Articles Hierarchy
How the rate of some duties increase immediately?

Almost every year we notice that some of the duties on cigarette, petrol, diesel, gas cylinder and some other items are increased immediately after the presentation of the Finance Bill. We know that a Bill has no force of the law and it cannot be enforced, then how the duties are immediately increased before a Finance Bill is passed as Finance Act. There is an act called the Provisional Collection of Taxes Act, 1931(16 of 1931) which is an act to amend the law providing for the immediate effect for a limited period of provisions in Bills relating to the imposition or increase of duties of customs or excise. Where a Bill to be introduced in Parliament on behalf of Government provides for the imposition or increase of a duty of customs or excise, the Central Government may cause to be inserted in the Bill a declaration that it is expedient in the public interest that any provision of the Bill relating to such imposition or increase shall have immediate effect under this Act. A declared provision shall have the force of law immediately on the expiry of the day on which the Bill containing it is introduced. It will cease to have the force of law in the following events: i) when the Act is passed, or ii) Parliament directs as such by notification, or iii) after the 75th day of its introduction. If the provision does not become law the duties collected shall be refunded.

Generally declaration under the Provisional Collection of Taxes Act, 1931 reads like “It is hereby declared that it is expedient in the public interest that the provisions of clauses .., Sl. Nos ... of the …Schedule…of this Bill shall have immediate effect under the Provisional Collection of Taxes Act, 1931." And such declared provisions have the force of law from the midnight following the day of presentation of budget.

ITKP on January 12 2015 16:46:35

Sir I have never read this anywhere. Really a nice information enriching our knowledge base.....
Thanks a lot sir

npssundar on January 19 2015 12:02:55

really good answer.

Pankaj Mehta on March 26 2015 15:49:05


Bandana Diwedi on April 06 2015 15:24:18

Thanks for adding to our knowledge base

Post Comment
Please Login to Post a Comment.
Latest Comments
» Superb portrayal. So apt. Yes. Every AO should understand his role while functioning. He should use the appropriate tools at the appropriate time. ...
» Very rare information. Could not found such super note anywhere else. Thanks Dada.
» Learning History of Income-tax from a person who has carved digital future of Department at CPC and is still continuing to do so, is like blessings...
» Thanks Dada for the write up
» Thaks Daada for sharing
» Great Dada. So informative.
» Thanks dada for sharing rare information about assessment year and rate of tax.
» Thank you, Dada for the crisp and lucid article🙏
» "writ" written in a lucid form. Thanks
» Great, Dada u have special quality to see and explain about statutes. I am sure None of us knowing it with such details. Thanks.
» Very well written , keeping it simple yet highly informative. Thank You Sir...
» Dada has brought out the intricate details in such a lucid manner that interest of the reader to go further into the subject increases. Thank you Dada
» Dada ...a truly valuable article..thanks
» Dada aapko shat shat naman hai. Aapka varad hast hum par rahe aur asha hai aapke gyan bhandar sagar se hamko aise aur bhi lekh milte rahenge jisse ...
» Thanks Sir, Got new vision of rules how to interpret law.
» Great Dada. So lucid and to the point. It gives so much more clarity, especially to those who are working as assessing officers. One of the most ch...
» A great article indeed. Thanks a lot Dada.
» Dada, Minute details are also discussed in this article. Lot of thanks Dada. Mohan
» A very comprehensive information and clarification on very important issue. Thank you very much Sir
» Dada really great article