REGISTERED NO , D. 221 रजिस्ट्री सं ० डी० 221
भारत को राजपत्र The Gazette of India
असाधारण
EXTRAORDINARY
भाग II-खण्ड- 2
PART II - Section 2
प्राधिकार से प्रकाशित
PUBLISHED BY AUTHORITY
संख्या 2 ]
No. 2] नई दिल्ली, सोमबार, मार्च 20, 1967 /फाल्गुन 29 , 1888 NEW DELHI , MONDAY , MARCH 20 , 1967 / PHALGUNA 29, 1888
इस भाग में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके ।
Separate paging is given to this Part in order that it may be filed as a separate compilation .
LOK SABНА
The following Bills were introduced in Lok Sabha on the 20th March , 1967:-
BILL No. 19 OF 1967
A Bill to continue for the financial year 1967-68 the existing rates of income - tax with certain modifications and the existing rates of annuity deposits and to provide for the continuance of certain commitments under the General Agreement on Tariff and Trade and the discontinuance of the duty on salt for the said year .
BE it enacted by Parliament in the Eighteenth Year of the Republic of India as follows : -
1. ( 1 ) This Act may be called the Finance Act , 1967 .
Short title and com- mencement .
( 2) It shall be deemed to have come into force on the 1st day of 5 April, 1967 .
*The President has , in pursuance of clauses ( 1 ) and ( 3 ) of article 117 and clause ( 1 ) of article 274 of the Constitution of India , recommended to the Lok Sabha , the introduction and consideration of the Bill .
(II) THE GAZETTE OF INDIA EXTRAORDINARY
12
[PART II
Income-tax .
13 of 1960 .
2. The provisions of section 2 of, and the First Schedule to , the Finance Act , 1966 , shall apply in relation to income- tax for the assess- ment year commencing on the 1st day of April , 1967 as they apply in relation to income - tax for the assessment year commencing on the 1st day of April , 1966 , with the following modifications , namely : - 5
( a) in section 2 , -
( i ) for the figures " 1966 " , wherever they occur , the figures " 1967 " shall be substituted ;
( ii ) in sub - section ( 1 ) , the brackets and figure " ( 2 ) , " shall be omitted ; 10
( iii ) sub - section ( 2 ) shall be omitted ;
( iv ) in sub - section ( 5 ) , in clause ( a) ,-
(A) in sub - clause ( i ) , after the words " derived from the export " , the brackets , words and figures " ( made be- fore the sixth day of June , 1966 ) " shall be inserted;
15
(B) in sub - clause ( ii ) ,-
( i ) after the words " during the previous year , exported " , the words and figures "before the sixth day of June , 1966 " shall be inserted ;
(ii ) after the words " receivable by him in respect 20 of such export " , the words " made before the date aforesaid " shall be inserted ;
(C) in sub - clause ( iii ) , --
( i) after the words " during the previous year , sold" , the words and figures " before the sixth day 25 of June , 1966 " shall be inserted ;
30
( ii ) for the words " sale procceds receivable by him in respect of such articles from the exporter" , the words " sale proceeds receivable by him from the exporter in respect of such articles sold to the exporter before the date aforesaid " shall be substi- tuted;
35 (b ) in the First Schedule , in Paragraph F of Part I , for Explanation 1 to item I, the following Explanation shall be substituted , namely: ---
'Explanation 1. In clause ( B ) , the expression " the rele- vant amount of distributions of dividends " means the aggre- gate of the following amounts , namely : -
(a) the amount , if any , by which " the relevant amount of distributions of dividends " by the company as 40 THE GAZETTE OF INDIA EXTRAORDINARY
SEC . 2 ]
13
13 of 1966 .
5
computed in accordance with Explanation 1 to item I of Paragraph F of Part I of the First Schedule to the Finance Act, 1966 exceeds its total income ( reduced by the amount of capital gains , if any , relating to capital assets other than short - term capital assets included therein ) assessable for the assessment year commencing on the 1st day of April , 1966 ; and
(b) so much of the amount of the dividends , other than dividends on preference shares , declared or dis- tributed by the company during the previous year as exceeds ten per cent . of its paid - up equity share capital as on the 1st day of the previous year . ' .
Annuity deposit.
43 of 1961 .
13 of 1966 .
3. ( 1 ) Save as otherwise provided in Chapter XXIIA of the Income - tax Act , 1961 , annuity deposit for the assessment year com- 15 mencing on the 1st day of April , 1967 and annuity deposit to be made during the financial year commencing on the 1st day of April , 1967 , shall be made by every person to whom the provisions of that Chapter apply , at the rate or rates specified in the Second Schedule to the Finance Act , 1966 .
43 of 1961 ,
20 (2 ) For the purposes of this section and the Second Schedule as aforesaid , the expressions " adjusted total income " , " annuity deposit " and " depositor " have the meanings respectively assigned to them under clauses ( 1 ) , ( 5) and ( 6 ) of section 280B of the Income - tax Act , 1961 .
25 4. In the Indian Tariff ( Amendment ) Act , 1949 , in sections 4 and 5 , Amendment for the figures " 1967 " , the figures " 1968 " shall be substituted .
ofAct I of 1949 .
I of 1944.
32 of 1934 .
5. For the year beginning on the 1st day of April , 1967 , no duty Disconti under the Central Excises and Salt Act, 1944 , or the Indian Tariff nuance of salt duty. Act , 1934 , shall be levied in respect of salt manufactured in , or 30 imported into , India.
Declaration under the Provisional Collection
of Taxes Act , 1931
16 of 1931 .
It is hereby declared that it is expedient in the public interest that the provisions of clause 4 of this Bill shall have immediate effect 35 under the Provisional Collection of Taxes Act , 1931.
THE GAZETTE OF INDIA EXTRAORDINARY
[PART IS 14
STATEMENT OF OBJECTS AND REASONS
The object of this short Bill is to continue the existing tax struc- ture for the financial year 1967-68 , subject to certain modifications in relation to income - tax , and also to continue for that financial year , the existing rates at which annuity deposits are required to be made under the provisions of the Income - tax Act , 1961 .
2. Clause 2 continues the existing rates of income - tax and sur- charges thereon .
In view of the devaluation of the rupee with effect from June 6 , 1966 and the decision of the Government announced at that time that the export promotion schemes and incentives in force prior to that date would not continue in operation from that date , the Bill seeks to provide that the existing rebates of income - tax in relation to exports will be available only with reference to exports made up to June 5, 1966. Similarly , the Bill also seeks to provide that in the case of a manufacturer of specified commodities who has sold such commodities to an exporter in India , the existing provision for tax rebate will be applicable only in respect of such sales made up to June 5 , 1966 .
At present , domestic companies of certain categories are charge- able to an additional amount of income - tax with reference to distri- butions of dividends by them on their paid - up equity capital in excess of 10 per cent . of such capital . Such additional income - tax is calculated at the rate of 7 per cent . on so much of their total income ( exclusive of any capital gains relating to 'long term' capital assets , which are chargeable to tax at special rates specified in the Income - tax Act , 1961 ) as does not exceed the relevant amount of distributions referred to above . The provision for the levy of such additional income - tax is proposed to be continued . In conformity with the scheme underlying this provision , it is sought to provide that where a company could not be charged to such additional income - tax in respect of the assessment year 1966-67 with reference to any part of the relevant amount of distributions of equity dividends ( as computed in accordance with the Finance Act , 1966 ) due to the circumstance that such amount exceeded the total income of the company for that assessment year , THE GAZETTE OF INDIA EXTRAORDINARY
SEC . 2 ]
15
such excess will also be taken into account in levying the additional income - tax for the assessment year 1967-68 .
3. Clause 3 seeks to continue the existing rates of annuity deposits in respect of the assessment year 1967-68 as also for the annuity deposits to be made during the financial year 1967-68 in relation to the income assessable for the assessment year 1968-69 .
4. Clause 4 secks to maintain for another year the status quo in relation to the income assessable for the assessment year 1968-69 . and Trade .
5. Clause 5 , like section 50 of the Finance Act , 1966 , provides that salt shall be duty free for another year .
MORARJI DESAI .
NEW DELHI;
The 20th March , 1967 .
THE GAZETTE OF INDIA EXTRAORDINARY
[PART II 16
FINANCIAL MEMORANDUM
As this Bill seeks to continue the existing tax structure for the financial year 1967-68 subject to certain modifications in relation to income - tax and also to continue for that financial year the existing rates at which annuity deposits are required to be made under the provisions of the Income - tax Act , 1961 , the Bill if enacted and brought into operation would not involve any additional expenditure from the Consolidated Fund of India .
THE GAZETTE OF INDIA EXTRAORDINARY
SEC. 2 ]
17
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 2 of the Bill which inter alia applies section 2 ( 5 ) ( d) of the Finance Act , 1966 in relation to income - tax for the assessment year commencing on the 1st day of April , 1967 , empowers the Central Board of Direct Taxes to make rules for the purpose of computing the amount of any profits and gains derived by an assessee from the export of any goods or merchandise out of India in respect of which he may claim deduction of income - tax under section 2 ( 5 ) ( a) ( i ) of the Finance Act , 1966 as applied by the said clause 2. The matter in respect of which rules may be made is one of procedure and detail . Therefore , the delegation of legislative power is of a normal character .
18
THE GAZETTE OF INDIA EXTRAORDINARY
[PART II
BILL NO . 4 OF 1967
A Bill further to amend the Mineral Products ( Additional Duties of Excise and Customs ) Act , 1958 .
BE it enacted by Parliament in the Eighteenth Year of the Republic of India as follows : -
1. This Act may be called the Mineral Products ( Additional Duties of Excise and Customs ) Amendment Act , 1967 .
Short title .
Amend- ment of section 3 .
27 of 1958.
2. In section 3 of the Mineral Products (Additional Duties of Ex- 5 cise and Customs ) Act , 1958 ( hereinafter referred to as the principal Act) , in sub - section ( 1 ) , in the Table ,-
(a) for items 2 , 3 and 4 and the entries relating thereto , the following shall be substituted , namely : -
2. Kerosene
One hundred and sixty rupees per 10 kilolitre at fifteen degrees of Centi- grade thermometer .
THE GAZETTE OF INDIA EXTRAORDINARY
SEC . 2 ]
19
3. Refined diesel oils and vaporiz- Two hundred and fifty rupees per ing oil . kilolitre at fifteen degrees of Centi- grade the mometer .
5
4. Diesel oil , not otherwise speci- One hundred and fifty rupees per fled. metric tonne ." ;
(b) for item 6 and the entries relating to it , the following shall be substituted , namely : -
1 of 1944 .
"6. Asphalt and Bitumen as des- One hundred rupees per metric cribed in item No. 11 ( 1 ) of tonne . " . the First Schedule to the Central Excises and Salt Act , 1944.
12 of 1966
3. ( 1 ) The Mineral Products ( Additional Duties of Excise and Customs) Amendment Ordinance , 1966 , is hereby repealed .
Repeal and saving .
15 ( 2) Notwithstanding such repeal , anything done or any action taken under the principal Act as amended by the said Ordinance shall be deemed to have been done or taken under the principal Act as amended by this Act as if this Act had come into force on the 15th day of December, 1966 .
20
THE GAZETTE OF INDIA EXTRAORDINARY
[PART
STATEMENT OF OBJECTS AND REASONS
The Mineral Products (Additional Duties of Excise and Customs ) Act , 1958 was enacted for the purpose of levying and collecting additional duties of excise and customs on certain mineral oils . The Act provides for ceiling rates within which effective rates are fixed by notification . As a result of devaluation , the landed price in terms of rupees of imported products naturally increased to the ex- tent of devaluation , and by virtue of the Import Price Parity Agree- ment with foreign refinery companies they became entitled to a cor- responding increase in their selling prices of these products . In fact , however , the cost to these refineries increased only in respect of the imported components of the products such as crude oil , proces- sing chemicals , etc. , which constituted only a proportion of the total cost . There was , therefore , no reason to allow the refineries price increase to the full extent of the increase in the rupee landed cost of the products as a result of devaluation . To mop up this difference it became necessary to enhance the rates of non - recoverable additional excise duties , and this was possible only if the ceiling rates provided in the Act were raised . The Mineral Products ( Additional Duties of Excise and Customs ) Amendment Ordinance , 1966 ( 12 of 1966 ) , was accordingly promulgated on the 15th December , 1966 to amend the Mineral Products ( Additional Duties of Excise and Customs ) Act , 1958 .
2. The Bill seeks to replace the Mineral Products ( Additional Duties of Excise and Customs ) Amendment Ordinance , 1966 .
NEW DELHI;
MORARJI DESAI .
The 15th March , 1967 .
PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA
[Copy of letter No. 8 / 82 / 66- CXIII / III , dated the 15th March , 1967 from Shri Morarji Desai , Deputy Prime Minister to the Secretary , Lok Sabha- ]
The President having been informed of the subject matter of the Bill further to amend the Mineral Products ( Additional Duties of 21 SEC. 2 ]
THE GAZETTE OF INDIA EXTRAORDINARY
Excise and Customs ) Act , 1958 has recommended under article 117 ( 1 ) of the Constitution the introduction of the Bill in the Lok Sabha .
[Copy of letter No. 8 / 82 / 66 - CK - III / IV , dated the 15th March , 1967 from Shri Morarji Desai , Deputy Prime Minister to the Secretary , Lok Sabha . ]
The President has further recommended , under article 274 ( 1 ) of the Constitution , the introduction of the Mineral Products ( Additional Duties of Excise and Customs ) Amendment Bill , 1967 in the Lok Sabha,
S. L. SHAKDHER ,
Secretary .
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