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TMI Blog1990 (4) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... of the settlement dated March 22, 1989. The arrears of salary and dearness allowance are required to be paid from August, 1983, to March, 1989 . Mr. Raval, learned advocate appearing on behalf of the petitioner, vehemently submitted that the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976, nowhere provides for deduction of profession tax on arrears of salary which are to be paid in a lump sum and not on a regular basis. For this purpose, he relies upon section 2(g) of the Act which reads as under : "'salary' or 'wage' includes pay or wages, dearness allowance and all other remuneration received by any person on regular basis, whether payable in cash or kind, and also includes perquisites, and profits in lieu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dred and fifty rupees in any year : Provided further that entry 9 in Schedule I shall apply only to such classes of persons as may be specified by the State Government, by notification in the Official Gazette, from time to time." (Emphasis added) Schedule I provides rate of tax on professions, trades, callings and employments. Explanation 1 to item No. 1 reads as under: "Explanation 1. -Where any salary or wages are payable according to any period other than a month, the monthly salary or wages shall, for the purpose of this entry, be reckoned on the basis of the actual amount of salary or wages paid or payable for a month. " (emphasis added) Admittedly, the members of the petitioner-union are employees of the respondent-Food Corporatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as under : "Arrears.-Money not paid on the due date or proper time for payment (as) arrears of rent (Connell). That which is behind in payment, or which remains unpaid though due. The definition of 'arrears' involves the idea not merely of money unpaid, but of money unpaid at the due time. The term 'arrears' involves the existence of some default on the part of the debtor." Therefore, the amount which is paid to the petitioners is paid as "salary" which was required to be paid to them on the due date. As it is part of the salary, the respondents are required to deduct it from the employees' salary under section 4 of the Act. However, Mr. Raval, learned advocate appearing on behalf of the petitioner, submitted that the words "salary" o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat is stated while giving the extended meaning. While retaining the ordinary meaning by including certain aspects, extended meaning is given to the said words. The word "includes" is a word of enlargement rather than of restriction and it cannot be taken to be exhaustive considering the context in which it is used in section 2(g) of the Act. As stated above, arrears of salary are part of the salary which was required to be paid to the employee on the due date but was not paid for some reasons. Because arrears are paid after some time, it would not lose its character as salary. In any set of circumstances, the Explanation to Schedule I specifically provides that where any salary or wages are payable according to any period other than a mont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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