OFTHE DUTY ON TIMBERAND OTHER FOREST-PRODUCECentral

Section 39 of The Indian Forest Act, 1927

Power to impose duty on timber and other forest-produce.

(1)The 1[Central Government] may levy a duty in such manner, at such places and at such rates as it may declare by notification in the 2[Official Gazette] on all timber or other forest-produce--
1. (a)which is produced in 3[the territories to which this Act extends], and in respect of which the 4[Government] has any right;
2. (b)Which is brought from any place outside 3[the territories to which this Act extends]: 5* * * * *
(2)In every case in which such duty is directed to be levied ad valorem, the 1[Central Government] may fix by like notification the value on which such duty shall be assessed.
(3)All duties on timber or other forest-produce which, at the time when this Act comes into force in any territory, are levied therein under the authority of the 6[State Government], shall be deemed to be and to have been duly levied under the provisions of this Act. 7[(4) Notwithstanding anything in this section, the 6[State Government] may, until provision to the contrary is made by 8[Parliament], continue to levy any duty which it was lawfully levying before the commencement9 of 10[the Constitution], under this section as then in force: Provided that nothing in this sub-section authorises the levy of any duty which as between timber or other forest-produce of the 11[State] and similar produce of the locality outside the 11[State] discriminates in favour of the former, or which, in the case of timber or other forest-produce of localities outside the 11[State], discriminates between timber or other forest-produce of one locality and similar timber or other forest-produce of another locality.]

Summary

The Central Government has the power to tax timber and other forest products through a notification.
This duty can be collected at specific places and rates determined by the government.
It applies to products where the government has any legal right.
It also applies to items brought into the territory from outside areas.
If the tax is based on value, the Central Government can fix the official value for assessment.
Existing duties collected by a State Government when the Act starts are considered valid under these rules.

Practical examples

1A company cuts logs from a forest where the state owns a share of the trees. Before they can sell the wood, they must pay a duty set by the Central Government at a designated check-post.

2Mr. Khan imports teak from a neighboring country into India. He is required to pay a tax based on the value of the timber as fixed by the Central Government under Section 39.

FAQ

1. Who has the power to tax timber under Section 39 of The Indian Forest Act, 1927?

The Central Government is empowered to levy duties on timber and forest-produce under Section 39 of the 1927 Act.

2. Does Section 39 of The Indian Forest Act, 1927, apply to wood from outside India?

Yes, Section 39 of the forest act covers forest-produce brought from any place outside the territories to which the Act applies.

3. How is the tax amount calculated under Section 39 of The Indian Forest Act, 1927?

The government can set specific rates or, if based on value, it can fix the value used to calculate the tax under Section 39.

Test yourself

1.Under Section 39 of the 1927 Forest act, who issues the notification to levy a duty on timber?

2.Under Section 39 of The Indian Forest Act, 1927, on which products can a duty be levied if they are produced within the territory?

3.Under Section 39 of The Indian Forest Act, 1927, if a duty is charged 'ad valorem' (based on value), how is that value determined?

4.What happens to forest duties already being levied by a State Government when The Indian Forest Act, 1927, starts?

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