West Bengal Finance Act, 2006

No: 18 Dated: Jul, 31 2006

THE WEST BENGAL FINANCE ACT, 2006

West Bengal Act XVIII of 2006

    An Act to amend the Indian Stamp Act, 1899, in its application to West Bengal, the Bengal Amusements Tax Act, 1922, the Bengal Agricultural Income-tax Act, 1944, the West Bengal Entertainments And Luxuries (Hotels And Restaurants) Tax Act, 1972, the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, the West Bengal Entertainment-Cum-Amusement Tax Act, 1982, the West Bengal Sales Tax Act, 1994, the West Bengal Sales Tax (Settlement of Dispute) Act, 1999, the West Bengal State Tax On Consumption Or Use Of Goods Act, 2001, the West Bengal Transport Infrastructure Development Fund Act, 2002, and the West Bengal Value Added Tax Act, 2003.

    WHEREAS it is expedient to amend the Indian Stamp Act, 1899, in its application to West Bengal, the Bengal Amusements Tax Act, 1922, the Bengal Agricultural Income-tax Act, 1944, the West Bengal Entertainments And Luxuries (Hotels And Restaurants) Tax Act, 1972, the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, the West Bengal Entertainment-Cum-Amusement Tax Act, 1982, the West Bengal Sales Tax Act, 1994, the West Bengal Sales Tax (Settlement of Dispute) Act, 1999, the West Bengal State Tax On Consumption Or Use Of Goods Act, 2001, the West Bengal Transport Infrastructure Development Fund Act, 2002, and the West Bengal Value Added Tax Act, 2003, for the purposes and in the manner hereinafter appearing;

It is hereby enacted in the Fifty-seventh Year of the Republic of India, by the Legislature of West Bengal, as follows:-

1. Short title and commencement:- (1) This Act may be called the West Bengal Finance Act, 2006.

(2) Save as otherwise provided, it shall come into force on such date, or shall be deemed to have come into force on such date, as the State Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.

2. Application and amendment of Act 2 of 1899:- (1) The Indian Stamp Act, 1899 (hereinafter referred to as the principal Act) shall, in its application to West Bengal, be amended for the purpose and in the manner hereinafter provided.

(2) In Schedule IA to the principal Act, in article 23, in the column under the heading "Proper Stamp-duty",—

(a) in clause (a), for the words "eight per centum", the words "six per centum" shall be substituted;

(b) in clause (b), for the words "eight per centum", the words "six per centum" shall be substituted;

(c) in clause (c), for the words "six per centum", the words "five per centum" shall be substituted.3. 

3. Amendment of Ben. Act V of 1922:- In the Bengal Amusements Tax Act, 1922,—

(1) in section 8A,—

(a) for sub-section (2), the following sub-section shall be substituted:—

"(2) If no return is submitted under section 4 by a proprietor in relation to a cinematograph exhibition or if the return submitted by such proprietor appears to the prescribed authority to be incorrect or incomplete, he shall, after giving such proprietor a reasonable opportunity of being heard and after making such enquiry as he considers necessary, assess to the best of his judgement the amount of entertainments tax, surcharge or additional surcharge payable under this Act by such proprietor and where such proprietor fails to submit the return within such date as may be prescribed by rules made under this Act, or the date as specified in the arrangement approved by the State Government, or has wilfully furnished incorrect particulars in the return submitted, as the case may be, the prescribed authority may, if he is satisfied that there is no reasonable cause for the default or for furnishing incorrect information in the return, direct such proprietor to pay by way of penalty in addition to the amount of entertainments tax, surcharge or additional surcharge so assessed asum not exceeding double the amount of entertainments tax, within the date specified in a notice issued in this behalf by the prescribed authority."

(b) for sub-section (3), the following sub-section shall be substituted:—

"(3) Where—

(a) any proprietor in relation to any entertainment, other than horse racing and cinematograph exhibition, has not obtained any prior permission from the prescribed authority before holding any entertainment, or

(b) any proprietor referred to in clause (a), or any proprietor in relation to a pool game or bowling game or sports and games held in an amusement park, theme park or water games park, as the case may be, has not furnished any particulars to the prescribed authority as required under the provisions of this Act or the rules made thereunder, or

(c) upon enquiry or information received, the prescribed authority has reasons to believe that—

(i) the proprietor referred to in clause (a) has furnished incorrect particulars at the time of obtaining permission from the prescribed authority to hold any entertainment referred to in this subsection, or

(ii) the proprietor in relation to a pool game or bowling game or sports and games held in an amusement park, theme park or water games park, has furnished any particulars required under the provisions of this Act or rules made thereunder which are incorrect or incomplete,

the prescribed authority shall, in such manner as may be prescribed, proceed to assess to the best of his judgement the amount of entertainments tax payable by such proprietor after giving him a reasonable opportunity of being heard, and after giving credit for the security furnished under section 4 of the Act, if any, direct such proprietor to pay the amount of tax so assessed in such manner, and within such date, as may be prescribed:

`Provided that where the proprietor in relation to pool game or bowling game or sports and games held in an amusement park, theme park or water games park fails to submit the particulars within such date as may be prescribed or wilfully furnishes incorrect particulars and where the prescribed authority is satisfied that there is no reasonable cause for the default, or for furnishing the incorrect particulars, the prescribed authority may direct such proprietor to pay by way of penalty in addition to the amount of entertainments tax so assessed, a sum not exceeding the amount of entertainments tax, which shall be paid within the date specified in a notice issued in this behalf by the prescribed authority.";

(2) to section 8C, the following Explanation shall be added:— `

Explanation.—For the purpose of this section, the expression "total amount invested", in respect of making a new multiplex theatre complex or converting an existing cinema hall into a new multiplex theatre complex, shall mean any amount paid by the proprietor—

(a) for purchasing or developing land for the construction of the multiplex theatre complex and in case, the land so purchased is utilised for building any commercial or industrial or residential unit in addition to the multiplex theatre complex, proportionate value of land actually utilised for the construction of the multiplex theatre complex including the proportionate share of land required to be kept vacant as per existing building rules of the municipality where such multiplex theatre complex is situated; or

(b) for defraying the cost of construction of the building in which the multiplex theatre complex is situated along with the amount paid towards the cost of construction of the space utilised for setting up of other multi-entertainment activities and facilities as notified by the State Government in the Official Gazette in accordance with the provision of clause (5a) of section 2 of the Act and owned by the proprietor; or

(c) where the land and/or building in which the multiplex theatre complex is situated have been taken under a lease agreement for a period of not less than thirty-three years, for premium paid, for the purpose of setting up the multiplex theatre complex; or

(d) for purchasing materials and equipments necessary to set up a multiplex theatre complex including cost of computer hardware and software; or

(e) for purchasing materials and equipments necessary to set up other multi-entertainment activities and facilities as notified by the State Government in the Official Gazette in accordance with the provision of clause (5a) of section 2 of the Act.';

(3) in section 11E,—

(a) for sub-section (1), the following sub-section shall be substituted:—

"(1) Any proprietor, in relation to an entertainment, may prefer an appeal against any order of assessment under section 8A or any other order made under the Act, within thirty days from the receipt of a notice of demand or order in respect thereof, or such further period as may be allowed by the said authority for cause shown to his satisfaction, to such authority, and in such manner, as may be prescribed by rules made under this Act: Provided that no appeal shall be entertained by the said authority unless it is satisfied that such amount of entertainments tax, surcharge or additional surcharge as the appellant may admit to be due from him, has been paid.";

(b) for sub-section (2), the following sub-section shall be substituted:—

"(2) Subject to such procedures as may be prescribed by rules made under this Act, the appellate authority in disposing of any appeal under sub-section (1), may confirm, cancel or modify any order of assessment under section 8A or any other order made under the Act.";

(c) for sub-section (3), the following sub-section shall be substituted:—

"(3) Subject to the rules as may be made under this Act, in respect of any assessment made or order passed by the prescribed authority, the prescribed authority may, upon application made within thirty days from the date of receipt of demand notice or order, or on its own motion, within four years from the date of such assessment or order and after giving the proprietor an opportunity of being heard, review such assessment or order passed under the Act.";