Tamil Nadu Industrial Establishments (National, festival and special holidays) Act, 1958 

(Tamil Nadu Act 33 of 1958) 

Received the assent of the Governor on the 4th December 1958 and published in the Fort. St. George Gazette Extraordinary, dated the 10th December 1958. 

An Act to provide for the grant of [National, festival and special holidays] to persons employed in industrial establishments in the [State of Tamil Nadu]. 

Whereas it is expedient to provide for the grant of [National, festival and special holidays] to persons employed in industrial establishments in the [State of Tamil Nadu]; 

Be it enacted in the Ninth Year of the Republic of India as follows:- 

1. Short title, extent and commencement. - (1) This Act may be called the [Tamil Nadu] Industrial Establishment ([National, festival and special holidays]) Act, 1958. 

(2) It extends to the whole of the [State of Tamil Nadu]. 

(3) It shall come into force on such date as the Government may, by notification, appoint. 

2. Definitions. - In this Act, unless the context otherwise requires,- 

(a) "day" means a period of twenty-four hours beginning at midnight; 

(b) "employee" means- 

(i) any person (including an apprentice) employed in any industrial establishment to do any skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied; 

(ii) any other person employed in any industrial establishment whom the Government may, by notification, declare to be an employee for the purposes of this Act; 

(c) "employer", when used in relation to an industrial establishment, means a person who has the ultimate control over the affairs of the industrial establishment, and where the affairs of any industrial establishment are entrusted to any other person (whether called a managing agent, manager, superintendent or by any other name), such other person; 

(d) "Government" means the State Government; 

(e) "industrial establishment" means,- 

(i) any establishment as defined in clause (6) of section 2 of the Tamil Nadu Shops and Establishments Act, 1947 (Tamil Nadu Act XXXVI of 1947); 

(ii) any factory as defined in clause (m) of section 2 of the Factories Act, 1948 (Central Act LXIII of 1948), or any place which is deemed to be a factory under sub-section (2) of section 85 of that Act; 

(iii) any plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (Central Act LXIX of 1951); 

(iv) "Inspector" means an Inspector appointed under sub-section (1) of section 6; 

(g) "wages" means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of the work done by him in such employment, and includes- 

(i) such allowances (including dearness allowance) as the employee is for the time being entitled to; 

(ii) the value of any house accommodation; or of a supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles; but does not include- 

(a) any bonus;

(b) any contribution paid or payable by the employer to any pension fund or provident fund, or for the benefit of the employee under any law for the time being in force;

(c) any gratuity payable on the termination of his service;

(d) any sum paid to the employee to defray special expenses entailed on him by the nature of his employment;

(e) any travelling concession. 

3. Grant of [National, festival and special holidays]. - (1) Every employee shall be allowed in each calendar year a holiday of one whole day on the [26th January, the 1st May, the 15th August and the 2nd October] and five other holidays each of one whole day for such festivals as the Inspector may, in consultation with the employer and the employees, specify in respect of any industrial establishment. 

[(2) Notwithstanding anything contained in sub-section (1), the Government may, having due regard to any emergency or special circumstances prevailing in the State or any part thereof, by notification, declare any other day as a special holiday, to the employees of the industrial establishments, as it may deem fit.] [xxx] 

4. Employer to send statement to Inspector. - Every employer shall send to the Inspector having jurisdiction over the area in which the industrial establishment is situated, and display in the premises of the industrial establishment, a statement showing the holidays allowed in each calendar year under section 3, in such form, within such time and in such manner as may be prescribed. 

5. Wages. - (1) Notwithstanding any contract to the contrary, every employee shall be paid wages for each of the holidays allowed to him under section 3. 

(2) Where an employee works on any holiday allowed under section 3, he shall, at his option, be entitled to- 

(a) twice the wages; or 

(b) wages for such day and to avail himself of a substituted holiday with wages [on one of the three days immediately before or after the day on which he so works.] 

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), an employee who is paid wages by the day or at piece rates shall be entitled to be paid wages for any holiday allowed under section 3- 

(i) only at a rate equivalent to the daily average of his wages to be calculated in the prescribed manner; 

(ii) where he works on any such holiday, only at twice the rate mentioned in clause (i), or in lieu thereof, at the rate mentioned in that clause and to avail himself of a substituted holiday with wages at the rate [on one of the three days immediately before or after the day on which he so works:] 

Provided that no such employee shall be entitled to be paid any wages for any of the holidays allowed under section 3, other than [the 26th January, the 1st May, the 15th August and the 2nd October] if he has not completed a period of thirty days' continuous service immediately preceding such holiday. 

Explanation. - For the purpose of this proviso, a weekly or any other holiday or authorized leave availed of by an employee shall be included in computing the period of thirty days mentioned therein. 

6. Inspectors. - (1) The Government may, by notification, appoint such persons or such class of persons as they think fit to be Inspectors of this Act for such local limits as the Government may specify. 

(2) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (Central Act XLV of 1860). 

7. Powers of Inspectors. - Subject to any rules made by the Government in this behalf, an Inspector may, within the local limits for which he is appointed,- 

(a) enter, at all reasonable times and with such assistants, if any, who are persons in the service of the Government or of any local authority as he thinks fit to take with him, any place which is, or which he has reason to believe is, an industrial establishment; 

(b) make such examination of the premises and of any prescribed registers, records and notices and take on the spot or otherwise, the evidence of such person as he may deem necessary for carrying out the purposes of this Act; 

(c) exercise such other powers as may be necessary for carrying out the purposes of this Act: 

Provided that no one shall be required under this section to answer any question or give any evidence tending to incriminate himself. 

8. Penalties. - Any employer who contravenes any of the provisions of section 3 or section 5 shall be punishable with fine which, for the first offence, may extend to twenty-five rupees and for a second and subsequent offences may extend to two hundred and fifty rupees. 

[8A. Compounding of offences. - (1) Any offence punishable under section 8 or any rule made under section 12 may, either before or after the institution of the prosecution, be compounded by the Commissioner of Labour or such other officers as may be authorised in this behalf by the Commissioner of Labour, on payment, for credit to the Government of such sum as the Commissioner of Labour or such other officer may specify: 

Provided that such sum shall not, in any case, exceed the maximum amount of fine which may be imposed under this Act for the offence so compounded. 

(2) Where an offence has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender, in respect of the offence so compounded and the offender, if in custody, shall be discharged forthwith. 

(3) No offence punishable under this Act shall be compounded except as provided by this section.] 

9. Penalty for obstructing Inspector. - Whoever wilfully obstructs an Inspector in the exercise of any power conferred on him or under this Act, or fails to produce on demand in writing by an Inspector any register, record or notice in his custody which may be required to be kept in pursuance of this Act or of any rule made thereunder, shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to five hundred rupees or with both. 

10. Exemptions. - (1) Nothing contained in this Act shall apply to- 

(a) any employee in a position of management; 

(b) any employee whose work involves travelling; 

(c) any industrial establishment under the control of the Central or any State Government, local authority, Reserve Bank of India, a railway administration operating any railway as defined in clause (20) of Article 366 of the Constitution or a cantonment authority; or 

(2) The Government may, by notification, exempt either permanently or for any specified period any establishment or class of establishments, or person or class of persons from all or any of the provisions of this Act, subject to such conditions as the Government may deem fit. 

11. Rights and privileges under other laws not affected. - Nothing contained in this Act shall affect any rights or privileges which any employee is entitled to, on the date on which this Act comes into force under any other law, contract, custom or usage, if such right or privileges are more favourable to him than those to which he would be entitled under this Act. 

[xxx] 

12. Power to make rules. - (1) The Government may, by notification, make rules for the purpose of carrying into effect the provisions of this Act. 

(2) In making a rule under this Act, the Government may provide that a contravention thereof shall be punishable with fine which may extend to fifty rupees. 

(3) All rules made under this Act shall, as soon as possible after they are made, be placed on the table of [the Legislative Assembly] and shall be subject to such modifications by way of amendment or repeal as the [Legislative Assembly] may make within fourteen days on which it actually sits either in the same session or in more than one session.

Tamil Nadu Labour Welfare Fund Act, 1972

Tamil Nadu Labour Welfare Fund Act, 1972

(Tamil Nadu Act 36 of 1972)

Received the assent of the President on the 2nd December 1972 and first published in Part IV-Section 4 of the Tamil Nadu Government Gazette Extraordinary, dated the 6th December 1972.

An Act to provide for the constitution of a Fund for promoting the welfare of labour and for certain other matters connected therewith in the State of Tamil Nadu.

Be it enacted by the Legislature of the State of Tamil Nadu in the Twenty-third Year of the Republic of India as follows:-

1. Short title, extent and commencement. - 

(1) This Act may be called the Tamil Nadu Labour Welfare Fund Act,

(2) It extends to the whole of the State of Tamil Nadu.

(3) It shall come into force on such date as the Government may, by notification, appoint.

Notes. - This Act came into force on the 1st day of January 1973.

2. Definitions. - 

In this Act, unless the context otherwise requires,-

(a) "Board" means the Tamil Nadu Labour Welfare Board established under section 4;

(b) "employee" means-

(i) any person who is employed for hire or reward to do any work skilled or unskilled, manual, supervisory, clerical or technical in art establishment for a period of 30 days during the period of [the preceding twelve months] whether the terms of employment be express or implied, but does not include any person-

(a) who is employed mainly in a managerial capacity; or

(b) who being employed in a supervisory capacity [draws wages exceeding fifteen thousand rupees per mensem] or exercises either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or

(c) who is employed as an apprentice or on part-time basis.

Explanation. - An apprentice" means a person who, according to the Certified Standing Orders applicable to the establishment, is an apprentice or who is declared to be an apprentice by the authority specified in this behalf by the Government; and

(ii) any other person employed in any establishment whom the Government may, by notification, declare to be an employee for the purposes of this Act;

(e) "employer" means a person who has the ultimate control over the affairs of the establishment and where the said affairs are entrusted to any other person whether called a manager, managing director, managing agent, superintendent or by any other name, such other person;

(d) "establishment" means-

(i) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (Central Act LXIII of 1948) or any place which is deemed to be a factory under sub-section (2) of section 85 of that Act;

(ii) a motor transport undertaking as defined in clause (g) of section 2 of the Motor Transport Workers Act, 1961 (Central Act 27 of 1961);

(iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (Central Act LXIX of 1951);

(iv) a catering establishment as defined in section 2(1) of the Tamil Nadu Catering Establishments Act, 1958 (Tamil Nadu Act XIII of 1958) [which employs, or on any working day during the preceding twelve months employed, five or more than five persons].

(v) an establishment, including a society [registered or deemed to be registered under the Tamil Nadu Societies Registration Act, 1975 (Tamil Nadu Act 27 of 1975)] and a charitable or other trust whether registered under any law applicable to such charitable or other trust or not, which carries on any business or trade or any work in connection therewith or ancillary thereto and which employs, or on any working day during the preceding twelve months employed, [five or more persons] but does not include an establishment (not being a factory) of the Central or any State Government;

(vi) any other establishment which the Government may, by notification, declare to be an establishment for the purposes of this Act;

[Explanation. - For the purposes of this Act, where an establishment consists of different departments or has branches whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment.]

(e) "Fund" means the Labour Welfare Fund constituted under section 3;

(f) "Government" means the State Government;

(g) "Inspector" means an Inspector referred to in section 22;

(h) "Secretary" means the Secretary appointed under section 21;

(i) "unpaid accumulation" means all payments other than gratuity due to an employee but not paid to him within a period of three years from the date on which the payments became due whether before or after the commencement of this Act and the gratuity accrued to an employee after the commencement of this Act but not paid within a period of three years from the date of such accrual but does not include the amount of contribution, if any, paid by an employer to a provident fund established under the Employees' Provident Funds Act, 1952 (Central Act XIX of 1952);

(j) "wages" means all remuneration capable of being expressed in terms of money which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment, but does not include-

(i) the value of any house accommodation or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by general or special order of the Government;

(ii) any contribution paid by the employer to any pension or provident fund or under any scheme of social insurance;

(iii) any travelling allowance or the value of any travelling concession;

(iv) any sum paid to the employee to defray special expenses entailed on him by the nature of his employment; or

(v) any gratuity payable on termination of employment.

3. Labour Welfare Fund 

(1) The Government shall constitute a fund called the Labour Welfare Fund, and notwithstanding anything contained in any other law for the time being in force or in any contract or instrument, all unpaid accumulations shall be paid, at such intervals as may be prescribed, to the Board, and be credited to the Fund and the Board shall keep separate account therefor until claims thereto have been decided in the manner provided for in section 13.

(2) There shall also be credited to the Fund-

(a) unpaid accumulations paid to the Board under sub-section (2) of section 13;

(b) all fines including the amount realised under Standing Order 20 of the Model Standing Orders issued under the Tamil Nadu Industrial Employment (Standing Orders) Rules, 1947 [and under the Certified Standing Orders of the Establishment] from the employees by the employers, notwithstanding anything contained in any agreement between the employer and employee;

(c) deductions made under the proviso to sub-section (2) of section 9 of the Payment of Wages Act, 1936 (Central Act IV of 1936) [and under the proviso to sub-section (2) of section 36 of the Tamil Nadu Shops and Establishments Act, 1947 (Tamil Nadu Act XXXVI of 1947).]

(d) contribution by employers and employees;

(e) any interest by way of penalty paid under section 14;

(f) any voluntary donations;

(g) any amount raised by the Board from other sources to augment the resources of the Board;

(h) any fund transferred under sub-section (5) of section 17;

(i) any sum borrowed under section 18;

(j) any unclaimed amount credited to the Government in accordance with the rules made under the Payment of Wages Act, 1936 (Central Act IV of 1936) and the Minimum Wages Act 1948 (Central Act XI of 1948);

(k) grants or advances made by the Government;

(l) all fines imposed and realised from employers by Courts for violation of labour laws less the deduction made by Courts towards administrative expenses.

(3) The sums specified in sub-section (2) shall be paid to, or collected by, such agencies, at such intervals and in such manner, and the accounts of the Fund shall be maintained and audited in such manner, as may be prescribed.

4. Establishment of Board. - 

(1) With effect from such date as the Government may, by notification, appoint in this behalf, there shall be established a Board by the name "Tamil Nadu Labour Welfare Board".

(2) The Board shall be a body corporate having perpetual succession and a common seal, and shall, by the said name, sue and be sued.

5. Constitution of the Board. - The Board shall consist of a Chairman who shall be the Minister-in-charge of Labour and of the following members appointed by the Government, namely:-

(a) such number of representatives of employers and employees as may be prescribed:

Provided that both employers and employees shall have equal representation of the Board;

(b) such number of members of the State Legislature as may be prescribed; and

(c) such number of officials and non-officials as may be prescribed.

6. Appointment of the Chairman and the members to be notified. - The appointment of the Chairman and the members shall be notified in the Tamil Nadu Government Gazette.

7. Term of office of the members. - The term of office of the members of the Board other than the official members shall be three years from the date of their appointment and they shall be eligible for re-appointment. They shall continue as such members until the appointment of the successors:

Provided that a Member of the State Legislature shall cease to be a member of the Board from the date on which he ceases to be a member of the State Legislature.

8. Disqualifications and removal. - (1) No person shall be chosen as, or continue to be, a member of the Board, if he-

(a) is an officer or servant under the Board; or

(b) is an undischarged insolvent; or

(c) is of unsound mind; or

(d) has been convicted by a Criminal Court for an offence involving moral turpitude, unless such conviction has been set aside; or

(e) is in arrears of any sum due to the Board.

(2) The Government may remove from office any member who-

(a) is or has become subject to any of the disqualifications mentioned in sub-section (1); or

(b) is absent without leave of the Board more than three consecutive meetings of the Board.

9. Resignation of office by member and filling up of casual vacancies. - (1) Any representative of employer or employee or Member of the State Legislature, or non-official member may resign his office by giving notice thereof in writing to the Government, and on such resignation being accepted, shall be deemed to have vacated his office.

(2) A casual vacancy in the office of a member may be filled up as soon as may be and a member so appointed to fill such vacancy shall hold office for the remainder of the term.

10. Power appoint committees. - For the purpose of advising the Board in the discharge of its functions and in particular for carrying into effect any of the matters specified in sub-section (2) of section 17, the Board may constitute one or more committees consisting of at least one member of the Board and equal number of representative of employees and employers.

11. Acts of the Board or committee not to be invalidated by informality, vacancy, etc.. - No act done or proceeding taken under this Act by the Board or any committee shall be invalidated merely on the ground-

(a) of any vacancy or defect in the constitution of the Board or the committee; or

(b) of any defect or irregularity in the appointment of a person acting as a member thereof; or

(c) of any defect or irregularity in such act or proceeding not affecting the merits of the case.

12. Functions of the Board. - The functions of the Board shall be the administration of the Fund and such other functions as may be assigned by or under this Act.

13. Unpaid accumulations and claims thereto. - (1) All unpaid accumulations shall be deemed to be a abandoned property.

(2) Any unpaid accumulation paid to the Board in accordance with the provisions of sections 3 shall, on such payment, discharge an employer of his liability to make payment to an employee in respect thereof, but to the extent only of the amount paid to the Board, and the liability to make payment to the employee to the extent aforesaid shall, subject to the succeeding provisions of this section, be deemed to be transferred to the Board.

[(3) As soon as possible after the payment of any unpaid accumulation is made to the Board, the Board shall-

(a) exhibit on the notice board of the establishment in which the unpaid accumulation was earned; and

(b) publish in the Tamil Nadu Government Gazette, and in such other manner as may be prescribed, a notice inviting claims by employees, their heirs, legal representatives or assigns for any payment due to them. Sub-section (3) was substituted by section 4(i) of the Tamil Nadu Labour Welfare Fund (Amendment) Act, 1982 (Tamil Nadu Act 37 of 1982.]

(4) If any question arises whether the notice referred to in sub-section (3) was given as required by that sub-section, a certificate of the Board that it was so given, shall be conclusive.

(5) [If a claim is received whether in response to the notice or otherwise, within a period of six months from the date of the publication of the notice in the Tamil Nadu Government Gazette in respect of such claim], the Board shall transfer such claim to die Authority appointed under section 15 of the Payment of Wages Act, 1936 (Central Act IV of 1936), having jurisdiction over the area in which the establishment is situate, and that Authority shall proceed to adjudicate upon and decide such claim. In hearing such claim such Authority shall have the powers conferred by that Act and follow the procedure (in so far as it is applicable), specified therein.

(6) If the Authority aforesaid is satisfied that any such claim is valid so that the right to receive payment is established, it shall decide that the unpaid accumulation in relation to which the claim is made shall cause to be deemed to be abandoned property, and shall order the Board to pay the whole of the dues claimed, or such part thereof as the Authority decides are properly due, to the employee; and the Board shall make payment accordingly:

Provided that the Board shall not be liable to pay any sum in excess of that paid under sub-section (1) of section 3 to the Board as unpaid accumulations, in respect of the claim.

(7) If a claim for payment is refused, the employee or his heirs, legal representatives or assigns, as the case may be, may, within sixty days from the date of receipt of the order of the Authority, prefer an appeal in the City of [Chennai] to the [Chennai] City Civil Court, and elsewhere to the District Court.

(8) The decision of the Authority, subject to appeal aforesaid, and the decision in appeal of the [Chennai] City Civil Court, or as the case may be, the District Court, shall be final and conclusive as to the right to receive payment, the liability of the Board to pay and also as to the amount, if any.

(9) If no claim is received within the period specified in sub-section (5), or a claim has been refused by the Authority, or on appeal by the [Chennai] City Civil Court or the District Court, then, the unpaid accumulations in respect of such claim shall accrue to, and vest in, the State as bona vacantia, and shall, thereafter be deemed to have been transferred to, and form part of, the Fund.

14. Interest on unpaid accumulations or fines after notice of demand. - (1) If an employer does not pay to the Board any amount of unpaid accumulations, or fines realised from the employees, within the time specified by or under this Act, the Secretary may serve or cause to be served a notice on such employer to pay the amount within the period specified therein which shall not be less than thirty days from the date of service of such notice.

(2) If the employer fails, without sufficient cause, to pay any such amount within the period specified in the notice, he shall, in addition to that amount, pay byway of penalty to the Board simple interest-

(a) for the first three months at one per cent of the said amount for each complete month or part thereof after the last date by which he should have paid it according to the notice; and

(b) for each complete month or part thereof thereafter at one and a half per cent of that amount during the time he continues to make default in the payment of that amount:

Provided that, the Secretary may, subject to such conditions as maybe prescribed, remit the whole or any part of the penalty in respect of any period.

[15. Contribution to the Fund by employee and employer. - (1) Every employee shall contribute a sum not exceeding ten rupees, per year, as may be prescribed, from time to time, to the Fund and every employer shall, in respect of each such employee, contribute a sum not exceeding twenty rupees, per year, as may be prescribed, from time to time, to the Fund and the Government shall, in respect of each such employee, contribute a sum not exceeding ten rupees, per year, as may be prescribed, from time to time, to the Fund.

(2) Notwithstanding anything contained in any other law for the time being in force, the employer shall be entitled to recover from the employees the employee's contribution by deduction from his wages in such manner as may be prescribed and such deduction shall be deemed to be a deduction authorised by or under the Payment of Wages Act, 1936 (Central Act IV of 1936) [or the Tamil Nadu Shops and Establishment Act, 1947 (Tamil Nadu Act XXXVI of 1947)]].

16. Grants and advances by the Government. - The Government may, from time to time, make grants or advance loans to the Board for the purposes of this Act on such terms and conditions as the Government may, in each case, determine.

17. Vesting and application of Fund. - (1) The Fund shall vest in, and be held applied by the Board as trustees subject to the provisions, and for the purposes, of this Act. The moneys therein shall be utilised by the Board to defray the cost of carrying out measures which may be specified by the Government, from time to time, to promote the welfare of employees and of their dependents.

(2) Without prejudice to the generality of the provisions of sub-section (1), the moneys in the Fund may be utilized by the Board to defray expenditure on the following, namely:-

(a) community and social education centres;

(b) vocational training;

(c) community necessities;

(d) entertainment and other forms of recreation;

(e) convalescent homes for tuberculosis patients;

(f) holiday homes in health resorts;

(g) part-time employment for housewives of employees;

(h) pre-schools;

(i) nutritious food to children of employees;

(j) employment opportunities to the disabled employees [or the widows of the deceased employees];

(k) cost of administering this Act including the salaries and allowances of the staff appointed for the purposes of this Act; and

(l) such other objects as would, in the opinion of the Board, improve the standard of living [and education] and ameliorate the social conditions of labour:

Provided that the Fund shall not be utilised in financing any measure which the employer is required under any law for the time being in force to carry out:

Provided further that unpaid accumulations and fines shall be expended by the Board under this Act, notwithstanding anything contained in the Payment of Wages Act, 1936 (Central Act IV of 1936) or any other law or agreement for the time being in force.

(3) The Board may, with the approval of the Government, make grants from the Fund to any local authority or any other body in aid of any activity for the welfare of employee.

(4) It any question arises whether any particular expenditure is or is not deb-itable to the Fund, the matter shall be referred to the Government whose decision thereon shall be final.

(5) The Board may accept the transfer of any Labour Welfare Fund-of any establishment and may continue any activity financed from such Labour Welfare Fund if the said Fund is duly transferred to the Board.

18. Power of Board to borrow. - The Board may, from time to time, with the previous sanction of the Government and subject to the provisions of this Act and to such conditions as may be prescribed in this behalf, borrow any sum required for the purposes of this Act.

19. Deposit of Fund and placing of accounts and audit report before the State Legislature. - (1) All moneys and receipts forming part of the Fund shall be deposited in the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (Central Act II of 1934), or in the State Bank of India constituted under the State Bank of India Act, 1955 (Central Act 23 of 1955) or any corresponding new Bank as defined in the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (Central Act 5 of 1970) [or in the State Cooperative Bank or in any Central Co-operative Bank as defined in section 73-A of the [Tamil Nadu Co-operative Societies Act, 1961 (Tamil Nadu Act 53 of 1961)] or in any corporation owned or controlled by any State Government or the Central Government] and such account shall be operated upon by such officers of the Board as may be authorised by the Board and in such manner, as may be prescribed.

(2) The accounts of the Board, as certified by the auditor, together with the audit report thereon, shall be forwarded yearly to the Government and the Government may issue such instructions to the Board in respect thereof as they deem fit and the Board shall comply with such instructions.

(3) The Government shall-

(a) cause the accounts of the Board together with the audit report thereon forwarded to them under sub-section (2) to be laid yearly before the State Legislature;

(b) cause the accounts of the Board to be published in the prescribed manner and make available copies thereof on sale at a reasonable price.

20. Power of Government to give directions to be Board. - The Government may give the Board such directions as, in their opinion, are necessary or expedient in connection with expenditure from the Fund or for carrying out the purposes of the Act and it shall be the duty of the Board to comply with such directions.

21. Appointment and powers of Secretary. - (1) The Board may, with the previous approval of the Government, appoint a Secretary who shall be the Chief Executive Officer of the Board.

(2) It shall be the duty of the Secretary to ensure that the provisions of this Act and the rules made thereunder are duly carried out and, for this purpose, he shall have the powers to issue such orders not inconsistent with the provisions of this Act and the rules made thereunder as he deems fit including any order implementing the decisions taken by the Board under this Act or the rules made thereunder.

22. Inspectors. - (1) An Inspector of Factories appointed under sub-section (1) of section 8 of the Factories Act, 1948 (Central Act LXIII of 1948) shall be an Inspector for the proposes of this Act in respect of all factories within the local limits assigned to him.

(2) The Government may, by notification, appoint such other persons as they think fit to be Inspectors for the purposes of this Act, and may define the local limits within which and the class of establishment in respect of which they shall exercise their function.

(3) Subject to any rules made in this behalf, an Inspector shall have power to do all or any of the following matters within the local limits for which he is appointed-

(a) to make such examination and hold such inquiry as may be necessary for ascertaining whether the provisions of this Act have been and are being complied with;

(b) require the production of any prescribed register and any other document in possession of the employer in connection with the sums payable to the Fund;

(c) to enter, at all reasonable times, any premises with such assistance as he may think fit;

(d) to exercise such other powers as may be prescribed.

23. Allotment of certain officers and staff to the Board. - (1) As soon as may be after the commencement of this Act, the Government may, after consulting the Board, direct, by general or special order, that such of the officers and other servants serving immediately before the notified date in connection with the affairs of the State as are specified in such order shall be allotted to serve in connection with the affairs of the Board with effect on and from such date as may be specified in such order:

Provided that no such direction shall be issued in respect of such officer or other servant without his consent for such allotment:

Provided further that the conditions of service applicable immediately before the notified date to any such person shall not be varied to his disadvantage except with the previous approval of the Government.

(2) With effect on and from the notified date, the officers and other servants specified in such order shall become employees of the Board and shall cease to be officers or servants of the Government.

Explanation. - In this section, "notified date" means such date as is notified by the Government.

24. Transfer of Provident Fund to the Board. - (1) The moneys standing to the credit under the Provident Fund Account of any officer or servant allotted from the service of the Government to the Board's service on the date specified in the order under sub-section (1) of section 23 shall stand transferred to, and vest in, the Board with effect on and from such date.

(2) The Board shall, as soon as may be, after such date constitute in respect of the moneys and other assets which are transferred to, and vested in, it under sub-section (1), a similar fund and may invest the accumulations under the fund in such securities and subject to such conditions, as may be specified by the Board with the approval of the Government.

25. Government to credit the leave salary and pensionary contributions in respect of the officers and servants allotted to Board's service

The Government shall credit to the account of the Board to leave salary and pensionary contributions in respect of the officers and servants allotted to the service of the Board in proportion to the leave at the credit of such officers and servants or in proportion to the length of their service under the Government, as the case may be, according to the terms and conditions as are applicable to them under the Government on the date specified in the order under sub-section (1) of section 23.

26. Appointment of clerical and other staff by Board

The Board may, subject to the provisions of section 23, appoint such other officers and servants as it considers necessary for the efficient performance of its functions:

Provided that the expenses of the staff so appointed and other administrative expenses shall not exceed such percentage of the annual income of the Fund as may be prescribed.

27. Powers of Government to call for records

The Government or any officer authorised by the Government may call for the records of the Board, inspect the same and may supervise the working of the Board.

28. Mode of recovery of sums payable to Board

Any sum payable to the Board or into the Fund under this Act shall, without prejudice to any other mode of recovery, be recoverable on behalf of the Board as an arrear of land revenue.

29. Penalty for obstructing inspection or for failure to produce documents, etc

Any person who wilfully obstructs an Inspector in the exercise of his powers or discharge of his duties under this Act or fails to produce for inspection on demand by an Inspector any register, record or the documents maintained in pursuance of the provisions of this Act or the rules made thereunder or to supply to him on demand true copies of any such documents shall, on conviction, be punished-

(a) for the first offence, with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both;and

(b) for a second or subsequent offence, with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both:

Provided that, in the absence of special and adequate reasons to the contrary to be mentioned in the judgement of the Court, in any case where the offender is sentenced to fine only, the amount of fine shall not be less than fifty rupees.

30. Cognizance of offences

(1) No Court shall take cognizance of any offence punishable under this Act except on a complaint by, or with the previous sanction in writing of the Secretary.

(2) No Court inferior to that of a Presidency Magistrate or a Magistrate of the First Class shall try any offence punishable by or under this Act.

31. Offences by companies

(1) If the person committing an offence under this Act is 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 Act, if he proves that the offence was committed without his knowledge, or that he exercised all due diligence to prevent the commission of the offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, has been committed by a company, and it is proved, that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer 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 a 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.

32. Limitation of prosecution

No Court shall take cognizance of an offence punishable by or under this Act unless a complaint thereof is made within six months of the date on which the offence is alleged to have been committed.

33. Power to supervise the welfare activities of an establishment

In regard to any money set apart in any establishment specifically for the purpose of promoting the welfare of the employees in such establishment, the Board shall have powers-

(i) to require the production of any document in possession of the employers of the establishment in connection with such money to satisfy itself as to whether such money is being applied for such purpose;

(ii) to call for any information from such employers of the establishment as it may deem relevant; and

(iii) to issue such directions to the employers of such establishment as it may deem fit for the purpose of utilising the fund for promoting the welfare of the employees.

34. Penalty for non-compliance with the direction of the Board

Any person who wilfully fails to produce any document required by the Board or to furnish any information called for by the Board or wilfully fails to comply with any directions issued by the Board under section 33 shall, on conviction, be punished with-

(a) for the first offence, with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both; and

(b) for a second or subsequent offence, with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both:

Provided that, in the absence of special and adequate reasons to the contrary to be mentioned in the judgement of the Court, in any case where the offender is sentenced to fine only, the amount of fine shall not be less than fifty rupees.

35. Annual report

The Board shall, as soon as may be after the end of each year, prepare and submit to the Government before such date and in such form as may be prescribed, a report giving an account of its activities during the previous year and the report shall also given an account of the activities, if any, which are likely to be undertaken by the Board in the next year and the Government shall cause every such report be laid before the State Legislature as soon as may be after it is received by the Government.

36. Super-session of the Board

(1) If the Government are of opinion that the Board is unable to perform, or has persistently made default in the performance of the duty imposed on it by or under this Act or has exceeded or abused its power, they may, by notification, supersede the Board for a period not exceeding six months as may be specified in the notification:

Provided that before issuing a notification under this sub-section, the Government shall, by notice, require the Board to show cause within such period as may be specified in the notice why it should not be superseded and shall consider the explanations and objections, if any, of the Board.

(2) Upon the publication of a notification under sub-section (1) superseding the Board,-

(a) the Chairman and all the members of the Board shall, as from the date of supersession, vacate their offices as such;

(b) all the powers and duties which may, by or under the provisions of this Act, be exercised or performed by, or on behalf of, the Board and the Chairman shall, during the period of supersession, be exercised and performed by such authority or person as the Government may direct;

(c) all funds and other property vested in the Board shall, during the period of supersession, vest in the authority or person referred to in clause (b); and

(d) all liabilities, legally subsisting and enforceable against the Board shall be enforceable against the authority or person referred to in clause (b) to the extent the funds and properties vested in it or him.

(3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Government may-

(a) extend the period of supersession for such further period not exceeding six months as they may consider necessary; or

(b) reconstitute the Board in the manner provided in section 5.

37. Delegation of powers

(1) The Government may, by notification, authorise any authority or officer to exercise any of the powers vested in them by or under this Act except the power to make rules under section 41 and may, in like manner, withdraw such authority.

(2) The Board may, by general or special order in writing, delegate to the Secretary or other officer of the Board such of its powers and functions under this Act except the power to make regulations under section 42 as it may deem necessary and it may, in like manner, withdraw such authority.

(3) The exercise of any power delegated under sub-section (1) or sub-section (2) shall be subject to such restrictions and conditions as may specified in the order and also to control and revision by the Government or by such officer as may be empowered by the Government in this behalf or, as the case may be, by the Board or such officer as may be empowered by the Board in this behalf.

(4) The Government or the Board, as the case may be, shall also have the power to control and revise the acts and proceedings of any officer so empowered.

38. Members of Board, Secretary, Inspectors and all officers and servants of Board to be public servants. - The members of the Board, the Secretary, Inspectors and all officers and servants of the Board, and any person entrusted with the execution of any function under this Act, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (Central Act XLV of 1860).

39. Protection of action taken in good faith. - (1) No suit, prosecution or other legal proceedings shall lie against any person for anything which is, in good faith, done or intended to be done in pursuance of this Act or any rule or order made thereunder.

(2) No suit or other legal proceeding shall lie against the Government or the Board for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.

40. Exemption. - The Government may, by notification exempt any establishment or class of establishments from all or any of the provisions of this Act [or of any rules made thereunder] subject to such conditions as may be specified in the notification.

41. Power to make rules

(1) The Government may make rules for the purpose of carrying into effect the provisions of this Act.

(2) In particular and without prejudice to the generality of the forgoing power, such rules may provide for-

(a) all matters expressly required or allowed by this Act to be prescribed;

(b) the intervals at which or the period within which any of the sums referred to in section 3 shall be paid to the Board or into the Fund, the manner of making such payment and the agency for, and manner of, collection of any such sum;

(c) the manner in which the accounts of the Fund shall be maintained and audited;

(d) the allowances, if any, payable to the members of the Board;

(e) the manner in which the employee's contribution may be deducted from his wages;

(f) the form of notice regarding unpaid accumulations;

(g) the procedure for making grants from the Fund;

(h) the procedure for defraying the expenditure incurred in administering the Fund;

(i) the manner in which the Board shall conduct its business;

(j) the duties and powers of the Inspectors and the conditions of service of the Secretary and Inspectors and other staff appointed under this Act;

(k) the delegation of the powers and functions of the Board to the Secretary and the conditions and limitations subject to which the powers may be exercised or functions discharged;

(l) the percentage of the annual income of the Fund beyond which the Board may not spend on the staff and on other administrative expenses:

(m) the registers and records to be maintained under the Act;

(n) the publication of the report of the activities financed from the Fund together with a statement of receipt and expenditures of the Fund and statement of accounts.

(3) All rules made under this Act shall be published in the Tamil Nadu Government Gazette, and unless they are expressed to come into force on a particular day, shall come into force of the day on which they are so published.

(4) All notifications issued under this Act shall, unless they are expressed to come into force on a particular day, come into force on the day on which they are published.

(5) Every rule made or notification issued -under this Act shall as soon as possible after it is made or issued, be placed on the table of [the Legislative Assembly] and if, before the expiry of the session in which it is so placed or the next session, [the Legislative Assembly agrees] in making any modification in any such rule or notification or [Legislative Assembly agrees] that the rule or notification, should not be made or issued, the rule or notifications 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.

42. Power to make regulations

(1) The Board may, by notification [issued whether prospectively or respectively], make regulations not inconsistent with this Act, and the rules made thereunder for the purposes of giving effect to the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for-

(a) all matters expressly required or allowed by this Act to be prescribed by regulations;

(b) the terms and conditions of appointment and service and the scales of pay of officers and servants of the Board including the payment of travelling and daily allowances in respect of journeys undertaken by such officers and servants of the Board;

(c) the supervision and control over the acts and proceedings of the officers and servants of the Board and the maintenance of discipline and conduct among the officers and servants of the Board;

(d) the procedure in regard to the transaction of business at the meetings of the Board including the quorum;

(e) the purposes for which and the manner in which temporary association of persons may be made;

(f) the duties, the functions, the terms and conditions of service of the members of the committees;

(g) the manner and the form relating to the maintenance of the accounts of the Board.

(3) No regulation or its cancellation or modification shall have effect until the same shall have been approved by the Government.

(4) The Government may, by notification, rescind any regulation made under this section and, thereupon, the regulation shall cease to have effect.

43. Amendment of sections, Central Act IV of 1936. - In section 8 of the Payment of Wages Act, 1936 (Central Act IV of 1936), in sub-section (8), in the last sentence, the following shall be added at the end, namely:

"but in the case of any establishment to which the Tamil Nadu Labour Welfare Fund Act, 1972 applies all such realisations shall be paid into the Fund constituted under the aforesaid Act".

TAMIL NADU TAX ON PROFESSIONS TRADES, CALLINGS AND EMPLOYMENTS ACT, 1992

TAMIL NADU TAX ON PROFESSIONS TRADES, CALLINGS AND EMPLOYMENTS ACT, 1992

12 Jun 1992

Tamil Nadu Tax on Professions Trades, Callings and Employments Act, 1992*

[Tamil Nadu Act No. 24 of 1992]

[12th June, 1992]

An Act to consolidate and to provide for the levy and collection of tax on professions, trades, callings and employments in this State

Whereas it is expedient to provide for the levy and collection of a tax on professions trades, callings and employments;

Be it enacted by the Legislative Assembly of the State of Tamil Nadu in the Forty-third Year of the Republic of India as follow:-

1. Short title, extent and commencement.- 

(1) This Act may be called the Tamil Nadu Tax on Professions Trades, Callings And Employments Act, 1992.

(2) It extends to the whole of the State of Tamil Nadu.

(3) It shall be deemed to have come into force on; the 1st day of April, 1992.

2. Definitions.- 

In this Act, unless the context otherwise requires,-

(1) "employer" in relation to an employee earning any salary on a regular basis under him means, the person or the office who is responsible for disbursement of such salary and includes the head of the office or any establishment as well as the manager or agent of the employer;

(2) "employee" means a person employed on salary and includes,-

(a) a Government servant receiving pay from the) revenues of the Central Government ??? State Government;

(b) a person in the service of a body, whether incorporated or not, which is owned or controlled by the Central Government or any State Government, where such body operates within the jurisdiction of a local authority even though its headquarters may be outside that local authority; and

(c) a person engaged in any employment by an employer, not covered by sub-clauses (a) and (b);

(3)"executive authority" means the Commissioner or other functionary of the local authority concerned, who is vested with the general executive power under the Madras City Municipal Corporation Act, 1919 (Tamil Nadu Act IV of 1919), the Madurai City Municipal Corporation Act, 1971 (Tamil Nadu Act 15 of 1971), the Coimbatore City Municipal Corporation Act, 1981 (Tamil Nadu Act 25 of 1981) or under any law for the time being) in force, constituting any other Municipal Corporation, in under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act V of 1920) or the Taimil Nadu Panchayata Act, 1958 (Tamil Nadu Act XXXV of 1958), the Mettur Township Act, 1940 (Tamil Nadu Act XI of 1940), the Courtallam Township Act, 1954 (Tamil Nadu Act XIV of 1954), or the Bhavanisagar Township Act, 1954 (Tamil Nadu Act XXV of 1954) and includes any functionary who is vested with the general executive powers of a township constituted under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act V of 1920) or the Tamil Nadu Panchayats Act, 1958 (Tamil Nadu Act XXXV of 1958);

(4) "local authority:" means-

(a) the Municipal Corporations of Madras, Madurai Coimbatore or any other Municipal Corporation constituted under any law for the time being in force;

(b) a municipal council constituted under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act V of 1920); or

(c) a panchayat constituted under the Tamil Nadu Panchayats Act, 1958; or

(d) a township committee constituted under the Tamil Nada District Municipalities Act, 1920 (Tamil Nadu Act V of 1920) or the Mettur Township Act, 1940 (Tamil Nadu Act XI of 1940) or the Courtallam Township Act, 1954 (Tamil Nadu Act XVI of 1954) or the Bhavani Sagar Township Act, 1954 (Tamil Nadu Act XXV of 1954) or the Tamil Nadu Panchayats Act, 1955 (Tamil Nadu Act XXXV of 1955);

(5) "month" means a calendar month;

(6) "person" means any person who is engaged Actively or otherwise in any profession, trade, calling or employment in the State of Tamil Nadu and includes a Hindu) undivided family, firm, company, corporation or other corporate body, any society, club or association, so engaged but does not include any person employed on a casual basis;

(7) "salary" includes pay or wage, dearness allowance and all other remuneration received by any person on regular basis, whether payable in cash on in kind, and also includes perquisites and profits in lieu of salary as defined in section 17 of the Income-tax Act, 1961 (Tamil Nadu Act XLIII of 1961) but does not include bonus in any form or gratuity;

(8) "Schedule" means the Schedule appended to this Act;

(9) "tax" means the tax on profession, trade, calling and employment levied under this Act;

(10) "year" means the financial year.

3. Levy of Tax.- 

(1) There shall be levied and collected by every local authority a tax on profession, trade, calling and employment.

(2) Every company which transacts business within the limits of any local authority for not less than sixty days in the aggregate in any half year and every person, who in any half year-

(a) is engaged actively or otherwise in any profession, trade, calling or employment-

(i) within the limits of a local authority for not less than sixty days in the aggregate; or

(ii) outside the limits of such local authority but resides within the limits of such local authority for not less than sixty days in the aggregate, or

(b) resides within the limits of a local authority for not less than sixty days in the aggregate and is in receipt of any income from investments, shall pay a half-yearly tax levied at such rates as determined in accordance with such procedure as may be prescribed, by the local authority which shall not be less than the minimum and not more than the maximum specified in the Schedule.

(3) A person shall be chargeable under the class appropriate to his aggregate income from all the sources specified in sub-section (2) as being liable to the tax:

Provided that, entry 21 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time.

(4) Where a company or person proves that it or he has paid the sum due on account of the tax levied under this Act or under any other Tamil Nadu Act or any tax oil the nature of a profession tax imposed under the Cantonments Act, 1924 (Tamil Nadu Act II of 1924), for the same half year to any local authority or cantonment authority in the State of Tamil Nadu, such company or person shall not be liable, by reason merely of change of place of business, exercise of profession, trade, calling or employment, or residence, to pay the tax to any other local authority or cantonment authority more than the difference between such sum and the amount to which it or he is otherwise liable for the tax for the half year under this Act.

(5) Nothing contained in this section shall be deemed to render a person who resides within the limits of any local authority or cantonment and exercises) his profession, trade, calling or employment or transacts business within the limits of any other local authority or authorities or cantonment, liable to tax for more than the higher of the amounts of the tax leviable by any one of the local authorities or cantonment. In such a case, the State Government shall apportion the tax between the local authorities including cantonments in such manner as they may deem fit and the decision of the State Government shall be final:

Provided that where one of the local authorities concerned is the port authority of a major port or a cantonment authority, the decision of the State Government shall be subject to the concurrence of the Central Government.

(6) The tax leviable from a firm, association or joint Hindu family may be levied on any adult member of the firm, association or family.

(7)(a) If a ??? any or person employs a servant or agent to represent it or him for the purpose of transacting business within the limits of a local authority, such company or person shall be deemed to transact business in such local authority and such servant or agent shall be liable, for the tax, in respect of the business of such company or person, whether or not such servant or agent has power to make binding contract on behalf of such company or person.

(b) Where one company or person is the agent of another company or verses, and, transacts within, the limits of the same local authority, ??? or person shall are be ???.

4. Employer's liability to deduct and pay Tax on behalf of employees.- 

The tax payable by any person earning a salary shall be deducted by his employer, from the salary payable to such person, before such salary is paid to him and such employer shall, irrespective of whether such deduction has been made or not, when the salary is paid to such person, be liable to pay  on behalf of such person:

Provided that, if the employer is an officer of the State or Centre Government, the State Government may notwithstanding anything, contained in this Act, prescribe that manner in which such employer shall discharge we said liability:

Provided further that, where any person earning a salary is also covered by one or more entries other than entry 1 in the Schedule and the rate of tax under any such other entry is more than the rate of tax under entry 1 of the Schedule, or is simultaneously in the employment of more than one employer and such person furnishes to his employer or employers a certificate in the prescribed form declaring, inter alia, that he shall get enrolled under sub-section (2) of section 5 and pay the tax himself, the employer or employers of such person shall not deduct the tax from the salary payable to such person and such employer or employers, shall not be liable to pay tax on behalf of such person.

5. Registration and enrolment.- 

(1) Every employer (not being an officer of the State or Central Government) liable to pay tax under section 4 or under sub-section (5) of section 11, shall obtain a certificate of registration from the executive authority in the prescribed manner.

(2) Every person liable to pay tax other than a person earning salary in respect of whom the tax is payable by his employer, shall obtain a certificate of enrolment from the executive authority in the prescribed manner.

(3) Notwithstanding anything contained in this section and in section 4, where a person a citizen of India and is in the employments of any diplomatic or consular office or in the office of the trade commissioner of any foreign country situated within the limits of any local authority such person shall obtain a certificate of enrolment under sub-section (2) and pay the tax himself.

(4) Every employer or person required to obtain a certificate of registration under sub-section (1) or a certificate of enrolment under sub-section (2), shall, within thirty days from the date of commencement of this Act or, if he was not engaged in any profession, trade, calling or employment on that date, within thirty days from the date of commencement of his profession, trade, calling or employment and, in respect of a person referred to in sub-section (2), who becomes liable to pay tax at a rate higher or lower than the one specified in hiss certificate of enrolment within thirty days of his becoming liable to pay higher or lower tax, apply to the executive authority for a certificate of registration or enrolment, or a revised certificate of registration or enrolment, as the case may be, in the prescribed form and the executive authority shall, after making such inquiry as he may deem fit within; thirty days of the receipt of the application (which period in the first year of the commencement of this Act may be extended to ninety days), if the application is in order, grant him such certificate:

Provided that, where on account of revision of rate of tax, the person liable to pay tax is required to pay tax at a rate higher or lower than the one, mentioned in the certificate of enrolment, the rate of tax mentioned in such certificate shall be deemed to have been revised accordingly on the date of such revision of rate of tax as aforesaid; and pending such person applying for a revised certificate of enrolment and grant of such certificate to him, such person shall, notwithstanding anything contained in this Act, be liable to pay tax at such revised rate.

(5) The executive authority shall specify, in every certificate of enrolment, the account of tax payable by the holder of the certificate according to the Schedule and the date before which it shall be paid and such certificate shall, subject to the provisions of the proviso to sub-section (4), be declined to be a notice of den and for the purpose of section 10.

(6) Where an employer or a person liable to registration or enrolment has wilfully failed to apply for such registration or enrolment within the required time, the executive authority may, after giving him as reasonable opportunity of being heart, impose a penalty not exceeding rupees one hundred for each day of delay in case of an employer and not exceeding rupees twenty for each day of delay in the case of others.

(7) Where an employer or a person liable to registration or enrolment has given false information or suppressed any information in any application, the executive authority may, after giving him a reasonable opportunity of being heard, impose a penalty not exceeding rupee, one thousand.

6. Returns.- 

(1) Every employer registered under this Act shall file a return to the executive authority, in such form, for such period and by such date as any be prescribed, showing therein the salaries paid by him to the employees and the amount of tax Deducted by him in respect of such employees.

(2) Every such return shall be accompanied by a treasury challan in proof of payment of the full amount of tax due according to the return and a return without such proof of payment shall not be deemed to have been duly filed.

(3) Where an employer, without reasonable cause, has failed to file such return within the required time, the executive authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty not exceeding twenty-five rupees for each day of delay.

7. Assessment of employer.- 

(1) The executive authority, if satisfied that any return filed by any employer under sub-section (1) of section 6 is correct and complete, shall accept the return.

(2) The amount of tax due from any employer shall be assessed separately for each year during which he was liable to pay tax:

Provided that, the executive authority may, subject to such conditions as may be prescribed, assess the tax due from any employer during any part of half year:

Provided further that, where a registered employer fails to file a return for any part of a year, the executive authority may, if he thinks fit, assess the tax due from such employer separately for different parts of such year.

(3) Where an employer has failed to register under sub-section (1) of section 5 or has failed to file any return under sub-section (1) of section 6 within the time or if the return filed by him appears to the executive authority to be incorrect or incomplete, the executive authority shall, after making such enquiry as he considers necessary, determine the tax due and assess the employer to the best of his judgment and issue a notice of demand for the tax so assessed:

Provided that before assessing the tax due, the executive authority shall give the employer a reasonable opportunity of being heard.

(4) The amount of tax so assessed shall be paid by the employer within fifteen days of the receipt of the notice of demand from the executive authority.

8. Payment of tax.-

(1) The tax under this Act, shall be paid in such manner as may be prescribed.

(2) The amount of tax due from an enrolled person as specified in his enrolment certificate shall be paid in respect of a person-

(a) who stands enrolled before the commencement of a half year or is enrolled on or before the 31st March and the 30th September of a year, before the 30th April and the 31st October of that year;

(b) who is enrolled after the 31st March and the 30th September of a year, within one month of the date of enrolment; and

(c) who is enrolled and the rate of tax at which he is liable to pay tax is revised, within one month of the date of such revision.

9. Consequences of failure to pay tax.- 

(1) Where, any employer, not being an officer of the State or Central Government, fails to pay the tax as required by oil under this Act, he shall, without prejudice to any other consequence or liability, be deemed to be an assessee in default in respect of the tax.

(2) An employer deemed to be an assessee in default (1) shall be liable to pay simple interest every month at two per cent of the amount of the tax payable by such employer for the period for which the tax remains unpaid.

(3) Where the amount of tax as assessed under section 7 or the amount of tax as found liable under section 15, is more than the amount of tax paid by the employer, then such employer shall be liable to pay simple interest on the amount of difference of tax at the rate and in the manner laid down in sub-section (2).

(4) Where an enrolled person fails to pay the tax, he shall be liable to pay simple interest at the rate and in the manner laid down in sub-section (2).

10. Penalty for non-payment of tax.- 

Where a registered employer or an enrolled person fails, to make payment of the tax within the required time or date as specified in the notice of demand, the executive authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty not exceeding fifty per cent of the amount of tax due.

11. Special provision regarding liability to pay tax in certain cases.- 

(1) Where an employer liable to pay tax under section 4 dies, his successor in office or the legal representative shall be liable to pay tax (including any penalty and interest) due from such employer, in the like manner and to the same extent as the deceased employer, whether such tax including any penalty and interest has been assessed before the death of the employer but has remained unpaid, or is assessed after the death of the employer.

Explanation.- In this sub-section, the expression ‘legal representative’ shall have the same meting as in clause (11) of section 2 of the Code of Civil Procedure, 1908 (Central Act V of 1908).

(2) Where an employer liable to pay tax under section 4 is a Hindu undivided family and the joint family property is partitioned amongst the various members or group of members, each member or group of members shall be jointly and severally liable to pay the tax (including any penalty and interest) due from such employer up to the time of partition, whether such tax (including any penalty and interest) has been assessed before the partition but has remained unpaid, or is assessed after the partition.

(3) Where an employer liable to pay tax under section 4, is a firm, and the firm is dissolved, then, every person who was a partner shall jointly and severally be liable to pay the tax (including any penalty and interest) due from the employer firm up to the time of dissolution, whether such tax (including any penalty and interest) has been assessed before such dissolution but has remained unpaid, or is assessed after the dissolution.

(4) Where an employer liable to pay tax under section 4 transfers or otherwise disposes of his office or establishment or activity in whole or in part or effects any change in employment in consequence of which he is succeeded in the office or establishment or activity or part thereof, by any other person, the employer and the person succeeding the employer shall jointly and severally be liable to pay the tax (including any penalty and interest) due from the employer up to it time of such transfer, disposal or change, whether such tax (including any penalty and interest) has been assessed before such transfer, disposal or change but has remained unpaid or is assessed after such transfer, disposal or change.

(5) Where an employer liable to pay take under section 4, is succeeded in the office or establishment or activity by any person in the manner specified in sub-section (4), the person succeeding the employer shall,-

(a) be liable to pay tax in respect of the period from the date of such succession: and

(b) within thirty days from the date of such succession, apply for a certificate of registration.

12. Recovery of tax, etc.- 

All arrears of tax, penalty and interest payable under this Act shall be recovered by the executive authority as an arrear of land revenue.

13. Delegation.- The executive authority, may delegate all or any of his powers and functions to any officer subordinate to him.

14. Superintendence and control.- (1) The executive authority and the officer subordinate to him shall, in the exercise of the powers and performance of the functions under this Act and the rules made thereunder, be subject to the control and superintendence of-

(a) in the case of Municipal Corporations the State Government;

(b) in the case of municipalities and townships constituted under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act ??? of 1920) and the Mettur, Courtallam and Bhavanisagar Townships, the Director of Municipal Administration; and

(c) in the case of panchayats and townships constituted under the Tamil Nadu Panchayats Act, 1958 (Tamil Nadu Act IXV of 1958), the Director of Rura Development.

(2) It shall be lawful for the State Government or the Director of Municipal Administration or the Director of Rural Development or an officer duly authorised by the State Government or by the Director of Municipal Administration or as the case may be, by the Director Rural Development, to have access to and to cause the production and examination of books, registers, accounts or documents maintained or required to be maintained by any local authority for the purpose of this Act and the executive authority shall, whenever called upon to do so, produce such books, registers, account or documents for examination by the State Government or by the Director of Municipal Administration or by the Director of Rural Development or by the authorised officer.

15. Decision in case of disputes.- 

(1)(a) If any question arises, about the interpretation of any entry in the Schedule before the commencement of assessment of an employer under section 7, the executive authority shall make a reference-

(i) in the case of Municipal Corporal ions, to the State Government;

(ii) in the case of municipalities and townships constituted under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act ??? of 1920) and the Mettur, Courtallam and Bhavanisagar Townships, to the Director of Municipal Administration; and

(iii) in the case of panchayats and townships constituted under the Tamil Nadu Panchayats Act, 1958 (Tamil Nadu Act IV of 1958), to the Director of Rural Development.

(b) The decision of the State Government, the Director of Municipal Administration or as the case may be, the Director of Rural Development on such question shall be final.

Explanation.- For the purpose of this sub-section, the executive authority shall be deemed to have commenced assessment of any employer under section 7, when the employer is served with a notice under that section.

(2) The decision on any question under sub-section (1) shall not affect the liability of any person under this Act, as respects the period prior to such decision.

(3) If any question referred to in sub-section (1) arises from any order already passed under this Act, no such question shall be entertained for decision under this section.

16. Appeal.- (1) Any person or employer aggrieved by any order or decision of the executive authority in relation to the payment of tax (including penalty aim interest) may, within such time ad may be proscribed, appeal-

(a) in the case, of Municipal Corporation, to the Taxation Appeals Tribunal concerned;

(b) in the case of municipalities and townships constitution under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act V of 1920) and the Mettur, Courtallam and Bhavanisagar townships and ofter townships constituted under the Tamil Nadu Panchayats Act, 1958 (Tamil Nadu Act XXXV of 1958) to the Taxation Appeals Committee concerned.

(c) in the case of panchayats, to the panchayat concerned.

(2) The decision of the Taxation Appeals Committee, the Taxation Appeals Tribunal, or as the case may be, the panchayat shall be final find shall not be questioned in any court of law:

Provided that no such decision shall be made except after giving the person Effected a reasonable opportunity of being heard.

(3) For the purpose of sub-section (1), the Taxation Appeals ??? constituted under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act V of 1920) and the Taxation Appeals Tribunal ??? under the Madras City Municipal Corporation Act, 1919 (Tamil Nadu Act IV of 1919), the Madurai City Municipal Corporation Act, 1971 (Tamil Nadu Act 15 of 1971) and the Coimbatore City Municipal Corporation Act, 1981 (Tamil Nadu Act 25 of 1981) or under any law for the time being in force constituting any other municipal corporation, and the panchayat constituted under the Tamil Nadu Panchayats Act, 1958 (Tamil Nadu Act XXXV of 1958), shall be the Taxation Appeal Committee, the Taxation Appeals Tribunals and the panchayat, respectively, under this Act and accordingly, the provisions of the said Acts in so far as they relate to appeal, shall, in so fair as they are not inconsistent with the provisions of this Act, apply in relation to the appeals made to the Taxation Appeals Committee, the Taxation Appeals Tribunal and the panchayat referred to in sub-section (1).

17. Rectification of error.- 

(1) The executive authority may, suo moto or on an application made at any time within two years from the date of any order or decision made or taken under this Act, rectify any error apparent on the face of the record:

Provided that no such rectification which, has the effect of enhancing an assessment or any penalty, shall be made unless the executive authority has given him a reasonable opportunity of being heard.

(2) Where such rectification hats the effect of reducing an assessment or penalty, the executive authority shall refund such amount as may be due to the employer or to the enrolled person, as the case may be.

(3) Where any such rectification has the effect of enhancing an assessment or penalty, the executive authority shall give the employer a revised police of assessment or penalty, and thereupon the provisions of this Act and the rules made thereunder shall apply as if such notice had been given in the first instance.

(4) The power under sub-section (1) may be exercised by the executive authority even, though the order of assessment, if any, passed in the matter has been the subject matter of an appeal.

(5) The provisions of this Act relating to appeal shall apply to an order of rectification made under this section as they apply to the order in respect of which such order of rectification has been made.

18. Reassessment.- 

Where the executive authority has reason to believe that an employer has been assessed at a lower rate, in respect of a particular period, he may reassess within five years from the date of the order of assessment for that particular period after making such enquiry as he may consider necessary and after giving such employer a reasonable opportunity of being heard.

19. Accounts.-

(1) The executive may, authority may, if satisfied that the books of account and other documents maintain by an employer in the normal course not adequate for verification of the returns filed by such under this Act, direct the employer to maintain the books of account or other documents in so far as it relates to the tax payable under this Act in such manner and within well, time and thereupon the employer shall maintain such books of account or other documents accordingly.

(2) Where an employer wilfully fails to maintain the books of account or other documents as directed under sub-section (1), the executive authority may, after giving him a reasonable opportunity of being heard, impose a penalty not exceeding rupees twenty for each day of delay.

20. Special mode of recovery.- 

(1) Notwithstanding anything contained in any law or contract to the contrary, the executive authority may, at any time, by notice in writing, a copy of which shall be forwarded to the assessee at his last address, known, require-

(a) any person from whom any amount of money is due, or may become due, to an assessee on whom notice of demand has been served under this Act, or

(b) any person who holds or may subsequently hold money for or on account of such assessee,

to pay to the executive authority either, forthwith upon the money becoming due or being held or within the time as may be specified in the notice but not before the money becomes due, or is held as aforesaid, so much of the money as is sufficient to pay the amount due by the assessee in respect of the arrears, of tax, penalty and interest under this Act, or the whole of the money when it is equal to or less than that amount.

Explanation.- For the purpose of this section, the amount due to an aysessee or money held for or on account of an assessee by any person shall be calculated after deducting therefrom such claims if any, lawfully subsisting, as may have fallen due for payment by such assessee to such person.

(2) The executive authority may, at any time, amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the assessee, and the receipt of the executive authority shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt.

(4) Any person making any payment to the assessee, after receipt of the notice under sub-section (1) shall be personally liable to the executive authority to the extent of the payment made or to the extent of the liability of the assessee for the amount due under this Act, whichever is less.

(5) Where any person to whom a notice under sub-section (1) is sent proves to the satisfaction of the executive authority that the sum demanded or any part thereof is not due to the assessee or, that he does not hold any money for or on account of the assessee, then nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, to the executive authority.

(6) Any amount of money which a person is required to pay to the executive authority or for which he is personally liable to the executive authority under this section shall, if it remains unpaid, be recoverable as a arrear of land revenue.

21. Production and inspection of accounts and documents and search of premises.- Any executive authority, or officer authorised by him in writing in this behalf may inspect and search any premises, where any profession, trade, calling or employment which is liable to tax under this Act is carried on or is suspected to be carried on and may cause production and examination of books registers, accounts or documents relating thereto and may seize such registers, accounts, or documents as may be necessary;

Provided that, if the said authority removes from the said premises any book, register, account or document, he shall give to the person in charge or the place, a receipt describing the book, register, account or document in removed by him and retain the same only for so long as may be necessary for the purpose of examination thereof.

22. Refunds.- 
The executive authority shall, on application, refund to a person the amount of tax, penalty and interest, if any, paid by such person in excess of the amount clue from him. The refund may be made other by cash payment, or, at the option of the person, by deduction of such excess from the amount of tax or interest or penalty, due in respect of any other period.

23. Penalty.- Save as otherwise provided in section 10, any employer or person who, without sufficient cause, fails to comply with any of the provisions of this Act or the rules made thereunder shall, on conviction, be punished with fine not exceeding five thousand rupees and when the offence is a continuing one with, fine not exceeding fifty rupees for each day during which the offence continues.

24. Offences by companies.- (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of and was responsible to the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that, nothing contained in this sub-section shall render any such person liable to any punishment, if he proves, that the offence was committed without his knowledge or that he had exercised all due diligence to prevent, the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance 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 be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.- For the purpose of this section,-

(a) "company" means 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.

25. Compounding of offences.- (1) Subject to such conditions as may be prescribed, the executive authority may either on application or otherwise, give any person who has committed or is reasonably suspected of having committed an offence under this Act, an option to pay within a specified period, by way of composition of such offence-

(a) where the offence, onsets of the failure to pay or the evasion of, any, tax recoverable under this Act, in addition to the tax so recoverable a sum of money not exceeding one thousand rupees or double the amount of the tax recoverable, whichever is greater; and rupees.

(b) in other cases, a sum of money not exceeding one thousand rupees.

(2) On payment of such sum of money and the tax if any recoverable under this Act, on prosecution for an offence under this Act shall be instituted in respect of the same facts a has been allowed under this section.

26. Power to enforce attendance, etc.- All authorities under this Act shall, for the purposes of this Act have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (Tamil Nadu Act V of 1908) while trying a suit, in respect of enforce ??? the attendance of and examining any person on oath or affirmation or for compelling the ??? of any document.

27. Bar of Jurisdiction.- Save as otherwise provided in this Act, do order-passed or proceeding taken by any authority or officer under this Act shall be called in question in any court, in any suit or application and no injunction shall be granted by any court in respect of any action taken or to be taken by such authority or officer in pursuance of any power conferred by or under this Act.

28. Protection of action taken in good faith.- No suit, prosecution or other legal proceedings shall lie against any authority or person for anything which is in good faith done or intended to be done in pursuance of this Act or the rules made thereunder.

29. Power to make rules.- (1) The State Government may make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the forte-going power, such rules may provide for-

(a) all matters expressly required or allowed by this Act to be prescribed;

(b) generally regulating the procedure to be followed and the forms to be adapted in the proceedings under this Act;

(c) the payment of fees payable in respect of any application or appeal to be made, forms to be supplied, certificate to be granted and also any applications for certified copies of documents filed and orders made under this Act.

(3)(a) All rules made under this Act and all orders issued under section 32, shall be published in the Tamil Nadu Government gazette and unless they are expressed to come into force on at particular day, shall come into force on the day on which they are so published.

(b) All notifications issued under this Act, shall, unless they are expressed to come into force on a particular day, come into force on the date on which they are published.

(4) Every rule made or every notification issued under this Act, and every order made under section 32, shall, as soon as possible, after it is made or issued, be placed on the table of the Legislative, Assembly and if, before the expiry of the session in which it is so placed or the next session, the Assembly makes any modification in any such rule or notification, or order or the Assembly decides that the rule or notification or order should not be made or issued, the rule or notification or order 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 or order.

30. Exemptions.- Nothing contained in this Act shall apply to-

(a) the members of the armed forces of the Union, serving, in any part of this State, that is to say, to whom the provisions of the Army Act, 1950 (Tamil Nadu Act ??? of 1950), the Air Force Act, 1950 (Tamil Nadu Act ??? of 1950) or the Navy Act, 1957 (Tamil Nadu Act ??? of 57) applies;

(b) physically disabled person with total disability in one or both the hands or legs, spasties, totally dumb or deaf persons or totally blind persons:

Provided that such physical disability shall be duly certified by a registered medical practitioner in the service of the State Government not below the rank of a Civil Surgeon.

31. Act to override other laws.- Save as otherwise provided in this Act, the provisions of this Act in so far as they relate to the levy and collection of profession tax, shall have effect notwithstanding there with ??? in any other ??? for the there being in ???.

32. Power to remove difficulties.- If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by an order published in the Tamil Nadu Government Gazette, make such provisions not consistent with the provisions of the Act as appear to them to be necessary or expedient for removing the difficulty:

I provided that no such order shall be make after the expiry of a period of two years from the date of commencement of this Act.

SCHEDULE

(See section 3)

RATES OF TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS