tax Act, after the words "every rule made under this Act," the words, brackets, figures and letters", the rules of procedure framed by the Settlement Commission under subsection (7) of section 245F, the Authority for Advance Rulings under Section 245V and the Appellate Tribunal under sub-section (5) of Section 255" shall be inserted with effect from the 1st day of June, 1994.

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Consequential amendments

50. The following amendments (being consequential in nature) shall be made in the Income-tax Act,--

(a) in section 44AB, in the Explanation, in clause (ii), in subclause (a), for the figures, letters and words "31st day of December", the figures, letters and words "30th day of November" shall be substituted;

(b) in section 80CC, in sub-section (1),--

(i) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1978;

(ii) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1978;

(c) in section 80CCA, in sub section (1),--

(i) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1988;

(ii) clause (c) shall be, omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1988;

(d) in section 80CCB, in sub section (1),--

(i) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(ii) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(e) in section 80D, in sub-section (2), clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1987;

(f) in section 80L, in sub-section (1),--

(i) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1968;

(ii) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1968;

(g) in section 88, sub-section (1),--

(i) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(ii) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(h) in section 88A, in sub-section (1),--

(i) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(ii) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

Wealth-tax

Amendment of section 2.

51. In section 2 of the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to as the Wealth-tax Act),--

(i) in clause (ea), in the Explanation, in clause (b), for the words "period of three years", the words "period of five years" shall be substituted with effect from the lst day of April, 1995;

(ii) in clause (s), after the word "Director", the words and brackets "Additional Director of Income-tax", "Additional Commissioner of Income-tax", "Additional Commissioner of Income-tax 45 (Appeals)", Deputy Director", shall be inserted with effect from the lst day of June, 1994.

Amendment of section 4.

52. In section 4 of the Wealth-tax Act, in sub-section (1), in clause (a), in sub-clause (ii), after the words "not being", the words, figures and letter "a minor child suffering from any disability of the nature specified in section 80U of the Income-tax Act or" shall be inserted with effect from the lst day of April 1995.

Amendment of section 46.

53. In section 46 of the Wealth-tax Act, in sub-section (4), after the words "every rule made under this Act", the words, brackets, figures and letter "and the rules of procedure framed by the Settlement Commission under sub-section (7) of section 22F" shall be inserted with effect from the lst day of June, 1994.

Gift-tax

Aamendment of section 2.

54. In section 2 of the Gift-tax Act, 1958 (hereinafter referred to as the Gift-tax Act), in clause (xxv), after the word, "Director",

the words and brackets "Additional Director of Income-tax", "Additional Commissioner of Income-tax", "Additional Commissioner of Income-tax (Appeals)", "Deputy Director", shall be inserted with effect from the ist day of June, 1994.

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Amendment of section 5.

55.In section. 5 of the Gift-tax Act, in sub-section (1), in clause (vii), for the words "thirty thousand", the words "one hundred thousand" shall be substituted with effect from the 1st day of April, 1995.

Insterest-tax

Amendment of section 3 of Act 45 of 1974

56. In section 3 of the Interest-tax Act, 1974, in sub-section (3), with effect from the 1st day of June, 1994,--

(i) after the words "Income-tax Officer," the words "or. Assistant Commissioner" shall be inserted;

(ii) for the words "Director of Inspection", the word "Director" shall be substituted;

(iii) for the words "Inspecting Assistant Commissioner", the

words "Additional Commissioner of Income-tax or the Deputy Commissioner" shall be substituted.

Expenditure-tax

Amendment of section 4.

57. In the Expenditure-tax Act, 1987 (35 of 1987) (hereinafter referred to as the Expenditure-tax Act), in section 4, in clause (a), for words "twenty per cent.", the words "ten per cent." Shall be substituted with effect from the Ist day of June, 1994.

Amendment of section 6

58. In the Expenditure-tax Act, in section 6, with effect from the lst day of June, 1994,--

(i) in sub-section (1), for the words "Deputy Director", the words "Additional Director of Incometax, Additional Commissioner of Income-tax, Deputy Director" shall be substituted;

(ii) in sub-section (3), for the words "Deputy Commissioner", the words "Additional Commissioner of Income-tax or Deputy Commissioner" shall be substituted.

Amendment of section 17.

59. lp section 17 of the Expenditure-tax Act, in the proviso, for the words "Deputy Commissioner", the words "Additional Commissioner or, as the case may be, of the Deputy Commissioner" shall be substituted with effect from the Ist day of June, 1994.

CHAPTER IV

INDIRECT TAXES

Customs Amendment of Act 52 of 1962.

60.In the Customs Act, 1962 (hereinafter referred to as the Customs Act),--

(1)for section 20, the following section shall be substituted, namely:--

Reimportation of goods.

'20. If goods are imported into India after exportation therefrom, such goods shall be liable to duty and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof:

Provided that if such importation (other than importation of goods exported in bond or of goods produced or manufactured in a free trade zone) takes place within three years after the exportation of such goods and it is shown to the satisfaction of the Assistant Collector of Customs that the goods are the same which were exported, the goods may be admitted--

(a) in any case where at the time of exportation of the goods, drawback of any customs or excise duty levied by the Union or both was allowed, on payment of customs duty equal to the amount ofsuch drawback;

(b) in any case where at the time of exportation of the goods, drawback of any excise duty levied by a State was allowed, on payment of customs duty equal to such excise duty leviable at the time and place of importation of the goods;

(c) in any other case, without payment of duty:

Provided further that if the Central Government is satisfied that it is necessary in the public interest so to do, it may, by order in each case, extend the aforesaid period of three years for such further period as it may deem fit.

Explanation I.--Where in respect of any goods produced or manufactured in a free trade zone, any duty leviable under this subsection is leviable at different rates, then, such duty shall be leviable at the highest of those rates.

Explanation II.--For the purposes of this section, "free trade zone" has the same meaning as in Explanation 2 to sub-section (1) of section 3 of the Central Excises and Salt Act, 1944'.(1 of 1944).

(2) in section 23, for sub-section (2), the following sub-section shall be substituted, namely:--

"(2) The owner of any imported goods may, at any time before an order for clearance of goods for home consumption under section 47 or an order for permitting the deposit of goods in a warehouse under section 60 has been made, relinquish his title to the goods and thereupon he shall not be liable to pay the duty thereon.";

(3) in section 59, in sub-section (1), the words, brackets and letter "clause (a) of" shall be omitted;

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(4)section 59A shall be omitted;

(5)in sections 60, 72 and 73, the words, figures and letter "or section 59A" shall be omitted;

(6)for section 61, the following section shall be substituted, namely:--

Piriod for which goods may remain warehoused.

61. (1) Any warehoused goods may be left in the warehouse in which they are deposited or in any warehou@p to which they may be removed,--

(a) in the case of capital goods intended for use in any hundred per cent, export oriented undertaking, till the expiry of five years; and

(b) in the case of any other goods, till. the expiry of one year, after the date on which the proper officer has made an order under section 60 permitting the deposit of the goods in a warehouse:

Provided that--

(i) in the case of any goods which are not likely to deteriorate, the period specified in sub-section (1) may, on sufficient cause being shown, be extended by the Collector of Customs for a period not exceeding six months and by the Principal Collector of Customs for such further period as he may deem fit;

(ii) in the case of any goods referred to in clause (b), if they are likely to deteriorate, the aforesaid period of one year may be reduced by the Collector of Customs to such shorter period as he may deem fit:

Provided further that when the licence for any private warehouse is cancelled, the owner of any goods warehoused therein shall, within seven days from the date on which notice of such cancellation is given or within such extended period as the proper officer may allow, remove the goods from such warehouse to another warehouse or clear them for home consumption or exportation.

(2) Where any warehoused goods remain in a warehouse beyond the period specified in sub-section (1) by reason of extension of the aforesaid period or otherwise, interest at such rate as is specified in section 47 shall be payable, on the amount of duty payable at the time of clearance of the goods in accordance with the provisions of section 15 on the warehoused goods, for the period from the expiry of the said warehousing period till the date of payment of duty on the warehoused goods:

Provided that the Board may, if it considers it necessary so to do in the public interest, by order and under circumstances of an exceptional nature, to be specified in such order, waive the whole or part of any interest payable under this section in respect of any warehoused goods:

Provided further that the Board may, if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette, specify the class of goods in respect of which no interest shall be charged under this section.

Explanation.---For the purposes of this section, "hundred per cent, export oriented undertaking" has the same meaning as in Explaration 2 to sub-section (1) of section 3 of the Central Excises and Salt Act, 1944.'.(1 of 1944)

Amendmenrt of Act 51 of 1975

61. The Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act) shall be amended in the manner specified in the Second Schedule.

Excise

Amendment of Act 5 of 1986

62. The Cntral Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act),--

(a) shall be amended in the manner specified in the Third Schedule; and

(b) shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, be also amended in the manner specified in the Fourth Schedule.

Amendment of Act 58 of 1957.

63.In the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as the Additional Duties of Excise Act),--

(a) in section 3,for sub-section (3),the following sub-section shall be substituted, namely:--

"(3)The provisions of the Central Excises and Salt Act, 1944 and the rules made thereunder, including those relating to refunds, exemptions from duty, offences and penalties, shall, so far as may be, apply in relation to levy amd cp;;ectopkm pf tje ditoes pf excise on the gtooms specified in sub-section (1).";(1 of 1944).

(b) the First Schedule shall be amended in the manner specified in the Fifth schedule.

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CHAPTER V

SERVICE TAX Extent, commencement and application.

64. (1) This Chapter extends to the whole of India except the State of Jammu and Kashmir.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

(3) It shall apply to taxable services provided on or after the commencement of this Chapter.

Definitions.

65. In this Chapter, unless the context otherwise requires,--

(1) "Appellate Tribunal" means the Customs, Excise and Gold (Control) Appellate Tribunal constituted under section 129 of the Customs Act, 1962. (52 of 1962.)

(2) "assessee" means a person responsible for collecting the service tax payable under the provisions of this Chapter and includes his agent;

(3) "Board" means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963; (54 of 1963.)

(4) "Central Excise Officer" has the meaning assigned to it in clause (b) of section 2 of the Central Excises and Salt Act, 1944; (1 of 1944.)

(5) "general insurance business" has the meaning assigned to it in clause (g) of section 3 of the General Insurance Business (Nationalisation) Act, 1972; (57 of 1972.)

(6) "insurer" means any person carrying on the general insurance business in India;

(7) "person responsible for collecting the service tax" means a person who is required to collect service tax under this Chapter or is required to pay any other sum of money under this Chapter and includes every person in respect of whom any proceedings under this Chapter have been taken;

(8) "policy-holder" has the meaning assigned to it in clause (2) of section 2 of the Insurance Act, 1938; (4 of 1938.)

(9) "prescribed" means prescribed by rules made under this Chapter;

(10) "recognised stock exchange" has the meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956; (42 of 1956.)

(11) "securities" has the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956; (42 of 1956.)

(12) "service tax" means tax chargeable under the provisions of this Chapter;

(13) "stock-broker" means a stock-broker who has either made an application for registration or is registered as a stock-broker in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992; (15 of 1992.)

(14) "sub-broker" means a sub-broker who has either made an application for registration or is registered as a sub-broker in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992; (15 of 1992.)

(15) "subscriber" means a person to whom a telephone connection has been provided by the telegraph authority;

(16) "taxable service" means any service provided,--

(a) to an investor by a stock-broker in connection with the sale or purchase of securities listed in a recognised stock exchange;

(b) to a subscriber, by the telegraph authority, in relation to a telephone connection;

(c) to a policy-holder, by an insurer carrying on general insurance business, in relation to general insurance business;

(17) "telegraph authority" has the meaning assigned to it in clause (6) of section 3 of the Indian Telegraph Act, 1885; (13 of 1885.) and includes a person who has been granted a license under the first proviso to subsection (1) of section 4 of that Act;

(18) words and expressions, used but not defined in this Chapter and defined in the Central Excises and Salt Act, 1944 (1 of 1944.) or the rules made thereunder, shall apply, so far as may be, in relation to service tax as they apply in relation to duty of excise.

Charge of service tax.

66. On and from the commencement of this Chapter, there shall be charged a tax (hereinafter referred to as service tax) at the rate of five per cent of the value of the taxable services provided to any person by the person responsible for collecting the service tax.

Valuation of taxable services for charging service tax.

67. For the purposes of this Chapter, the value of taxable services,--

(a) In relation to service provided by a stock-broker, shall be the aggregate of the commission or brokerage charged by him on the sale or purchase of securities from the investors and includes the commission or brokerage paid by the stock-broker to any sub-broker;

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(b) in relation to telephone connection provided to the subscribers, shall be the gross total amount (including adjustments made by the telegraph authority from any deposits made by the subscribers at the time of applications for telephone connections) received by the telegraph authority from the subscribers.

Explanation.--For the removal of doubts it is hereby declared that the value of taxable service in this clause shall not include the initial deposits made by the subscribers at the time of applications for telephone connections;

(c) in relation to services of general insurance business provided to the policy holders, shall be the total amount of the premium received by the insurer from the policy holders.

Collection and recovery of service tax.

68. (1) Every stock-broker, the telegraph authority or the insurer who is providing taxable services to any person shall collect the service tax at the rate specified in section 66.

(2) The service tax collected during any calendar month in accordance with the provisions of sub-section (1) shall be paid to the credit of the Central Government by the 15th of the month immediately following the said calendar month.

(3) Any person, responsible for collecting the service tax, who fails to collect the tax in accordance with the provisions of subsection (1), shall, notwithstanding such failure, be liable to pay the tax to the credit of the Central Government in accordance with the provisions of sub-section (2).

Registration.

69. (1) Every person responsible for collecting the service tax under this Chapter shall, within such time and manner and in such form, as may be prescribed, make an application for registration under this Chapter to the Central Excise Officer.

(2) If a person responsible for collecting the service tax provides taxable services from more than one premises of offices, he shall make separate applications for registration in respect of each such premises or office.

(3) The provisions of sub-section (1) or sub-section (2) shall not apply in such cases as the Central Government may, by notification in the Official Gazette, specify and such notification may contain

conditions which will regulate exemption from requirement for registration.

(4) If the Central Excise Officer, to whom an application under sub-section (1) or sub-section (2) is made, is satisfied that the application is in conformity with the provisions of this Chapter and the rules, made thereunder, he shall register the applicant within thirty days of the receipt of such application and grant to him a certificate of registration in the prescribed form.

(5) Every person who ceases to provide taxable service shall surrender his certificate of registration immediately to the Central Excise Officer.

(6) The certificate of registration granted under sub-section (4) may, on the application of the person to whom it has been granted, be amended by the Central Excise Officer granting it if he is satisfied that by reason of change in the name or place of the applicant or for any other reason, the certificate of registration should be so amended.

Person responsible for collecting service tax to furnish prescribed return.

70. (1) Every person responsible for collecting the service tax shall furnish or cause to be furnished to the Central Excise Officer in the prescribed form and verified in the prescribed manner, a quarterly return, within fifteen days of the end of the preceding quarter, showing--

(a) the aggregate of payments received in respect of the value of taxable services;

(b) the amount of service tax collected;

(c) the amount of service tax paid to the credit of the Central Government; and

(d) such other particulars as may be prescribed.

(2) In the case of any person who, in the opinion of Central Excise Officer, is responsible for collecting service tax under this Chapter but who has not furnished a return under sub-section (1) the Central Excise Officer may, before the expiry of the quarter in which the return is to be furnished, issue a notice to such person and serve it upon him, requiring him to furnish within thirty days from the date of service of the notice the return in the prescribed form and verified in the prescribed manner setting forth the prescribed particulars.

(3) Any person responsible for collecting the service tax who has not furnished the return within the time allowed under sub-section (1) or sub-section (2) or having furnished a return under sub-section (1) or subsection (2) discovers any omission or wrong statement therein, may furnish a return or a revised return, as the case may be, at any time before the assessment is made.

Assessment.

71. (1) For the purposes of making an assessment under this Chapter, the Central Excise Officer may serve on any person, who has furnished a return under section 70 or upon whom a notice has been served under sub-section (2) of section 70 (whether a return has been furnished or not), a notice requiring him on a date therein to be specified to produce or cause to be produced such accounts or documents or other evidence as the Central Excise Officer may require for the purposes of this Chapter and may, from time to time, serve further notices requiring the production of such further accounts or documents or other evidence as he may require.

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(2) The Central Excise Officer, after considering such accounts, documents or other evidence, if any, as he has obtained under subsection (1) and after taking into account any relevant material which he has gathered, shall, by an order in writing, assess the value of taxable service and the amount of service tax payable on the basis of such assessment.

Best judgment assessment.

72. If--

(a) any person fails to make the return required by any notice given under sub-section (2) of Section 70 and has not made a return or a revised return under sub-section (3) of that section, or

(b) any person having made a return fails to comply with all the terms of a notice issued under sub-section (1) of section 71, or

(c) the Central Excise Officer is not satisfied with the correctness or the completeness of the accounts of the assessee, the Central Excise Officer, after taking into account all the relevant material which he has gathered, shall, by an order in writing, make the assessment of the value of taxable service to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such 15assessment.

Value of taxable services escaping assessment.

73. If--

(a) the Central Excise Officer has reason to believe that by reason of omission or failure on the part of the assessee to make a return under section 70 for any quarter or to disclose wholly and truly all material facts necessary for his assessment for any quarter, the value of taxable service for that quarter has escaped assessment or has been under-assessed, or

(b) notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Central Excise Officer has, in consequence of information in his possession, reason to believe that the value of any taxable service assessable in any quarter has escaped assessment or has been under-assessed, he may, in cases falling under clause (a), at any time within five years, and in cases falling under clause (b), at any time within six months from the date for filing the return, serve on the assessee a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 70 and may proceed to assess or re-assess the value of taxable service, and the provisions of this Chapter shall, so far as may be, apply, as if the notice were a notice issued under that sub-section.

Rectification of mistake.

74. (1) With a view to rectifying any mistake apparent from the record, the Central Excise Officer who passed any order under the provisions of this Chapter may, within two years of the date on which such order was passed, amend the order.

(2) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the Central Excise Officer passing such order may, notwithstanding anything containted in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.

(3) Subject to the other provisions of this section, the Central Excise Officer concerned--

(a) may make an amendment under sub-section (1) of his own motion; or

(b) shall make such amendment if any mistake is brought to his notice by the assessee or the Collector of Central Excise or the Collector of Central Excise (Appeals).

(4) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the Central Excise Officer concerned has given notice to the assessee of his intention so to do and has allowed the assessee a reasonable opportunity of being heard.

(5) Where an amendment is made under this section, an order shall be passed in writing by the Central Excise Officer concerned.

(6) Subject to the other provisions of this Chapter where any such amendment has the effect of reducing the assessment, the Central Excise Officer shall make any refund which may be due to such assessee.

(7) Where any such amendment has the effect of enhancing the assessment or reducing the refund already made, the Central Excise Officer shall make an order specifying the sum payable by the assessee and the provisions of this Chapter shall apply accordingly.

Interest on delayed payment of service tax.

75. Every person responsible for collecting service tax and paying it to the credit of the Central Government in accordance with the provisions of section 68, who fails to credit the tax or any part thereof to the account of the Central Government within the period specified in that section, shall pay simple interest at the rate of one and one half per cent for every month or part of a month by which such crediting of the tax or any part thereof is delayed.

Penalty for failure to collect or pay service tax.

76. Any person responsible for collecting service tax in accordance with the provisions of sub-section (1) of section 68, who--

(a) fails to collect such tax; or

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(b) having collected the service tax, fails to pay such tax to the credit of the Central Government in accordance with the provisions of sub-section (2) of that section,

shall pay,--

(i) in the case referred to in clause (a), in addition to paying the tax in accordance with the provisions of subsection (3) of that section and interest in accordance with the provisions of section 75, by way of penalty, a sum equal to the amount of service tax that he failed to collect; and

(ii) in the case referred to in clause (b), in addition to paying the tax in accordance with the provisions of sub-section (2) of that section and interest in accordance with the provisions of section 75, by way of penalty, a sum which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which the failure continues, so, however, that the penalty under this clause shall not exceed the amount of service tax that he failed to pay.

Penalty for failure to furnish prescribed return.

77. If a person fails to furnish in due time the return which he is required to furnish under sub-section (1) of section 70 or by notice given under sub-section (2) of that section, he shall pay, by way of penalty, a sum which shall not be less than one hundred rupees, but which may extend to two hundred rupees for every day during which the failure continues.

Penalty for suppressing value of taxable service.

78. If the Central Excise Officer in the course of any proceedings under this Chapter is satisfied that any person has, with intent to evade payment of service tax, suppressed or concealed the value of taxable service or has furnished inaccurate value of such taxable service, he may direct that such person shall pay by way of penalty, in addition to service tax and interest, if any, payable by him, a sum which shall not be less than, but which shall not exceed twice, the amount of service tax sought to be evaded by reason of suppression or concealment of the value of taxable service or the furnishing of inaccurate value of such taxable service:

Provided that if the value of taxable service (as determined by the Central Excise Officer on assessment) in respect of which value has been suppressed or concealed or inaccurate value has been furnished exceeds a sum of twenty-five thousand rupees, the Central Excise Officer shall not issue any direction for payment by way of penalty without the previous approval of the Collector of Central Excise.

Penalty for failure to comply with notice.

79. If the Central Excise Officer in the course of any proceedings under this Chapter is satisfied that any person has failed to comply with a notice under sub-section (1) of section 71, he may direct that such person shall pay, by way of penalty, in addition to any service tax and interest, if any, payable by him, a sum which shall not be less than ten per cent., but which shall not exceed fifty per cent., of the amount of the service tax, if any, which would have been avoided if the value of taxable service stated in the return by such person had been accepted as the correct value of taxable service.

Penalty not to be imposed in certain cases.

80. Notwithstanding anything contained in the provisions of section 76, section 77, section 78 or section 79, no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure.

Offences by companies.

81. (1) Where an offence under this Chapter 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 provided in this Chapter, if he proves that the offence was committed without his knowledge and that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Chapter 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 of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded 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.

Power to search premises.

82. (1) If the Central Excise Officer has reason to believe that any documents or books or things which in his opinion will be useful for or relevant to any proceeding under this Chapter are secreted in any place, he may authorise any other Central Excise Officer to search or may himself search for such documents or books or things.

(2) The provisions of the Code of Criminal Procedure, 1973, relating to searches, shall, so far as may be, apply to searches under this section as they apply to searches under that Code.

Application of certain provisions of Act 1 of 1944.

83. The provisions of the following sections of the Central Excises and Salt Act, 1944, as in force from time to time, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise:--

9C, 9D, 11, 11B, 12B, 12C, 12D, 12E, 14, 15, 35F to 35O (both inclusive), 35Q, 36, 36A, 36B, 37A. 37B. 37C, 37D and 40.

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Revision of orders by the Collector of Central Excise.

84. (1) The Collector of Central Excise may call for the record of a proceeding under this chapter which has been taken by the Central Excise Officer subordinate to him and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Chapter, pass such order thereon as he thinks fit.

(2) No order which is prejudicial to the assessee shall be passed under this section unless the assessee has been given an opportunity of being heard.

(3) The Collector of Central Excise shall communicate the order passed by him under sub-section (1) to the assessee, the Central Excise Officer and the Board.

(4) No order under this section shall be passed by the Collector of Central Excise in respect of any issue if an appeal against such issue is pending before the Collector of Central Excise (Appeals).

(5) No order under this section shall be passed after the expiry of two years from the date on which the order sought to be revised has been passed.

Appeals to the Collector of Central Excise (Appeals).

85. (1) Any person aggrieved by any assessment order passed by the Central Excise Officer under section 71, section 72 of section 73, or denying his liability to be assessed under this Chapter, or by an order levying interest or penalty under this Chapter, may appeal to the Collector of Central Excise (Appeals).

(2) Every appeal shall be in the prescribed form and shall be verified in the prescribed manner.

(3) An appeal shall be presented within three months from the date of receipt of the decision or order of the Central Excise Officer, relating to service tax, interest or penalty under this Chapter:

Provided that the Collector of Central Excise (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months.

(4) The Collector of Central Excise (Appeals) shall hear and determine the appeal and, subject to the provisions of this Chapter, pass such orders as he thinks fit and such orders may include an order enhancing the service tax, interest or penalty:

Provided that an order enhancing the service tax, interest or penalty shall not be made unless the person affected thereby has been

given a reasonable opportunity of showing cause against such enhancement.

(5) Subject to the provisions of this Chapter, in hearing the appeals and making order under this section, the Collector of Central Excise (Appeals) shall exercise the same powers and follow the same procedure as he exercises and follows in hearing the appeals and making orders under the Central Excises and Salt Act, 1944. (1 of 1944.)

Appeals to Appellate Tribunal.

86. (1) Any assessee aggrieved by an order passed by a Collector of Central Excise under section 84, or an order passed by a Collector of Central Excise (Appeals) under section 85, may appeal to the Appellate Tribunal against such order.

(2) The Board may, if it objects to any order passed by the Collector of Central Excise under section 84, or the Collector of Central Excise may, if he objects to any order passed by the Collector of Central Excise (Appeals) under section 85, direct the Central Excise Officer to Appeal to the Appellate Tribunal against the order.

(3) Every appeal under sub-section (1) or sub-section (2) shall be filed within three months of the date on which the order sought to be appealed against is received by the assessee, the Board or by the Collector of Central Excise, as the case may be.

(4) The Central Excise Officer or the assessee, as the case may be, on receipt of a notice that an appeal against the order of the Collector of Central Excise or the Collector of Central Excise (Appeals) has been preferred under sub-section (1) or sub-section (2) by the other party may, notwithstanding that he may not have appealed against such order or any part thereof, within forty-five days of the receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the Collector of Central Excise or the Collector of Central Excise (Appeals), and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3)

(5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4) if it is satisfied that there was sufficient cause for not presenting it within that period.

(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, except in the case of an appeal referred to in sub-section (2) or a memorandum of cross-objections referred to in sub-section (4), be accompanied by a fee of two hundred rupees.

(7) Subject to the provisions of this Chapter, in hearing the appeals and making orders under this section, the Appellate Tribunal shall exercise the same powers and follow the same procedure as it exercises and follows in hearing the appeals and making orders under the Central Excises and Salt Act, 1944. (1 of 1944.)

Wilful attempt to evade service tax, etc.

87. If a person wilfully attempts in any manner whatsoever to evade collection or payment of any service tax, interest or penalty chargeable or imposable under this Chapter, or to suppress or conceal the total value of taxable services, he shall, without prejudice to any penalty that may be imposable on him under any other provisions of this Chapter, be punishable with imprisonment for a term which may extend to seven years and with fine.

24

Explanation.--For the purposes of this section, a wilful attempt to evade payment of any service tax, interest or penalty chargeable or imposable under this Chapter shall include a case where any person--

(i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Chapter) containing a false entry or statement; or

(ii) makes or causes to be made any false entry or statement in such books of account or other document; or

(iii) wilfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or

(iv) causes any other circumstances to exist which will have the effect of enabling such person to evade payment of any service tax, interest or penalty chargeable or imposable under this Chapter.

Failure to furnish prescribed returns.

88. If a person fails to furnish the return which he is required to furnish by a notice given under sub-section (2) of section 70, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Chapter, be punishable with imprisonment for a term which may extend to three years and with fine.

False statement in verification, etc.

89. If a person makes a statement in any verification under this Chapter or any rule made thereunder, or delivers an account or statement, which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with imprisonment for a term which may extend to three years and with fine.

Abetment of false return, etc.

90. If a person abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to any taxable service which is false and which he either knows to be false or does not believe to be true or to commit an offence under section 87, he shall be punishable with imprisonment for a term which may extend to seven years and with fine.

Certain offences to be non-cognizable.

91. Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974.) an offence punishable under section 87 or section 88 or section 89 or section 90 shall be deemed to be noncognizable within the meaning of that Code.

Institution of proceedings.

92. A person shall not be proceeded against for any offence under section 87 or section 88 or section 89 or section 90 except with the previous sanction of the Principal Collector of Central Excise.

Power to grant exemption from service tax.

93. The Central Government may, if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of service tax leviable thereon.

Power to make rules.

94. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--

(a) the time and manner and the form in which application for registration may be made under sub-section (1) of section 69 and the form in which the certificate of registration may be granted under sub-section (4) of section 69;

(b) the form in which returns under section 70 may be furnished, the manner in which they may be verified and other particulars which a form may contain;

(c) the form in which appeal under section 85 or under subsection (6) of section 86 may be filed and the manner in which they may be verified;

(d) the manner in which a memorandum of cross-objections under sub-section (4) of section 86 may be verified;

(e) any other matter which by this Chapter is to be or may be prescribed.

(3) The power to make rules conferred by this section shall on the first occasion of the exercise thereof include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Chapter come into force.

(4) Every rule made under this Chapter and every notification issued under section 93 shall be laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to

the validity of anything previously done under that rule or notification.

Power to remove difficulties.

95. (1) If any difficulty arises in giving effect to the provisions of this Chapter, the Central Government may, by order

published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Chapter come into force.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

Consequential amendment.

96. In the Economic Offences (Inapplicability of Limitation) Act, 1974, (12 of 1974.) in the Schedule, after entry 7 relating to the Central Excises and Salt Act, 1944, (1 of 1944.) the following entry shall be inserted, namely:--

"7A. Chapter V of the Finance Act, 1994.". 25

CHAPTER VI

FOREIGN TRAVEL TAX Amendment of Act 21 of 1979.

97. In the Finance Act, 1979, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,--

(a) after section 35, the following section shall be inserted, namely:--

Interest for default in payment of foreign travel tax.

"35A. (1) Where any carrier or other person fails to pay the foreign travel tax to the credit of the Central Government under subsection (2) of section 35, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent and not exceeding thirty per cent per annum, as the Central Government may, by notification in the Official Gazette, specify in this behalf.

(2) Where, on or before the date of commencement of section 97 of the Finance Act, 1994, the foreign travel tax had no been paid by any carrier or other person to the credit of the Central Government, in accordance with the rules made under this Chapter, the carrier or other person shall pay the amount of such tax within a period of thirty days of such commencement, failing which he shall be liable to pay the interest in accordance with the provisions of sub-section (1).";

(b) in section 38, for sub-section (3), the following subsections shall be substituted, namely:--

"(3) Every carrier or other person who fails to pay the foreign travel tax to the credit of the Central Government under sub-section (2) of section 35 shall, in addition to the payment of such tax and the interest leviable thereon, be liable to pay penalty which shall not be less than one-fifth but which may extend to three times of the amount of the tax not so paid to the credit of the Central Government.

(4) Any rule made under this Chapter may provide that in case of breach thereof by the carrier or other person, he shall be liable to a penalty which shall not be less than five hundred rupees but which may extend to fifty thousand rupees, and where the breach is a continuing one, with further penalty which may extend to five hundred rupees for every day after the first during which such breach continues.

(5) Any penalty under this section may be adjudged, collected and paid to the credit of the Central Government by such authority and in such manner as may be specified in the rules made under this Chapter:

Provided that no order for imposing a penalty shall be passed by such authority unless the carrier or other person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority.";

(c) after section 38, the following section shall be inserted, namely:--

Modes of recovery.

"38 A. (1) Where the foreign travel tax or interest or penalty is not paid by a carrier or other person, as required under the provisions of sub-section (2) of section 35, section 35A or section 38, the authority specified in the rules (hereinafter referred to as the authority) may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of such tax, interest or penalty by any mode specified in sub-section (2) or subsection (3).

(2) The authority may require any person, from whom any amount is due to the carrier or other person, to deduct the tax, interest or penalty so determined from the said amount and such person shall comply with any requisition by the authority and shall pay the amount so deducted to the credit of the Central Government:

Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908. (5 of 1908)

(3) The authority may prepare a certificate signed by it specifying the amount due and send it to the Collector of the district in which the carrier or other person owns property or resides or carries on business and the said Collector, on receipt of such certificate, shall proceed to recover frorr. the said carrier or other person, the amount specified thereunder as if it were an arrear of land revenue."..

CHAPTER VI

INLAND AIR TRAVEL TAX

Amendment of Act 13 of 1989.

98. In the Finance Act, 1989, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,--

(a) after section 43, the following section shall be inserted, namely:--

Interest for default in payment of inland air travel tax.

"43A. (1) Where any carrier or other person fails to pay the inland air travel tax to the credit of the Central Government under sub-section (2) of section 42, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent. and not exceeding thirty per cent. per annum, as the Central Government may, by notification in the Official Gazette, specify in this behalf.

26

(2) Where, on or before the date of commencement of section 98 of the Finance Act, 1994 the inland air travel tax had not been paid by any carrier or other person to the credit of the Central Government, in accordance with the rules made under this Chapter, the carrier or other person shall pay the amount of such tax within a period of thirty days of such commencement, failing which he shall be liable to pay the interest in accordance with the provisions of subsection (1).";

(b) in section 46, for sub-section (3), the following subsections shall be sub stituted, namely:--

"(3) Every carrier or other person who fails to pay the inland air travel tax to the credit of the Central Government under subsection (2) of section 42 shall, in addition to the payment of such tax and the interest leviable thereon, be liable to pay penalty which shall not be less than one fifth but which may extend to three times of the amount of the tax not so paid to the credit of the Central Government.

(4) Any rule made under this Chapter may provide that in case of breach thereof by the carrier or other person, he shall be liable to a penalty which shall not be less than five hundred rupees but which may extend to fifty thousand rupees, and where the breach is a continuing one, with further penalty which may extend to five hundred rupees for every day after the first during which such breach continues.

(5) Any penalty under this section may be adjudged, collected and paid to the credit of the Central Government by such authority and in such manner as may be specified in the rules made under this Chapter:

Provided that no order for imposing a penalty shall be passed by such authority unless the carrier or other person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority.";

(c) after section 46, the following section shall be inserted, namely:-

Modes of recovery.

(d) "46A. (1) Where the inland air travel tax or interest or penalty is not paid by a carrier or other person, as required under the provisions of sub-section (2) of section 42, section 43A or section 46, the authority specified in the rules (hereinafter referred to as the authority) may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of such tax, interest or penalty by one or more of the modes specified in subsection (2), sub-section (8) or sub-section (4).

(2) The authority may require any person, from whom any amount is due to the carrier or other person, to deduct the tax, interest or penalty so determined from the said amount and such person shall comply with any requisition by the authority and shall pay the amount so deducted to the credit of the Central Government:

Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908. (5 of 1908).

(3) The authority may prepare a certificate signed by it specifying the amount due and send it to the Collector of the district in which the carrier or other person owns property or resides or carries on business and the said Collector, on receipt of such certificate, shall proceed to recover from the said carrier or other person, the amount specified thereunder as if it were an arrear of land revenue.

(4) The authority may distrain or arrest any aircraft and any other property belonging to, or under the control of, the carrier or other person, as the case may be, and detain the same until the tax, interest or penalty so determined is paid; and in case any part of the tax, interest or penalty or of the cost of the distress or arrest or of the keeping of the aircraft or other property distrained or arrested, remains unpaid for the space of thirty days next after any such distress or arrest, may cause the said aircraft or other property to be sold and with the proceeds of such sale may satisfy the tax, interest or penalty and the costs including the cost of sale remaining unpaid, and shall render the surplus, if any, to the carrier or other person."

CHAPTER VIII

MISCELLANEOUS Amendment of Act 2 of 1899.

99. In the Indian Stamp Act, 1899,--

(i) in section 9, in sub-section (1) in clause (b), after the words "or other body corporate", the words and brackets "or of transfers (where there is a single transferee, whether incorporated or not) "shall be inserted;

(ii) in Schedule I,--

(a) in article No. 14, in the second column, for the words "One rupee", the words "Two rupees" shall be substituted;

(b) in article No. 53,--

(1) in the first column, for the words "twenty rupees," the words "five hundred rupees" shall be substituted;

(2) in the second column, for the words "Twenty paise", the words "One rupee" shall be substituted.

27

THE FIRST SCHEDULE

(See Section 2)

PART I

INCOME-TAX

Paragraph A

Sub-Paragraph I

In the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,--

Rates of income-tax

(1) where the total income does not exceed Nil;

Rs. 30,000

(2) where the total income exceeds 20 per cent. of the

Rs. 30,000 but does not exceed Rs. 50,000 amount by which the total income exceeds Rs. 50, 000;

(3) where the total income exceeds Rs. 4,000 plus 30

per cent. of Rs. 50,000 but does not exceed the amount by which

the total Rs. 1,00,000 income exceeds

Rs . 50,000;

(4) where the total income exceeds Rs. Rs. 19,000 plus 40

per cent of 1,00,000 the amount by which the total exceeds s. 1,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph or section 112 shall,--

(i) in the case of every individual or Hindu undivided family having a total income exceeding one hundred thousand rupees, be reduced by the amount of rebate of income-tax calculated under Chapter VIII-A, and the income-tax as so reduced,

(ii) in the case of every person, other than those mentioned in item (i), having a total income exceeding one hundred thousand rupees, be increased by a surchage for purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that no such surcharge shall be payable by a nonresident.

Sub-Paragraph II

In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1994 exceeds Rs. 30,000,--

Rates of income-tax

(1) where the total income does not Nil;

exceed Rs. 18,000

(2) where the total income exceeds 30 per cent. of the

Rs. 18,000 but does not exceed . amount by which the

Rs. 1,0,000 total income excees

Rs. 18,000;

(3) where the total income exceeds Rs. Rs. 24,600 plus 40 per

1,00,000. the amount by which the

total income exceeds

Rs. 1,00,000

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph or section 112 shall, in the case of every person having a total income exceeding one hundred thousand rupees, be reduced by the amount of rebate of income-tax calculated under Chapter VIII-A and the income-tax as so reduced, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that no such surcharge shall be payable by a nonresident.

Paragraph B

In the case of every co-operative society,--

Rates of income-tax

(1) where the total income does not 10 per cent. of the

exceed Rs. 10,000 total income;

(2) where the total income exceeds Rs. 1,000 plus 20 per

Rs. 10,000 but does not exceed cent of the amount by

Rs. 20,000 which the total

income exceeds

Rs. 20,000

(3) where the total income exceeds Rs. 3,000 plus 35 per-

Rs. 20,000 cent of the amount

which the total income

Rs. 20,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph or section 112 shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax.

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Paragraph C

In the case of every firm,--

Rate of income-tax

On the whole of the total income 40 per cent.

Surcharge on income-tax

The amount of income-tax computed at the rate hereinbefore specified or in section 112 shall, in the case of every firm having a total income exceedings one hundred thousand rupees, be increased by a surcharge for puposes of the Union calculated at the rate of twelve per cent. of such income-tax.

#D#Paragraph D

In the case of every local authority,--

Rate of income-tax

On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed at the rate hereinbefore specified or in section 112 shall, in the case of every person having a total income exceedings one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such imcome-tax.

Paragraph E

In the case of a company,--

Rates of income-tax 1. In the case of a domestic company,--

(1) where the company is a company 45 per cent. of the total

in which the public are substantilly income;

interested

(2) where the company is not a 50 per cent. of the total

company in which the public are sub- income.

tantially interested

II. In the case of a company other than a domestic company,--

(i) On so much of the total income as consists of--

(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of

March, 1961 but before the 1st day of April, 1976, or

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,

and where such agreement has, in either case, 50 per cent.;

been approved by the Central Government

(ii) on the balance, if any, of the total 65 per cent.

income

Surcharge on income-tax

The amount of income-tax computed in accordance with the provisions of this Paragraph or section 112 shall, in the case of every domestic company having a total income exceeding seventy-five thousand rupees, be increased by a surcharge calculated at the rate of fifteen per cent. of such income-tax.

29

PART II

RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES

In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction at the following rates:--

---------------------------------------------------------------------

Rate of income-tax ---------------------------------------------------------------------

1. In the case of a person other than a company--

(a) where the person is resident in India--

(i) on income by way of interest other than 10 per cent.; "Interets, on securities"

(ii) on income by way of winnings from lott- 40 per cent.; eries and crossword puzzles

(iii) on income by way of winnings from horse 40 per cent.; races

(iv) on income by way of insurance commission 10 per cent.;

(v) on income by way of interest payable on-- 10 per cent.; (A) Any security of the Central or a State Government;

(B) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

(C) Any debentures issued by a company where such debentures are listed on a recognised stock

exchange in India in accordance with the Secu-

rities Contracts (Regulation) Act, 1956 and

any rules made thereunder;

(vi) on any other income 20 per cent; (b) where the person is not resident in India--

(i) in the case of a non-resident Indian--

(A) on investment income and long-term capi- 20 per cent.;

tal gains

(B) on income by way of dividends and interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency 20 per cent.;

(C) on income by way of winnings from lotteries

and crossword puzzles 40 per cent.;

(D) on income by way of winnings from horse

races 40 per cent.;

(E) on the whole of other income income-tax at 30

per cent. of the amount of income

or

income-tax in respect of the rates

prescried in

in Sub-Pargraph I of Pargraph A of Part III of this Scedule, if such income had been the total inccome, whichever is higher;

(ii) in the case of any other person--

(A) on income by way of dividends, interest 20 per cent.;

payable by Government or an Indian concern

on moneys borrowed or debt incurred by Gov-

ernment or the Indian concern in foreign

currency, and income payable in respect of

units (not being income payable to an indi-

vidual), purchased in foreign currency, of

the Unit Trust of India

(B) on income by way of winnings from lotteries 40 per cent.;

and crossword puzzles

(C) on income by way of winnings from horse 40 per cent.;

races

(D) on income by way of long-term capital gains 20 per cent.;

(E) on the whole of the other income income-tax at

30 per cent. of

the amount of

of income

or

income-tax in respect of the income at the rates

---------------------------------------------------------------------

30

---------------------------------------------------------------------

Rate of income-tax ---------------------------------------------------------------------

prescribed in Sub-Paragraph

A of part III

of this Schedule, if such income had been the total income, whichever

is higher.

2. In the case of a company--

(a) where the company is a domestic company--

(i) on income by way of interest other than 20 per cent.; "Interest on securities"

(ii) on income by way of winnings from lott- 40 per cent.; ereries and crossword puzzles

(iii) on income by way of winnings from horse 40 per cent.; races

(iv) on any other income 21.5 per cent.;

(b) where the company is not a domestic company--

(i) on income by way of dividends payable by 20 per cent.; any domestic company

(ii) on income by way of winnings from lott- 40 per cent.; eries and crossword puzzles

(iii) on income by way of winnings from 40 per cent.; horse races

(iv) on income by way of interest payable by 20 per cent.; Government or an Indianconcern on moneys borrowed

or debt incurred by Government or the Indian conc-

ern in foreign currency

(v) on income by way of royalty payable by 30 per cent.; Government or an Indian concern in pursuance of an

agreement made by it with the Government or the

Indian concern after the 31st day of March,

1976, where such royalty is in consideration for

the transfer of all or any rights (including the

granting of a licence) in respect of copyright

in any book on a subject referred to in the fir-

st proviso to sub-section (1A) of section 115A of

the Income-tax Act, to the Indian concern, or in

respect of any computer software referred to in

the second proviso to sub-section (1A) of section

115A of the Income-tax Act, to a parson resident

in India

(vi) on income by way of royalty [not being royalty of the nature referred to in sub-item (b) (v)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement

is approved by the Central Government or where

it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy--

(A) where the agreement is made after the 50 per cent.; 31st day of March, 1961 but before the 1st day of

April, 1976

(B) where the agreement is made after the 30 per cent.; 31st day of March, 1976

(vii) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy--

(A) where the agreement is made after the 50 per cent.; 29th day of February, 1964 but before the 1st

day of April, 1976

(B) where the agreement is made after the 30 per cent.; 31st day of March, 1976

(viii) on income payable in respect of units, 20 per cent.; purchased in foreign currency, of the Unit Trust

of India

(ix) on income by way of long-term capital 20 per cent.; gains

(x) on any other income 55 per cent.;

Explanation.--For the purpose of item 1 (b) (i) of this part, "investment income" and "non-resident Indian" shall have the meanings assigned to them in Chapter XII-A of the Income-tax Act.

Surcharge on income-tax

The amount of income-tax deducted in accordance with the provisions of sub-item (a) of item 2 of this Part shall be increased by a surcharge calculated at the rate of fifteen per cent. of such income-tax.

PART III

RATES FOR CALCULATING OR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER THE HEAD "SALARIES"

AND COMPUTING "ADVANCE TAX"

In cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the Income-tax Act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or in which the "advance tax" payable under

31

"advance tax" payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, "advance tax" [not being "advance tax" in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or subsection (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge on such "advance tax" in respect of any income chargeable to tax under section 115B], shall be calculated, charged, deducted or computed at the following rate or rates:--

Paragraph A

Sub-Paragraph 1

In the case of every individual or, Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,--

Rates of income-tax

(1) where the total income does not exceed Nil,

Rs. 35,000

(2) where the total income exceeds Rs. 20 per cent. of the

35,000 but does not exceed Rs. 60,000 amount which the

total income

exceeds Rs. 35,000;

(3) where the total income exceeds Rs. Rs. 5,000 plus 30

60,000 but does not exceed Rs. 1,20,000 per cet. of the

amount by which

the total income

exceeds

Rs. 60,000;

(4) where the total income exceeds Rs. Rs. 23,000 plus 40

1,20,000 per cent. of the

amount by which

the total exceeds

Rs. 1,20,000.

Sub-Paragraph II

In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st 25 day of April, 1995 exceeds Rs. 35,000,--

Rates of income-tax

(1) where the total income does not Nil;

exceed Rs. 18,000

(2) where the total income exceeds Rs. 30 per cent. of

18.000 but does not exceed Rs. 1,00,000 the amount by

which the total

income exceeds Rs.

18,000.

(3) where the total income exceeds Rs. Rs. 24,600 plus 40

1,00,000 per cent. of the

amount by which

the total income

exceeds Rs.

1,0,000

Paragraph B

In the case of every co-operative society,--

Rates of income-tax 10 per cent.

of the total

income;

(1) where the total income does not exceed Rs. 10,000

(2) where the total income exceeds Rs. 1,000 plus 20

Rs. 10,000 but does not exceed Rs. per cent. of the

20,000 amount by which

the total income

exceeds Rs.

10,000;

(3) where the total income exceeds Rs. 3,000 plus 35

Rs. 20,000 per cent of the

amount by which

the total income

exceeds Rs. 20,000

Paragraph C

In the case of every firm,--

Rate of income-tax

On the whole of the total income 40 per cent.

Paragraph D

In the case of every local authority,--

Rate of income-tax

On the whole of the total income 30 per cent.

Paragraph E

In the case of a company,--

Rates of income-tax

I. In the case of a domestic company 40 per cent of the

per cent of the

total income.

II. In the case of a company other than a domestic company,--

(i) on so much of the total income as consists of--

(a) royalties received from Government

or an Indian concern in pursuance of an

agreement made by it with the Government

or the Indian concern after the 31st day

of March, 1961 but before the 1st day of

April, 1976, or

(b) fees for rendering technical services

received from Government or an Indian

concern in pursuance of an

32

agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,

and where such agreement has, in either

case, been approved by the Central Government 50 per cent;

(ii) on the balance, if any, of the total 55 per cent; total income

Surcharge on income-tax

The amount of income-tax computed in accordance with the provisions of this Paragraph or section 112 shall, in the case of every domestic company having a total income exceeding seventy-five thousand rupees, be increased by a surcharge calculated at the rate of fifteen per cent. of such income-tax.

PART IV

[See section 2(9)(d)]

RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME

Rule 1.--Agricultural income of the nature referred to in subclause (a) of clause (1A) of section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from other sources" and the provisions of sections 57 to 59 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40A therein shall be construed as not including a reference to sub-sections (3) and (4) of section 40A.

Rule 2.--Agricultural income of the nature referred to in subclause (b) or sub-clause (c) of clause (1A) of section 2 of the Income-tax Act [other than income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head "Profits and gains of business or profession" and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections (3) and (4) thereof], 41, 43, 43A 43B and 43C of the Income-tax Act shall, so far as may be, apply accordingly.

Rule 3.--Agricultural income of the nature referred to in subclause (c) of clause (1A) of section 2 of the Income-tax Act, being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 4.--Notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the agricultural income of the assessee.

Rule 5.--Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income, then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6.--Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:

Provided that where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7.--Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 8.--(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1994, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1986 or the 1st day of April, 1987 or the 1st day of April, 1988 or the 1st day of April, 1989 or the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993, is a loss, then, for the purposes of subsection (2) of section 2 of this Act,--

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1986, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1987 or the 1st day of April, 1988 or the 1st day of April, 1989 or the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1988 or the 1st day of April, 1989 or the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993,

33

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1988, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1989 or the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1989, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993.

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1990, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1992 or the 1st day of April, 1993,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1993, and

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1993.

Shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1994,

(2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1995 or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other then that previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1987 or the 1st day of April, 1988 or the 1st day of April, 1989 or the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994, is a loss, then, or the purposes of sub-section (8) of section 2 of this Act,--

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1988 or the 1st day of April, 1989 or the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1989, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1989 or the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1989, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1990, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1993 or the 1st day of April, 1994,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1993, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1994, and

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1994, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1995.

(3) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).

34

(4) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in Part IV of the First Schedule to the Finance Act, 1986 (23 of 1986), or of the First Schedule to the Finance Act, 1987 (11 of 1987), or of the First Schedule to the Finance Act, 1988 (26 of 1988), or of the First Schedule to the Finance Act, 1989 (13 of 1989), or of the First Schedule to the Finance Act, 1990 (12 of 1990), or of the First Schedule to the Finance (No.2) Act, 1991 (49 of 1991), or of the First Schedule to the Finance Act, 1992 (18 of 1992), or of the First Schedule to the Finance Act, 1993 (38 of 1993), shall be set of under sub-rule (1) or, as the case may be, sub-rule (2).

Rule 9.--Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 10.-- The provisions of the Income-tax Act relationg to procedure for assessment (including the provisions of section 288A relating to rounding off of income ) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply inrelation to the assessment of the total income.

Rule 11.--For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

THE SECOND SCHEDULE

(See section 61)

In the First Schedule to the Customs Tarriff Act,-

(1) in Chapter 1, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(2) in Chapter 2, for the entry in column (4) occurring against all teh sub-heading Nos., the entry "10%" shall be substituted;

(3) in Chapter 3, for the entry in column (4) occurring against all the sub-heading Nos., the entry "10%" shall be substitutedl;

(4) in Chapter 4, for the entry in comlumn (4) occurring against all teh sub-heading Nos., the entry "65%" shall be substituted;

(5) in Chapter 5,--

(i) for the entry in column (4) occurring against all teh subheading Nos., (except sub-heading No. 0507.10), the entry "10%" shall be substituted;

(ii) in sub-heading No. 0507.10 fo rthe entries in column (4) occurring against all the sub-heading Nos., the entry "10%" 35 shall be substitutes;

(6) in Chapter 6, for the entry in column (4) occurring against all teh sub-heading Nos., the entry "10%" and shall be substituted;

(7) in Chapter 7, for the entries in column (4) and column (5) occurring against all the sub-heading Nos. the entires "10%" ad "10%" shall respectively be substituted;

(8) in Chapter 8, for the entires in column (5) occuring all the

sub-headig Nos., (except sub-heading Bos. 0802.11, 0802.12 and

0806.20), the entries "65%" and "55%" shall respectively be substituted;

(9) in Chapter 9, --

(i) in sub-heading Nos. 0901.11, 0901.21,0901.22,0901.30 and 0901.40, for hte entries in clolumn (4) and column (5) occurring against each of them, the entries"10%" and "10%'less 13 paise per Kg." shall respectively be substituted;

(ii) in sub-heading Nopss. 0902.100, 0902.20, 0903.40, for the entries in column (4) and column (5) occuring against each of theem , the entries "10%" and ":10% less 26 paise per Kg." shall respectively be substituted;

(iii) in sub-headingi BNo. 0903.00, for the entries in column (4) and column (5) occur5ring against each of them, th eentries "65 %"and "57.5%" shall respectively be subvstituteed;

(iv) in sub-heading NBos. 0904.11 and 0904.12 for th eentries in column (4) and column (5) occurring against each of them, the entrries "65%" and "57.5%"shall respectively be substituted;

(v) in sub-heading Nos.0904.20 and 0905.00, fo rthe entry in co,lumn (4) occurring against each of them, the entry "65%"shalllnbe substituted;

(vi) in sub-heading Nos. 0906.10,0906.20, 0907.000908.10 and 0908.30, for the entries in column (4) and 55 column (5) occurring against each of them, the entries"65% and "57.5% shall respectiv3ely be substituted;

(vii) in sub-heading Nos.0908.20,0909.10,0909.20,0909.30, 0909.40, 0909.50, 0910.10, 0910.10, 0910.20, 0910.30, "65%" shall be sustituted;

(10) in Chapter 11, for the entry in column (4) occurring a gainst all the sub-heading Nos., the entry "10%" shall be substituted;

(11) in Chapter 12,--

(i) in sub-heading Nos. 1201.00, 1202.10,1202.20, 1203.00,

1204.00, 1205.00, 1206.00, 1207.10, 1207.20, 1207.30, 1207.40,

1207.50, 1207.60,1207.91,1207.92 and "55% shall respectively substituted;

(ii) in sub-heading Nos. 1208.10, 1208.90, 1209.11 1209.19,

1209.21, 1209.22, 1209.23, 1209.24, 1209.25, 1209.26, 1209.29,

1209.30, 1209.91, 1209.99, 1210.10, 1210.20, 1211.10, 1211.20, 1211.90, 1212.10, 1212.20, 1212.30, 1212.91, 1212.92, 1212.99 1213.00, 1214.10, and 1214.90, for the entry in column (4)

(12) in Chapter 13,--

(i) for the entry in column (4) occutting against all the subnheading Nos. (except sub-heading No. 1301.20), the entry "65%" sahll be substituted;

(ii) in sub-heading No. 1301.20, for the entries in column (4) and column (5), th eentries "65%" and "55%" shall respectively be substituted;

(13) in Chapter 14, for the entry in column(4) occutting againjst all the sub-heading Nos., the entry "10%" 75 shall be substituted;

35

(14) in Chapter 15,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 1507.10, 1507.90, 1508.10,

1508.90, 1509.10, 1509.90, 1510.00, 1511.10, 1511.90, 1512.11,

1512.19, 1512.21, 1512.29, 1513.11, 1513.19, 1513.21, 1513.29,

1514.10, 1514.90, 1515.11, 1515.19, 1515.21, 1515.29, 1515.30, 1515.40, 1515.50, 1515.60 and 1515.90), the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 1507.10, 1507.90, 1508.10, 1508.90,

1509.10, 1509.90, 1510.00, 1511.10, 1511.90, 1512.11, 1512.19,

1512.21, 1512.29, 1513.11, 1513.19, 1513.21, 1513.29, 1514.10,

1514.90, 1515.11, 1515.19, 1515.21, 1515.29, 1515.30, 1515.40, 1515.50, 1515.60 and 1515.90, for the entries in column (4) and column (5) occurring against each of them, the entries "65%" and "55%" shall respectively be substituted;

(15) in Chapter 16, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(16) in Chapter 17,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading No. 1702.10), the entry "65%" shall be substituted;

(ii) in sub-heading No. 1702..10, for the entries in column (4), the entry "25%" shall be substituted;

(17) in Chapter 18, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(18) in Chapter 19, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(19) in Chapter 20, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(20) in Chapter 21, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(21) in Chapter 22, in sub-heading Nos. 2201.10, 2201.90, 2202.10, 2202.90 and 2209.00, for the entry in column (4) occurring against each of them, the entry "65%" shall be substituted;

(22) in Chapter 23, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(23) in Chapter 24, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(24) in Chapter 25,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 2504.10, 2504.90 and 2527.00), the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 2504.10, 2504.90 and 2527.00, for the entries in column (4) and column (5) occurring against each of them, the entries "65%" and "55%" shall respectively be substituted;

(25) in Chapter 26,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 2620.11, 2620.19, 2620.20, 2620.30, 2620.40, 2620.50, 2620.90 and 2621.00), the entry "10%" shall be substituted;

(ii) in sub-heading Nos. 2620.11, 2620.19, 2620.20, 2620.30, 2620.40, 2620.50 and 2620.90, for the entry in column (4) occurring against each of them, the entry "50%" shall be substituted;

(iii) in sub-heading No. 2621.00, for the entry in column (4), the entry "25%" shall be substituted;

(26) in Chapter 27, for the entry in column (4) occurring against all the sub-heading Nos. (except subheading No. 2716.00), the entry "40%" shall be substituted;

(27) in Chapter 28, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(28) In Chapter 29,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 2917.37, 2933.71, 2936.10,

2936.21, 2936.22, 2936.23, 2936.24, 2936.25, 2936.26, 2936.27,

2936.28, 2936.29, 2936.90, 2937.10, 2937.21, 2937.22, 2937.29,

2937.91, 2937.92, 2937.99, 2939.40, 2939.50, 2941.10, 2941.20, 2941.30, 2941.40, 2941.50 and 2941.90), the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 2917.37, 2933.71, 2937.10, 2937.21, 2937.22, 2937.29, 2937.91, 2937.92, 2937.99, 2939.40 and 2939.50, for the entries in column (4) and column (5) occurring against each of them, the entries "65%" and "55%" shall respectively be substituted;

(iii) in sub-heading Nos. 2936.10, 2936.21, 2936.22, 2936.23,

2936.24, 2936.25, 2936.26, 2936.27, 2936.28, 2936.29, 2936.90, 2941.10, 2941.20, 2941.30, 2941.40, 2941.50 and 2941.90, for the entries in column (4) and column (5) occurring against each of them, the entries "65%" and "59%" shall respectively be substituted;

(29) in Chapter 30,--

(i) for the entries in column (4) and column (5) occurring against all the sub-heading Nos. (except sub-heading Nos. 3005.10, 3005.90, 3006.10, 3006.20, 3006.30, 3006.40, 3006.50 and 3006.60), the entries "65%" and "55%" shall respectively be substituted;

36

(ii) in sub-heading Nos. 3005.10, 3005.90, 3006.10, 3006.20, 3006.30, 3006.40, 3006.50 and 3006.60, for the entry in column (4) occurring against each of them, the entry "65%" shall be substituted;

(30) in chapter 31, for the entry in column (4) occurring against all the sub-heading Nos. (except sub-heading Nos. 3102.21, 3105.20 3105.51, 3105.59, 3105.60 and 3105.90), the entry "65%" shall be substituted;

(31) in Chapter 32,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading No. 3201.90), the entry "65%" shall be substituted;

(ii) in sub-heading No. 3201.90, for the entries in column (4) and column (5), the entries "65%" and 10 "55%" shall respectively be substituted;

(32) in Chapter 33, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(33) in Chapter 34,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 3402.11, 3402.12, 3402.13 and 3402.19), the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 3402.11, 3402.12, 3402.13 and 3402.19, for the entries in column (4) and column (5) occurring against each of them, the entries "65%" and "55%" shall respectively be substituted;

(34) in Chapter 35, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(35) in Chapter 36, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(36) in Chapter 37, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(37) In Chapter 38,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 3801.10, 3802.10, 3812.10, 3815.11 and 3815.12), the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 3801.10, 3802.10, 3812.10, 3815.11, and 3815.12, for the entries in column (4) and column (5) occurring against each of them, the entries "65%" and "55%" shall respectively be substituted;

(38) in Chapter 39, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(39) in Chapter 40, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(40) in Chapter 41, for the entry in column (4) occurring against all the sub-heading Nos., (except sub-heading Nos., 4101.10, 4101.21,

4101.22, 4101.29, 4101.30, 4101.40, 4102.10, 4102.21, 4102.29, 4103.10, 4103.20, and 4103.90), the entry "65%" shall be substituted;

(41) in Chapter 42 for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(42) in Chapter 43, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(43) in Chapter 44, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(44) in Chapter 45, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(45) in Chapter 46, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(46) in Chapter 47, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(47) in Chapter 48, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(48) in Chapter 49, in sub-heading Nos. 4907.00, 4908.10, 4908.90, 4909.00, 4910.00, 4911.10, 4911.91 and 4911.99, for the entry in column (4) occurring against each of them, the entry "45%" shall be substituted;

(49) in Chapter 50,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 5001.00 and 5002.00), the entry "65%" shall be substituted;

(ii) in sub-heading No. 5001.00, for the entry in column (4), the entry "30%" shall be substituted;

37

(50) in Chapter 51,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 5101.11, 5101.19, 5101.21, 5101.29 and 5101.30), the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 5101.11, 5101.19, 5101.21, 5101.29 and 5101.30, for the entry in column (4) occurring against each of them, the entry "25%" shall be substituted;

(51) in Chapter 52, for the entry in column (4) occurring against all the sub-heading Nos. (except sub-heading No. 5201.00), the entry "65%" shall be substituted;

(52) in Chapter 53, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(53) in Chapter 54, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(54) in Chapter 55, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(55) in Chapter 56, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(56) in Chapter 57, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(57) in Chapter 58, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(58) in Chapter 59, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(59) in Chapter 60, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(60) in Chapter 61, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(61) in Chapter 62, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(62) in Chapter 63, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(63) in Chapter 64, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(64) in Chapter 65, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(65) in Chapter 66, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(66) in Chapter 67, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(67) in Chapter 68, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(68) in Chapter 69, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(69) in Chapter 70, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(70) in Chapter 71, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(71) in Chapter 72, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(72) in Chapter 73, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(73) in Chapter 74, for the entry in column (4) occurring against all the sub-heading Nos., the entry "50%"shall be substituted;

(74) in Chapter 75,--

(i) for the entry in column (4) occurring against all sub-heading Nos. (except sub-heading Nos. 7501.10, 7501.20, 7502.10 and 7502.20), the entry "50%" shall be substituted;

(ii) in sub-heading Nos. 7501.10, 7501.20, 7502.10 and 7502.20, for the entry in column (4) occurring against each of them, the entry "30%" shall be substituted;

38

(75) in Chapter 76,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 7601.10, 7601.20 and 7602.00), the entry "50%" shall be substituted;

(ii) in sub-heading Nos. 7601.10, 7601.20 and 7602.00, for the entry in column (4) occurring against each of them, the entry "25%" shall be substituted;

(76) in Chapter 78,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 7801.10, 7801.91, 7801.99 and 7802.00), the entry "60%" shall be substituted;

(ii) in sub-heading Nos. 7801.10, 7801.91, 7801.99 and 7802.00, for the entry in column (4) occurring against each of them, the entry "50%" shall be substituted;

(77) in Chapter 79,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 7901.11, 7901.12, 7901.20 and 7902.00), the entry "60%" shall be substituted;

(ii) in sub-heading Nos. 7901.11, 7901.12, 7901.20 and 7902.00, for the entry in column (4) occurring against each of them, the entry "50%" shall be substituted;

(78) in Chapter 80,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 8001.10, 8001.20, and 8002.00), the entry "50%" shall be substituted;

(ii) in sub-heading Nos. 8001.10, 8001.20, and 8002.00, for the entry in column (4) occurring against each of them, the entry "30%" shall be substituted;

(79) in Chapter 81,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 8101.10, 8101.91, 8102.10,

8102.91, 8103.10, 8104.11, 8104.19, 8104.20, 8105.10, 8106.00,

8107.10, 8108.10, 8109.10, 8110.00, 8111.00, 8112.11, 8112.20, 8112.30, 8112.40 and 8112.91), the entry "50%" shall be substituted;

(ii) in sub-heading Nos. 8101.10, 8101.91, 8102.10, 8102.91,

8103.10, 8104.11, 8104.19, 8104.20, 8105.10, 8106.00, 8107.10, 8108.10, 8109.10, 8110.00, 8111.00, 8112.11, 8112.20, 8112.30, 8112.40 and 8112.91 for the entry in column (4) occurring against each of them, the entry "35%" shall be substituted;

(80) in Chapter 82,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 8212.10, 8212.20, 8212.90, 8213.00, 8214.10, 8214.20, 8214.90, 8215.10, 8215.20, 8215.91, and 8215.99), the entry "35%" shall be substituted;

(ii) in sub-heading Nos. 8212.10, 8212.10, 8212.90, 8213.00, 8214.10, 8214.20, 8214.90, 8215.10, 8215.20, 8215.91 and 8215.99 for the entry in column (4) occurring against each of them, the entry "65%" shall be substituted;

(81) in Chapter 83, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(82) in Chapter 84,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 8442.50, 8448.20, 8448.31,

8448.32, 8448.33, 8448.39, 8448 41, 8448.42, 8448.49, 8482.10, 8482.20, 8482.30, 8482.40, 8482.5r), 8482.80, 8482.91 and 8482.99), the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 8482.10, 8482.20, 8482.30, 8482.40, 8482.50 and 8482.80 for the entry in column (4) occurring against each

of them, the entry "65% plus Rs. 250 per bearing" shall be substituted;

(iii) in sub-heading Nos. 8482.91 and 8482.99, for the entry in column (4) occurring against each of them, the entry "65% plus Rs. 250 per piece" shall be substituted;

(83) in Chapter 85, for the entry in column (4) occurring against

all the sub-heading Nos. (except sub-heading Nos. 8514.40 and 8514.90), in entry "65%" shall be substituted;

(84) in Chapter 86,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 8601.10, 8601.20, 8602.10, 8602.90, and 8608.00), the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 8608.00, for the entry in column (4) the entry "60%" shall be substituted;

(85) in Chapter 87, for the entry in column (4) occurring against all the sub-heading Nos. (except sub-heading No. 8710.00), the entry "65%" shall be substituted;

(86) in Chapter 88, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(87) in Chapter 89,--

(i) NOTE 2 shall be omitted;

39

(ii) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading No. 8908.00) the entry "65%" shall be substituted;

(iii) in sub-heading No. 8908.00, for the entry in column (4) the entry "15%" shall be substituted;

(88) in Chapter 90,--

(i) for the entry in column (4) occurring against all the subheading Nos. [except sub-heading Nos. 9021.11, 9021.19, 9021.21, 9021.29, 9021.30, 9021.40, 9021.50, 9021.90, 9023.00 and sub-heading Nos. specified against sub-items (ii) and (iii) of this item], the entry "65%" shall be substituted;

(ii) in sub-heading Nos. 9018.11, 9018.19, 9018.20, 9018.31,

9018.32, 9018.39, 9018.41, 9018.49, 9018.50, 9018.90, 9019.10, 9019.20, 9020.00, 9022.11 and 9022.21, for the entry in column (4) occurring against each of them, the entry "40%" shall be substituted;

(iii) in sub-heading Nos. 9011.10, 9011.20, 9011.80, 9012.10,

9014.10, 9014.20, 9014.80, 9015.10, 9015.20, 9015.30, 9015.40,

9015.80, 9017.10, 9017.20, 9017.30, 9017.80, 9024.10, 9024.80,

9025.11, 9025.19, 9025.20, 9025.80, 9026.10, 9026.20, 9026.80,

9027.10, 9027.20, 9027.30, 9027.40, 9027.50, 9027.80, 9028.10,

9028.20, 9028.30, 9029.10, 9029.20, 9030.10, 9030.20, 9030.31,

9030.39, 9030.40, 9030.81, 9030.89, 9031.10, 9031.20, 9031.30, 9031.40, 9031.80, 9032.10, 9032.20, 9032.81 and 9032.89, for the entry in column (4) occurring against each of them, the entry "60%" shall be substituted;

(89) in Chapter 91, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(90) in Chapter 92, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(91) in Chapter 93, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(92) in Chapter 94, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(93) in Chapter 95, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(94) in Chapter 96, for the entry in column (4) occurring against all the sub-heading Nos., the entry "65%" shall be substituted;

(95) in Chapter 97, for the entry in column (4) occurring against

all the sub-heading Nos. (except sub-heading Nos. 9704.00 and 9705.00), the entry "65%" shall be substituted;

(96) in Chapter 98,--

(i) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading No. 9803.00), the entry "65%" shall be substituted;

(ii) in sub-heading No. 9803.00 for the entry in column (4), the entry "200%" shall be substituted.

40

THE THIRD SCHEDULE

[See Section 62 (a)]

In the Schedule to the Central Excise Tariff Act,--

(1) In Chapter 15, in sub-heading Nos. 1505.00 and 1508.10 for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(2) in Chapter 17,--

(a) in sub-heading Nos. 1702.19 and 1702.21, for the entry in column (4) occurring against each of them, the entry "10%" shall be substituted;

(b) in sub-heading No. 1703.10, for the entry in column (4), the entry "20%" shall be substituted;

(3) in Chapter 19, in sub-heading Nos, 1902.10 1903.10 and 1904.10, for the entry in column (4) 10 occurring against each of them, the entry "10%" shall be substituted;

(4) in Chapter 21,--

(a)in sub-heading Nos. 2102.10 and 2102.90 for the entry in column (4) occurring against each of them, the entry "10%" shall be substituted;

(b) in sub-heading Nos. 2106.11, 2106.19 and 2106.90 for the entry in column (4) occurring against 15 each of them, the entry "50%" shall be substituted;

(5) in Chapter 22,-

(a) in sub-heading Nos. 2201.11, 2201.12, 2201.19, 2202.11, 2202.12, 2202.13, 2202.14 and 2202.19, for the entry in column (4) occurring against each of them, the entry "50%" shall be substituted;

(b) in sub-heading No.2201.90, for the entry in column (4), the entry "10%" shall be substituted; 20 (c) in sub-heading No.2204.00, for the entry in column (4),-the entry "20%" shall be substituted;

(6) in Chapter 24,-

(a) in sub-heading Nos. 2403.11, 2403.12, 2403.21 and 2403.22

for the entry in column (4) occurring against each of them, the entry "Rs 1,000 per thousand" shall be substituted;

(b) in sub-heading Nos. 2404.41, 2404.49, 2404.50 and 2404.60,

for the entry in column (4) occurring 25 against each of them, the entry "30%" shall be substituted;

(7) in Chapter 25,-

(a) in heading No. 25.02, in column (3), for the entry " Portland cement", the entry "Portland cement (including ordinary Portland cement, Portland pozzolana cement and Portland slag cement):" shall be substituted;

(b) in sub-heading No. 2502.02, for the entry in column (4), the

entry "Rs. 250 per tonne" shall be substituted; (c) in sub-heading Nos. 2504.21 and 2504.31, for the entry in column (4) occurring against each of them, the entry "Rs. 20 per square metre" shall be substituted:

(8) in Chapter 27,- 35

(a) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 2705.00, 2706.00, 2707.10,

2707.20. 2707.30, 2707.40, 2707.50, 2707.60, 2707.90, 2710.11, 2710.12, 2710.13, and 2710.19), the entry "10%" shall be substituted;

(b) in sub-heading Nos. 2707.10, 2707.20, 2707.30, 2707.40, 2707.50, 2707.60, 2707.90, 2710.11, 2710.12, 2710.13 and 2710.19, for the entry in column (4) occurring against each of them, the entry

40 "20%" shall be substituted;

(9) in Chapter 28, for the entry in cclumn (4) occurring against all the sub-heading Nos., the entry "20%" shall be substituted;

(10) in Chapter 29, for the entry in column (4) occurring against all the sub-heading Nos., the entry "20%" shall be substituted; 45

(11) in Chapter 31, for the entry in column (4) occurring against all the sub-heading Nos. (except subheading No. 3101.00), the entry "20%" shall be substituted;

(12) in Chapter 32,-

(a) for the entry in column (4) occurring against all the sub-

heading Nos. (except sub-heading No 3205.00, 3208.10, 3208.20, 3208.30, 3208.90, 3209.10, 3209.20, 3209.90 and 3212.90), the entry "20%" 50 shall be substituted;

(b) in sub-heading Nos. 3208.10, 3208@20, 3208.30, 3208.90, 3209.10,3209.20 and 3209.90, for the entry in column (4) occurring against each of them, the entry "30%" shall be substituted;

(13) in Chapter 33,-

(a) in sub-heading Nos, 3301.00, 3302.10, 3302.90. 3303.00, 3306.00 and 3307.49, for the entry in 55 column(4) occurring against each of them, the entry "30%" shall be substituted;

(b) in sub-heading Nos. 3304.00, 3305.90, 3307.10, 3307.20, 3307.30 and 3307.90, for the entry in column(4) occurring against each of them, the entry "50%" shall be substituted;

41

(14) in Chapter 34,-

(a) after NOTE 5, the following NOTE shall be inserted, namely,-

`6. In relation to products of sub-heading No. 3402.90, packing or repacking into smaller packs, including packing or repacking of bulk packs to retail packs or adoption of any other treatment to render the product ?marketable to the consumer shall amount to "manufacture"';

(b) in sub-heading Nos. 3401.10 and 3403.00, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(c) in sub-heading No. 3402.90, for the entry in column (4), the entry "30%" shall be substituted;

(15) in Chapter '35, in sub-heading Nos. 3505.10, and 3506.00 for the entry in column (4) occurring 10 against each of them, the entry "20%" shall be substituted;

(16) in Chapter 36, in sub-heading Nos. 3602.00, 3604.10, 3604.90 and 3606.00, for the entry in column (4) occurring against each of them, the entry "201/'o" shall be substituted;

(17) in Chapter 37.-

(a) after NOTE 2, the following NOTE shall be inserted, namely--

`3. In relation to produces of heading Nos. 37.01, 37.02 and 37.03 the process of cutting, slitting, perforation or any one or more of these processes shall amount to "manufacture"';

(b) in sub-heading Nos. 3701.10, 3701.20, 3701@90, 3702.10, 3702.20, 3702.90, 3703.iO, 3703.20, 3704.10, and 3704.20 and 3707,00 for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(c) in sub-heading Nos. 3706.31, 3706.32, 3706.39, 3706.41, 3706.42, 3706.43, 3706.44, 3706.91 and 3706.92, for the entry in column (4) occurring against each of them, the entry "Nit" shall be substituted;

(18) in Chapter 38, for the entry in column (4) occurring against all the sub-heading Nos. the entry "20%" shall be substituted;

(19)in Chapter 39,-

(a) in NOTE 1 1, for clause (a), )e following clause shall be substituted, namely:-

"(a) Reservoirs, tanks (incit-, r'lg septic tanks), vats and similar containers, of a capacity exceeding 300 L;";

(b) for the entry in column (4) occurring against all the subheading Nos. (except su'j-heading Nos. 3922.10, 3922,20, 3922.90 3"24.19, 3924.90, 3925.10, 3925.20, 3925.30 and 3925.99), the entry "30%" shall be substituted

(20) in Chapter 40,-

(a) in sub-heading N6s. 4006.90, 4008.29 4009.10, 4009.91, 4009.99, 4016.19, 4016.91, 4016.99, 4017.10 and 4017.20 for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(b) in sub-heading Nos. 400B.11, 4008.19 and 4016.11 for the entry in column (4) occurring against each of them, the entry "30%" shall be substituted;

(21) in Chapter 44,-

(a) in sub-heading Nos. 4401.00, 4403.00 and 4410.90, for the entry in column (4) occurring against each of them, the entry "NII" shall be substituted;

(b) in sub-heading Nos. 4402.00, 4405.00, 4408.liD, 4408.20, 440B,30, 4408.40, 4408.90 4409.00 and 4410.10, for the entry in column (4) occurring against eact@ of them the entry "20%" shall be substituted;

(22) in Chapter 47, sub-heading No. 4702.00, for the entry in column (4), the entry "22%" shall be substituted,

(23) in Chapter 48,-

(a) in sub-heading Nos. 4801.10 and 4601.90, for the entry in column (4) occurring against each of them, the entry "10%" shall be substituted

(b) in sub-heading Nos. 4802.20, 4802.91, 4802.99, 4803.00, 4804.19, 4804.29, 4804.3C 4805.11, 4805.19, 4805.20, 4805.30, 4805.90,

4806.10, 4806.20, 4806.90, 4BO7.10, 4807.91, 4807.92, 4807.99,

4808.10, 4808.90, 4809.10. 4809.20, 4809.90, 4810.10, 4810.20, 4BI0.90, 4811.10, 4811.20, 4811.40, 504811.90, 4812.00, 4813.00,

4814.00, 4816.00, 4818.00, 4819.12, 4819.19, 4819.90, 4822.00, 4823.ilo 4823.12, 4823.14 and 4823.19, for the entry in column (14) occurring against each of them, the entry "20%" shall be substituted

(c) in sub-heading Nos. 4811,30 and 4823.90, for the entry in column (4) occurring against each of them, the entry "30%" shall be substituted;

(d) in sub-heading Nos. 4817.00, 4820.00 and 4821.00, for the entry in column (4) occurring against each of them, the entry "Nil" shall be substituted;

(24) in Chapter 50, in sub-heading No. 5001.20, for the entry in column (4), the entry "15%" shall be substituted;

(25) in Chapter 51,-

(a) in sub-heading Nos. 5101.00, 5102.il, 5102@12, 5107,24, 5107.42 and 5107,92, for the entry in column (4) occurring against each of them, the entry "Nil" shall be substituted;

42

(b) insub-heading Nos. 5103.10, 5103.21, 5103.29 and 5107.99, for the entry in column (4) occurring againsteach of them, the entry "15%" shall be substituted;

(d) insub-heading Nos. 5107.39, 5107.41 and 5107.91, for the entry in column (4) occurring against each ofthem, the entry "10%" shall be substituted;

(26) in Chapter 52,5 (a) in sub-heading No. 5203.00, for the entry in column (4), the entry "10%" shall be substituted; lb) in subheading Nos. 5204.21 and 5204.29, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(27) in Chapter 53,-

(a)in sub-heading Nos. 5301.10, and 5303.10,.for the entry in column (4) occurring against each of 10 them, the entry "Nil" shall be substituted;

(b) in sub-heading Nos. 5301.31, 5302.20, 5303.31 and 5306.29, for the entry in column (4) occurring against each of them, the entry "10%" shall be substituted;

(c) insub-heading Nos. 5301.32, 5303.32 and 5303.39, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted; 15

(28) in Chapter 54,-

(a) in sub-heading Nos. 5402.00, 5403.00, for the entry in column (4) occurring against each of them, the entry "70%" shall be substituted;

(b)in sub-heading Nos. 5404.00, 5405.00, 5406.11, 5406.12, 5406.19, 5406.90 and 5407.0(",, @or the entry in column (4) occurring against each of them, the entry "40%" shall be substituted; 20

(29) in Chapter 55, in sub-heading Nos. 5501.10, 5501.20,

5501.30, 5501.90, 5502.00, 5504.'O, 5504.21, 5504.22, 5504.29, 5504.31, 5504.32, 5504.39, 5504.90, 5505.00, 5506.21 and 5506.29 for the entry in column (4) occurring against each of them, the entry "20%" shall.. be substituted;

(30) in Chapter 56,-

(a) in sub-heading No. 1;605.10, for the entry in column (4)the entry "70%" shall be substituted; 25

(b) in sub-heading No. 5607.19, for the entry in column (4)the entry "10%" shall be substituted;

(31) in Chapter 57,--

(a) in sub-heading Nos. 5701.11, 5701.12 and 5702.90, for the entry in column (4) occurring against each of them, the entry "30%" shall be substituted;

(b) in sub-heading No. 5702.20, for the entry in column (4) the entry "10%" shall be substituted; 30

(32) in Chapter 58,-

(a) in sub-heading Nos. 5803.00, 5805.11, 5805.12, 5805.13, 5805.14 and 5805.19, for the entry in column (4) occurring against each of them, the entry "10%" shall be substituted;

(b) in sub-heading No. 5805.90,for the entry in column (4) the entry "Nil" shall be substituted;

(33) in Chapter 59,35

(a) in sub-heading Nos. 5902.10, 5902.20, 5902.30, 5906.11, 5906.12 and 5906.19, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(b) in sub-heading Nos. 5903.11, 5903.21 and 5903.91, for the

entry in colurhn (4) occurring against each of them, the entry "5%" shall be substituted;

(c) in sub-heading Nos. 5903.19, 5903.29, 5903.99, 5904.10, 5904.90, 5906.90 and 5908.00, for the 40 entry in column (4) occurring against each of them, the entry "30%" shall be substituted;

(34) in Chapter 64, for the entry in column (4) occurring against all the sub-heading Nos. (except sub,heading No. 6402.00), the entry "15%" shall be substituted;

(35) in Chapter 65, in sub-heading No. 6501.10, for the entry in column (4) the entry "10%" shall be substituted; 45

(36) in Chapter 66, in sub-heading No. 6601.00, for the entry in column (4) ;the entry "10%" shall be substituted;

(37) in Chapter 68,-

(a) in sub-heading Nos. 6801.10, 6801.90, 6802.00, 6803.00, 6805.10, 6806.10 and 6806.90, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted; 50

(b) in sub-heading No. 6807.00, for the entry in column (4) the entry "30%" shall be substituted;

(38) in Chapter 69,-

(a) in sub-heading No. 6901.00, in the entry in column (3), for the word "sheets" the word "sheaths" shall be substituted;

(b) in sub-heading Nos. 6905.00, 6906.90, 6908.10, 6909.10, 6909.20, 6909.30, 6909.90 and 6911.00 55 for the entry in column (4) occurring against each of them, the entry "30%" shall be substituted,

43

(c) in sub-heading No. 6906.10, for the entry in column (4), the entry "40%" shall be substituted; (39)in Chapter 70,-

(a) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 7007.90, 7009.00 and 7011.10), the entry "20%" shall be substituted;

(b) in sub-heading No. 7007.90, for the entry in column (4), the entry "30%" shall be substituted;

(c) for the entry in column (3) against heading No. 70.1 1, the entry "Clock or watch glasses and similar glasses. glasses for noncorrective or corrective spectacles, curved, bent, hollowed or the like, not optically worked; hollow glass spheres and their segments, for the manufacture of such glasses" shall be substituted;

(d) in sub-heading No. 7011.10, for the entry in column (3), the following entry shall be substituted, namely:-

"-Glasses for corrective spectacles";

(40) in Chapter 71, for NOTE 4, the following NOTE shall be substituted, namely:-

"4. For the purposes of this Chap!er, any alloy (including a sintered mixture and an inter metallic 1 5compound) containing precious metal is to be treated as an alloy of precious metal.if any one precious metal constitutes as much as 2%, by weight, o@' the alloy. Alloys of precious metal are to be classified according to the following rules:

(a) An alloy containing 2%, or more, by %Al@@ of platinum is to be treated as an alloy of platinum;

(b) An alloy containing 26/o or more, by we'ght, of gold but no platinum, or less than 2% by weight, of 20 platinum, is to be ' treated as an alloy of gold;

(c) Other alloys containing 2% or more, 'U-y weight, of silver are to be treated as alloys of silver.";

(41) in Chapter 72,-

(a) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading No. 7230.00), the entry "15%" shall be substituted; 25lb) heading No. 72.30 and the @ntries relating thereto shall be or-,itLed;

(42) in Chapter 73.-

(a) for the entry in column occurring against all the sub-heading Nos. (except sub-heading Nos. 7302.90, 7307.00, 7308.10, '7 @@6.20,

7308.30, 7308.40, 7308.90, 7309.00, 7312.10, 7312.90, 7313.00,

7314.00, 7315.00, 7316.00, -7137.00, 7318.10, 7318.21, 7318.29. 7318.90, 7319.00, 7320.00, 7321.90, 307322,00, 7323.00, 7324.00, :,326.11, 7326@19, 7326.20, 7326.90, and 7327.00), the entry "15%" shall be substituted:

(b) heading No. 73.27 and the entries relating thereto shall be omitted;

(43) in Chapter 76, for the entry in column (4) occurring against all the sub-heading Nos., the entry "20%" shall be substituted

(44) in Chapter 83,--

(a) for the entry in column (4) occurring against all the subheading Nos. (except sub-heading Nos. 8303.00, 8306.00, 8307.00, 8310.00, 8311.00, aid 8312.00). the entry "20%" shall be *substituted;

(b) in sub-heading No. 8303.00, for the entry in column (4), the entry "30%" shall be substituted;

(45) in Chapter 84,-

(a) in sub-heading Nos, 8414.10, 8414.91 8415.00, 8418.00, 8419.00, 8476.11, 8476.91, 8481.10 and 8481.91, for the entry in column (4) occurring against each of them, the entry "60%" shall be substituted;

(b) in sub-heading Nos. 8414.20 and 8469. 00, for the entry in column (4) occurrin@ against each of them, the entry "15%" shall be substituted;

(c) in sub-heading No. 8485.90, for the entry in column (4), the entry "25%" shall be substituted;

(46) in Chapter 85,-

(a) in sub-heading Nos. 8506.00, 8523.11, 8523.12, 8523.13,

8@@23.14, 8523.19, 8523.20, 8523.90, 8524.21, 8524.22, 6524.23, 8524.24, 8544.00 and 8546.00, for the entry in column (4) occuring against each of them, the entry "30%" shall be substituted;

(b) in sub-heading Nos. 8518.00, 8519.00, 8520.00, 8521.00, 8522.00, 8525.00, 8527.00, 8528.00, 50 8529.00, 8532.00 and 8540.11, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(c) in sub-heading No. 8536.10 for the entry in column (4), the entry "80%" shall be substituted;

(d) in sub-heading No. 8539.00,for the entry in column (4), the entry "15%" shall be substituted;

(e) in sub-heading No. 8548.00,for the entry in column (4)', the entry "25%" shall be substituted;

(47) in Chapter 87,-

(a) in sub-heading Nos. 8702.00, 8703.00, 8704.00, 8706.20, 8706.30 and 8706.40, for the entry in column (4) occurring against each of them, the entry "40%" shall be substituted;

(b) in sub-heading Nos. 8705,00, 8706.50, 8707.00, 8709.00, 8710.00 and 8716.00, for the entry in column (4) occurring against each of them, the entry "15%" shall be substituted;

44

(c) in sub-heading No.. 8708.00, for the entry in column (4). the entry "20%" shall be substituted*,

(48) in Chapter 89,--

(a) NOTE 2 shall be omitted; lb) heading No.89.08 and the entries relating thereto shall be omitted; (49) in Chapter 90,5 (a) in subheading Nos.9006.00, 9007.00, 9008.00 and 9009.00, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(b) in sub-heading Nos. 9011.00, 9012.00, 9013.00, 9014.00,

9015.00, 9016.10, 9016.90, 9017.00, 9018.00, 9019.00, 9020.00,

9021.00, 9022.00, 9023.00, 9024.00, 9025.00, 9026.00, 9027.00, 9028.00, 9029.00, 9030.00, 9031.00, 9032.12, 9032.80, 9032.99, and 9033.00, for the entry in column (4) occurring 10 against each of them, the entry "10%" shall be substituted;

(c) in sub-heading Nos. 9032.1 1 and 9032.91, for the entry in column (4) occurring against each of them, the entry "60%" shall be substituted;

(50) in Chapter 91, for the entry in column (4) occurring against all the sub-heading Nos., the entry "10%" shall be substituted; is

(51) in Chapter 92, for the entry in column (4) occurring against all the sub-heading Nos., the entry "10%" shall be substituted;

(52) in Chapter 94,

(a) in sub-heading Nos. 9401.00. 9402.00, 9403.00, and 9405.00, for the entry in coiumn.(4) occurring against each of them, the entry "20%" shall be substituted; 20

(b) in sub-heading No. 9404.00, for the entry in column (4), the entry "30%" shall be substituted;

(53) in Chapter 95, in sub-heading No. 9504.00 for the entry in column (4), the entry "15%" shall be substituted;

(54) in Chapter 96,-

(a) in sub-heading Nos. 9604.00, 9606.00, 9608.00, 9611.00, 9612.00, 9613.10, and 9613.90, for the 25 entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(b) in sub-heading No. 9605.10, for the entry in column (4), the entry '50%" shall be substituted.

45

THE FOURTH SCHEDULE

[See section 62(b)]

---------------------------------------------------------------------

Heading No. Sub-heading No. Description of goods Rate ---------------------------------------------------------------------

(1) (2) (3) (4) --------------------------------------------------------------------In the Schedule to the Central Excise Tariff Act, in Chapter 40,-

(a)for heading No. 40.11 and the entries relating thereto, the following shall be substituted, namely:-

PNEUMATIC TYRES, OF RUBBER

"40.11 4011.10 Of a kind used on bicycles,

cycle-rickshaws and three

-wheeled powered cycle

rickshaws Nill

4011.20 of a kind used on two-

-wheeled motor vehicles

or as rear lyres on trac-

tors including agricultur-

al tractors 25%

4011.90 -Others 45%

(b) in sub-heading No. 4012.19, for the entry in column (4), the entry "45%" shall be substituted;

(c) for heading No. 40.13, and the entries relating thereto, the following shall be substituted, namely:--

"40.13 INNER TUBES, OF RUBBER, FOR TYRES

4013.10 -Of a kind used in lyres

of sub-heading No. 4011.10 Nill

4013.20 -Of a kind used in lyres

of sub-heading No. 4011.20 25%

4013.90 -Others 45% ---------------------------------------------------------------------

46

THE FIFTH SCHEDULE

[See Section 63(b)]

In the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act,

(1) in sub-heading Nos. 2403.11 and 2403.21, for the entry in column (4) occurring against eachof them, the entry "Rs-350 per thousand" shall be substituted:

(2) in sub-heading Nos. 2404.49 and 2404.60, for the entry in column (4) occurring against each of them, the entry "10%" shall be substituted;

(3) insub-heading Nos.5107.24, 5107.32, 5107.42 and 5107.92, for the entry in column (4) occurring against each of them, the entry 'Nil" shall be substituted;

(4) in sub-heading Nos. 5107.39, 5107.41, and 5107.49, for the entry in column (4) occurring against each of them, the entry "5%" shall be substituted;

(5) in sub-heading Nos. 5206.00, 5207.00, 5208.00, 5209.00, 521C.00, and 5211.00, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(6) in sub-heading Nos. 5409.00, 5410,00, 541 1.00 and 5412.00

for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(7) in sub-heading Nos. 5508.00, 5509.00, 5510.00, 5511.00 and 5512.00, for the entry in column (4) 20 occurring against each of them, the entry "20%" shall be substituted;

(8) in sub-heading Nos. 5801.30, 5802.14 and 5804.12, for the entry in column (4) occurring against each of them, the entry "20%" shall be substituted;

(9) in sub-heading Nos. 5805.11, 5805.12, 5805.13 and 5805.14, for the entry in column (4) occurring against each of them, the entry "Nil" shall be substituted; 25 (10) in sub-heading No. 5901.20, for the entry in column (4), the entry "20%" shall be substituted;

(10) in sub-heading NO.5901.20, for the entry in column (4), the entry "20"% shall be substituted;

(11) in sub-heading NOs. 5902,10, 5902.20, 5902.30, 5903.19,

5903.29, 5903.11 and 5906.12, for the entry in column (4) occuring aginst each of them, the entry "5%" shall be substituted;