PUNJAB FINANCE ACT 2011

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THE PUNJAB FINANCE ACT 2011 
(XV of 2011) 
CONTENTS 
1. Short title, extent and commencement. 
2. Amendment in Act X of 1958. 
3. Amendment in Act XXXII of 1958. 
4. Amendment in Ordinance II of 2000. 
5. Amendment in Ordinance XIII of 2001. 
6. Farm house tax. 
7. Education cess on clubs. 
TEXT 
1
THE PUNJAB FINANCE ACT 2011 
(XV of 2011) 
[27th June, 2011] 
An 
Act 
to levy tax and alter the rate of certain taxes and duties in the Punjab. 
Preamble.– Whereas, it is expedient to levy tax and alter the rate of certain taxes 
and duties in the Punjab and other connected matters; 
 It is enacted as follows:– 
1. Short title, extent and commencement. – (1) This Act may be cited as the 
Punjab Finance Act 2011. 
 (2) It extends to whole of the Punjab. 
 (3) It shall come into force on the first day of July 2011. 
2. Amendment in Act X of 1958. – In the Punjab Entertainment Duty Act, 1958 
(X of 1958)– 
(a) in section 3, in sub -section (1), for the words “sixty -five”, the word 
“twenty” shall be substituted; and 
(b) for section 3-A, the following shall be substituted:– 
 “3-A. Duty on special classes of entertainments. – Notwithstanding 
anything contained in section 3, the duty on the entertainments mentioned 
in column No.2 of the following Table shall be charged at the rate 
mentioned against each entertainment in column No.3: 
Sr. 
No. Entertainment Rate of Duty 
1. Admission to horse 
racing 
Two hundred percent of the payment for 
admission or two hundred rupees per 
admission ticket, whichever is higher.  
2. Circus Twenty percent of the payment for admission; 
provided that the Government may, by 
notification, require the proprietor of the circus to 
pay the duty on annual fixation basis, on such 
terms and conditions as the Government may 
determine. 
                                                           
1This Act was passed by the Punjab Assembly on 23 June 2011; assented to by the Governor of the Punjab on 25 June 2011; 
and, was published in the Punjab Gazette (Extraordinary), dated 27 June 2011, pages 39819-39822. 
3. Fashion show or 
musical show 
Sixty-five percent of the payment for 
admission or sixty five percent of the total 
amount paid to the owne r or management of 
the premises or total expenditure made by 
organizer or sponsor, whichever is higher; 
provided that no exemption in entertainment 
duty shall be allowed to any of these 
entertainments under this Act.” 
3. Amendment in Act XXXII of 1958. – In the Punjab Motor Vehicles Taxation 
Act, 1958 (XXXII of 1958)– 
(a) in section 2– 
(i) in clause (g), the word “and”, occurring at the end, shall be 
omitted; 
(ii) in clause (h), for the full stop at the end, a semi -colon shall be 
substituted and, thereafter, the word “and” shall be inserted; and 
(iii) after clause (h), the following clause (i) shall be inserted:- 
“(i) “Schedule” means the Schedule appended to the Act.”; and 
(b) in the Schedule, at Sr.No.4, for the rider clause and sub -clauses (a) 
and (b), the following shall be substituted:– 
Sr. 
No. Description of Motor Vehicles 
Annual Rate 
of Tax 
“4. Motor vehicles (motor cars or jeeps) other than those 
mentioned above and having– 
  
  (a) seating capacity of not more than three persons. Rs.500/- per 
annum 
  (b) seating capacity of more than three persons but not 
more than six persons– 
  
  (i) with engine power not exceeding 1000 cc. Rs.600/- per 
annum 
  (ii) with engine power exceeding 1000 cc but not 
exceeding 1300 cc. 
Rs.1800/- per 
annum 
  (iii) with engine power exceeding 1300 cc but not 
exceeding 1500 cc.  
Rs.3000/- per 
annum 
  (iv) with engine power exceeding 1500 cc but not 
exceeding 2000 cc.  
Rs.4500/- per 
annum 
  (v) with engine power exceeding 2000 cc but not 
exceeding 2500 cc.  
Rs.6000/- per 
annum 
  (vi) with engine power exceeding 2500 cc. Rs.10,000/- per 
annum 
  (vii) three door 4x4 vehicle with engine power 
exceeding 2500 cc.  
Rs.4,500/- per 
annum” 
4. Amendment in Ordinance II of 2000. – In the Punjab Sales Tax Ordinance, 
2000 (II of 2000), in section 3, in sub -section (1), for the words “seventeen per cent”, 
the words “sixteen per cent” shall be substituted. 
5. Amendment in Ordinance XIII of 2001. – In the Punjab Local Government 
Ordinance, 2001 (XIII of 2001), in the Second Schedule, in P art-II, after entry at Sr. 
No.14, the following entry at Sr. No.15 shall be inserted:– 
“15. Water conservancy charge at the rate of sixty thousand rupees per 
annum from the owner or occupant of a house or any other building, except 
an educational instituti on, having a swimming pool with a minimum surface 
area of two hundred and fifty square feet.” 
6. Farm house tax.– 
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[(1) This section shall have effect, notwithstanding anything 
contained in any other law. 
 (1A) The provisions of this section shall not appl y to the rating areas in 
terms of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958) where the 
property tax is levied but shall apply to the rating areas which are zero rated in terms 
of section 117 of the Punjab Local Government Ordinance, 2001 (XIII of 2001).] 
 (2) In this section– 
(a) “farm house” means a house constructed after the year 1980 on a total 
minimum area of four kanals with a minimum covered area of five thousand 
square feet, used as a single dwelling unit with or without an annexe; 
 Explanation.– Where there are more than one dwelling units in a 
compound and the average area of the compound is more than four 
kanals for a dwelling unit, each one of such dwelling units shall be 
treated as a separate farm house; 
(b) “Government” means Government of the Punjab; and 
(c) “tax” means the farm house tax levied under the section 
3
[;] 
4
[(d) “total minimum area” means the total land area including the area 
under farming even though the farm house is constructed on a portion 
of such area of land.] 
 (3) The Government shall levy, assess, collect and recover tax from the 
owner or occupant of a farm house at the following rate:– 
Sr. 
No. Category of Farm Houses Rate of Tax 
1. A farm house with covered 
area between 5000 to 7000 
square feet. 
Rs.10/- per square foot of the covered 
area per annum 
                                                           
2Substituted by the Punjab  Finance Act 2012 (XLI of 2012); and  published in the Punjab Gazette (Extraordinary), dated 
25.6.2012, pages 41719-41724, s.7 (w.e.f. 1.7.2012). 
3Substituted for the full -stop by the Punjab Finance Act 2012 (XLI of 2012); and published in the Punjab Gazette 
(Extraordinary), dated 25.6.2012, pages 41719-41724, s.7 (w.e.f. 1.7.2012). 
4Inserted ibid. 
2. A farm house with covered 
area between 7001 to 10,000 
square feet. 
Rs.15/- per square foot of the covered 
area per annum 
3. A farm house with covered 
area of more than 10,000 
square feet. 
Rs.20/- per squa re foot of the covered 
area per annum 
 (4) The tax under this section shall, as far as possible, be assessed, 
collected and recovered in accordance with the provisions of the Punjab Urban 
Immovable Property Tax Act, 1958 (V of 1958). 
 (5) Any person aggri eved by the assessment of tax on his property may, 
within thirty days of the communication of the notice of assessment, prefer an appeal 
to an officer notified by the Government. 
 (6) The Government may delegate any of its powers under this section to 
an officer, body or authority subordinate to the Government. 
 (7) The Government may, by notification in the official Gazette, make 
rules5 for carrying out the purposes of this section. 
6
[7. Education cess on clubs.– * * * * * * * *   ] 
                                                           
5For Rules, see Government of the Punjab, Excise & Taxation Department Notification No.SOTAX (E&T) 3-9/2011, dated 28 May 
2012. 
6The following Section 7, was amended by the Punjab Finance Act 2012 ( XLI of 2012); and published in the Punjab Gazette 
(Extraordinary), dated 25.6.2012, pages 41719-41724, s.7 (w.e.f. 1.7.2012): and then by the Punjab Finance Act 2013 (XVI of 
2013); and published in the Punjab Gazette (Extraordinary), dated 29.6.2013, pages  3075-3078, s.8 (w.e.f.1.7.2013), however, 
omitted by the Punjab Finance Act 2015 (XXIX of 2015); and published in the Punjab Gazette (Extraordinary), dated 26.6.2015, 
pages 7361-7371, s.4. 
“7. Education cess on clubs.– (1) This section shall have effect notwithstanding anything contained in any other law. 
(2) In this section– 
(a) “cess” means a cess for purposes of education levied under the section; 
[(b) “amenities” include facilities of sports, swimming, gymnasium, fitness, conferences, ceremonies, music al concerts 
and other social amenities; 
[(c) “club” means an association or organization offering members amenities, services, meals or temporary residence 
with initial membership fee of two hundred thousand rupees for any category of members and notified as club by the 
Government but does not include fitness centre or gymnasium without provision of ancillary services of eateries, 
outdoor sports, conferences, ceremonies, musical concerts or any other such service;] 
(d) “initial membership fee” includes all subscriptions or payments, charges, donations made by an applicant for 
membership of the club; 
(e) “Government” means Government of the Punjab; and 
(f) “services” means all types of services provided by the club and includes goods sold at the club premises.] 
(3) Notwithstanding any tax or duty levied under any other law, the Government shall levy  cess on clubs at the following 
rates:– 
Sr. 
No. Activity on which cess is levied Rate of cess 
1. Initial membership fee 10% of the initial membership fee 
2. Services rendered by the club 10% of the charge for a service rendered 
[(3A) Notwithstanding any reduction of initial membership fee after the club has been notified under sub -section (2), the 
club shall remain notified and the cess under this section shall continue to be levied on such club. 
(3B) If a club is notified for purposes of this section, the  cess shall be levied on actual initial membership paid by the 
applicant. 
(3C) The cess shall be levied on the services provided to any person or a member regardless of the date of membership.] 
(4) The cess shall be assessed and recovered in the prescribed manner. 
(5) Any person aggrieved by the assessment of  cess may, within fifteen days of the communication of notice of 
assessment of cess, prefer an appeal to an officer notified by the Government. 
(6) The Government may, by notification in the official Gazette, make rules for carrying out the purposes of this section.”