The Railways (Local
Authorities’ Taxation) Act, 1941
1ACT NO. XXV OF 1941
[26th November, 1941]
An Act to regulate the extent to which
railway property shall be liable to taxation imposed by an authority within a
WHEREAS it is expedient to regulate the extent to
which property vested in 2[Government] for the purposes of the
Central Government, being property of a railway, shall be liable to taxation
imposed by an authority within a Province;
It is hereby enacted as follows:---
1. Short title and extent.__
(1) This Act may be called the Railways (Local Authorities Taxation) Act, 1941.
3[(2) It extends to the whole of
2. Definitions. In this Act,---
(a) “local authority” means a local
authority as defined in the General Clauses Act, 1897 (X of 1897), and includes
any authority legally entitled to or entrusted with the control or management of
any fund for the maintenance of watchmen or for the conservancy, of a river;
(b) “railway administration” has the
meaning assigned to the expression in clause (6) of section 3 of the Railways
Act, 1890 (IX of 1890).
Statement of Objects and Reasons, see Gazette of India, 1941, Pt. V, p.
130; and for Report of Select Committee, see ibid., p. 194.
The Act has been applied to
Balochistan, see Notification No. 20‑F dated the 5th February, 1942,
Gazette of India, 1942, Pt. I, p. 264.
It has been extended to the
Leased Areas of Balochistan by the Leased Areas (Laws) Order, 1950 (G. G. O. 3
by A. O., 1961, Art. 2, for “His Majesty” (with effect from the 23rd March,
by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960), s. 3 and 2nd
Sch. (with effect from the 14th October, 1955), for the original
sub‑section (2), as amended by A. O., 1949.
3. Liability of railways to taxation by
local authorities.__ (1) In respect of property vested in
1* * * the 2[Federal Government], being property of a
railway, a railway administration shall be liable to pay any tax in aid of the
funds of any local authority, if the 3[Federal Government], by
notification in the official Gazette, declares it to be so liable.
(2) While a notification under sub‑section (1) is
in force, the railway administration shall be liable to pay to the local
authority either the tax mentioned in the notification or in lieu thereof such
sum, if any, as a person appointed in this behalf by the 3[Federal
Government] may, having regard to the services rendered to the railway and all
the relevant circumstances of the case, from time to time determine to be fair
and reasonable. The person so appointed shall be a person who is or has been a
Judge of a High Court or a District Judge.
4. Modification of
existing liability to taxation.__
The 3[Federal Government] may, by notification in the official
Gazette, revoke or vary any notification issued under clause (1) of section 135
of the Railways Act, 1890 (IX of 1890); and where a notification is so revoked
any liability arising out of the notification to pay any tax to any local
authority shall cease, and where a notification is so varied the liability
arising out of the notification shall be varied accordingly.
5. Saving. Nothing in this Act
shall be construed as debarring any railway administration administering a
railway from entering into a contract with any local authority for the supply of
water or light or for the scavenging of railway premises, or for any other
service which the local authority may be rendering or be prepared to render
within any part of the local area under its control.
original words "His Majesty for the purposes of" omitted by A. O., 1961, Art. 2
and Sch. (with effect from the 23rd March, 1956).
by F. A. O., 1975, Art. 2 and Table, for “Provincial Government” which was
previously subs. by A. O., 1964, Art. 2 and Sch., for “Central Government”.
by F.A.O., 1975, Art.2 and Table, for “Provincial Government”, which was
previously amended by A.O., 1964, Art.2 and Sch., for “Central Government”.