3. Levy and Charge of Tax

(1) Subject to the provisions of article 276 of the constitution of India and of this Act, there shall be levied and collected a tax on professions, trades, callings and employments for the benefit of the State.

(2) Every person ¹[including limited liability partnership, registered under the Limited Liability Partnership Act, 2008 but] ²[excluding firms (whether registered under the Indian Partnership Act, 1932, or not) and Hindu Undivided family engaged] ³[actively or otherwise] in any profession, trade callings or employment and falling under one or the other of the classes mentioned in the second column of Schedule I shall be liable to pay to the State Government the tax at the rate mentioned against the class of such persons in the third column of the said Schedule;

Provided that, the tax so payable in respect of any one person shall not exceed ⁴[two thousand and five hundred rupees] in any year:

Provided further that ⁵[entry 21] in Schedule I shall apply only to such classes of persons as may be specified by the State Government by notification in the Official Gazette, from time to time.

⁶[Provided also that, a person who is liable to pay tax has remained un-enrolled; then, his liability to pay tax under this section for the periods for which he has remained so un-enrolled shall not ⁷[exceed;

a) four years, in case where certificate of enrollment is granted on or after the 1st April 2017,

b) eight years, in any other case, from the end of the year immediately preceding the year in which certificate of the enrollment has been granted, or the year in which the proceeding for enrollment is initiated against him, whichever is earlier.]

Provided also that, a person who is liable to pay tax has remained un-enrolled; then, his liability to pay tax under this section for the periods for which he has remained so un-enrolled shall not exceed eight years from the end of the year immediately preceding the year in which he has obtained the enrolment certificate or the year in which the proceeding for enrolment is initiated against him, whichever is earlier.

 ⁸[(3) Notwithstanding anything contained in the third proviso of sub-section (2), where an application for enrolment is filed between the 1st April 2016 and 30th September 2016 or is pending on the 1st April 2016, the liability to pay tax under this section for the period for which he has remained so un-enrolled shall not be for any period prior to the 1st April 2013.]

Notes:

1. Inserted by Mah. Act No.26 of 2018, w.e.f. 1.4.2018.

2. Inserted by Mah. Act No.28 of 2000 dt. 28.4.2000 and shall be deemed to have been so Inserted w.e.f. 1.4.1999.

3. Inserted by Mah. Act No.25 of 1986, w.e.f. 3.7.86.

4. Substituted for the words “two hundred and fifty rupees” by Mah. Act No.9 of 1989

5.  Substituted for the figure “entry 23” by Mah. Act No.32 of 2006 and shall be substituted w.e.f. 1.4.2006.

6. Inserted by Mah. Act No.8 of 2012, w.e.f. 1.5.2012.

7. Substituted for the words “exceed eight years from the end of the year immediately preceding the year in which he has obtained the enrollment certificate or the year in which the proceeding for enrollment is initiated against him, whichever is earlier.” by Mah. Act No.31 of 2017, dt. 15.4.2017, w.e.f. 1.4.2017.

8. Inserted by Mah. Act No.15 of 2016, dt. 26.4.2016, w.e.f. 1.4.2016.