BIHAR FINANCE ACT, 1985

S.1 Short title, extent and commencement

(1) This Act may be called the Bihar Finance Act, 1985;

(2) It shall extend to the whole of the State of Bihar;

(3) It shall come into force on the 1st day of August, 1985 except the provisions of section 12, section 3-A of the Bihar Entertainment Tax Act, 1948 (Bihar Act 3 of 1948) as inserted by section 13, and section 14, which shall be deemed to have come into force with effect from the 12th day of March, 1985.

S.2 Amendment of sub-section (1) of section 6 of Bihar Act 5, 1981

In the Bihar Finance Act, 1981; (Bihar Act 5, of 1981) (hereinafter in this Chapter to be referred to as the said Act) in sub-section (1) of section 6, after the figure "12" a comma and the figure "13" shall be inserted and shall be deemed always to have been inserted.

S.3 Amendment of section 9 of Bihar Act 5, 1981

In sub-section (2) of section 9 of the said Act, after the words "within such areas" the words "or in respect of such transactions falling within an area" shall be inserted and shall be deemed always to have been inserted.

S.4 Amendment of sub-section (4) of section 11 of the Bihar Act 5, 1981

In sub-section (4) of section 11 of the said Act, the words "or for use by him in the packing of goods which he sells" shall be omitted.

S.5 Amendment of section 13 of Bihar Act 5, 1981

In section 13 of the said Act,-

• (1) In sub-clause (i) to clause (b) of sub-section (1) the words "in Bihar or in course of inter-state trade or commerce" shall be deleted.
• (2) After clause (d) to sub-section (1) the following new clause shall be inserted, namely:- "(e) Sales to or purchases by a registered dealer of goods specified in his registration certificate issued under section 14 as required by him in the or for packing of goods which he sells".
• (3) In the subordinate sentence before the proviso to sub-section (1) after the words "at such rate" the words "or rates" shall be inserted.
• (4) Sub-section (2) shall be re-numbered as "(2)(i)" and the following new clause shall be inserted; namely:- "(ii) In case of sales under clause (e) of sub-section (1) a declaration in the prescribed form duly filled up and signed by the purchaser shall be furnished by the selling dealer to the prescribed authority in the prescribed manner."
• (5) In sub-section (3) for the words, brackets and letters "clauses (a), (b), (c) and (d)" the words, brackets and letters "clauses (a), (b), (c), (d) and (e)" shall be substituted.

S.6 Amendment of sub-section (9) of section 16 of Biker Act 5, 1981

In the said Act in sub-section (9) of section 16,-

• (i) after the words "five percentum" the words "but not less than two and half percentum" shall be inserted;
• (ii) after the words "three months" the words "or part 'thereof' shall be inserted;
• (iii) after the words "ten percentum" the words "but not less than five percentum" shall be inserted.

S.7 Amendment of sub-section (1) of section 20 of the Bihar Act 5, 1981

In the said Act in sub-section (1) of section 20, after the words "any proceeding" the words "or otherwise" shall be inserted.

S.8 Amendment of section 21 of Bihar Act 5, 1981

In the said Act, in sub-section (1) of section 21,-

• (i) Clause "(a) shall be renumbered as clause "(a)(ii)" and before this a new sub-clause shall be inserted as follows namely:- "(a) (i) In case of works contract the amount of labour charges in the manner or to the extent prescribed;"
• (ii) In clause (c), after the words "trade or commerce" the comma "(,)" shall be substituted by a semi-colon "(;)" and the words "or for use in packing of goods which he sells inside Bihar or in course of inter-State trade or commerce" shall be deleted.

S.9 Substitution of sub-section (5) of section 25-A of Bihar Act 5, 1981

In the said Act, sub-section (5) of section 25-A shall be substituted as follows, namely :-

"(5) If any person contravenes any or all of the provisions of sub-sections (1), (3) and (4), the prescribed authority shall, after giving an opportunity of being heard, by an order in writing, direct that such person shall pay by way of penalty, a sum not exceeding twice the amount of tax deductible under sub-section (1)".

S.10 Amendment of section 60-A of Bihar Act, 5 of 1981

In the said Act, after sub-section (3) of section 60-A the following new sub-sections shall be added, namely:-

"(4) For the purposes of the Bihar Finance Act, 1981

• (i) the additional tax levied, collected, and paid or purporting to have been levied, collected and paid under section 6 of the Bihar Finance Act, 1981 (Part I) on the sales or purchases under section 13 between the periods beginning from the 1st November 1981 and the date of coming into effect of this Act shall be deemed always to have been validly levied, collected and paid in accordance with the aforesaid Act;
• (ii) no suit or other proceeding shall be maintained or continued in any court or before any Tribunal or authority for the refund of such tax already collected not enforcement shall be made by any court, tribunal or authority of any decree or order directing the refund of any such tax which has been collected.
• (iii) notwithstanding anything contained in clause (i), no additional tax under section 6 shall be imposed where such tax has not been collected on sales or purchase under section 13:

Provided that the burden of proving that the aforesaid tax was not collected shall be on the person claiming the exemption under this clause.

"(5) Notwithstanding anything contained in any judgment, decree or order of any Court, Tribunal or any other authority, the transaction of assessment made at Calcutta office by the authorities appointed under section 9 of the said Act or under any other enactment before the said Act came into force, shall be deemed to have been validly done."

S.11 Amendment, of section 63 of Bihar Act 5 of 1981

In the said Act in section 63, clause (a) of the proviso shall be substituted as follows and shall be deemed always to have been substituted:-

"(a) is exhibited within the show-window or show-case of a shop or building excluding an advertisement exhibited at any place of entertainment (sic) means of a Cinematograph through slides, trailers of film or films; or."

S.12 Substitution of clause (e) to section 2 of Bihar Act 35 of 1948

In the Bihar Entertainment Tax Act, 1948 (Bihar Act 35 of 1948) (hereinafter in this Chapter to be referred to as the said Act) in section 2 for clause (e) the following shall be substituted, namely:-

"(e) 'Entertainment Tax' includes tax levied under sections 3, 3A, 3B and 3C."

S.13 Insertion of new sections 3A, SB, 3C, 3D, 3E and 3F in the Bihar Act 35 of 1948

After section 3 of the said Act, the following new sections shall be inserted, namely:-

3A. Consolidated payment of tax

Notwithstanding anything contained in the Act, the State Government, by notification, may levy consolidated amount of tax not exceeding 45 per cent and not below 10 per cent of the gross collection capacity for every show and such amount of tax shall be paid by the proprietor of an entertainment to the State Government:

Provided that the State Government shall for the purpose of levy of consolidated amount of tax, classify places in categories for the fixation of such percentage and the rate of consolidated tax shall be uniform for a particular class of places. The State Government shall for the purpose of classification, take into account the type of place, its location, population, industrial growth and type of market.

Provided further that the consolidate tax payable under this section shall not be less than the highest amount of the tax for every show payable by the proprietor of an entertainment during any of the three preceding years under sub-section (1) or (5) of section 3 or under this section.

Explanation.-Gross collection capacity shall mean the total amount calculated for total seating capacity of the theatre which shall include the admission fees, tax calculated on the basis of rate notified under sub-section (1) of section 3 from time to time, surcharge or charge for any privilege, right, facility, service or thing combined with the right of admission to any entertainment.

3-B. Compounding of tax

• (1) The State Government may, in lieu of tax payable under section 3-A on application of a proprietor, in the form prescribed under sub-section (2) of section 3-F, on such conditions, as may be prescribed, permit him to pay a fixed amount or a fixed percentage of gross collection capacity for a specified number of shows in a specified period irrespective of actual number of shows which may be held in that period:
• Provided that the fixed amount or the fixed percentage of gross collection capacity shall not be less than the highest amount payable by the proprietor of an entertainment during any of the three preceding years of the concerned period under sub-section (1) or (5) of section 3 or section 3A or under this section.
• (2) A proprietor intending to pay tax under sub-section (1) shall apply in the prescribed form to the Commissioner or any other officer, specialty authorized by the Commissioner through the Deputy/Assistant Commissioner/Commercial Taxes Officer, I/C. of the Circle/Sub-circle not less than 15 days before the commencement of the period for which the proprietor intends to pay tax under sub-section (1).
• (3) On receipt of application, the Commissioner or any other officer specially authorized by the Commissioner, shall, after making such enquiry as he may deem necessary, permit the proprietor in the form prescribed under sub-section (3) of section 3-F to-pay fixed sum in accordance with sub-section (1).
• (4) The option permitted under sub-section (3) shall continue to be in force till the end of the financial year in which such option is permitted.
• (5) The amount of tax specified in the permission granted under sub-section (3) shall be paid to the State Government in the prescribed manner in advance weekly before the week begins.

3-C. Tax on Commercial Video Exhibition

Notwithstanding anything contained in the Act, in the case of commercial exhibition of films on Video specified in column 2 of the Table below, irrespective of whether the show is combined with any service or transport or supply of any goods for which a lump sum is charged from a person, there shall be levied and paid by the proprietor of such entertainment to the State Government, a tax at such rates not exceeding the rates specified in the corresponding entry in column 5 thereof, as the State Government may fix by a notification issued in this behalf:-

3-D. Application of certain provisions

Where tax is levied under sections 3 A and 3 C, except expressly otherwise provided, the provisions of sub-sections (1) and (2) of section 3, and clause (ii) of section 5-A of the Act and where a proprietor is permitted to pay a fixed sum under sub-section (3) of section 3B, so long as a proprietor complies with all the terms and conditions specified in the permission, the provisions of sub-sections (1), (2), (5) and (6) of section 3, clauses (b) and (c) of sub-section (1) and sub-sections (2) and (3) of section 5, clauses (ii) and (iii) of section 5A and section 9B shall not apply:

Provided that no person other than a person who has some duty to perform in connection with the entertainment or a duty imposed upon him by or under this Act or any other law shall be admitted without a ticket. The ticket shall contain the name of the theatre, class to "which it is valid and the rate of admission and such ticket shall be serially numbered from 000001 to 100000 and repeated in like rotation.

3-E. Exemption of tax in certain cases

No tax shall be levied under sub-section (1) of section 5, section 3-A and section 3-B of the Act in respect of entertainments or films exempted 'under sub-section (2) of section 10 of the Act, if a proprietor sells tickets not above the rate of admission fee (excluding the amount of entertainment tax) approved by the State Government and in such case, a proprietor shall pay to the State Government only the tax levied under sub-section (2) of section 3 of the Act.

3-F. Forms for weekly return and application for permission and permission to pay compounded, tax

• (1) Every proprietor of an entertainment liable to pay tax under section 3-A or opting to pay tax under section 3-B shall furnish to the Deputy/Assistant Commissioner/Commercial Taxes Officer of the Circle/Sub-circle I/C, a duly signed weekly return in Form A of the Schedule before or latest by Wednesday following the week to which the return relates:
• (2) The application for permission to pay tax under section 3-B shall be in Form 'B' of the Schedule.
• (3) The permission to pay tax under section. 3-B shall be in Farm 'C' of the Schedule.

S.14 Amendment of section 4 of Bihar Act 35, 1948

In the said Act in section 4 the following proviso shall be added; namely:-

"Provided that where tax is levied on any entertainment under Section 3A or 3B, the proprietor shall not be entitled to collect any amount exceeding the tax calculated at the rate notified under sub-section (1) of Section 3 as tax from the person admitted to the entertainment."

S.15 Amendment of Section 9 of Bihar Act 35 of 1948

In Section 9 of the said Act:-

• (i) for sub-section (5) the following shall be substituted:- "(5) Where the proprietor fails to make payment of the amount of consolidated or compounded tax under sub-section (5) of section 3 or section 3-C or fails to make payment of the entertainment tax due according to the return furnished under sub-section (1) of this Section within the prescribed period, without prejudice to any action which is or may be taken under clause (6) of "sub-section (1) of Section 16, the prescribed authority shall after giving such proprietor an opportunity of being heard, impose a penalty which may extend to three percentum of the amount of tax for each of the first three months following the due date and to six percentum for each subsequent month or part thereof" and
• (ii) The proviso to sub-section (8) shall be omitted.

S.16 Amendment of section 9-5 of Bihar Act 35 of 1948

The proviso to section 9-B of the said Act shall be omitted

S.17 Amendment of section 13-D of Bihar Act 35 of 1948

In the said Act in section 13-D the words, bracket and figure "under sub-section (1) of" shall be deleted.

S.18 Amendment of section 19 of Bihar Act 35 of 1948

Section 19 of the said Act shall be deleted.

S.19 Insertion of a new section 21-A in the Bihar Act, 35 of 1948

In the said Act after section 21 a new section shall be inserted as follows; namely :-

"21-A Validation and exemption-

(1) The Bihar Entertainment Tax (Amendment) Ordinance, 1976 (Bihar Ordinance 21 or 1976), Bihar Entertainment Tax (Second Amendment) Ordinance, 1976 (Bihar Ordinance 103 of 1976), Bihar Entertainment Tax (Third Amendment) Ordinance, 1976 (Bihar Ordinance 152 of 1976). The Bihar Entertainment Tax (Amendment) Act 1976 (Bihar Act 3 of 1977). The Bihar Entertainment Tax (Amendment) Ordinance, 1985 (Bihar Ordinance 9, of 1985) and, The Bihar Entertainment Tax "(Amendment) Second Ordinance, 1985 (Bihar Ordinance, 18 of 1985) shall be deemed to have come into force from the dates of their respective promulgation and enactment and the rate of entertainment tax fixed by notification, S.O. 1540, dated the 1st December, 1975 issued under sub-section (1) of section 3 of Bihar Act 35 of 1948 shall, unless modified, superseded or cancelled, be deemed to hare continued.

(2) Notwithstanding any judgment, decree or order of any Court, Tribunal or Authority

• (a) any amount levied paid, collected or recovered or purported to have been levied, paid, collected or recovered as tax or penalty tinder the provisions of the aforesaid Ordinances and the Act and Rules made and notification issued thereunder, for the period beginning from the 17th January, 1976 shall be deemed to have been validly levied, paid, collected, or recovered;
• (b) any proceeding commenced or conducted or purported to have been commenced or conducted for, the assessment, collection or recovery of any amount as tax or penalty under the provision of the said Ordinances and the Act, and Rules made and notifications issued thereunder for the period specified in clause (a) shall be deemed to have been commenced or conducted or purported to have been commenced or conduced in accordance with the provisions of this Act.

S.20 Amendment of section 22 of Bihar Act 35, 1948

In the said Act-

• (i) the provisions of section 22, shall be remembered as sub-section (1) of section 22, and
• (ii) after the renumbered sub-section (1) the following new sub-sections shall be added; namely-

(2) The Bihar Entertainment Tax (Amendment) Second Ordinance 1985 (Bihar Ordinance, 18 of 1985) is hereby repealed.

(3) All rules, schemes, orders and appointments made, notifications, certificates, forms issued or actions taken and things done or purported to have been made, issued, taken or done for achievement of objects under the Ordinances and the Act mentioned in section 21-A shall be deemed to have been made, issued, taken or done under this Act, as if, this Act were, inforce on the relevant dates.

S.21 Insertion of a new section 3A in Bihar Act XXXVI of 1948

In the Bihar Electricity Duty Act, 1948 (Bihar Act, XXXVI of 1948) after section 3, the following new section shall be inserted; namely-

"3A. Surcharge

• (1) subject to the provision of clauses (a), (b) and (e) of sub-section (2) of section 3, every licensee shall pay, is addition to the duty payable under sub-section (1) of section 3, surcharge at the rate of two paise per unit of energy consumed or sold;
• (2) Notwithstanding anything to the contrary contained in this Act, no licensee, who is liable to pay surcharge, shall be entitled to collect the amount of this surcharge as such from the consumer;
• (3) All provisions of this Act and the Rules framed thereunder, relating to the payment, assessment, recovery and refund of the duty shall also apply to the payment, assessment, recovery and refund of the surcharge."

S.22 Amendment in section 6 of Bengal Act. 9, 1880

In section 6 of the Cess Act, 1880 (Bengal Act 9, 1880) hereinafter in this chapter referred to as the said Act).-

• (i) in clause (a) for the word "twice" the words "five times" shall be substituted;
• (ii) (a) in clause (aa), for the figure and word "20 (sic)" the figure ad word "30 per end" shall be substituted. (b) In clause (aa), for the word "(sic)" the words "five times" shall be substituted.

S.23 Insertion of new section in Bengal Act 9 of 1880

In the said Act after section 6 the following new section shall be inserted; namely:-

"6-A. The provisions of section 6 shall extend to the whole of Bihar including the areas falling within the jurisdiction of all Municipalities, Corporations, Notified Area Committees and the cantonment Boards."

S.24 Repeal and Saving

(1) The Bihar Cess (Amendment) Ordinance, 1985 (Bihar Ordinance No. 24, 1985) is hereby repeated;

(2) Notwithstanding such repeal anything done or any action taken in exercise of the powers by on under the said Ordinance, shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act, as if this Act were in force on the day on which such thing or action was done on taken.