§ 9.15 p.m.
§ Mr. DAVIDSON
I beg to move, in page 86, line 23, at the end to insert:(3) Where the Ruler of a State so elects as aforesaid, the officers of the Federation shall not cal]for any information or returns from any corporation in the State, but it shall be the duty of the Ruler thereof to cause to be supplied to the Auditor-General of India such information as the Auditor-General may reasonably require to enable the amount of any such contribution to be determined.If the Ruler of a State is dissatisfied with the determination as to the amount of the contribution payable by his State in any financial year, he may appeal to the Federal Court, and if he establishes to the satisfaction of that Court that the amount determined is excessive, the Court shall reduce the amount accordingly and no appeal shall lie from the decision of the Court on the Appeal.This is to provide the machinery for the purpose of assessing the tax where the ruler makes a contribution in lieu of the tax or allows the tax to be imposed direct on his subjects. The amendment also allows him the right of appeal to the Federal Court. We gave a promise to deal with this matter during the Committee stage.
§ Sir H. CROFT
Does this give a special privilege to the rulers of Federated States I Can we have a little further explanation as to why this change is made?
§ 9.16 p.m.
§ The ATTORNEY-GENERAL
This is not a new proposal, but an inevitable piece of machinery. The earlier part of the Clause provides that any legislation imposing a corporation tax shall allow the Ruler of a Federated State two alternatives. He may allow the tax to be imposed direct on his subjects or he may elect to pay a sum which is to be equivalent to the net yield of the tax. It is obvious that one would want to know how the yield is to be ascertained. It is, therefore, provided that the Ruler of a State, if he chooses the second alternative, has to give information to the auditor-general who will then make the necessary computation. If the Ruler of a State thinks that too much is imposed upon him he may go to the Federal Court who will fix the amount to be paid. It is the same sort of arrangement that we have in this country in connection with the railways. The Federal Court will assess the amount on the basis of the information which it is the duty of the Ruler to give to the auditor-general. It is not new legislation but a necessary piece of machinery.
§ Amendment agreed to.