As from the first day of April, 1947 and subject to the provisions of this Act, every person, who carries on a trade either by himself or by an agent or representative, or who follows a profession or calling, or who is in employment, either wholly or in part within the State shall be liable to pay for each financial year a tax in respect of such profession, trade, calling or employment and in addition to any tax, rate, duty or fee which he is liable to pay under any other enactment for the time being in force:

Provided that for the purposes of this section a person on leave shall be deemed to be a person in employment:

Provided further that notwithstanding anything contained in this section the provisions of this Act shall not apply to a member of the Armed forces of India and to a Co-operative Society registered or deemed to have been registered under the Assam Co-operative Societies Act, 1949:

Provided also that the State Government, if considers it necessary in the public interest so to do, may by notification in the Official Gazette, subject to such conditions and restrictions as it may impose, exempt any person who carries on a trade either by himself or by an agent or representative, or who follows a profession or calling, or who is in employment, either wholly or in part within the State, fully or partially from payment of tax under this Act and the State Government may also grant such exemption retrospectively. The State Government may withdraw any such exemption at any time, as it may think fit and proper.

Explanation. The words 'members of the Armed Forces of India' in the second proviso of section 3 means the persons who are subject to the Army Act, 1950 (Central Act NO. 46 of 1950), the Navy Act, 1957 (Central Act NO. 62 of 1957) or the Air Force Act, 1950 (Central Act NO. 45 of 1950) and are serving/posted in any part of the State of Assam.