Year : 1926
PREAMBLE
An Act to determine the liability of certain Governments to taxation [The words "in the Provinces of India" omitted by the A.O.1950] in respect of trading operations.
WHEREAS it is expedient to determine the liability to taxation for the time being in force [The words "in the Provinces of India" omitted by the A.O.1950] of the Government of any part of His Majesty's Dominions, [The words "exclusive of India" omitted, by the A.O.1950] [The words "or the Government of any Acceding State or other Indian State" omitted by Act 33 of 1950, section 2 and Schedule] in respect of any trade or business carried on by or on behalf of such Government;
It is hereby enacted as follows:-
(1) This Act may be called the Government Trading Taxation Act, 1926.
(2) It shall come into force on such date [1st April, 1926; see Gazette of India, Extraordinary, 1926, p.60.] as the Central Government may, by notification in the Official Gazette, appoint.
(1) Where a trade or business of any kind is carried on by or on behalf of the Government of any part of His Majesty's Dominions, [The words "exclusive of India" omitted, by the A.O.1950] that Government shall, in respect of the trade or business and of all operations connected therewith, all property occupied in [Substituted by Act 33 of 1950, section 2 and Schedule, for "Part A States and Part C States".] [India] and all goods owned in [Substituted by Act 33 of 1950, section 2 and Schedule, for "Part A States and Part C States".] [India] for the purposes thereof, and all income arising in connection therewith, be liable-
(a) To taxation under the Indian Income-tax Act, 1922 (11 of 1922), in the same manner and to the same extent as in the like case a company would be liable;
(b) To all other taxation for the time being in force in [Substituted by Act 33 of 1950, section 2 and Schedule, for " Part A States and Part C States".] [India] in the same manner as in the like case any other person would be liable. {Sub-section (1A) inserted by the A.O.1948 omitted by Act 33 of 1950 section 2 and Schedule}
(2) For the purposes of the levy and collection of income-tax under the Indian Income-tax Act, 1922 (11 of 1922), in accordance with the provisions of sub-section (1), any Government to which that sub-section applies shall be deemed to be a company within the meaning of that Act, and the provisions of that Act shall apply accordingly.
(3) In this section the expression "His Majesty's Dominions" includes any territory which is under His Majesty's protection or in respect of which a mandate is being exercised by the Government of any part of His Majesty's Dominions [The words 'and "India" means the territory of India excluding the State of Jammu and Kashmir' inserted by Act 33 of 1950, section 2 and schedule omitted by Act 41 of 1954, section 2 and Schedule]
[Inserted by A.O.1950.] Where any Acceding State or other Indian State was liable for any tax under this Act in respect of any period before the 26th Of day of January, 1950, and such liability has, after that date, devolved [Substituted by Act 33 of 1950, section 2 and Schedule, for "upon an Acceding State or other Indian State.] [upon a Part B State], the provisions of section 2 shall apply in relation to that Part B State as they applied in relation to the corresponding Acceding State or other Indian State.]