MISCELLANEOUSCentral

Section 25 of The National Jute Board Act, 2008

In the Jute Manufactures Cess Act, 1983,--

(a)in section 3,--
1. (i)in sub-section (1), for the words and figures "the Jute Manufactures Development Council Act, 1983", the words and figures "the National Jute Board Act, 2008 (12 of 2009)" shall be substituted;
2. (ii)in sub-section (2), the words "and Salt" shall be omitted;
3. (iii)in sub-section (4), the words "and Salt" shall be omitted;
(b)in section 4, for the words, brackets and figures "the Jute Manufactures Development Council, from time to time, from out of such proceeds (after deducting the cost of collection which shall not exceed four per cent. of such proceeds) such sums of money as it may think fit for being utilised for the purposes of the Jute Manufactures Development Council Act, 1983 (27 of 1983), the words, brackets and figures "the National Jute Board from time to time, from out of such proceeds (after deducting the cost of collection which shall not exceed four per cent. of such proceeds) such sums of money as it may think fit for being utilised for the purposes of the National Jute Board Act, 2008 (28 of 1983), shall be substituted.

Summary

This section changes the Jute Manufactures Cess Act, 1983, to work with the new Board.
It replaces all mentions of the old Jute Manufactures Development Council with the National Jute Board.
It removes the words and Salt from specific parts of the 1983 law.
The money collected from the jute tax, called a cess, is now given to the National Jute Board.
The government can take out the cost of collecting this tax, but that cost cannot be more than four percent of the total.
This money must be used for the goals and tasks described in the National Jute Board Act, 2008.

Practical examples

1On June 10, 2010, a jute mill in Kolkata pays a tax on the products it made. Instead of this money going to the old Development Council, Section 25 ensures the money is sent to the new National Jute Board created under Section 3.

2The government collects 1,000,000 rupees in jute tax in a month. They decide to keep some money to cover their administrative costs. Because of Section 25, they can only keep a maximum of 40,000 rupees, which is four percent, and must pass the rest to the Board.

3A government official is updating a tax form for jute products in 2011. Based on Section 25, they delete the words and Salt from the title of the tax section to match the new rules.

FAQ

1. Is there a limit on how much the government can charge for collecting the jute tax?

Yes, the government can only deduct the actual cost of collection, and it is strictly capped at four percent of the money collected.

Test yourself

Q1.Under Section 25 of The National Jute Board Act, 2008, which organization replaces the Jute Manufactures Development Council as the recipient of tax proceeds?

Q2.According to Section 25 of The National Jute Board Act, 2008, what is the maximum percentage the government can deduct from collected taxes for the cost of collection?

Q3.How does the creation of the Board under Section 3 of The National Jute Board Act, 2008, trigger the changes in Section 25?

Q4.Under Section 25 of The National Jute Board Act, 2008, the money given to the Board must be used for the purposes of which specific law?

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