(1) This Act may be called the Bihar Finance Act, 1981.
(2) It extends to the whole of the State of Bihar.
(3) Except the second and third provisos of sub-section (1) of Section 59 shall be deemed to have come into force on the 26th December, 1977, Sections 22 and 23 shall be deemed to have come into force on the 1st day of April, 1979, and this and the other provisions of this Act shall be deemed to have come into force on the 1st day of April, 1981.
[Ed.-Bihar Finance Act, 1981 contains Six Parts. Part-I deals with "Sales-Tax" has been repealed by Bihar VAT Act, 2005, therefore not being printed. Reference to Part I may be had from any "Sales Tax Law" book published from time to time.]
In this part unless there is anything repugnant in the subject or context,-
(a) "Advertisement" includes any erection, fixation, announcement, display, exhibition, publication or communication of an object, matter or thing, whether made temporarily or retained in any manner, with a view to attract public attention, for furtherance of any trade, commerce or service offered, but excludes advertisements published in a "newspaper" or broadcast by radio or television and any advertisements exhibited or broadcast by any political party;
(b) "Assistant Commissioner" means Assistant Commissioner of Commercial Taxes appointed under the appropriate provisions of law relating to levy of tax on sale and purchase of goods in the State of Bihar, for the time being in force;
(c) "Commercial Taxes Officer" means a Commercial Taxes Officer appointed under the appropriate provisions of law relating to levy of tax on sale and purchase of goods in the State of Bihar, for the time being in force;
(d) "Commissioner" means Commissioner of Commercial Taxes appointed under the appropriate provisions of law relating to levy of tax on sale and purchase of goods in the State of Bihar, for the time being in force, and also includes Additional Commissioner;
(e) "Deputy Commissioner" means Deputy Commissioner of Commercial Taxes appointed under the appropriate provisions of law relating to levy of tax on sale and purchase of goods in the State of Bihar, for the time being in force;
(1) "Joint Commissioner" means Joint Commissioner of Commercial Taxes appointed under the appropriate provisions of law relating to levy of tax on sale and purchase of goods in the State of Bihar, for the time being in force;
(g) "Newspaper" includes any printed periodical work containing public news or comments on public news;
(h) "Month" means a month of the Gregorian Calendar;
(i) "Prescribed" means prescribed by rules made under this part;
(j) "Tribunal" means the Tribunal constituted under the appropriate provisions of law relating to levy of tax on sale and purchase of goods in the State of Bihar, for the time being in force.
Subject to the provisions contained in Section 64, every person, who makes an advertisement, whether for payment or any other valuable consideration otherwise, shall pay on every advertisement, a tax calculated at such rates and in such manner as laid down in the Schedule to this part:
Provided that no such tax shall be levied on any advertisement which is not a sky-sign and which(a) is exhibited within the window of any building; or (b) relates to the trade or business carried on within the land or building upon or over which such advertisement is exhibited or to any sale or letting of such land or building or any effects therein or to any sale to be held upon or in the same; or (c) relates to the name of the land or building upon, or over which the advertisement is exhibited, or to the name of owner or occupier of such land or building.
Explanation.- The expression "Sky-sign" in this section means any advertisement, supported on or attached to any post, pole, standard, framework or other support wholly or in part upon any land building, wall or structure· including any moveable board on which, or any part of which is visible against the sky from some point in any public place and includes all and every part of any such post, pole, standard, framework or other support and includes any balloon, parachute or other similar devise employed wholly or in part for the purposes of any advertisement upon or over any land, building or structure upon or over any public place, which is open to the use of public whether actually used or enjoyed or not as such by the public, but shall not include-
(a) any flagstaff, pole, vane or weathercock unless adopted, or used wholly or in part for the purpose of any advertisement, or
(b) any advertisement relating to the name of the land or building upon or over which the advertisement is exhibited or to the name of the owner or occupier of such land or building; or
(c) any notice of land or building to be sold, or let, placed upon such land or building.
The State Government may, by notification and subject to such conditions or restrictions, if any, as it may think fit to impose, exempt, from the levy of tax payable under Section 63, any person or class of persons or any advertisement or class of advertisements.
There shall be the following classes of authorities to be appointed by the State Government, for the purpose of this part, namely:(a) Commissioner;
(b) Joint Commissioner;
(c) Deputy Commissioner;
(d) Assistant Commissioner;
(e) Commercial Taxes Officer.
(2) The authorities appointed under sub-section (1) shall, within such areas as the State Government may by notification, specify, exercise such powers as may be conferred and perform such duties as may be imposed, by or under this part or rules made, thereunder.
(3) All persons appointed under sub-section (1) shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code, 1860 (XLV of 1860).
(1) On and from the date of commencement of this part, no advertisement liable to levy of tax under Section 63, shall be made, erected, exhibited, fixed, retained, announced, published, printed, or displayed in any manner, at any place within the State of Bihar without obtaining the written permission of the prescribed authority and in the prescribed manner.
(2) The prescribed authority shall not grant such permission if the tax, if any, due in respect of the advertisement has not been paid.
(3) The prescribed authority shall, subject to provisions of sub-section (2); in the case of an advertisement liable to tax under Section 63, grant permission for the period to which the payment of tax relates.
The permission granted under Section 66 shall cease to be in force in the following cases, namely:
(a) if any addition to the advertisement is made except for the purpose of making it secure;
(b) if any material change is made in the advertisement or any portion thereof;
(c) if the advertisement or any portion thereof falls otherwise than through accident;
(d) if any addition or alteration is made, or in the building, wall or structure upon or which the advertisement is erected, exhibited, fixed or retained if such addition or alteration involves the disturbance of the advertisement or any portion thereof; and
(e) if the building, wall or structure upon or over which the advertisement is erected, exhibited, fixed or retained is demolished or destroyed.
Where an advertisement is made in contravention of the provisions contained in Section 66; or after the expiry of the period of written permission of the prescribed authority under Section 66, or after such permission has ceased to be in force under Section 67, the owner or person in occupation of the land or premises shall, unless the contrary is proved, be deemed to be the person who made the advertisement, and shall be assessed to tax under Section 71.
A person, who is liable to pay tax under this part for advertisements done on behalf of other person for payment or for any other valuable consideration, may recover the amount of tax payable by him from such other person in respect of advertisement done on his behalf.
(1) Every person liable to pay tax under this part shall, in the prescribed manner, pay the amount of tax due from him into a Government Treasury and produce the proof thereof before the prescribed authority.
(2) If a person liable to pay tax under this part fails without any reasonable cause, to make payment of tax due from him, in the prescribed manner, the prescribed authority may direct that he shall pay, by way of penalty, a sum not exceeding fifty percentum of the amount of tax payable.
Where the prescribed authority is, upon information, satisfied that a person has made, erected, exhibited, fixed, retained, announced, published, printed or displayed any advertisement during any period without obtaining a permission, as required by sub-section (1) of Section 66, or for a period exceeding the period permitted under sub-section (3) of the said section, or has made the advertisement after the permission granted under Section 66 has ceased to be in force, the said authority shall, after giving such person a reasonable opportunity of being heard, assess, to the best of its judgment, the, amount of tax, if any, due from him in respect of such period; and the prescribed authority may direct that such person shall pay, by way of penalty, in addition to the amount of tax so assessed, a sum not exceeding one and a half time that amount :
Provided that no proceeding for such assessment shall be initiated except before the expiry of two years calculated from the end of the period to which it relates.
(1) The amount of tax together with penalty, if any, payable under Section 70 or tax assessed under Section 71 or reassessed in pursuance or as a result of an order on appeal, revision or review, less the sum, if any, already paid, shall be paid into a Government Treasury by such date as may be specified in a notice issued by the prescribed authority for this purpose.
(2) If any person fails to make payment of the tax by the date specified in the notice under sub-section (1), the prescribed authority may direct, in case of default without any reasonable cause, that such person shall pay in the prescribed manner, by way of penalty, for such failure, an amount not exceeding fifty percent of the amount of tax or penalty or both.
(3) All arrears of tax and penalty under this part which remains unpaid, shall without prejudice to any other mode of recovery, be recoverable~
(a) as if it were an arrear of land revenue, or
(b) on an application to any Magistrate, by such Magistrate as if it were a fine imposed by him:
Provided that where an appeal in respect of such amount has been entertained under Section 73, the appellate authority may, subject to such conditions and procedures as may be prescribed, stay the recovery of such amount or portion thereof for so long as the appeal remains pending or for such shorter period as the said authority may consider to be adequate.
(4) Where any proceeding for recovery of any amount of tax together with penalty, if any, remaining unpaid has been commenced under sub-section (3) and such amount is subsequently enhanced or reduced in pursuance or as a result of an order: passed on appeal, revision or review, while the proceeding for such recovery is still pending, the prescribed authority shall inform the person concerned and the authority by whom such recovery is being made about such enhancement or reduction and thereupon such proceeding may be continued as if the amount so enhanced or reduced, had been substituted for the amount which was originally to be recovered.
(1) Subject to such rules as may be made by the State Government under this part any person objecting to an order of assessment or penalty or both passed under Section 71 or to an order refusing to grant permission for non-payment of tax under sub-section (2) of Section 66 or to an order, imposing penalty on him under sub-section (3) of Section 70 or subsection (2) of Section 72, may appeal against such order to the Joint Commissioner.
(2) No appeal shall be entertained after the expiry of a period of forty-five days calculated from the date of receipt of demand notice or receipt of the order:
Provided that the appellate authority may admit the appeal after the expiry of the said period, if he is satisfied that there was sufficient cause for not filisng the appeal in time.
(3) No appeal under sub-section (1) shall be entertained unless the amount of the tax or if it is with regard to assessment of tax itself, twenty percenturn of the tax so assessed has been paid.
(4) The Appellate Authority in disposing of an appeal, may-
(i) confirm, annul, reduce, enhance, or otherwise modify the assessment, or penalty or both, or
(ii) set aside the assessment or penalty or both, and direct the authority which made the assessment or imposed the penalty to pass a fresh order after further enquiry on specified points.
(5) No order under this section shall be passed without giving the appellant as also the respondent, or their agent, a reasonable opportunity of being heard.
(1) Any order passed in appeal under Section 73 may be revised by the Tribunal.
(2) Any order passed by the Commissioner under sub-section (4) of this section may be revised by the Tribunal.
(3) No revision shall be entertained after the expiry of a period of sixty days from the date of the receipt of the order.
(4) The Commissioner may, of his own motion, or on application made to him in this behalf, revise any order passed by any authority other than the Tribunal under this part:
Provided that no order shall be revised under this' sub-section after the expiry of two years from the date of the passing of the impugned order.
(5) No order under this section shall be passed without giving the applicant a reasonable opportunity of being heard.
(1) Any authority under this part or the Tribunal, as the case may be, may review any order passed by it if such review is, in the opinion of the said authority or Tribunal, as the case may be, necessary on account of a mistake apparent on the face of the record.
(2) Any authority under this part may review its own order, if there has been an under assessment:
Provided that no order under this section shall be passed after the expiry of two years from the date of passing of the impugned order, nor any order, adverse to a person liable to pay tax, shall be passed without giving such person a reasonable opportunity of being heard.
(1) Any authority, appointed under Section 65, may inspect and search any premises where any accounts and documents relating to an advertisement is kept and maintained and the person for the time being in charge of such premises shall render all assistance to such authority in carrying out such inspection or search. '.
(2) Any authority appointed under Section 65 may require a person, liable to pay tax under this part, to produce accounts, registers and other documents· relating to any advertisement made by such person, and he shall comply with such requirement.
(3) If any authority appointed under Section 65 has reasons to suspect that a person, liable to pay tax is attempting to evade the payment of any tax, such authority may, for reasons to be recorded in writing, seize such accounts, registers or documents of such person as may be necessary"1md shall grant a receipt for the same. Such seized accounts, registers or other documents shall be retained by him for so long as may be reasonably necessary for examination thereof and shall thereafter be returned to such person in the prescribed manner.
(1) Whoever(a) while being liable to pay tax under Section 63 contravenes the provisions of Section 66, or (b) makes an advertisement after the permission granted under Section 66 has ceased to be in force; or (c) collects tax in excess of the amount to which he is entitled under Section 69; or (d) fails to make payment of tax as required under Section 70; or (e) fails or neglects to comply with the requirement of the provisions of Section 76; or (f) obstructs any authority in making an inspection, search or seizure under Section 76; shall be punishable with a fine not exceeding five hundred rupees, and when the offence is a continuing one, with a fine not exceeding rupees twenty-five per day during the period of the continuance of such offence.
(1) The Commissioner may, either before or after the institution of proceedings under Section 77, accept from a person charged with an offence under Section 77 or under any rule made under this part by way of compounding of the offence, a sum not exceeding five hundred rupees.
(2) On payment of such sum as may be determined by the Commissioner no further proceeding shall be taken against the person in respect of such offence.
Save as provided in Section 72, Section 73 and Section 74, orders passed under this part or the rules made thereunder shall not be called in question in any court of law.
(2) No prosecution shall lie against any officer or servant of the State Government for anything done or purported to have been done by or under this part without the previous sanction of the State Government.
(3) No officer or servant of the State Government shall be liable in respect of any act done or purported to have been done under this part in any ,civil or criminal proceeding, if the act was done in good faith in the course of the execution of duties or the discharge of functions imposed by or under this part.
(1) The State Government may subject to the condition of pervious publication, make rules not inconsistent with the provisions of this part for-
(i) all matters expressly required or allowed by this part to be prescribed generally for carrying out the purposes of this part and regulating the procedure to be followed, forms to be adopted and fees to be paid in connection with proceedings under this part and all other matters ancillary or incidental thereto;
(ii) any other matter for which there is no provision or no sufficient provision in this part and for which provision is, in the opinion of the State Government, necessary for giving effect to the purposes of this part.
(2) In making any rules the State Government may direct that a breach thereof shall be punishable with fine not exceeding five hundred rupees and when the offence is a continuing one, with a daily fine not exceeding twenty five rupees during the continuance of the offence.
(3) Every rule made under this part shall be laid, as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before expiry of the session in which it is laid or the session immediately following, both the Houses agree in making any modification in the rule or both the Houses agree that the rule should not be made, the rule 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.
All provisions relating to levy of tax on advertisement other than advertisements published in newspapers under the Patna Municipal Corporation Act, 1951 (Bihar Act XIII of 1952) or any other enactment in force at the time of commencement of this part shall stand repealed:
Provided that nothing in this repeal shall affect or be deemed to affect-
(i) any right, title, obligation or liability already acquired, accrued or incurred for anything done or suffered, in respect of the period immediately preceding this repeal;
(ii) any legal proceeding or remedy whether initiated or availed of before or after this repeal, in respect of any such right, title, obligation or liability;
(iii) the levy, assessment or recovery of any tax or the imposition or recovery of any penalty in respect of such period, under the provisions of such enactments and all proceedings under them, in respect of all matters aforesaid shall be initiated and disposed of, or continued and disposed of, as the case may be, as if this part had not been enforced.
The Schedule
[See Section 63]
Rate of Tax.
A. For an advertisement exhibited for Such rate or rates not exceeding
payment at any place of entertainment fifty percentum as may from time to
by means of cinematograph through time, be fixed by the State Government,
slides, trailer of films or films. by a notification issued in this behalf,
of the payment made or to be made
for such advertisement.
B. For an advertisement published
in any printed work, other than
a newspaper, for payment.
C. For an advertisement exhibited at Such rate not exceeding five rupees
any place of entertainment by means per day per trailar of a film and,
of a cinematograph through slides, not exceeding one rupee per day
trailer of film or films, but without any per slide or film (not being a tralier),
payment, made or to be made therefor. as the State Government may fix by a notification:
Provided that where the length of
a slide or film (other than a trailer
of a film) exceeds thirty metres,
the advertisement tax shall be
levied and collected at double the
rate notified above per film and
slide (not being a trailer of a film).
D. In respect of advertisement on (i) Rupees ten per calendar month
cloth hung across streets or part thereof in a street of the
width of three metres to six metres.
(ii) Rupees twenty per calendar month
or part thereof in a street of the width
exceeding six metres and up to fifteen metres.
E. In respect of advertisement on Rates per calender month or part thereof.
hoardings, wall poster in the form
of non-illuminated sky-signs
(i) For a space up to one square metre. Fifty paise.
(ii) For a space over one square metre Rupee one.
and up to two and half square metres.
(iii) For every additional two and Twenty-five paise.
half square metres or less.
F. Posters
(i) For space not exceeding .36 Twenty-five paise. Twenty-five paise.
square metre.
(ii) For space not exceeding .54 Fifty paise. Fifty paise.
square metre.
(iii) For every additional one Forty paise. Forty paise.
square metre.
G. Illuminated advertisement and sky-signs
(i) For space up to .45 sq. metre. Rupees two.
(ii) For space above .45 sq. metre Rupees three.
and up to 2.5 sq. metres.
(iii) For every additional 2.5 sq. metres. Rupees two and fifty paise.
ln the schedule to the Bihar Electricity Duty Act, 1948 (Bihar Act XXXVI of 1948) for Article (1), the following article shall be substituted namely:
(1) In all premises not falling under Such rate not exceeding 10 paise per
Such rate not exceeding 10 paise per Article (2) unit of energy as may, form time to time be fixed by
the State Government with the previous
consent of the President, by order in this behalf;
Provided that the State Government may, with the previous consent of the President, fix different rates for different categories of sale or consumption of electrical energy falling under this article.
ln Schedule-IA to the Bihar Stamp (Amendment) Act, 1937 (Bihar Act VI of 1937)
(1) in serial No. 15 the entries and for every Rs. 500 or part thereof in excess of Rs. 1,000" appearing in column 1 and "Three rupees twelve annas" appearing in column 2, the following entries shall be substituted, namely:
Column 1 Column 2
For every Rs. 500 or part thereof Rs. 4.25.
where it exceeds Rs. 1,001 and
does not exceed Rs. 5,000;
Where it exceeds Rs. 5,001 but 1/2% of the value of the instrument
does not exceed Rs. 50,000; and
Where it exceeds Rs. 50,001 3 1/2% of the value of the instrument.
For the proviso to Section 2 of the Cess Act, 1880 (Ben. Act IX of 1880) (hereinafter referred to as the said Act), the following proviso shall be substituted and shall, be deemed always to have been substituted namely:
"Provided that nothing herein contained shall be deemed to affect any immovable property except the mines and quarries within the limits of any municipality under the Bihar and Orissa Municipal Act, 1922 or, save as provided in any notification that may be issued under subsection (4) of Section 3 of the Cantonment Act, 1924, within the limits of any cantonment."
In Section 4 of the said Act, for the word "royalty" and its interpretation, the following shall be substituted namely:- .
"Royalty" in respect of mines and quarries means a payment made or likely to be made to the owner of any area believed to contain mines and quarries for the right of working the same on the quantity or value of such produce and includes dead rent which the owner may demand for the right of working the area as also the payment which the Government may demand for the appropriation of the mines and minerals belonging to the Government."
In Section 6 of the said Act-
(i) the words "until provision to the contrary is made by Parliament" shall be omitted;
(Ii) in clause '(a), for the words "but it will not exceed the amount of royalty" the words "but it will not exceed twice the amount of royalty" shall be substituted; and
(iii) to clause (a), as so amended, the following proviso shall be added, namely-
"Provided that the local cess payable in anyone year shall not be less than the amount arrived at by multiplying the dead rent with the rate of cess determined under clause (a)."
In Section 45 of the said Act, for the words "six and a quarter percentum per annum", the words "twelve per centum per annum" shall be substituted.
After Section 80 of the said Act, the following section shall be inserted, namely:-
"80-A. Self-assessment and mode of payment of cess in respect of mines and quarries.-(1) Notwithstanding anything to the contrary contained in the foregoing provisions, the owner, Chief Agent, Manager or occupier of every mine or quarry shall submit to the Collector within 15 days of the expiry of each month, a return showing the quantity of each mineral produced in such mine or quarry and cumulatively from the beginning of the year, the royalty paid therefor, and the local cess already paid till the end of the previous month as also the local cess which according to his own calculation is payable up to the end of that month.
(2) The owner, Chief Agent, Manager or occupier of every mine or quarry shall pay the amount so payable within 15 days of the expiry of the date (or such extended date as the Collector may in his discretion allow) for submission of the return.
(3) While adjusting the amount paid under sub-section (2) the amount paid shall be first applied towards interest due and the balance shall be adjusted towards the local cess due."
For items 1, 6 and 7 of the Second Schedule to the Bihar and Orissa Motor Vehicles Taxation Act, 1930 (B. & O. Act II of 1930), the following items shall be substituted, namely:-
Description of motor vehicles Annual rate of tax on motor vehicles
fitted entirely. with pneumatic tyres
1. Motorcycles- Rs.
(a) Bicycles
(i) the unladen weight of which 36.00
does not exceed 50 kgs.
(ii) the unladen weight of 48.00
which does not exceed 100 kgs.
(iii) the unladen weight of 60.00
which exceeds 100 kg.
(iv) if used for drawing a side 15.00
car in addition to the tax
payable under (i) to (iii).
(b) Tri-cycles 60.00
6. Motor vehicles other than those liable to tax under the foregoing provisions of this Schedule:-
(i) seating not more than one person 60.00
(ii) seating not more than three persons 110.00
(iii) seating not more than 5 persons 156.00
(iv) seating not more than 7 persons 200.00
(v) seating not more than 7 persons, for every 48.00
additional person than can thus be seated
in addition to the tax payable under (iv). .
7. Trailers
(a) up to 500 kgs. registered laden weight 158.00
(b) exceeding 500 kgs. but not Rs. 158 plus Rs. 18 for every
exceeding 2,000 kgs. registered additional 250 Kgs. or part
laden weight. thereof above 500 kgs.
(c) exceeding 2,000 kgs. but not Rs. 270 plus Rs. 25 for every
exceeding 4,000 kgs. registered additional 250 kgs. or part
laden weight thereof above 2,000 kgs.
(d) exceeding 4,000 kgs. but not Rs. 475 plus Rs. 31 for every
exceeding 8,000 kgs. registered additional 250 kgs. or part
laden weight. thereof above 4,000 kgs.
(e) exceeding 8,000 kgs. Rs. 980 plus Rs. 75 for every
registered additional 250 kgs. or part
laden weight. thereof above 8,000 kgs.