KARNATAKA VALUE ADDED TAX RULES,
2005
[Notification
No. FD 54 CSL 2005, dt. 31‑3‑2005]
Whereas,
the draft of the Karnataka Value Added Tax Rules, 2005 proposed to be made was
published as required by sub‑section (1) of the section 88 of the Karnataka
Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) in Notification No. FD 54
CSL 2005, dated 16th March, 2005, in the Karnataka Gazette (Extraordinary) No.
389, dated 16th March, 2005, inviting objections or suggestions from all the
persons likely to be affected thereby, within 10 days from the date of its
publication.
And,
whereas the said Gazette was made available to the public on 16th March, 2005.
And,
whereas the objections and suggestions received by the Government have been
considered.
Now,
therefore in exercise of the powers" conferred by section 88 of the
Karnataka Value Added Tax Act, 2003 (Act 32 of 2004), the Government of
Karnataka hereby makes the following rules, namely:
(1) These rules
may be called the Karnataka Value Added Tax Rules, 2005.
(2) They shall come into force on the First day of April,
2005.
In these rules, unless the context otherwise requires,
(i) "Act" means the Karnataka
Value Added Tax Act, 2003;
(ii) 'Tees"
means any fee leviable under the provisions of the Act and these rules;
(iii) "Form"
means a form appended to these rules;
(iv) "Government
Treasury" means, in relation to a dealer registered within the
jurisdiction of the local VAT office or VAT sub‑office, the Treasury of
the District or the Taluk where the dealer's principal place of business is
situated;
(v) "Local
VAT office" or "VAT sub‑office" means an office specified
by the Commissioner to function so in respect of such dealer or class of
dealers as may be specified;
(vi) "Local
VAT Officer" means an Assistant Commissioner of Commercial Taxes in charge
of a Local VAT office;'
(vii) "Registering
Authority" means an office in charge of a Local VAT office or VAT sub‑office;
(viii) "Section" means a section of the
Act;
(ix) "VAT Sub‑officer"
means a Commercial Tax Officer in charge of a VAT sub‑office.
TURNOVER, REGISTRATION AND PAYMENT OF
SECURITY
Determination of total and taxable turnover
3. (1) The
total turnover of a dealer, for the purposes of the Act, shall be the aggregate
of
(a) the total
amount paid or payable by the dealer as the consideration for the purchase of
any of the goods in respect of which tax is leviable under sub‑section
(2) of section 3;
(b) the total
amount paid or payable to the dealer as the consideration for the sale, supply
or distribution of any goods where such sale, supply or distribution has taken
place inside the State, whether by the dealer himself or through his agent;
(c) the total
amount paid or payable to the dealer as the consideration for transfer of
property in goods (whether as goods or in some other form) involved in the
execution of works contract including any amount paid as advance to the dealer
as a part of such consideration;
(d) the total
amount paid or payable to the dealer as the consideration for transfer of the
right to use any goods for any purpose (whether or not for specified period);
(e) the total
amount payable to the dealer as the consideration in respect of goods delivered
on hire‑purchase or any system of payment by instalments;
(f) the aggregate
of the sale prices received and receivable by the dealer in respect of sale of
any goods in the course of inter‑State trade or commerce and export out
of the territory of India and sale in the course of import into the territory
of India; and
(g) the value of
all goods transferred or despatched outside the State otherwise than by way of
sale.
(2) The taxable
turnover shall be determined by allowing the following deductions from the
total turnover:
(a) The aggregate
of the sale prices received and receivable by the dealer in respect of sales of
any goods in the course of inter‑State trade or commerce and export out
of the territory of India and sales in the course of import into the territory
of India.
(b) The value of
all goods transferred or despatched outside the State otherwise than by way of
sale.
(c) All amounts
allowed as discount:
PROVIDED
that such discount is allowed in accordance with the regular practice of the
dealer or is in accordance with the terms of any contract or agreement entered
into in a particular case:
PROVIDED
FURTHER that the accounts show that the purchaser has paid only the sum
originally charged less discount.
(d) All amounts
allowed to purchasers in respect of goods returned by them to the dealer:
PROVIDED that the goods are returned within a period of
six months from the date of delivery of the goods and the
accounts show the date on which the goods were returned, the date on which the
refund was made and the amount of such refund together with the details of
credit notes issued as specified under sub‑section (1) of section 30.
(e) All amounts
received from the seller in respect of goods returned ‑to them by the
dealer, when the goods are taxable under sub‑section (2) of section 3:
PROVIDED
that the goods are returned within a period of six months from the date of
delivery of the goods and the accounts show the date on which the goods were
returned and the date on which the refund was made and the amount of such
refund.
(f) All amounts '
for which goods exempt under section 5 are sold.
(g) All amounts
realized by sale by a dealer of his business as a whole.
(h) All amounts
collected by way of tax under the Act.
(i) The turnover
in respect of which the dealer's agent has paid tax, and the dealer has
furnished a certificate in Form VAT 140.
All
amounts separately collected in tax invoices as commission under the provisions
of the Agricultural Produce Marketing (Regulations) Act, 1966, by a commission
agent:
PROVIDED
that the tax is not separately charged for and collected in the tax invoices on
such commission.
(k) All amounts
received or receivable by way of interest on the unpaid amount payable in
respect of goods delivered on hire‑purchase or on any system of payment
by instalments, where such interest is specified and charged for by the dealer
separately without including such amounts in the price of the goods delivered
and does not exceed twenty percent per annum on the amount remaining unpaid.
(l) All amounts
actually expended towards labour charges and other like charges not involving
any transfer of property in goods in connection with the execution of works
contract including charges incurred for erection, installation, fixing, fitting
out or commissioning of the goods used in the execution of a works contract.
(m) Such amounts
calculated at the rate specified in column (3) of the Table below towards
labour charges and other like charges as incurred in the execution of a works
contract when such charges are not ascertainable from the books of accounts
maintained by a dealer.
TABLE
S1. No. |
Type of contract |
Labour and like charges as a percentage of the value of the contract |
(1) |
(2) |
(3) |
1. |
Installation of plant and
machinery |
Fifteen percent |
2. |
Installation of air
conditioners and air coolers |
Ten percent |
3. |
Installation of elevators
(lifts) and escalators |
Fifteen percent |
4. |
Fixing of marble slabs, polished granite stones and tiles
(other than mosaic tiles) |
Twenty-five percent |
5. |
Civil works like construction of buildings, bridges,
roads |
etc. |
6. |
Construction of railway coaches on under carriages
supplied by Railways |
Thirty per cent |
7. |
Ship and boat building including construction of
barges, ferries, tugs, trawlers and draggers |
Twenty per cent |
8. |
Fixing of sanitary fittings for plumbing, drainage and
the like |
Fifteen per cent |
9. |
Painting and polishing
|
Twenty per cent |
10.. |
Construction
of bodies of motor vehicles and construction of trucks |
Twenty per cent |
11. |
Laying of pipes |
Twenty per cent |
12. |
Tyre re-treading. |
Forty per cent |
13. |
Dyeing and printing of textiles |
Forty per cent |
14. |
Any other works contract |
Twenty-five per cent |
Explanation I: Where
the turnover of a dealer claiming deduction under clause (1) in any tax period
is not sufficient to cover the deduction, it shall be allowed to the extent of the
turnover of the dealer in that period, and the balance shall be carried forward
to the following tax period or any subsequent tax period.
Explanation II ‑ For the purpose of clause (1),
"labour and other like charges" include charges for obtaining, on
hire or otherwise, machinery and tools used in the execution of a works
contract, charges for planning, designing and architects' fees, cost of
consumables used in the execution of the works contract, cost of establishment
to the extent relatable to supply of labour and services and other similar
expenses relatable to supply of labour and services.
Explanation III: For the purpose of clause (1), gross
profit earned by a dealer shall be apportionable to the value of the goods and labour
and other like charges involved in the execution of a works contract in the
same ratio as in the total turnover.
4. Every
dealer who is liable to be registered under section 22 and any dealer who
desires to register voluntarily under section 23 shall
(i) submit an
application in Form VAT I for registration to the jurisdictional Registering
Authority in whose area the principal place of business of the dealer is
located, accompanied by a fee of five hundred rupees; .
(ii) make an application
for registration, signed and verified as specified in the application and every
person signing and verifying such application shall furnish two copies of his
recent photograph in passport size along with the application and shall also
furnish such photograph once in every five years;
(iii) if he is a
casual trader or a non‑resident dealer, submit the application in Form
VAT I before commencement of his business; and
(iv) where the
details in his Form VAT I change at any time, as specified under section 28,
submit an application in Form VAT 3, showing the amendments to such details
within thirty days of the date such changes took effect.
5. If
the registered dealer has more than one place of business, he shall submit a
further application in Form VAT 5a to the jurisdictional Registering Authority,
along with Form VAT I if the additional place of business exists at the time of
submission of application for registration and in other cases within ten days
from the opening of additional place of business.
6. If
the registered dealer is a partnership firm or an association of persons, it
shall submit a further application in Form VAT 5b to the jurisdictional
Registering Authority.
7. The
Registering Authority shall review each application for registration to ensure
that it contains all the information required and acknowledge receipt of the
application.
8. (1)
Where the Registering Authority is
not satisfied that the particulars contained in the application are correct and
complete, he shall reject the application for reasons to .be recorded in
writing, after giving the dealer an opportunity of showing cause in writing
against such rejection.
(2) The
Registering Authority may demand a security as specified under section 23
before issuing a certificate of registration.
9. (1)
The Registering Authority shall
assign a registration number or Taxpayers Identification Number MN) to the
dealer and issue a certificate of registration in Form VAT NIF to him, and also
certified copies of such certificate for any additional place of business.
(2) The
Commissioner shall authorise any Local VAT officer or VAT sub‑officer to
issue a certificate of registration with an assigned registration number to the
Central or any State Government, statutory or local authority specified under
sub‑section (4) of section 25 for the purposes of the collection and
payment of tax.
10. Where
a certificate of registration is lost or destroyed, a certified copy of the
registration certificate shall be issued by the jurisdictional Registering
Authority on a written request by the registered dealer.
11. (1)
Every dealer shall display his
certificate of registration in a prominent location at his main place of
business, and certified copies shall be displayed at his any additional place
of business.
(2) Every
registered dealer who closes any of his additional places of business shall
report such closure and surrender the certified copy of the certificate of
registration issued to such additional place of business to the jurisdictional
Registering Authority.
12. (1)
Where a dealer liable to get
registered under section 22, has failed to do so, the Registering Authority of
the area shall proceed to register such dealer under section 24 after
conducting such survey, inspection or inquiry as specified in sub‑rules
(2), (3) and (4) and after giving the dealer a reasonable opportunity of being
heard.
(2) The
Registering Authority may inspect the offices, shops, business premises,
godown, vessels, receptacles or vehicles belonging to the dealer and may also
conduct inquiry as he may consider necessary for the purposes of determining
the taxable turnover of the month or year.
(3) The
Registering Authority may visit the business premises of the dealer including
any place or receptacle or vehicle where the dealer has stored his goods and
obtain stock inventory of the goods held in stock and on that basis arrive at
the approximate stock value of the goods taking into consideration of the
prevailing market rates or the purchase invoices if any produced.
(4) The
Registering Authority may also record the
daily sales particulars as per the books of accounts maintained and
produced and if the books of accounts are not produced or if the particulars
recorded in the books of accounts, in the opinion of the Registering Authority
are not true and correct, he may proceed to estimate the same on the basis of
any other material which he considers relevant.
(5) The
Registering Authority may proceed to estimate the taxable turnover in a month
or year for the purpose of registration either on the basis of daily sales
particulars or on the basis of stock value whichever he considers more
relevant.
13. (1)
Every registered dealer, other than
a dealer falling under sub‑section (7),.(8) or (9) of section 22, may
submit a written request, together with a final return in Form VAT 115, to the
Registering Authority to cancel his registration where in the previous twelve
consecutive months his total or taxable turnover did not exceed the threshold
as specified under section 22, and such request shall be made within twenty
days after the end of such period.
(2) Every
registered dealer who either sells or discontinues his business shall submit a
written request, together with a final return in Form VAT 115, to the
Registering Authority to cancel his registration, and such request shall be
made within fifteen days after such event.
14. Any
dealer who was voluntarily registered may submit a written request to cancel
his registration only after two years have passed from the effective date of
the registration, and such request together with a final return in Form VAT
115, shall be made within twenty days after the end of such period.
15. (1)
Where a registered dealer carrying
on business as an individual enters into a partnership, he shall report the
fact to the Registered Authority, together with a final return in Form VAT 115,
within fifteen days of his entering into such partnership, requesting
cancellation of his registration, and make an application for a new
registration of the partnership under Rules 4 and 6.
(2) Where a
registered dealer is a partnership firm, any change including dissolution,
shall be reported to the Registered Authority, within fifteen days of such
change, and in the case of dissolution, a request made for cancellation of the
registration together with a final Return in Form VAT 115.
(3) The heirs of a
deceased registered dealer shall submit a written request, together with a
final return in Form VAT 115, to cancel the registration within thirty days
from the date of death.
16. Every
dealer or any other person who requests cancellation of any registration issued
shall surrender the certificate of registration together with any certified
copies issued to the jurisdictional Registering Authority.
17. If
the Registering Authority is satisfied that a dealer who submitted a request to
cancel his registration is no longer obliged to be registered, or on the death
of any registered dealer, he may cancel the dealer's registration, with effect
from the day following the last day of the tax period in which he determined
that the dealer was no longer obliged to be registered or any subsequent date
to be determined by him or the day of death of the registered dealer and inform
the dealer in Form VAT 11, together with a notice in Form VAT 210 demanding
payment of any tax or interest due.
18. Subject
to the provisions of Rules 19 and 20, the Registering Authority shall cancel the
registration of any dealer, after providing an opportunity of being heard
(1) whose total
turnover does not exceed the threshold specified in section 22, but excluding a
dealer liable for registration under sub‑sections (7), (8) and (9) of
section 22, whether a request for cancellation was made or not, with effect
from the day following the last day of the tax period in which the taxable
sales were discontinued or any subsequent date to be determined by him; and
(2) who issues tax
invoices without effecting any taxable sales, from the date such dealer
discontinued effecting taxable sales, even where his total turnover of exempt
goods exceeds the threshold specified in section 22.
19. The
Registering Authority shall not cancel the registration of any dealer if he has
reasonable grounds to believe that the dealer will engage in taxable sales
within a period of twelve months following the date on which the dealer's
taxable sales were discontinued and shall inform the dealer if any written
request has been made for cancellation of registration.
20. A
dealer, whose registration is cancelled in accordance with the above rules, and
where deductions were made for the tax paid on inputs on all the taxable goods
in his possession, shall be treated as if he had sold such goods, and the sale
of these taxable goods shall be deemed to have been completed on the effective
date of the cancellation of the dealer's registration and in exchange for the
equivalent of the prevailing market price of the goods on such date.
21. For
purposes of Rule 20, goods shall be considered to be in the possession of the
dealer when they are available for sale or for any other use by the dealer.
22. The
duties and obligations imposed by the Act and these Rules on any registered
dealer shall not be affected by the cancellation of his registration, to the
extent that they are necessary to recover the tax due and obtain any
information for which the dealer was responsible during the period of his
registration.
23. (1)
The Registering Authority may,
subject to sub‑rule (2), demand from any dealer a security as specified
under section 26 in a sum not exceeding the limits specified in rule 24, after
giving the dealer the opportunity of showing cause in writing against such
demand.
(2) The Government
or the Commissioner may, by notification, fix the amount of security in the
case of specified categories of dealers.
24. Where
a dealer is required to pay a security, the amount payable shall not exceed
(1) if he has opted
to pay tax byway of composition under section 15, an amount equivalent to the
tax anticipated to be payable by him in a two months' period, and
(2) in other
cases, an amount equivalent to the tax anticipated to be payable by him in a
three months period.
25. A security may be furnished by the dealer
(1) by depositing
with the Registering Authority, Government securities for the amount fixed by
the said authority; or
(2) by furnishing
to the said authority a guarantee from a Scheduled Bank as defined in the
Reserve Bank of India Act, 1934, agreeing to pay the Government on demand, the
amount of security fixed by the said authority; or
(3) by furnishing
any other form of security as may be notified by the Commissioner.
26. The
security paid under Rule 24 shall be maintained in full until it is dispensed
with by the jurisdictional Registering Authority on being satisfied that the
reasons for its demand no longer exist, or until the registration certificate
is cancelled, whichever is earlier.
ACCOUNTS AND DOCUMENTS
Obligation to issue a tax invoice
27. Every
registered dealer shall issue a tax invoice when he sells taxable goods or
exempt goods along with any taxable goods, as specified in section 29.
28. (1)
A tax invoice shall be issued, even
where generated by any mechanical device, with the original, marked
"original‑buyer's copy", delivered to the buyer and the copy,
marked "seller's copy", retained by the registered dealer.
(2) On demand,
another copy of the tax invoice, marked "transporter's copy", shall
be issued to the buyer.
(3) A registered
dealer shall not issue more than one tax invoice in respect of any sale, and
may provide a duplicate, where the original of the tax invoice is lost or destroyed,
with the declaration that it is a duplicate of such tax invoice.
29. A tax invoice shall contain the following
details, namely
(a) a
consecutive serial number;
(b) the
date of its issue;
(c) the name,
address and registration number (TIN) of the selling dealer; (d) the name and
address of the buyer;
(e)
a full description of the goods;
(f)
the quantity of the goods;
(g)
the value of the goods;
(h) the rate and
amount of tax charged in respect of taxable goods; (i) the total value; and
signature of the selling dealer or his agent.
30. (1)
A bill of sale as specified in
section 29, issued by a registered dealer where the value of the goods sold is
in excess of one hundred rupees, or a registered dealer selling non‑taxable
goods or a registered dealer selling goods in the course of inter‑State
trade or commerce or in the course of export out of the territory of India or
import into the territory of India, shall contain the following details, namely
(a)
a consecutive serial number with
date of sale;
(b) the name,
address and registration number of the selling dealer; and (c) a description of
the goods with its value.
(2) A bill of sale
shall, on demand, be issued in duplicate, even where generated by any
electronic or mechanical derive, with the original, marked
"original", delivered to the buyer and the copy retained by the
registered dealer.
(3) Every
registered dealer who buys goods from a person other than a registered dealer
shall raise a bill recording such transaction containing the following details,
namely
(a) a consecutive
serial number with date of purchase; ‑
(b) the name and
address of the seller; and
(c) a description
of the goods with its value.
31. Where
a registered dealer has given a tax invoice in respect of a sale of goods and
thereafter the goods or any part thereof are returned to the seller if the sale
is cancelled or for any other reason, or the value of the sale is altered,
whether due to a discount or otherwise, he shall, subject to the provisions of
section 30, give to the buying dealer a credit or debit note containing the
following details, namely
(1) the nature of
the document issued.
(2) a consecutive
serial number;
(3) the date of
the issue of the document;
(4) the name,
address and registration number of the selling dealer;
(5) the name and
address of the buyer, together with buyer's registration number, if registered;
(6) the number and
date of the relevant tax invoice;
(7) the value of
the goods and the amount of the tax credited or debited to the buyer; and
(8) signature of the selling dealer or his
agent.
32. (1) A credit or debit note shall be issued
in duplicate, even where it is generated by any mechanical device, with the
original, marked "original", delivered to the buyer and the copy
retained by the registered dealer.
(2) A registered
dealer shall not give more than one credit note or debit note in respect of the
same adjustment, and may provide a duplicate, where the original of the debit
note or the credit note is lost or destroyed, with the declaration that it is a
duplicate of such credit or debit note.
Keeping of accounts and records
33. (1)
Every registered dealer and every person
liable to be registered under the Act shall keep and maintain a true and
correct account of his daily transactions showing the goods produced,
manufactured, bought and sold by him and the value thereof separately together
with invoices and bills.
(2) Every such
dealer or person shall keep separate purchase, sale and disposal accounts in
respect of each commodity, whether taxable or not, dealt with by him.
(3) Every dealer
shall maintain a VAT account containing details of input and output tax, together
with credit and debit notes issued during any period.
(4) Every such
dealer or person shall keep current books of accounts at the place or places of
business entered on his certificate of registration, and every purchase and
sale shall be brought to account as soon as the purchase or sale is made.
(5) The registers,
accounts and documents maintained shall be sequentially numbered, and where the
registers and other documents are maintained by means of a computer or any
other similar mechanical device, the dealer shall maintain copies in paper of
such registers and other documents printed on a monthly basis.
(6) Any entry in
such registers, accounts and documents shall not be erased, effaced or
overwritten, and all incorrect entries shall be scored out under attestation
and correct entry recorded and where the registers, accounts and documents are
maintained by means of a computer or any other similar mechanical device, the
dealer shall also maintain a record of correction or change of any entry.
(7) For the
purpose of sub‑rule (4), current books of accounts shall include computer
hardware and software used in connection with business activities of the dealer
or person.
(8) The accounts
maintained by dealers together with all invoices, bills, declarations, way‑bills
and delivery notes relating to stocks, deliveries, purchases, output and sales
shall be preserved by them for the time specified under section 32 or for any
further period as may be notified by the Commissioner and shall be kept at the
place of business, mentioned in the registration certificate.
(9) Every
commission agent, broker, del credere agent, auctioneer or any other mercantile
agent shall maintain accounts showing
(a) particulars or
authorisation received by him from each principal to purchase or sell goods on
behalf of each principal separately;
(b) particulars of
goods purchased or goods received for sale on behalf of each principal each
day;
(c) particulars of
purchases or sales effected on behalf of each principal each day;
(d) details of
accounts furnished to each principal each day; and
(e) the tax paid
on purchases or on sales effected on behalf of each principal and the challan
number and date of remittance of the tax into the Government Treasury.
(10) Every
purchasing agent shall keep particulars of the names and addresses of the
dealers or persons from whom he purchased the goods, and every selling agent
shall keep the particulars of the names and addresses of the dealers or persons
to whom he sold the goods.
(11) Every wholesale
dealer, importer, exporter and manufacturer shall maintain monthly stock
accounts in respect of each commodity dealt with by him, and such stock account
shall contain particulars of purchases or receipts, sales, deliveries and
balance of stock.
(12) Every
manufacturer of goods shall maintain monthly production of accounts, showing
quantitative details of the various raw materials used in the manufacture and
the quantitative details of the goods so manufactured.
(13) Every dealer who
is required to maintain stock accounts shall maintain subsidiary accounts for
each godown if there is more than one godown for keeping his stocks.
(14) Every dealer or
person executing works contract shall keep separate accounts showing
(a) the particulars
of the names and addresses of the persons for whom and on whose behalf he
carried on the execution of works contract in respect of each works contract;
(b) the
particulars of goods procured by way of purchase or otherwise for the execution
of works contract;
(c) the
particulars of goods to be utilized in execution of each works contract; and
(d) the details of
payment received in respect of each works contract.
(15) Every dealer or
person engaged in the transfer of a right to use any goods shall keep
(a) particulars of the names and addresses
of the persons to whom he delivered the goods for use;
(b) details of
amounts received in respect of each transaction; and
(c) monthly stock accounts in respect of
each commodity dealt with by him and such stock account shall contain
particulars of purchases or receipts, deliveries and balance of stock.
(16) Every dealer
claiming exemption on his turnover under sub‑section (2) of section 8
shall retain for every tax period a declaration in Form VAT 140 obtained from
the registered dealer who sold the taxable goods relating to such turnover on
his behalf and the selling agent shall issue the declaration to his principal
within ten days from the end of the month in which such goods were sold.
(17) Every dealer
claiming deduction of input tax on goods purchased on his behalf by any other
registered dealer shall retain for every tax period a declaration in Form VAT
145 obtained from the registered dealer who purchased the taxable goods on his
behalf and also the tax invoices in original relating to such purchases, and
the purchasing agent shall issue the declaration and furnish the tax invoices
to his principal within ten days from the end of the month in which such goods
were purchased.
(18) Any officer
authorised by the Commissioner to make an assessment under section 38 or to
exercise powers under sub‑section (1) of section 52, shall exercise
powers under sub‑section (2) of section 31.
34. (1)
Every registered dealer who is not a
company as defined under the Companies Act, 1956 (Central Act 1 of 1956) or a
company incorporated outside India and required to have his accounts audited
under sub‑section (4) of section 31 shall have his accounts audited by a
Tax Practitioner enrolled under rule 163 for a period of not less than three
years or under section 36 of the Karnataka Sales Tax Act, 1957 (Karnataka Act
25 of 1957) for a period of not less than three years on the date of such audit
or by a Chartered Accountant.
(2) Every other registered
dealer who is required to have his accounts audited under sub‑section (4)
of section 31 shall have his accounts audited by a Chartered Accountant.
(3) The audited
statement of accounts shall be submitted in Form VAT 240 to the jurisdictional
Local VAT Officer or VAT Sub‑officer within six months after the end of
the relevant year.
35. Any
officer requiring any dealer to produce before him the accounts and other
documents or to furnish any information relating to his business under sub‑section
(1) of section 52 shall serve upon the dealer a notice in Form VAT 275.
RETURNS, STATEMENTS,
ASSESSMENTS, PAYMENT AND RECOVERY
Furnishing returns and statements
36. For the purposes of this Part, "net
value" shall mean
(1) with respect
to sales within the State, the aggregate of amounts mentioned in clauses (a) to
(e) of sub‑rule (1) of rule 3, less deductions specified in sub‑rule
(2) of rule 3, excluding that mentioned in clause (d);
(2) with respect
to sales in the course of inter‑State trade or commerce, the turnover as
determined under the provisions of the Central Sales Tax Act, 1956 (Central Act
74 of 1956);
(3) with respect
to goods transferred or despatched outside the State, otherwise than by way of
sale, their value less any cost of freight, insurance and similar charges,
accounted for by the dealer in the document of transfer;
(4) with respect
to sales of goods in the course of export out of the territory of India, or
imported into the territory of India, their value less any cost of freight,
insurance and similar charges, accounted for by the dealer in the bill of sale;
and
(5) with respect
to purchases or receipts of goods other than by way of purchase, their value on
which tax is charged by the seller or their value less any cost of freight,
insurance and similar charges, mentioned on the document of transfer.
37. The
tax period for every registered dealer, other than those dealers opting for
payment of composition of tax, shall be one calendar month or such period as
specified by the Registering Authority under section 35.
38. (1)
Every registered dealer shall
submit a monthly return, containing particulars of net values of sales,
purchases and other transactions, including input and output tax claimed or
collected and net tax relating to all of his places of business, and
accompanied by proof of full payment of any tax due, to the jurisdictional
Local VAT officer or VAT sub‑officer in Form VAT 100 within twenty days
after the end of the relevant tax period.
(2) Every department
of Government, statutory or local authority shall submit a monthly return, as
specified in sub‑rule (1), to the jurisdictional Local VAT officer or VAT
sub‑officer or to such Local VAT officer or VAT sub‑officer as may
be notified by the Commissioner where such body is located in areas falling
under more than one Local VAT officer or VAT sub‑officer.
(3) The tax
indicated in the return shall be due on the twenty‑first day after the
end of the relevant tax period.
(4) As long as any
dealer remains registered, he shall submit such monthly return, whether or not
any tax is due for any tax period.
(5) The Government
may notify any Bank or appoint any intermediary in respect of any class of
dealers as responsible for receipt of returns along with payment of tax or any
other amount due under the Act electronically or otherwise, subject to such
conditions as may be specified.
(6) Any registered
dealer furnishing a revised return under sub‑section (4) of section 35
shall do so in Form VAT 110.
(7) A dealer may
also submit a return electronically to the jurisdictional Local VAT Officer or
VAT sub‑officer or to a Bank or any intermediary appointed by the
Government, subject to such procedure as specified.
39. (1)
Where any return submitted is
apparently incomplete or incorrect, the jurisdictional Local VAT officer or VAT
sub‑officer shall issue a notice in Form VAT 150 requiring the dealer to
submit a complete or correct return within ten days of issue of the notice.
(2) Any dealer not
submitting a complete or correct return within the time specified under sub‑rule
(1), shall be liable to a penalty under section 72 and any interest due.
40. Where
any return is not accompanied by proof of full payment of the tax due in
accordance with Rule 41, the jurisdictional Local VAT officer or VAT sub‑officer
may issue a notice in Form VAT 210 informing the dealer to pay the outstanding
tax due, together with interest payable under section 36.
41. Where
any dealer submits a return after the due date, and also where a dealer submits
a revised return in Form VAT 110, such return shall be accompanied by proof of
payment of the interest due under section 36.
42. Any
dealer required to furnish a final return as specified under sub‑section
(4) of section 27 shall do so in Form VAT 115.
43. (1) Every casual trader shall submit to the
jurisdictional Local VAT officer or VAT sub‑officer, a monthly return in
Form VAT 100 along with proof of full payment of tax due, within ten days after
the end of any month.
(2) Where a casual
trader stops his occasional transactions during the course of a month he shall
submit to the jurisdictional Local VAT officer or VAT sub‑officer, a
monthly return in Form VAT 100 along with proof of full payment of tax due,
within seven days of the completion of the last transaction.
(3) Where a casual
trader conducts occasional transaction or transactions of a business nature in
the area under the jurisdiction of Local VAT officer or VAT sub‑officer
and leaves such jurisdiction, he shall before leaving and immediately following
the closure of the said transaction submit to the Local VAT officer or VAT sub‑officer
concerned a final return in Form VAT 115 along with proof of full payment of
tax due.
44. (1) (a) Every
Department of a Government, statutory body or a local authority, when they
collect tax under the provisions of section 9, shall submit a monthly return in
Form VAT 100 to the jurisdictional Local VAT officer or VAT sub‑officer,
together with proof of full payment of the tax due in accordance with Rule 52,
within twenty days after the end of the relevant month.
(b) Where any
return is not accompanied by proof of full payment of the tax due in accordance
with rule 52, the jurisdictional Local VAT officer or VAT sub‑officer may
issue a notice in Form VAT 210 informing the concern to pay the outstanding tax
due, together with interest payable under section 36.
(2) (a) Every
authority, when they deduct tax under the provisions of section 9‑A,
shall submit a monthly
statement in Form VAT 125 to the jurisdictional Local VAT officer or VAT sub‑officer, together with the
proof of full payment of tax deducted in accordance with rule 52, within twenty days after the end of
the relevant month.
(b) Where the
amount remitted to the Government Treasury for any month is less than the
amount of tax deducted at source for that month or where, default is made in
complying with provisions of sub‑section (5) of section 9‑A, the
amount payable for any month shall be determined by the jurisdictional Local
VAT officer or VAT sub‑officer, to the best of judgment of such
authority, after providing an opportunity of being heard to the tax deducting
authority and it shall serve upon the concerned tax deducting authority a
notice in Form VAT 210 which shall pay the sum demanded in the said notice
within the time and in the manner specified in the notice.
(3) (a) The
certificate referred to in section 9‑A shall be in Form VAT 156 and shall
be obtained by the tax deducting authority from the jurisdictional Local VAT
officer or VAT sub‑officer, on payment of one hundred rupees per book of fifty forms or two rupees per
form.
(b) The
certificate in Form VAT 156 shall be issued within fifteen days from the end of
the month in which deduction was made.
(c) Every such
form so obtained by the tax deducting authority shall be kept by it in safe
custody and it shall be personally responsible for the loss, destruction or
theft of any such form or the loss of revenue to the Government, resulting
directly or indirectly from such loss, destruction or theft.
(d) Every tax
deducting authority issuing certificates in Form VAT 156 shall maintain for
each year separately an account showing the amounts of tax deducted
certificates of tax deduction issued, and the particulars of remittances made
into the Government Treasury in Form VAT 157.
(e) If any Form
VAT 156 is lost, destroyed or stolen, the tax deducting authority shall report
the fact to the issuing authority within a week of such loss, destruction or
theft and shall make appropriate entries in the register maintained in Form 157
and take such other steps including the furnishing of an indemnity bond and
issue of public notice of the loss, destruction or theft as the issuing
authority may direct.
(f) Any tax
deducting authority which has obtained Form VAT 156 shall not either directly
or through any other person transfer the same to another person.
(g) As soon as a
report is received from the tax deducting authority regarding loss, destruction
or theft of Form VAT 156, the issuing authority shall, within ten days, report
to the jurisdictional Joint Commissioner of Commercial Taxes and shall also
take action to notify such loss, destruction or theft in the Official Gazette.
(h) The register
maintained in Form VAT 157 along with Form VAT 156 shall be open for inspection
by the issuing authority or by an Officer of the Commercial Taxes Department
authorised by the Commissioner.
45. (a)
The Commissioner may authorise any
officer to make an assessment under the provisions of sub‑sections (1)
and (2) of section 38.
(b) The
Commissioner may authorise any officer to make a protective assessment under
sub‑section (5) of section 38.
46. The Commissioner may authorise any officer
to make a re‑assessment under section 39.
47. (1)
Where a dealer is a body corporate
and has more than one place of business and if it so desires, the Commissioner
may on an application from it and on being satisfied that the provisions of sub‑rule
(1) of rule 38 are likely to cause hardship by a special order, permit each
branch to be assessed separately by the jurisdictional Local VAT officer or VAT
sub‑officer in which the main place of business of such dealer is
situated, as separate business; and such permission shall be subject to the
provisions of the Act and rules relating to registration, filing of returns,
assessments, payments and recovery of tax or other amounts due and subject to
the conditions that
(i) the tax
payable under any of the provisions of the Act by each of such branch together
with other places of business in the State shall not, be less than the tax that
would have been payable by him under any of such provisions of the Act, if such
branch was not treated as a separate unit under sub‑section (6) of
section 38;
(ii) every branch
shall get registered as required under these rules irrespective of its total
turnovers in any year being less than the turnovers specified in section 22;
and
(iii) every branch
shall be assessed to tax under the Act, irrespective of the amount of turnover
of such branch being less than the minimum specified in section 22, as such
rate or rates as applicable.
(2) Where, upon
completion of the assessments of all the branches, if the dealer proves to the
satisfaction of the Commissioner that the aggregate of the total turnover of
all such branches in the State did not exceed the turnovers specified in
section 10, the Commissioner may, direct the jurisdictional Local VAT officer
or VAT sub‑officer to rectify the assessment order and refund the amount
of tax paid by the dealer.
48. Where
a Department of a Government, statutory body or a local authority furnishes a
return, the officer authorised by the Commissioner in this behalf may inspect
the accounts of the Department, statutory body or local authority to verify the
correctness of the return and if the return is found incorrect, he shall direct
the Department, statutory body or the local authority concerned, to rectify the
mistake.
49. (1)
Where a driver or person in‑charge
of a goods vehicle does not comply with sub‑section (2) of section 54,
the owner of such vehicle shall be assessed to tax on the value of the goods
carried at the rates applicable to such goods under the provisions of the Act
and such assessment shall be issued in Form VAT 245.
(2) Before making
an assessment under section 54, the owner of the vehicle shall be given a
reasonable opportunity of showing cause against such assessment.
(3) When making
any assessment under section 54, the owner of the vehicle may also be directed
to pay, in addition to the tax assessed, the penalty levied under sub‑section
(5) of section 54.
(4) The tax and
penalty levied under section 54 shall be payable upon service of a notice in
Form VAT 340, and the owner of the vehicle shall pay the sum demanded within
the time and the manner specified in the notice.
(5) The authority
for the purpose of sub‑section (4) of section 54 and this rule shall be,
the officer‑in‑charge of the first check‑post or barrier, or
any other officer empowered to issue the transit pass under sub‑section
(1) of section 54.
50. (1) (a) The tax or any other amount under
the Act or these Rules shall be paid by the dealer or any other person, in
cash, by postal order, money order, crossed cheque or crossed demand draft, in
favour of the Registering Authority or
the jurisdictional Local VAT officer or VAT sub‑officer or any other
authorised officer, or by remittance into the Government Treasury or the State
Bank of India or its associate Bank or any other Bank approved by the Reserve
Bank of India and specified by the Government, on a tax challan in Form VAT
152.
(b) Where any
payment is made by cheque, such cheque shall be as prescribed under the
Karnataka Financial Code.
(2) The tax or any
other amount under the Act or these rules may also be paid by the dealer or any
other person, by electronic remittance to the Assessing Authority or the State
Bank of India or its associate Bank or any other Bank approved by the Reserve
Bank of India and specified by the Government.
51. If
a cheque presented by a dealer towards payment of tax or other amount due
tinder the Act or these Rules is dishonoured for want of adequate financial
cover on two occasions in any year, the dealer, shall not thereafter be
permitted to make payment by means of a cheque for such time as the
jurisdictional Local VAT officer or VAT sub‑officer in its discretion
specifies, after being given a reasonable opportunity to show cause against
such action.
52. (1) (a) Every
payment made under the Act or under these rules into a Government Treasury or
the State Bank of India or the Reserve Bank of India, shall be accompanied by a
tax challan in Form VAT 152 or Form VAT 153 in the case of payment under sub‑section
(5) of section 9A, which may be obtained from any Government Treasury or at any
Local VAT office or VAT sub‑office.
(b) Challans shall
be filled up in triplicate, and the copies marked 'original' and 'duplicate'
shall be returned, duly receipted, to the dealer or any person as proof of
payment, of which the copy marked 'duplicate' shall be attached by him to the
return to be submitted to the relevant authority, and the third copy marked
'triplicate' shall be retained by the Treasury.
(2) (a) Every payment made under the Act or under
these rules into the State Bank of India or its associate Bank or any other
Bank approved by the Reserve Bank of India and specified by the Government,
shall be accompanied by a tax challan in Form VAT 152 or Form VAT 153 which may
be obtained from any Local VAT office or VAT sub‑office or the Bank.
(b) Challans shall
be filled up in quadruplicate, and the copies marked original' shall be
returned to the dealer duly receipted as proof of payment, and such copy marked
as 'duplicate' shall be sent along with the statement or return to the
Assessing Authority by the Bank, and the copy marked 'triplicate' shall be sent
to the Treasury by the Bank and the copy marked ,quadruplicate' shall be
retained by the Bank.
53. (1)
Any dealer may apply in Form VAT
155 to the authority provided in sub‑rule (2), and subject to the
conditions specified in sub‑rules (4) and (5), for permission to pay any
amount due under the Act in instalments.
(2) The dealer may
apply, within twenty‑one days from the date on which any tax or other
amount becomes due, to
(a) the
Commissioner, where the sum in relation to which instalments are sought is
rupees twenty‑five lakh or less, or the period within which the sum is
sought to be paid does not exceed twenty‑four months; and
(b) the Government
in other cases.
(3) The authority
empowered under sub‑rule (2) may relax the specified time‑limit in
cases where adequate justification is furnished by dealer in respect of the
delay involved.
(4) The dealer
shall be liable to pay interest on the tax or other amount due at the rate
specified under section 37 during such period of delay involved and during the
period between the time‑limit specified in sub‑rule (2) and the
date of order permitting such amount to be paid in instalments, and the sum for
which instalments are sought shall be deemed to include interest so payable.
(5) The conditions
referred to in sub‑rule (1) above shall be
(a) that the
dealer is unable to pay the sum for which the instalment facility is sought for
reasons beyond his control;
(b) that the
dealer furnishes adequate security to the satisfaction of the jurisdictional
Local VAT officer or VAT sub‑officer for the recovery of the sums in
relation to which instalments are sought; and
(c) that the
dealer pays along with each instalment, and in addition to the sums permitted
to be paid in instalments, interest at the rate of fifteen per cent per annum
on the sums remaining unpaid at such time.
(6) The authority
to whom an application has been made under this rule may, at its discretion and
after making such enquiry as deemed necessary, by an order in writing, permit a
dealer to pay the tax or other sums due for which the application under sub‑rule
(1) is made in such instalments, at such intervals and subject to such
conditions as may be specified in its order.
(7) If any
condition mentioned in sub‑rule (5) is contravened or a default is made
in making payments in accordance with any order passed under sub‑rule
(6), the whole of the sum remaining unpaid on the date of such default shall
become recoverable at once in a lump sum together with interest in accordance
with the provisions of the Act.
54. (1)
Where the Government has permitted
an eligible industrial unit for deferment of tax under section 42, such
deferment of tax shall be
(a) given to that
eligible industrial unit as certified by the Director of Industries and
Commerce or his nominee;
(b) restricted to
the tax payable on the sale of goods manufactured by such industrial units; and
(c) restricted to
such amounts and such period as specified in the relevant Government Order.
(2) The officer
authorised by the Commissioner in this behalf may verify the validity of any
certificate or claims relating to the tax concession.
(3) The tax
referred to in sub‑rule (1) shall include any tax payable according to
any assessment, re‑assessment, appeal or revision under the provisions of
the Act.
(4) The
jurisdictional Joint Commissioner of Commercial Taxes shall issue a
'Certificate of Entitlement' in Form VAT 160 regarding the deferment of any tax
payable by an industrial unit.
(5) The amount of
tax deferred shall be paid by the industrial unit after the expiry of the deferred
period in such instalments as specified in the certificate.
(6) The tax
deferred under the provisions of this rule shall be immediately recoverable at
any time prior to the expiry of the period of deferment if the unit contravenes
any of the provisions of the relevant Government Order or the conditions of the
Certificate of Entitlement, or if the certificate is cancelled or revoked by
the issuing authority.
(7) The Government
may permit, by an order, an industrial unit to pay deferred tax within the
specified deferred period at a discounted rate as may be specified.
RECOVERY
55. In
this Part, unless the context otherwise requires,
(1) "Certificate"
means a certificate received by the Tax Recovery Officer;
(2) "Defaulter"
means the dealer or any other person named in the certificate;
(3) "Execution"
in relation to a certificate, means recovery of arrears in pursuance of the
certificate;
(4) "Movable
property" includes growing crops;
(5) "Share in
a corporation" includes stock, debentures or bonds;
(6) "Tax
Recovery Officer" means any officer authorised by the Commissioner to
exercise powers under clause (b) of sub‑section (9) of section 42 in
respect of such cases as prescribed in Rule 54.
56. (1)
Where a dealer or any other person
is in default, or is deemed to be in default, in making a payment of tax or any
other amount due under the Act, the authority concerned may forward to the
jurisdictional Tax Recovery Officer a certificate in Form VAT 345 and such Tax
Recovery Officer shall be,
(a) a Commercial
Tax Officer where the amount due does not exceed fifty thousand rupees;
(b) an Assistant
Commissioner where the amount due exceeds fifty thousand rupees but does not
exceed two lakh rupees; and
(c) a Deputy
Commissioner in all other cases,
(2) The authority
concerned shall forward a certificate in Form VAT 345, in respect of any
additional amount that becomes due in cases where a certificate in Form VAT 345
has already been issued and the amount due covered by such certificate is not
recovered fully, to the Tax Recovery Officer to whom such certificate was
forwarded earlier notwithstanding that the additional amount or total amount
due exceeds the limit specified in sub‑rule (1).
(3) The Tax
Recovery Officer, on receipt of the certificate in Form VAT 345, shall proceed
to recover from such defaulter the amount specified therein in accordance with
the provisions in this Part.
(4) The authority
concerned may issue a certificate under sub‑rule (1) notwithstanding
that, proceedings for recovery of the amount by any other mode has been taken.
57. When
a certificate has been received by the Tax Recovery Officer, he shall cause to
be served upon the defaulter a notice in Form VAT 350 requiring the defaulter
to pay the amount specified in the certificate forthwith in the case where the
amount has become due on an assessment made under sub‑section (5) of
section 38, and in other cases within fifteen days from the date of service of
the notice.
58. (1) The certificate shall not be executed
until the period of fifteen days has elapsed since the date of the service of
the notice, other than where the amount which has become due is on an
assessment made under sub‑section (5) of section 38.
(2) Where the Tax
Recovery Officer is satisfied that the defaulter is likely to conceal, remove
or dispose of the whole or any part of such of his movable property as would be
liable to attachment or distrain in execution of a decree of a Civil Court, and
that the realisation of the amount of the certificate would in consequence be
delayed or obstructed, he may at any time, for reasons to be recorded in
writing, attach to or distrain on the whole or any part of such property.
(3) If such
defaulter furnishes security to the satisfaction of the Tax Recovery Officer,
such attachment or distrain shall be cancelled from the date on which such
security is accepted by the Tax Recovery Officer.
59. If
the amount mentioned in the notice is not paid within the time specified
therein, the Tax Recovery Officer shall proceed to realize the amount by
(1) attachment or distraint and sale of the
defaulter's movable property; and
(2)
attachment and sale of the
defaulter's immovable property.
60. There shall be recoverable in the
proceedings in execution of every certificate
(1) interest at
the rate of six per cent per annum from the day commencing after the end of
fifteen days from the date of service of notice in Form VAT 350fand
(2) all charges
incurred in respect of
(a) the service of
notice upon the defaulter to pay the arrears, warrants and other processes, and
(b) all other proceedings taken for
realizing the arrears.
61. (1)
Where property is sold in execution
of a certificate, there shall vest in the purchaser merely the right, title and
interest of the defaulter at the time of the sale, even though the property
itself is specified.
(2) Where
immovable property is sold in execution of a certificate, and such sale has
become absolute, the purchaser's right, title and interest shall be deemed to
have vested in him when the property is sold, and not from the time when the
sale becomes absolute.
62. No
suit shall be maintained against any person claiming title under a purchase
certified by the Tax Recovery Officer in the manner laid down in this Part on
the ground that the purchase was made on behalf of the plaintiff or on behalf
of someone through whom the plaintiff claims.
63. (1)
Whenever assets are realized, by
sale or otherwise in execution of a certificate, the amounts so realized shall
(a) first, cover
the costs incurred by the authority concerned;
(b) next, be paid
to the authority concerned for the amount due under the certificate in
execution of which the assets were realized;
(c) next, be paid
to the authority concerned for any other amount due under the Act or these
Rules; and
(d) any balance, be paid to the defaulter.
(2) If the
defaulter disputes any claim made by the authority concerned to receive any
amount referred to in clause (c) above, the Tax Recovery Officer shall resolve
the dispute.
64. (1) Except as otherwise expressly provided
in the Act and these Rules, every question arising between the authority
concerned and the defaulter or their representatives relating to the execution,
discharge or satisfaction of a certificate, or relating to the confirmation or
setting aside of a sale held in execution of such certificate, shall be
resolved by the order of the Tax Recovery Officer before whom such question
arises.
(2) A suit may be
brought in a Civil Court in respect of any such question upon the ground of
fraud.
65. (1) All such property as is by the Code of
Civil Procedure, 1908 (5 of 1908), exempted from attachment and sale in
execution of a decree of a Civil Court, shall be exempted from attachment or
distraint and sale under this Part.
(2) The Tax
Recovery Officer's decision as to what property is entitled to exemption shall
be final.
66. (1)
Where any claim is preferred, or
any objection is made to the attachment, distraint or sale of any property in
execution of a certificate, on the ground that such property is not liable to
such attachment, distraint or sale, the Tax Recovery Officer shall proceed to
investigate the claim or objection.
(2) The Tax
Recovery Officer shall not investigate where he considers that the claim or
objection was itself deliberately or unnecessarily delayed.
(3) Where the
property to which the claim or objection applies has been advertised for sale,
the Tax Recovery Officer ordering the sale may postpone it pending the
investigation of the claim or objection, upon such terms, security or
otherwise.
(4) The claimant
or objector must adduce evidence to show that
(a) in the case of
immovable property, on the date of the service of notice issued under this
Part, to pay the arrears, or
(b) in the case of
movable property, on the date of the distraint or attachment, he had some
interest in, or was in possession of, the property in question.
(5) Where, upon
investigation, the Tax Recovery Officer is satisfied that, for the reason
stated in the claim or objection, such property was not, on the said date, in
the possession of the defaulter or of any other person on his behalf or that,
being in the possession of the defaulter at the said date, it was in his possession,
not on his own account or as his own property, but on account of or in trust
for any other person, or partly on his own account and partly on account of
some other person, the Tax Recovery Officer shall make an order releasing the
property, wholly or to such extent as he thinks fit, from distraint or
attachment or sale.
(6) Where the Tax
Recovery Officer is satisfied that the property was, on the said date, in the
possession of the defaulter as his own property and not on account of any other
person, or was in the possession of some other person in trust for him, or in
the occupancy of a tenant or other person paying rent to him, the Tax Recovery
Officer shall disallow the claim.
(7) Where a claim
or an objection is preferred, the party against whom an order is made may
institute a suit in a Civil Court to establish the right which he claims to the
property in dispute, but subject to the result of such suit, the order of the
Tax Recovery Officer shall be final.
67. Where
(1) the amount due
with costs and all charges and expenses, resulting from the attachment to or
distraint on any property, or incurred in order to hold a sale, are paid to the
Tax Recovery Officer, or
(2) the
certificate is cancelled, the attachment or distraint shall be deemed to be
withdrawn, and in the case of immovable property, the withdrawal shall, if the
defaulter so desires, be proclaimed at his own expense, and a copy of the
proclamation shall be affixed in the manner provided by this Part for a
proclamation of sale of immovable property.
68. (1)
Any deficiency of price which may
happen on a resale, by reason of the purchaser's default, and all expenses
resulting from such resale, shall be certified by the Tax Recovery Officer and
shall, at the instance of either the authority concerned or the defaulter, be
recoverable from the defaulting purchaser under the procedure provided under
this Part.
(2) An application
filed after fifteen days from the date of resale shall not be entertained.
69. (1) The
Tax Recovery Officer may, in his discretion, adjourn any sale hereunder to a
specified day and hour.
(2) Where a sale
of immovable property is adjourned under sub‑rule (1) for a longer period
than one calendar month, a fresh proclamation of the sale under this Part shall
be made, unless the defaulter consents to waive it.
(3) Every sale
shall be stopped if, before the lot is knocked down, the arrears and costs,
including the costs of the sale, are paid to the Tax Recovery Officer.
70. (1) Where a notice has been served on a
defaulter under rule 56, the defaulter or his representative in interest shall
not be competent to mortgage, charge, lease or otherwise deal with any property
belonging to him, except with the permission of the Tax Recovery Officer, nor
shall any Civil Court issue any process against such property in execution of a
decree for the payment of money.
(2) Where an
attachment has been made under this Part, any private transfer or delivery of
the property attached or of any interest therein and any payment to the
defaulter of any debt, dividend or other monies contrary to such attachment,
shall be void as against all claims enforceable under the attachment.
71. Any
officer or other person having any duty to perform in connection with any sale
under this Part shall not, either directly or indirectly, bid for, acquire or
attempt to acquire any interest in the property sold.
72. A
sale under this Part shall not take place on a Sunday or other general holidays
recognized by the State Government or any day which has been notified by the
State Government to be a local holiday for the area in which the sale is to
take place.
73. The
Tax Recovery Officer may apply to the officer‑in‑charge of the
nearest police station for such assistance as may be necessary in the discharge
of his duties, and the authority to whom such application is made shall depute
a sufficient number of police officers for furnishing such assistance.
Attachment or distraint and sale of
movable property
74. The
Tax Recovery Officer, attaching to or distraining on any movable property,
shall prepare a warrant in Form VAT 355 specifying the name of the defaulter,
and the amount to be realized and cause a copy of the warrant to be served on
the defaulter.
75. If,
after service of the copy of the warrant, the amount is not paid forthwith, the
Tax Recovery Officer shall proceed to attach to or distraint on the movable
property of the defaulter.
76. (1) Where any movable property, other than
agricultural produce, proceeded against is in the possession of the defaulter,
it shall be seized, and the Tax Recovery Officer shall keep the property in his
own custody or the custody of one of his subordinates or arrange for its safe
custody, and shall be responsible for due custody thereof.
(2) Where the
property seized is subject to speedy and natural decay, or where the expense of
keeping it in custody is likely to exceed its value, the Tax Recovery Officer
may sell it forthwith.
77. Where
the property proceeded against is agricultural produce, it shall be attached by
affixing a copy of the warrant
(1) on the land on
which such crop has grown, if such produce is a growing crop; or
(2) on the
threshing floor, the place for treading out grain or the like, or fodder‑stack,
on or in which it is deposited, if such produce has been cut or gathered, and
another copy on the outer door or on some other conspicuous part of the house
in which the defaulter ordinarily resides, or on the outer door or on some
other conspicuous part of the house in which he carries on business or
personally works for gain, or in which he is known to have last resided or
carried on business or personally worked for gain, and the produce shall
thereupon be deemed to have passed into the possession :of the Tax Recovery
Officer.
78. (1)
Where agricultural produce is
distrainted, the Tax Recovery Officer shall make such arrangements for the
custody, watching, tending, cutting and gathering thereof, and the authority
concerned shall bear such amount as the Tax Recovery Officer shall require in
order to defray the cost of such arrangements.
(2) Subject to
such conditions as may be imposed by the Tax Recovery Officer in this behalf,
either in the order of attachment or in any subsequent order, the defaulter may
tend, cut, gather and store the produce and do any other act necessary for
maturing or preserving it and, if the defaulter fails to do all or any of such
acts, any person appointed by the Tax Recovery Officer in this behalf may,
subject to the like conditions, ,do all or any of such acts, and the costs
incurred by such person shall be recoverable from the defaulter as if they were
included in the certificate.
(3) Agricultural
produce attached as a growing crop shall not be deemed to have ceased to be under
attachment or to require re‑attachment merely because it has been severed
from the soil.
(4) Where an order
for the attachment of a growing crop has been made at a considerable time
before the crop is likely to be fit to be cut or gathered, the Tax Recovery
Officer may suspend the execution of the order for such time as he thinks fit,
and may, in his discretion, make a further order prohibiting the removal of the
crop pending execution of the order of attachment.
(5) A growing crop
which is not fit for storing shall not be attached under this rule within
twenty days before the time at which it is likely to be fit to be cut or
gathered.
79. (1)
A debt not secured by a negotiable
instrument, a share in a corporation, or other movable property not in the
possession of the defaulter except for property deposited in, or in the custody
of, any Court, shall be attached, and the attachment shall be made by a written
order in Form VAT 360 prohibiting
(a) in the case of
a debt, the creditor from recovering the debt and the debtor from making
payment thereof until receipt of a further order from the Tax Recovery Officer;
(b) in the case of
a share, the person in whose name the share may be standing from transferring
the same or receiving any dividend thereon;
(c) in the case of
any other movable property, the person in possession of the same from giving it
to the defaulter.
(2) A copy of such
order shall be affixed on some conspicuous part of the office of the Tax
Recovery Officer, and another copy shall be sent, in the case of debt, to the
debtor, and in the case of shares, to the proper officer of the corporation and
in the case of other movable property, to the person in possession of the same.
(3) A debtor,
prohibited under clause (a) of sub‑rule (1), may pay the amount of his
debt to the Tax Recovery Officer, and such payment shall be deemed as paid to
the defaulter.
80. (1)
Where the property proceeded
against is a decree of a Civil Court for the payment of money or for sale in
enforcement of a mortgage or charge, it shall be attached, and attachment shall
be made by the issue of a notice in Form VAT 365 to the Civil Court requesting
the Civil Court to stay the execution of the decree unless and until
(a) the Tax Recovery Officer cancels the
notice; or
(b) the authority
concerned or the defaulter applies to the Court receiving such notice to
execute the decree.
(2) Where a Civil
Court receives an application under clause (b) of sub‑rule (1), it shall,
on the application of the authority concerned or the defaulter, and subject to
the provisions of the Code of Civil Procedure, 1908 (5 of 1908), proceed to
execute the attached decree, and apply the net proceeds in satisfaction of the
certificate.
(3) The authority
concerned shall be deemed to be the representative of the holder of the
attached decree and to be entitled to execute such attached decree in any
manner lawful for the holder thereof.
81. Where
the property proceeded against consists of the share or interest of the
defaulter in movable property belonging to him and another as co‑owner,
it shall be attached and the attachment shall be made by a notice in Form VAT
370 to the defaulter prohibiting him from transferring the share or interest or
charging it in any way.
82. Where
the property is a negotiable instrument not deposited in a Court or in the
custody of a public officer, it shall be distrainted by the Tax Recovery
Officer.
83. (1)
Where the property proceeded
against is in the custody of any Court or public officer, it shall be attached
and the attachment shall be made by a Tax Recovery Officer by a notice in Form
VAT 375 to such Court or officer, requesting that such property, and any
interest or dividend becoming payable thereon, should be held subject to his
further orders.
(2) Where such
property is in the custody of a Court and a question of title or priority
arising between the authority concerned and any other person not being the
defaulter, claiming to be interested in such property by virtue of any
assignment, attachment or otherwise, shall be determined by such Court.
84. (1) Where the property proceeded against
consists of an interest of the defaulter being a partner in the partnership
property, the Tax Recovery Officer may make an order charging the share of such
partner in the partnership property and profits with such payment of the amount
due under the certificate, and may, by the same or subsequent order, appoint a
receiver of the share of such partner in the profits, whether already declared
or accruing, and of any other money which may become due to him in respect of
the partnership, direct accounts and enquiries and make an order for the sale
of such interest or such other order as the circumstances of the case may
require.
(2) The other
partners shall be at liberty at any time to redeem the interest charged or, in
the case of a sale being directed, to purchase the same.
85. In
the case of distraint, the property seized shall be, as far as possible,
proportionate to the amount specified in the warrant.
86. In
the case of distraint of movable property by actual seizure, the Tax Recovery
Officer shall, after seizing the property, prepare an inventory of all the
property attached, specifying in it the place where it is lodged or kept, and a
copy of the inventory shall be delivered to the defaulter.
87. Attachment by seizure shall be made after
sunrise and before sunset and not other‑wise.
88. The
Tax Recovery Officer may break open any inner or outer door of any building and
enter any building in order to seize any movable property, if he has reasonable
grounds to believe that such building contains movable property liable to
seizure under the warrant and he has notified his authority and intention of
breaking open if admission is not given, and he shall give all reasonable
opportunity for women to withdraw.
89. The
Tax Recovery Officer may direct that any movable property attached or
distrained under this Part, or such portion thereof as may seem necessary to
satisfy the certificate, shall be sold.
90. When
any sale of movable property is ordered by the Tax Recovery Officer, he shall
issue a proclamation in Form VAT 380 in the language of the district where the
intended sale takes place, specifying the time and place of sale and whether
the sale is subject to confirmation or not.
91. (1) A
proclamation under rule 90 shall be made public by the beat of a drum or other
customary mode,
(a) in the case of property distrained
(i) in the
village in which the property was seized or, if the property was seized in a
town or city, in the locality in which it was seized; and
(ii)
at such other places as the Tax
Recovery Officer may direct; and
(b) in the case of
property attached other than by distraint, in such places as the Tax Recovery
Officer may direct.
(2) A copy of the
proclamation shall also be affixed in a conspicuous part of the office of the
Tax Recovery Officer.
92. Except
where the property is subject to speedy and natural decay or when the expense
of keeping it in custody is likely to exceed its value, no sale of movable
property under this Part shall, without the consent in writing of the
defaulter, take place until after the expiry of at least fifteen days from the
date on which a copy of the sale proclamation was affixed in the office of the
Tax Recovery Officer.
93. (1) When
the property to be sold is agricultural produce,
(a) sale shall be
held if such produce is a growing crop, on or near the land on which such crop has
grown; or
(b) sale shall be
held if such produce has been cut or gathered, at or near the threshing floor
or place of treading out grain or the like, or fodder‑stack on or in
which it is deposited; or
(c) the Tax
Recovery Officer may direct that the sale to be held at the nearest place of
public resort, if he is of opinion that the produce is thereby likely to sell
to greater advantage.
(2)
Where, on the produce being put up
for sale
(a) a fair price
in the estimation of the Tax Recovery Officer is not offered for it; and
(b) the owner of
the produce, or a person authorised to act on his behalf, applies to have the
sale postponed till the next day or, if a market is held at the place of sale,
the next market day, the sale shall be postponed accordingly,'and shall be then
completed, whatever price may be offered for the produce.
94. (1)
Where the property to be sold is a
growing crop and such crop is fit for storing but is not stored, the day of
sale shall be so fixed as to make the crop ready for storing before the arrival
of such day, and the sale shall not be held until the crop has been cut or
gathered and is ready for storing.
(2) Where the crop
is not fit for storing or can be sold to a greater advantage in an unripe state,
it may be sold before it is cut and gathered, and the purchaser shall be
entitled to enter on the land, and to do all that is necessary for the purpose
of tending or cutting or gathering the crop.
95. The
property shall be sold by public auction in one or more lots as the Tax
Recovery Officer may consider advisable and, if the amount to be realized by
sale is satisfied by the sale of a portion of the property, the sale shall be
immediately stopped with respect to the remainder of the lots.
96. (1)
Where movable property is sold by
public auction, the price of each lot shall be paid at the time of sale or as
soon after as the Tax Recovery Officer directs and, in default of payment, the
property shall forthwith be resold.
(2) On payment of
the purchase money, the Tax Recovery Officer shall grant a certificate
specifying the property purchased, the price paid and the name of the purchaser
and the sale shall become absolute.
(3) Where the
movable property to be sold is a share in goods belonging to the defaulter and
a co‑owner, and two or more persons, of whom one is such co‑owner
respectively, bid the same sum for such property or for any lot, the bidding
shall be deemed to be the bidding of the co‑owner.
97. Any
irregularity in publishing or conducting the sale of movable property shall not
vitiate the sale, but any person sustaining substantial injury by reason of
such irregularity at the hands of any other person may institute a suit in a
Civil Court against him, for compensation, or if such other person is the
purchaser, for the recovery of the specific property and for compensation in
default of such recovery.
98. Notwithstanding
anything contained in this Part, where the property to be sold is a negotiable
instrument or a share in a corporation, the Tax Recovery Officer may, instead
of selling it by public auction, sell such instrument or share through a
broker.
99. Where
the property attached to or distrained on is current coins or currency notes,
the Tax Recovery Officer may, at any time during the continuance of the
attachment or distraint, direct that such coins or notes, or a part thereof
sufficient to satisfy the certificate, be paid over to the authority concerned.
Attachment and sale of immovable
property
100. Attachment of the immovable property of the
defaulter shall be made by an order in Form VAT 385 prohibiting the
defaulter from transferring or charging the property in any way and prohibiting
all persons from taking any benefit under such transfer or charge, and a copy
of the order of attachment shall be served on the defaulter. .
101. The
order of attachment shall be proclaimed at some place on or adjacent to the
property attached by beat of drum or other customary mode, and a copy of the
order shall be affixed on a conspicuous part of the property and on the notice
board of the office of the Tax Recovery Officer.
102. Where
any immovable property is attached under this Part, the attachment shall relate
back to, and take effect from, the date on which the notice to pay the arrears,
issued under this Part, was served upon the defaulter.
103. (1) The Tax Recovery Officer may direct that
any immovable property which has been attached or such portion thereof as may
seem necessary to satisfy the certificate, shall be sold.
(2) Where any
immovable property is ordered to be sold, the Tax Recovery Officer shall cause
a proclamation, in Form VAT 390 of the intended sale, to be made in the
language of the district.
104. A
proclamation of sale of immovable property shall be made after notice to the
defaulter, and shall state the time and place of sale and shall specify, as
fairly and accurately as possible,
(1) the property to be sold;
(2) the revenue,
assessed upon the property or any part thereof;
(3) the amount for
recovery of which the sale is ordered; and
(4) any other
thing which the Tax Recovery Officer considers is material for a purchaser to
know, in order to judge the nature and value of property.
105. (1)
Every proclamation for the sale of
immovable property shall be made at some place on or near such property by beat
of drum or other customary mode, and a copy of the proclamation shall be
affixed on a conspicuous part of the property and also on a notice board at the
office of the Tax Recovery Officer.
(2) Where the Tax
Recovery Officer so directs, such proclamation shall also be published in the
Official Gazette or in a local newspaper, or in both, and the cost of such
publication shall be deemed to be part of the costs of the sale.
(3) Where the
property is divided into lots for the purpose of being sold separately, it
shall not be necessary to make a separate proclamation for each lot, unless
proper notice of the sale cannot, in the opinion of the Tax Recovery Officer,
otherwise be given.
106. A
sale of immovable property under rule 103 shall not, without the consent in
writing of the defaulter, take place until after the expiration of at least
thirty days calculated from the date on which a copy of the proclamation of the
sale has been affixed on the property or in the office of the Tax Recovery
Officer, whichever is later.
107. The
sale shall be by public auction to the highest bidder and shall be subject to
confirmation by the Tax Recovery Officer.
108. (1)
On every sale of immovable
property, the person declared to be the purchaser shall pay, immediately after
such declaration, a deposit of twenty‑five per cent of the amount of his
purchase money, to the Tax Recover Officer, and in default of such deposit, the
property shall forthwith be resold.
(2) The full
amount of purchase money payable shall be paid by the purchaser to the Tax
Recovery Officer on or before the fifteenth day from the date of the sale of
the property.
109. In
default of payment within the period mentioned in sub‑rule (2) of rule
108, the deposit shall, after defraying the expenses of the sale, be forfeited
to the Government by the Tax Recovery Officer, and the property shall be
resold, and the defaulting purchaser shall forfeit all claims to the property
or to any part of the sum for which it may subsequently be sold.
110. All
persons bidding at the sale shall be required to declare if they are bidding on
their own behalf or on behalf of their principals, and in the latter case, they
shall file their authority, and in default, their bids shall be rejected.
111. (1) Where immovable property has been sold
in execution of a certificate, the defaulter, or any person whose interests are
affected by the sale, may at any time within thirty days from the date of the
sale, apply to the Tax Recovery Officer to set aside the sale, on his
depositing,
(a) for payment to
the authority concerned, the amount specified in the proclamation of sale for
the recovery of which the sale was ordered, with interest thereon at the rate
of six percent per annum calculated from the date of the proclamation of sale
to the date when the deposit made; and
(b) for payment to
the purchaser, as penalty, a sum equal to five percent of the purchase money.
(2) Where a person
makes an application under Rule 112 for setting aside the sale of his immovable
property, he shall not, unless he withdraws the application, be entitled to make
or pursue an application under this rule.
112. (1)
Where immovable property has been
sold in execution of a certificate, the authority concerned, the defaulter or
any person whose interests are affected by the sale, may, at any time within
thirty days from the date of sale, apply to the Tax Recovery Officer to set
aside the sale of the immovable property on the ground that notice was not
served on the defaulter to pay the arrears as required by this Part or on the
ground of a material irregularity in publishing or conducting the sale.
(2) A sale shall
be set aside on any such ground, if the Tax Recovery Officer is satisfied that
the applicant has sustained substantial injury by reason of the non‑service
or irregularity.
(3) An application
made by a defaulter without depositing the amount recoverable from him in
execution of the certificate shall be disallowed.
113. At
any time within thirty days of the sale, the purchaser may apply to the Tax
Recovery Officer to set aside the sale on the ground that the defaulter had no
saleable interest in the property sold.
114. (1) Where no application is made for setting
aside the sale under the foregoing rules, or where such an application is made
and disallowed by the Tax Recovery Officer, the Tax Recovery Officer shall, if
the full amount of the purchase money has been paid, make an order confirming
the sale, and thereupon the sale shall become absolute.
(2) Where such
application is made and allowed and where, in the case of an application made
to set aside the sale on deposit of the amount and penalty and charges, the
deposit is made within thirty days from the date of the sale, the Tax Recovery
Officer shall make an order setting aside the sale.
(3) An order shall
be made under sub‑rule (2), after a notice of the application has been
given to the persons affected thereby.
115. When
a sale of immovable property is set aside, any money paid or deposited by the
purchaser on account of the purchase, together with any penalty, deposited for
payment to the purchaser, and such interest as the Tax Recovery Officer may
determine, shall be paid to the purchaser.
116. (1) Where a sale of immovable property has
become absolute, the Tax Recovery Officer shall grant a certificate in Form VAT
395 specifying the property sold, and the name of the person who, at the time
of sale, is declared to be the purchaser.
(2)
Such certificate shall state the
date on which the sale became absolute.
117. (1) Where an order for the sale of immovable
property has been made, if the defaulter can satisfy the Tax Recovery Officer
that there is a reason to believe that the amount of the certificate may be
raised by the mortgage or lease or private sale of such property, or some part
thereof, or of any other immovable property of the defaulter, the Tax Recovery
Officer may, on the defaulter's request in writing, postpone the sale of the
property comprised in the order for sale, on such terms and for such period as
he thinks proper, to enable him to raise the amount.
(2)
In such a case,
(a) the Tax
Recovery Officer shall granta certificate to the defaulter, authorising him,
within a period to be mentioned therein, and notwithstanding anything contained
in this Part, to make the proposed mortgage, lease or sale;
(b) all monies
payable under such mortgage, lease or sale shall be paid, to the Tax Recovery
Officer; and
(c) a mortgage,
lease or sale under this rule shall become absolute after it is confirmed by
the Tax Recovery Officer.
118. Every
resale of immovable property, in default of payment of the purchase money
within the period allowed for such payment, shall be made after the issue of a
fresh proclamation in the manner and for the period hereinbefore provided for
the sale.
119. Where
the property sold is a share of undivided immovable property, belonging to the
defaulter and a co‑sharer, and two or more persons, of whom one is such
co‑sharer, respectively bid the same sum for such property or for any
lot, the bid shall be deemed to be the bid of the co‑sharer.
120. Every
Tax Recovery Officer, or others acting under this Part, shall have the powers
of a Civil Court while trying a suit, for the purpose of receiving evidence
administering oaths, enforcing the attendance of witness and compelling the
production of documents.
121. (1) An appeal from any original order passed
by the Tax Recovery Officer under this Part not being an order which is final,
shall lie to the jurisdictional joint Commissioner authorised by the
Commissioner in this behalf.
(2) Every appeal
under this rule must be made within thirty days from the date of the order
appealed against.
(3) Pending the
decision of any appeal, execution of the certificate may be stayed if the
Appellate Authority so directs.
122. Any
order passed under this Part may, after notice to all persons interested, be
reviewed by the officer who made the order, or by his successor‑in‑office,
on account of any mistake apparent from the record.
123. Where
any person has, under this Part, become surety for the amount due by the
defaulter, he may be proceeded against under this Part as if he were the
defaulter.
124. Nothing in this Part shall affect any
provision of the Act under which the tax is a first charge upon any asset.
125. (1) The provisions of the Act and these Rules
relating to recovery of tax, penalty and any other amount due under the Act,
including the provisions of section 36, shall apply to payment and recovery of
tax assessed and penalty levied under section 54.
(2) Where the tax
assessed and penalty levied under section 54 is not paid within the time
specified in Form VAT 340, the officer‑in‑charge of any check‑post
shall, without prejudice to other modes of recovery, detain any goods vehicle
belonging to such defaulter upon its entry into the State.
(3) The officer‑in‑charge
of the check‑post shall release the vehicle detained, upon production of
proof of payment of the tax or penalty or both, due by the defaulter.
(4) Where the tax
or the penalty or both, are not paid by such defaulter within ten days from the
date of detention of the vehicle, the officer‑in‑charge of the
check‑post may, after giving a notice of not less than fifteen days to
the defaulter, dispose of the vehicle in public auction and adjust the sale
proceeds towards the tax and penalty, the excess amount shall, after deduction
of the charges incurred for the sale, be refunded to the defaulter.
126. Any
officer authorised under the Act to levy tax and penalty and demand any fee
shall have the power to recover such tax, penalty and fee due together with any
interest payable by exercising powers under section 45.
127. (1) Where any dealer, in whose case the
input tax deductible relating to goods exported outside the territory of India
exceeds the output tax payable by him as specified under sub‑section (5)
of section 10 on the basis of the return submitted for any month during a year
or where any dealer, in whose case the input tax deductible exceeds the output
tax payable by him on the basis of any final return submitted under sub‑section
(4) of section 27, seeks adjustment of such amount or any other such amount
during the year, towards tax payable by him under the Act or the Central Sales
Tax Act, 1956, or where he is found to be in arrear of tax for any tax period
under this Act, the Karnataka
Sales
Tax Act, 1957, Central Sales Tax Act, 1956 or Karnataka Tax on Entry of Goods
Act, 1979 or Karnataka Special Tax on Entry of Certain Goods Act, 2004, the
jurisdictional Local VAT officer or VAT sub‑officer shall make the
adjustment sought, if found correct, or shall make his own adjustment towards
the arrear of any tax found and shall issue a notice in Form VAT 250, showing
details of any adjustment made.
(2) Where in the
case of any dealer other than a dealer claiming deduction of input tax relating
to goods exported outside the territory of India during any month in a year,
the input tax deductible, exceeds the output tax payable by him as specified
under sub‑section (5) of section 10 or the tax payable under the Central
Sales Tax Act, 1956 on the basis of the return submitted for any month in a
year, the jurisdictional Local VAT officer or VAT sub‑officer shall
adjust, such amount towards the arrear of any tax for any tax period under this
Act, the Karnataka Sales Tax Act, 1957, Central Sales Tax Act, 1956 or
Karnataka Tax on Entry of Goods Act, 1979 or Karnataka Special Tax on Entry of
Certain Goods Act, 2004, and shall issue a notice in Form VAT 250, showing
details of any adjustment made.
128. (1)
Where a dealer is eligible for
refund of tax under sub‑section (5) of section 10 on the basis of the
return submitted for any month during a year in respect of any goods exported
outside the territory of India after adjustment under sub‑rule (1) of
rule 127 or a dealer is eligible for refund on the basis of any final return
submitted under sub‑section (4) of section 27, the officer authorised by
the Commissioner in this behalf shall proceed to issue to such dealer a refund
payment order in Form VAT 255 sanctioning refund of such amount within thirty‑five
days after the end of the month for which a return is furnished within the time
specified under section 35 or within fifteen days from the date of receipt of
such return if it is filed after the time specified for that month and any
other subsequent month for that year in which the dealer is eligible for refund
of tax on the basis of the return filed or within thirty‑five days from
the date of receipt of such final return.
(2) In the case of
any other dealer eligible for refund of tax under sub‑section (5) of
section 10 on the basis of the return submitted for the last month of any year,
after adjustment under rule 127, the officer authorised by the Commissioner in
this behalf shall proceed to issue to such dealer a refund payment order in
Form VAT 255 sanctioning refund of any amount refundable, within thirty‑five
days after the end of the last month of the year for which such return is
furnished, within the time specified under section 35 or within fifteen days
from the date of receipt of such return if it is filed after the time
specified, declaring such amount as refundable after any adjustment.
(3) The Local VAT
officer or VAT sub‑officer may reject, within the time specified in sub‑rule
(1) or (2), any claim for refund if the claim filed appears to involve any
mistake apparent on the record or appears to be incorrect or incomplete, based
on any information available on the record, after giving the dealer the
opportunity to show cause in writing against such rejection.
(4) In computing
the period of thirty‑five days in sub‑rule (1) or (2), there shall
be excluded of the following periods under sub‑section (3) of section 50,
namely
(a) any delay
attributable to the conduct of the person to whom the refund is payable;
(b) the time
during which any reasonable inquiry relating to the return or claim was
initiated and completed; and
(c) the time taken
for adjustment under sub‑section (2) of section 50 by the refunding
authority of any tax, interest or other amount due.
(5) Where any
amount refundable under sub‑rule (1) is not refunded to the dealer within
the period specified, the, refund payment order in Form VAT 255 shall include
the interest specified under section 50 covering the period following the end
of the said period to the day of refund.
(6) The Local VAT
officer or VAT sub‑officer shall, if he is satisfied that any other
refund is due to any person under the Act, by virtue of any order or
proceeding, issue to such dealer a refund payment order in Form VAT 255 sanctioning
refund of such amount together with payment of interest as provided under
section 50.
(7) Where a refund
payment order is issued, the officer shall simultaneously send a copy of such
order to the Treasury Officer concerned or, where the cash transactions of the
Government are handled by the Reserve Bank or any of its agency Banks, to the
officer in charge of such Bank where the payment of the refund is to be made.
129. (1) The
application to be submitted under section 47 shall be in Form VAT 260.
(2) The person
claiming refund shall enclose with the application copies of tax invoices duly
certified by the dealer in respect of whom the order of forfeiture under
section 47 is passed, and a certified copy of the order of forfeiture so
passed.
(3) If the claim
for refund relates to collection of tax by more than one dealer, separate
application in respect of each of such dealer shall be made.
(4) On receipt of
the application, if the Commissioner is satisfied, after holding such inquiry
as he considers necessary, that the claim for refund is valid and admissible,
he shall pass orders for such refund of the amount or any part thereof by the
jurisdictional Local VAT officer or VAT sub‑officer.
130. (1)
Any person claiming reimbursement
of tax under section 21 shall make an application in Form VAT 165, to the
Commissioner within sixty days from the date of purchase, together with copies
of invoices.
(2) On receipt of
the application, if the Commissioner is satisfied, that the claim for
reimbursement is valid and admissible, he shall pass orders for such
reimbursement of the amount or any part thereof by the jurisdictional Local VAT
officer or VAT sub‑officer.
PARTIAL EXEMPTION,
CAPITAL GOODS AND SPECIAL ACCOUNTING SCHEMES
131. Apportionment of input tax in the case of a
dealer falling under section 17 shall be calculated as follows:
(1) All input tax
directly relating to sale of goods exempt under section 5 other than such goods
sold in the course of export out of the territory of India, is non‑deductible.
(2) All input tax
directly relating to taxable sales may be deducted, subject to the provisions
of section 11.
(3) Any input tax
relating to both sale of taxable goods and exempt goods, including inputs used
for non‑taxable transactions, that is, the non‑identifiable input
tax, may be deducted, based on the following formula:
Sales of taxable goods x Non‑identifiable input tax =
Deductible element of input tax
Total Sales
(including
non‑taxable transactions)
(4)
For the purpose of clause (3),
(a) "sale of taxable goods" would be the aggregate of
the amounts specified in clauses (b), (c), (d), (e) and (f) of sub‑rule
(1) of rule 3 relating to sale of goods other than those exempt under section 5
which are not sold in the course of export out of the territory of India; and
(b) "total sales" means total
turnover less
(i) the amount
specified in clause (a) of sub‑rule (1) of Rule 3, and
(ii) the
deductions specified in clause (e) of sub‑rule (2) of rule 3.
(5) Wherein the
case of any dealer, the Commissioner is of the opinion that the application of
the formula prescribed under clause (3) does not give the correct amount of
deductible input tax, he may direct the dealer to adopt a special formula as he
may specify.
132. (1)
Any dealer claiming input tax
deduction under rule 131, shall complete his return on a provisional basis each
month, and the true apportionment for the year shall be made in the returns to
be furnished for the sixth and final months of the year after calculating the
apportionment under clause (3) or (5) of Rule 131 for the part period and the
whole year.
(2) Where, under
sub‑rule (1), in any period of one month the total input tax due on a
dealer's non‑taxable transactions does not exceed five hundred rupees,
all such input tax in that period shall be treated as input tax on taxable
sales.
133. (1) A dealer claiming input tax under
section 12, in respect of capital goods, as notified under clause (7) of section
2, shall, apply in Form VAT 170 to the jurisdictional local VAT officer or VAT
sub‑officer within thirty days of commencement of commercial production
or sale of taxable goods.
(2) The
jurisdictional local VAT officer or VAT sub‑officer shall review such
application to ensure that it contains all the information required and notify
the dealer within one month of the date of receipt of the application that it
was received within the prescribed time, and where it is not ‑satisfied
that the particulars contained in the application are correct and complete, and
after giving the dealer a reasonable opportunity of being heard, it shall
reject the application for reasons to be recorded in writing.
(3) The
jurisdictional local VAT officer or VAT sub‑officer shall inform a dealer
eligible for input tax rebate in Form VAT 175 within thirty days of receipt of
an application which is correct and complete.
(4) Deduction of
input tax under section 12 shall be subject to the following conditions:
(a) In the case of
a dealer selling goods in the course of export out of the territory of India
and the capital goods are used for the sale of such goods, wholly or partially,
and also used in the business the deduction shall be adjusted or refunded as
specified in sub‑rule (1) of rules 127 and 128.
(b) In other cases
the deduction shall be apportioned in equal monthly instalments over a period
of twelve months from the date indicated in Form VAT 170 during which period
the capital goods are used for the business of taxable goods, wholly or
partially.
(c) Where there is
a change in use of the capital goods from sale of exempt goods or non‑taxable
transactions to sale of taxable goods wholly or partially, the value of capital
goods eligible for rebate shall be calculated on the basis of a formula to be
notified by the Commissioner.
(d) The deduction
shall be claimed by the dealer in his monthly return.
(e) No deduction
of input tax shall be allowed where the use of capital goods relates wholly to
the sale of exempt goods, other than when such goods are sold in the course of
export out of the territory of India.
(f) Where the use
of capital goods relates to both the sale of goods in the course of export out
of the territory of India or sale of taxable and exempt goods and also to
taxable goods that are disposed otherwise than by way of sale or non‑taxable
transactions, the deductible element of input tax shall be calculated on the
basis of the formula specified under rule 131.
(g) No deduction
of input tax in respect of capital goods shall be allowed to a dealer
registered under section 22 and the taxable turnover of the dealer is less than
the limit specified in sub‑section (1) of section 22 during the year in
which the capital goods are purchased.
(5) (a) Where there is a change in use of the
capital goods, after the claim for input tax rebate has been allowed, and the
dealer is no longer eligible for such input tax rebate, the dealer shall inform
the jurisdictional local VAT officer or VAT sub‑officer within ten days
of such change in use.
(b) The
jurisdictional local VAT officer or VAT sub‑officer shall notify the
dealer in Form VAT 180 that he is no longer eligible for the input tax rebate
under the scheme with effect from the end of the month preceding the month in
which such change of use occurred.
(6) Where the
capital goods are sold within a period of twelve months from the date of the
commencement of commercial production or sale of taxable goods or sale of any
goods in the course of export out of the territory of India,
(a) the purchasing
dealer may claim the full input tax in his next return where the sale price
falls below the notified value, or claim input tax under the provisions of this
rule; and
(b) the selling
dealer shall pay full tax on such sale without any input tax rebate.
(7) Where the
capital goods are disposed of other‑wise than by way of sale within a
period of twelve months from the date of the commencement of commercial
production or sale of taxable goods or sale of any goods in the course of
export out of the territory of India the dealer shall pay tax calculated on the
prevailing market value of such goods at the time of such disposal.
134. (1)
The Commissioner may, under section
16, permit the taxable turnover of sales by a registered dealer to be
determined by a method agreed with that dealer or by any method described in a
notice issued by him for the purposes of this rule.
(2) A registered
dealer who makes sales of goods by retail directly to the consumer may
calculate tax on those sales by one of the methods specified under this rule.
(3) Such
registered dealer who has a taxable turnover relating to goods taxable at
different rates shall
(a) record the
daily total sales of goods taxable at different rates, including exempt sales,
at the end of the day; and
(b) at the end of
the month, based on daily taxable sales, calculate the tax content using the
tax fraction or fractions for the rate or rates of tax in force and include the
amount in the return for that period. .
(4) Such
registered dealer, who has a taxable turnover relating to goods which are
taxable at different rates and cannot be identified separately, shall
(a) record daily
total sales at the end of the day;
(b) at the end of
the month, calculate daily total sales for that month;
(c) apportion
those total sales into taxable sales in the same proportion as the value of
purchases of taxable goods made in the month out of the value of total purchases
in that month; and
(d) from the
apportioned taxable sales, calculate the tax for the month using the tax
fraction or fractions for the rate or rates of tax in force and include the
amount in the return for the month.
(5) For the
purposes of sub‑rules (3) and (4), "tax fraction" means the
fraction calculated in accordance with the following formula:
tax
rate
tax
rate + 100
(6)
A registered dealer using the
method of calculation under sub‑rule (4) shall, at the end of each year
(a) re‑calculate
his output tax in respect of sales made during that year, based on the
purchases made in that year in the manner specified above; and
(b) in his next
return, adjust any difference in output tax previously attributed to taxable
sales during that year.
(7) A registered
dealer, using the method of calculation under sub‑rule (4), where there
has been
(a) a cancellation of his registration;
(b) a change in the rate of tax;
(c) a change in the liability for tax that
affects the business; or
(d) a cessation of
the use of the chosen method of calculating output tax, shall re‑calculate
the output tax in respect of the period commencing at the beginning of the year
and ending on the date of the occurrence of any of the aforesaid events based
on the purchases made in that period in the manner specified above, and within
thirty days after the date of that event, include any adjustment to the output
tax previously attributed to taxable sales during that period in his return for
the next month.
(8) A registered
dealer shall keep a record of all payments received each day, including any
till rolls or electronic points of sale prints, where a dealer uses an
electronic system.
(9) A registered
dealer may choose to use one of the two methods described in sub‑rules
(3) and (4), and the method chosen shall continue to be used in any return
submitted, so long as the dealer remains a taxable dealer, for a period of not
less than twelve months from the date of adoption of that method by him.
(10) In the event of
a change in the rate of tax or liability to tax during a year, the calculation
in sub‑rule (3) or (4) of this Rule shall be made at the end of the day
on the date of change and also at the end of the day on the last date of the
month, using the rate of tax and the liability to tax in force on each
respective day.
(11) The local VAT
officer or VAT sub‑officer may refuse to permit the value of taxable
sales to be determined in accordance with a method if it appears
(a) that the use
of any particular scheme does not produce a fair and reasonable taxable
turnover during any period; or
(b)
that it is necessary to do so for
the protection of the revenue.
COMPOSITION OF TAX
Option to pay, returns and payment
135. A dealer opting to pay tax by way of
composition under section 15, shall satisfy the following conditions:
(1) He shall be a
dealer registered under the Act or a dealer who has made an application for
registration under the Act.
(2) He shall not have
any goods in stock which are brought from outside the State on the date he opts
to pay tax by way of composition and shall not sell any goods brought from
outside the State after such date.
(3) He shall not
be a dealer who has claimed tax rebate on stock in hand under section 18 as at
the date of commencement of the Act.
(4) He shall not
be a dealer selling liquor.
(5) He shall not
be a dealer selling goods in the course of inter‑State trade or commerce
or in the course of export out of the territory of India.
(6) He shall not
be a dealer who has withdrawn his option to pay tax by way of composition and
(a) has paid tax
under section 3 for a period of less than twelve months; or
(b) was not
registered under the Act during the preceding period of twelve months.
(7) He shall not
be a casual dealer or a dealer who is voluntarily registered under section 23.
136. A dealer opting to pay tax by way of
composition under section 15, shall
(1) report his
option, if not already registered, not later than the date on which his
registration comes into effect under section 25 and, if already registered, on
the first day of any month after the date of registration;
(2) report his
option in Form VAT 1 to the jurisdictional Local VAT officer or VAT sub‑officer;
and
(3) furnish a
return on Form VAT 100 and pay tax at the rate or rates specified in section 4
on his taxable turnover for any month within twenty days of the following
month, until he receives a certificate in Form VAT NIC from the jurisdictional
Local VAT officer or VAT sub‑officer.
137. The
jurisdictional Local VAT officer or VAT sub‑officer shall within a period
of fifteen days from the date of receipt of Form VAT 1
(1) if he
considers that the Form VAT 1 submitted under rule 136 is incorrect or incomplete
or the dealer is ineligible for any other reason, after giving him the
opportunity of showing cause in writing against rejection, issue a notice in
Form VAT 10 informing the dealer that the Form VAT 1 is rejected and, where
appropriate, demand any tax due;
(2) if he is
satisfied that the Form VAT 1 submitted under rule 136 is correct and complete
and within the time prescribed, issue a certificate in Form VAT NIC to the
dealer; and
(3) issue a
further certified copy of the certificate where a certificate issued under
clause (2) is lost or destroyed.
138. Every dealer, other than a dealer executing
works contracts, a dealer who is a hotelier or restaurateur or caterer and a
dealer producing granite metal by using stone crushing machinery, opting to pay
tax by way of composition under section 15, shall‑
(1) display his certificate in a prominent
location at his main place of business;
(2) pay tax, by way of composition, at a
rate notified by the Government;
(3) not collect tax on his sales;
(4) submit a
quarterly return to the jurisdictional Local VAT officer or VAT sub‑officer,
indicating the tax due on his sales of goods in Form VAT 120, together with
proof of full payment of the tax due, in accordance with rule 52, by the
fifteenth day of the month following the relevant quarter;
(5) as long as he
remains registered, submit such quarterly return, whether or not any tax is due
for any quarter;
(6) where he
needs to make any amendments to his quarterly return, submit a revised return
in Form VAT 130, together with proof of full payment of any further tax due, to
the jurisdictional Local VAT officer or VAT sub‑officer; and
(7) where he
submits a return after the due date, and also where he submits a revised
return, furnish proof of payment of the interest due under section 36.
139. Every
dealer executing a works contract and every dealer who is a hotelier or
restaurateur or caterer, opting to pay tax by way of composition under section
15, shall‑
(1) display his certificate of registration
in a prominent location at his main place of business;
(2) pay tax, by way of composition, at a
rate notified by the Government;
(3) not collect tax on his sales;
(4) submit a
monthly return to the jurisdictional Local VAT officer or VAT sub‑officer,
indicating the tax due in Form VAT 120, together with proof of full payment of
the tax due, in accordance with rule 52, within fifteen days after the end of
the relevant month;
(5) as long as he
remains registered, submit such monthly return, whether or not any tax is due
for any month;
(6) where he
needs to make any amendments to his monthly return, submit a revised return in
Form VAT 130, together with proof of full payment of any further tax due, to
the jurisdictional Local VAT officer or VAT sub‑officer; and
(7) where he
submits a return after the due date, and Also where he submits a revised
return, such return shall be accompanied by proof of payment of the interest
due under section 36.
140. Every dealer producing granite metal by using
stone‑crushing machinery, opting to pay tax by way of composition under
section 15 shall‑
(1) display his certificate in a prominent
location at his main place of business;
(2) pay tax, by way of composition, at a
rate notified by the Government;
(3) not collect tax on his sales;
(4) submit a
monthly return to the jurisdictional local VAT office or VAT sub‑office,
indicating the tax due in Form VAT 120, together with proof of full payment of
the tax due, in accordance with rule 52, within fifteen days after the end of
the relevant month;
(5) as long as he
remains registered, submit such monthly return, whether or not any tax is due
for any quarter;
(6) where he
needs to make any amendments to his monthly return, submit a revised return in
Form VAT 130, together with proof of full payment of any further tax due, to
the jurisdictional local VAT officer or VAT sub‑officer; and
(7) where he
submits a return after the due date, and also where he submits a revised return,
furnish proof of payment of the interest due under section 36.
141. Where
a return is not accompanied by proof of full payment of the tax in accordance
with rule 52, the jurisdictional Local VAT officer or VAT sub‑officer
shall issue a demand notice in Form VAT 210 requiring payment of the
outstanding tax due, together with interest payable under section 36.
Withdrawal from scheme and
cancellation of certificate
142. Every
dealer, other than a dealer executing works contracts, a dealer who is a hotelier
or restaurateur or caterer and a dealer producing granite metal by using stone
crushing machinery, who has opted to pay tax by way of ' composition and whose
total turnover within a period of four consecutive quarters exceeds the
threshold provided for under section 15, shall
(1) report to the
jurisdictional Local VAT officer or VAT sub‑officer by furnishing a final
return in Form VAT 135, accompanied by proof of full payment of the tax in
accordance with rule 52, within ten days of the end of the relevant quarter;
(2) surrender his
certificate in Form VAT NIC; and
(3) be liable to
pay tax under section 3 for the period starting from the first day of the month
succeeding the month in which he exceeded the threshold.
143. Any
dealer executing works contracts or a dealer who is a hotelier or restaurateur
or caterer, who has opted to pay tax by way of composition and has submitted
returns for twelve consecutive months or any other dealer who has opted to pay
tax by way of composition and has submitted returns for four consecutive
quarters may withdraw his option and shall
(1) report to the
jurisdictional Local VAT officer or VAT sub‑officer by furnishing a final
return in Form VAT 135 for the previous tax period accompanied by proof of full
payment of the tax in accordance with rule 53 on the first day of the following
month;
(2) surrender his certificate in Form VAT
NIC; and
(3) be liable to
pay tax under section 3 for the period starting from the first day of the month
succeeding the month in which he withdrew his option.
144. (1)
Every dealer, who after opting to
pay tax by way of composition purchases or obtains goods from outside the State
or from outside the territory of India shall be ineligible for such benefit and
liable to pay tax under section 3 from the first day of the month in which such
purchase or procurement was made.
(2)
Every such dealer falling under sub‑rule
(1) shall
(a) report to the
jurisdictional Local VAT officer or VAT sub‑officer by furnishing a final
return in Form VAT 135 for the previous tax period accompanied by proof of full
payment of the tax in accordance with rule 52 on the first day of the following
month; and
(b) surrender his certificate in Form VAT
NIC.
145. The
jurisdictional Local VAT officer or VAT sub‑officer shall, on receipt of
a final return filed by the dealer under rule 143 and in the case of a dealer
falling under rule 142 or 144 on receipt of the dealer's final return or on his
own motion, cancel such dealer's certificate and inform the dealer in Form VAT
15.
146. Every
dealer whose certificate Form VAT NIC has been cancelled shall be entitled to
deduction of input tax allowed subject to the restrictions imposed by section
11, in respect of tax charged to him by a seller on taxable sale of goods made
to him for the purpose of the business within three months prior to the
effective date of cancellation of his certificate in Form VAT NIC provided that
the goods are in stock at such date.
147. The
duties and obligations imposed by the Act and rules on any dealer shall not be
affected by the cancellation of his certificate in Form VAT NIC, to the extent
that they are necessary to obtain the tax due and any information for which the
dealer was responsible during the period of his certificate.
APPEALS AND REVISIONS
148. (1)
An appeal under section 62 against
any order or proceedings of an officer below the rank of a joint Commissioner
shall be preferred to the Joint Commissioner authorised by the Commissioner in
this behalf.
(2) The
Commissioner may, either suo motu or an application, for reasons to be recorded
in writing, transfer an appeal pending before an Appellate Authority to another
Appellate Authority.
(3) The order of
transfer shall be communicated to the appellant, to every other party affected
by the order, to the authority against whose order the appeal was preferred and
to the Appellate Authorities concerned.
(4) Where the
appeal is filed after the expiry of the period of limitation, it shall be
accompanied by an application for condonation of delay supported by a sworn
affidavit as to the cause of the delay.
149. (1)
Every appeal shall be made in Form
VAT 430 and shall be accompanied by
(a) two copies,
one of which shall be the original or an authenticated copy, of the order or
proceedings in respect of which appeal has been preferred;
(b) an application
for condonation of delay or stay of the payment of tax or other amount disputed
in the appeal accompanied by a sworn affidavit as to the cause of the delay.
(2) The appeal may
be sent to the Appellate Authority by registered post or may be presented to
that authority or to such officer as the Appellate Authority may appoint in
this behalf, by the appellant or his authorised agent or a legal practitioner
or an accountant or a tax practitioner duly authorised by the appellant in
writing.
(3) If the court
fee payable has not been paid, or proof of payment of the tax not disputed in
the appeal, has not been produced or the paper presented are not in conformity
with the provisions of the Act and these Rules, the appellate authority shall
issue a notice in Form VAT 435 requiring rectification of the defects, and the
appellant or his agent or pleader shall rectify the defects within a period of
thirty days from the date of issue of the notice.
(4) If the defects
are not rectified within the time specified, the Appellate Authority, after
giving the appellant or his representative the opportunity to show cause in
writing against the Notice of requiring rectification, shall pass an order
directing the appeal to be registered or rejected.
(5) Where the
Appellate Authority is satisfied that the appellant was prevented from
presenting the appeal for sufficient cause within the time specified, he may
condone the delay and admit the appeal,
(6) Where the
Appellate Authority is not satisfied with the cause shown by the appellant for
the delay, he may, after recording reasons, reject the appeal.
(7) The Appellate
Authority may dispose of any stay application as it deems fit, after giving the
appellant or his representative the opportunity to show cause in writing
against such disposal.
150. (1)(a) Every appeal under section 63 to the Appellate Tribunal shall
be in Form VAT 440 and shall be verified in the manner specified.
(b) The appeal
form shall be in quadruplicate and accompanied by four copies, one of which
shall be the original or an authenticated copy of the order appealed against,
and also four copies of the order giving rise to the first appeal.
(c) In the case of
an appeal preferred by any person other than an officer empowered by the State
Government under sub‑section (1) of section 63, the memorandum of appeal in
Form VAT 440 shall be affixed by a court fee stamp or shall be accompanied by a
treasury receipt in support of having paid the fee calculated at the rate of
two percent of the amount of assessment objected to subject to a minimum of two
hundred rupees and a maximum of one thousand rupees.
(d) Every
memorandum of cross‑objection under section 63 shall be in Form VAT 445
and shall be verified in the manner specified therein.
(2)(a) Every
application for review under sub‑section (8) of section 63 to Appellate
Tribunal shall be preferred in Form VAT 450 and shall be verified in the manner
specified therein.
(b) The
application for review shall be in quadruplicate and accompanied by four copies
of the original order of the Appellate Tribunal.
(c) The application
for review shall also, where it is preferred by the appellant other than the
State Government be affixed by a court fee stamp or shall be accompanied by a
treasury receipt in support of having paid the fee calculated at the rate of
two per cent of the amount of the assessment objected to, subject to a minimum
of two hundred rupees and a maximum .of one thousand rupees.
(3) If the
Appellate Tribunal allows an appeal or application for review preferred by the
appellant other than the State Government under section 63, it may, in its
discretion by order, refund either wholly or partly the fee paid by such
appellant under sub‑section (4) or clause (c) of sub‑section (6) of
section 63.
151. (1)
If an appellant or an applicant
dies while the appeal or application is pending and it cannot be proceeded with
unless his legal representative is brought on record, the Appellate Authority
or the Appellate Tribunal shall adjourn further proceedings to enable his legal
representative to appear and apply for being made a party and, if the legal
representative fails to do so within ninety days from the date on which the
appellant or applicant died, the appeal or the application shall abate as
regards the deceased.
(2) If a
respondent dies while an application for review by the Appellate Tribunal is
pending and it cannot be proceeded with unless his legal representative is
brought on record, the applicant shall apply to the Appellate Tribunal for
making the legal representative of such respondent a party to the application
for review within ninety days from the date on which the respondent died and,
if the applicant fails to do so, the application shall abate as regards the
deceased.
(3) Notwithstanding
anything contained in sub‑rules (1) and (2), there shall be no abatement
by reason of the death of any party between the conclusion of the hearing and
passing of the order but the order may, in such case be passed notwithstanding
the death, and shall have the same force and effect as if it had been passed
before the death took place.
(4) If a question
arises in any appeal, revision or review, whether a person is or is not the
legal representative of a deceased appellant, applicant or respondent, such
question may be determined by the Appellate Authority or the Appellate Tribunal
as the case may be, in a summary way, if necessary, after taking evidence.
152. (1)
Where, under clause (c) of sub‑section
(4) of section 62 and clause (b) of sub‑section (7) of section 63, it is
provided that an appellant or an applicant in revision proceedings shall
furnish security with regard to the payment of tax or fee or other amount, the
appellant or applicant or any person on his behalf shall furnish security or
bank guarantee as the authority before which the appeal or application is preferred
may in its discretion direct.
(2)
The security bond shall be in Form
VAT 455.
153. (1)(a) Every petition under sub‑section (1) of section 65 to
the High Court shall be in Form VAT 460 and shall be verified in the manner
specified therein.
(b) The petition
shall be accompanied by a certified copy of the order of the Appellate
Tribunal.
(2)(a) Every
application for review under sub‑section (10) of section 65 and any
application for review under section 66 to the High Court shall be in Form
VAT465 and FormVAT470 respectively, and shall be verified in the manner
specified therein.
(b) An application
for review under clause (a) above shall be preferred within ninety days from
the date of communication of the order sought to be reviewed.
(3) Every appeal
under section 66 to the High Court shall be in Form VAT 475 and verified in the
manner specified therein and shall be accompanied by the original order or a
certified copy of the order of the Additional Commissioner or Commissioner
appealed against.
(4) Every appeal
under sub‑section (1) of section 24 against an order passed by the
Authority under section 4 shall be in Form 23‑A and shall be verified in
the manner specified therein and shall be accompanied by the original order or
a certified copy of the order of the Authority appealed against.
154. Where
the tax as determined by the initial authority assessing such tax appears to
the Appellate Authority under section 62 or Revisional Authority under section
64 to be less than the correct amount of the tax payable by the dealer, the
Appellate or Revisional Authority shall, before passing orders, determine the
correct amount of tax payable by the dealer, after issuing a notice to the
dealer in Form VAT 480 and after making such enquiry as such Appellate or
Revisional Authority considers necessary.
155. (1)
Every order of an Appellate or Revisional Authority under section 62 or 63
shall be communicated to the appellant and to every other party affected by the
order, to the prescribed authority against whose order the appeal or revision
was filed and to any other authority concerned.
(2) The order
passed on appeal or revision shall be given effect to by the prescribed
authority who shall refund without interest any excess tax found to have been
collected and shall also collect any additional tax which is found to be due in
the same manner as any tax assessed.
(3) For the
purpose of sub‑section (1) of section 51 the Commissioner shall be the
prescribed authority.
156. Every
order passed by the Appellate Tribunal or the High Court shall, on
authorisation by the Appellate Tribunal or the High Court, be given effect to
by the prescribed authority, which shall refund without interest any excess tax
found to have been collected and shall also collect any additional tax which is
found to be due in the same manner as tax assessed.
INSPECTION OF GOODS IN TRANSIT
157. (1)
The document referred to in sub‑section
(2) of section 53 shall be
(a) a delivery note
in Form VAT 505, issued by the owner or the consignor of goods, in respect of
such goods as may be notified by the Commissioner and where the goods are
carried as a result of sale, a tax invoice or a bill of sale;
(b) a tax invoice or
a bill of sale where the goods are carried as a result of sale and are not
covered by clause (a); and
(c) a delivery
note in Form VAT 505, issued by the owner or the consignor of goods or Form VAT
515. issued by the owner or the consignor of goods, who is a dealer permitted
to issue such delivery note in Form VAT 515 as may be notified by the
Commissioner subject to such conditions as specified, where the goods carried
are not covered by clause (a).
(2) (a) The delivery note in Form VAT 505 shall
be obtained by a dealer from the Local VAT officer or VAT sub‑officer on
payment of fifty rupees per book of twenty‑five forms or two rupees per
form.
(b) Every Form VAT
505 so obtained by the dealer shall be kept by him in safe custody, and the
dealer shall be personally responsible for the loss destruction or theft of any
such form or the loss of revenue to the State Government resulting directly or
indirectly from such loss, destruction or theft.
(c) Every dealer
shall maintain in a register in Form VAT 510 true and complete account of every
such form obtained by him and where any form is lost, destroyed or stolen, the
dealer shall report the fact to the jurisdictional Local VAT officer or VAT sub‑officer
within a week of such loss, destruction or theft, shall make appropriate
entries in the remarks column of the said register and take such other steps to
issue public notice of the loss, destruction or theft, as such officer may
direct.
(d) Any unused
delivery note in Form VAT 505 remaining in stock with a dealer shall be surrendered to the jurisdictional Local VAT
officer or VAT sub‑officer within thirty days of the discontinuance of
the business by the dealer or cancellation of his certificate of registration.
(e) No dealer who
has obtained such form shall, either directly or through any other person,
transfer the same to another person.
(f) A delivery
note in respect of which a report has been received by the jurisdictional tax
officer under clause (c) shall not be valid for the purpose of sub‑section
(2) of section 53.
(g) The joint
Commissioner shall from time to time publish in the Official Gazette, the
particulars of the delivery notes in Form VAT 505 in respect of which a report
has been received under clause (c).
(3) (a) Every dealer issuing a delivery note in
Form VAT 515 shall notify in advance the commencement of issue of such delivery
notes to the jurisdictional Local VAT officer or VAT sub‑officer and
thereafter the said dealer shall be deemed to be permitted to issue Form VAT
515.
(b) Every delivery
note in Form VAT 515 issued under clause (a), shall be printed in triplicate in
black ink on white paper measuring 210 by 297 m.m. and serially machine
numbered, and the dealer shall maintain an account in respect of such delivery
notes issued in a register in Form VAT 520.
(c) If any dealer
fails to maintain a true and correct account as required under clause (b) or is
found to have transported any goods in contravention of the provisions of sub‑section
(2) of section 53, the jurisdictional Local VAT officer or VAT sub‑officer
shall, after giving such dealer a reasonable opportunity of being heard pass an
order disentitling such dealer from issuing any delivery note in Form VAT 515
and directing such dealer to obtain delivery note in Form VAT 505.
(d) The Local VAT
officer or VAT sub‑officer may, subject to payment of security that he
may demand for proper use of delivery note in Form VAT 515, in his discretion,
permit a dealer in respect of whom an order has been passed under clause (c),
to issue the Form VAT 515 afresh and to make use of the same for transport of
goods.
158. The declaration under clause (d) of sub‑section
(2) of section 53 shall be in Form VAT 525.
159. (1) The driver or any other person in‑charge
of a goods vehicle or boat, shall stop the vehicle or boat at a check‑post
or a barrier and keep it stationary for as long as it is required by the
officer‑in‑charge of the check‑post or barrier and allow
examination of the goods in the vehicle or the boat and inspection of all the
records connected with the goods in the vehicle or boat.
(2) When the
officer‑in‑charge of the check‑post or barrier is not at the
check‑post or barrier, the driver or any‑other person in‑charge
of a goods vehicle or boat shall keep it stationary at the check‑post or
barrier, when required by any officer assisting the officer‑in‑charge
of the check‑post or barrier, for a period not exceeding ten minutes in
order to ena6le the officer‑in‑charge of the check‑post or
barrier to come and examine the goods.
(3) When such officer
examines the goods, the owner or other person in‑charge of the goods
vehicle shall deliver to such officer copies of the goods vehicle record, trip
sheet or log book and also the tax invoice, bill of sale or delivery note which
accompanies the goods vehicle.
(4) If on such
inspection by any such officer it is found that in respect of goods being
transported in the goods vehicle or boat
(a) there is any
contravention of or non‑compliance with the provisions of sub‑section
(2) or sub‑section (3) of section 53; or
(b) the
declaration made under sub‑section (2) of section 53 is false in respect
of the materials furnished therein; or
(c) the
particulars furnished in the records do not tally with the goods actually being
transported or do not relate to such goods, such officer may, after giving the
owner or person in‑charge of the goods vehicle or boat a reasonable
opportunity of being heard, by order, levy a penalty not exceeding the limits
specified in sub‑section (12) of section 53.
(5) The officer
disposing of goods in public auction under clause (c) of sub‑section (14)
of section 53, shall make remittance of the sale proceeds into the Government
Treasury and, after adjusting the sale proceeds towards penalty and charges
incurred by the State, shall inform and refund the balance amount, by issuing a
refund payment order as specified under rule 128 to the owner or person in‑charge
of goods vehicle or boat or to a dealer registered under the Act or carrier or
bailee, who applies for a refund of the amount in person or through his
authorised agent within sixty days from the date of receipt of such
information.
160. (1)
At any place other than a check‑post
or barrier, the driver or any other person in‑charge of a goods vehicle
or boat, shall stop on demand by an officer of the Department, authorised in
this behalf, and keep it stationary as long as it is required and allow
examination of the goods in the vehicle or boat and inspection of all records
connected with the goods in the vehicle or boat.
(2) The provisions
of sub‑rules (3) and (4) of rule 159 shall apply mutatis mutandis to the
inspection made under this rule as if such inspection had been made at a check‑post
or barrier.
161. (1)
The driver or the person in‑charge
of a goods vehicle shall, in order to obtain a pass under section 54, submit an
application, in triplicate, in Form VAT 530 to the officer‑in‑charge
of the check‑post or barrier established near the point of entry into the
State or the first check‑post or barrier after his entry into the State
(hereinafter referred to as the entry check‑post) or to any other officer
empowered in this behalf.
(2) The officer‑in‑charge
of the entry check‑post or such officer empowered shall, after examining
the document and after making such enquiries as he deems necessary, issue a
pass on the duplicate and triplicate copies of the application, retaining the
original himself.
(3) The pass shall
specify the check‑post or the barrier (hereinafter referred to as the
exit check‑post) of the State to be crossed by the vehicle, the route to
be followed and the date and time up to which it should so cross.
(4) If for any
reason, the vehicle after its entry into the State is not able to move out of
the State within the stipulated time, the driver or person in‑charge of
goods vehicle shall seek extension of time from
(a) the officer who issued the transit pass;
or
(b) any officer empowered to issue the
transit pass; or
(c) the
jurisdictional Local VAT officer or VAT sub‑officer where the vehicle is
stationed at the time of seeking extension of time.
(5) The officer
specified in this sub‑rule (4) shall, after examining the reasons for
delayand after such enquiry a she deems fit, extend the time of exit by
suitably amending the transit pass.
(6) The driver or
the person in‑charge of the goods vehicle shall surrender the duplicate
copy of the pass at the specified exit check‑post and allow the officer‑in‑charge
of the check‑post to inspect the documents, consignments and goods in order
to ensure that the goods being taken out of the State are the same for which
pass had been obtained, and the officer‑in‑charge of such check‑post
shall issue a receipt on the triplicate copy of the pass for the duplicate copy
surrendered by the driver or the person in‑charge of the goods vehicle.
(7) The officer‑in‑charge
of the exit check‑post may for the purpose mentioned in sub‑rule
(6) detain, unload and search the contents of the vehicle.
(8) Where for any
reason the pass issued does not specify the exit check‑post of the State
to be crossed and if for sufficient reason the driver or the person in‑charge
of the goods vehicle is unable to surrender the duplicate copy of such pass
before exit from the State, the driver or the person in‑charge of the
goods vehicle shall cause to surrender the copy to the officer‑in‑charge
of the entry check‑post either in person or by registered post
acknowledgement due within seven days from the date of crossing the State
limits.
(9) The officer‑in‑charge
of the entry check‑post or any other officer empowered under section 54
may also demand such amounts not exceeding the amount specified in sub‑section
(7) of the said section as security from the owner of the vehicle in the
circumstances specified in that section.
162. The
excess amount specified in sub‑section (7) of section 52 and clause (c)
of sub‑section (4) of section 53 shall be refunded by issue of a refund
payment order in Form VAT 255 by the officer within fifteen days from the date
of receipt of sale proceeds.
CLARIFICATION OF RATE OF TAX AND ADVANCE RULINGS
163. Fee for
Commissioner's clarification on rate of tax
(1) The fee
payable for seeking clarification under sub‑section (4) of section 59
shall be five hundred rupees.
(2) The fee specified
in sub‑rule (1) shall be paid by way of crossed demand draft in favour of
the Commissioner of Commercial Taxes in Karnataka, Bangalore.
In
this Part, unless the context otherwise requires,
(a) "Advance
Ruling" means a determination by the Authority in relation to a
transaction which has been undertaken or is proposed to be undertaken by a
dealer registered under the Act;
(b) "Applicant"
means any dealer who is registered under the Act;
(c) "Application"
means an application made to the Authority under sub‑section (2) of
section 60;
(d) "Authorised
representative"
(i) in relation
to an applicant shall have the meaning assigned to it under section 86;
(ii) in relation
to the Commissioner, means any officer authorised by the Commissioner in
writing to appear, plead and act for the Commissioner in any proceedings before
the Authority;
(e) "Authority"
means the Authority for Clarification and Advance Rulings constituted under
section 60;
(f) "Case"
means any proceedings under section 60 in respect of an applicant;
(g) "Chairman"
means the Chairman of the Authority;
(h) "Member"
means a member of the Authority and includes the Chairman;
(i) "Order"
includes any order, direction or ruling of the Authority;
(i) "Secretary"
means any officer designated as the Secretary of the Authority;
(k) Words and
expressions used and not defined herein but defined in the Act, shall have the
meanings respectively assigned to them in the Act.
165. (1)
An application under sub‑section
(2) of section 60 shall be made in Form VAT 540 and shall be verified in the
manner indicated therein, and every such application shall be accompanied by a
fee of one thousand rupees.
(2) The fees
specified in sub‑rule (1) above shall be paid by way of crossed demand
draft in favour of the Commissioner of Commercial Taxes in Karnataka,
Bangalore.
(3) An applicant
may withdraw an application made under sub‑section (1) of section 60
within thirty days from the date of application.
(4) On receipt of
an application, the Authority shall cause a copy thereof to be forwarded to the
authority concerned and call for its finding on the clarification sought or
question raised and also production of any information or records.
(5) The Authority
may, after examining the application and any records called for, by order,
either, admit or reject the application.
(6) The Authority
shall not admit the application where the question raised in the application,
(a) is already
pending before any officer or authority of the Department or Appellate Tribunal
or any Court in any proceeding before them; or
(b) relates to a
transaction or issue which is designed apparently for the avoidance of tax.
(7) No application
shall be rejected under sub‑rule (5) unless an opportunity has been given
to the applicant to show cause in writing against such rejection, and where the
application is rejected, reasons for such rejections shall be given in the
order.
(8) The Authority
shall hear and determine an application made under sub‑section (2) of
section 60 and such other applications, petitions and representations of an
interlocutory, incidental or ancillary nature as may be necessary for a
complete and effective disposal of the application, as the Chairman may by
general or special order direct.
(9) Where an
application is admitted under sub‑rule (5), the Authority shall, after
examining such further material as may be placed before it by the applicant or
obtained by the Authority, pass such order as deemed fit on the questions
specified in the application, after giving an opportunity of being heard to the
applicant, if he so desires and also the Local VAT officer or VAT sub‑officer
or Registering Authority.
(10) The Authority
shall pass an order within three months of the receipt of any application, and
a copy of every order made under section 60 shall be sent to the applicant and
the officer concerned.
(11) The
Commissioner may constitute the Authority consisting of three Additional
Commissioners as members and authorise the senior‑most member to act as
Chairman.
(12) The
Commissioner may authorise any officer to act as the Secretary of the
Authority.
(13) The Authority
shall hold its sittings at its headquarters at Bangalore at least twice in a
month, and the date and place of hearing shall be notified in such manner as
the Chairman may by general or special order direct.
(14) The Secretary
shall have the custody of the records of the Authority and shall exercise such
other functions as are assigned to him under these rules or by the Chairman by
separate order.
(15)
The official seal of the Authority
shall be kept in custody of the Secretary.
(16)
The Secretary shall also have the
following powers and duties, namely:
(a) to receive all
applications filed before the Authority;
(b) to scrutinize
the applications to find out whether they are in conformity with the Act, the
rules and the procedure;
(c) to point out
defects in such applications to the parties and grant time to remove the
defects and where, within the time granted, the defects are not removed, to
obtain necessary orders of the Authority;
(d) to fix the
dates of hearing for the applications in consultation with the Chairman and
direct the issue of notices thereof;
(e) to issue
notices or other processes and to ensure that the parties are properly served;
(f) to requisition
records from the custody of any person including any Authority,
(g) to allow
inspection of records of the Authority;
(h) to direct any
formal amendment of the records of the Authority;
(i) to grant
certified copies of the orders of the Authority to the parties; and to grant
certified copies of documents filed in the proceedings to the parties in
accordance with the rules.
(17) (a) Any requisition, direction, letter,
authorisation or written notice to be issued by the Authority shall be signed
by the Secretary or by an officer authorized by him.
(b) Nothing in
clause (a) shall apply to any requisition or direction which the Authority may,
in the course of the hearing, issue to an applicant or any authority or an
authorised representative.
(18) (a) The Authority may at its discretion
permit or require the applicant to submit such additional facts as may be
necessary to enable it to pronounce its clarification or advance ruling.
(b) Where in the
course of the proceedings before the Authority a fact is alleged which cannot
be borne out by, or is contrary to, the record, it shall be stated clearly and
concisely and supported by a duly sworn affidavit.
(19) The applicant
shall not, except by leave of the Authority be heard in support of any
additional question not set‑forth in the application, but in deciding the
application, the Authority shall at its discretion consider all aspects of the
questions set‑forth as may be necessary to pronounce a ruling on the
substance of the questions posed for its consideration.
(20) An authorised
representative appearing for the applicant at the hearing shall file, before
the commencement of the hearing, a document authorising him to appear for the
applicant and, if he is a relative of the applicant, the document shall state
the nature of his relationship with the applicant or, if he is a person
regularly employed by the applicant, the capacity in which he is at the time
employed.
(21) Where the
applicant dies or is wound up or dissolved or disrupted or amalgamated or
succeeded to by any other person or otherwise comes to an end, the application
shall not abate and may be permitted by the Authority, where it considers that
the circumstances justify it, to be continued by the executor, administrator or
other legal representative of the applicant or by the liquidator, receiver or
assignee, as the case may be, on an application made in this behalf.
(22) (a) Where, on the date fixed for hearing or
any other day to which the hearing may be adjourned, the applicant or the
officer concerned does not appear in person or through an authorised
representative when called on for hearing, the Authority may dispose of the
application ex‑parte on merits.
Where
an application has been disposed of under clause (a) above and the applicant or
the officer concerned applies within fifteen days of receipt of the order and
satisfies the Authority that there was sufficient cause for his non‑appearance
when the application was called upon for hearing, the Authority may, after
allowing the opposite party a reasonable opportunity of being heard, make an
order setting aside the ex‑parte order
and restore the application for fresh hearing.
(23) Where the Authority
finds on its own motion or on a representation made to it by the applicant or
the officer concerned, but before the clarification or ruling pronounced by the
Authority has been given effect to by the officer concerned, that there is a
change in law or facts on the basis of which the clarification or ruling was
pronounced, it may by order modify such ruling in such respects as it considers
appropriate, after allowing the applicant and the officer a reasonable
opportunity of being heard.
(24) (a) The Authority may, with a view to
rectifying any mistake apparent from the record, amend any order passed by it
before the clarification or ruling order pronounced by the Authority has been
given effect to by the officer concerned.
(b) An amendment
under clause (a) may be made on the Authority's own motion or when the mistake
is brought to its notice by the applicant or the officer concerned, but only
after allowing the applicant and the officer reasonable opportunities of being
heard.
(25) If at any stage
of the proceedings before the Authority it appears that there is any factual or
material error in the records, the same shall be amended after hearing the
applicant and the officer concerned.
(26) (a) The applicant or the officer concerned
or an authorised representative may by allowed to inspect the records of the
case on making an application in writing to the Secretary, provided that only
those documents shall be allowed to be inspected which have been relied upon in
the proceedings before the Authority.
(b) The inspection
shall be allowed only in the presence of an officer of the Authority and the
applicant may be permitted to make notes of inspection but not to take copies
of any document.
(c) Fees for
inspecting records of the Authority shall be charged from the applicant as
follows:
(i) One hundred
rupees for the first hour or part thereof, and (ii) Fifty rupees for every
additional hour or part thereof.
(d) Fees for inspection shall be paid in
advance in cash.
(27) Proceedings
before the Authority shall be open to the public,
(28) Such of the
orders of the Authority, as the Chairman deems fit for publication in any
authoritative report or the Press, may be released for such publication on such
terms and conditions as the Chairman may specify.
(29) (a) Every order of the Authority under
section 60 shall be duly signed by the members and bear the official seal of
the Authority.
(b) One certified
copy of such order of the Authority shall be communicated to the applicant and
the officer concerned under the signature of the Secretary or any other officer
of the Authority authorised by him in this behalf and bear the official seal of
the Authority.
(30) (a) When one, or both, of the members of the
Authority other than the Chairman is unable to discharge his functions owing to
absence, illness or any other cause or in the event of occurrence of any
vacancy or vacancies in the office of the members and the case cannot be
adjourned for any reason, the Chairman and the remaining member may function as
the Authority.
(b) Subject to the
provisions of sub‑rule (3), in case there is difference of opinion among
the members hearing an application, the opinion of the majority of members
shall prevail and orders of the Authority shall be expressed in terms of the
views of the majority but any member dissenting from the majority view may
record his reasons separately.
(c) Where the
Chairman and one other member hear a case under clause (a) and are divided in
their opinion, the case shall be heard by all the three members.
(31) The provisions
contained in these rules for the hearing and disposal of an application under
sub‑section (2) of section 60 shall apply mutatis mutandis to the hearing
and disposal of all other applications, petitions and representations before
the Authority.
MISCELLANEOUS
166. Transitional
relief on stock in hand
(1) At the date of
commencement of the Act, any registered dealer shall be entitled under section
18 to relief on the goods taxable under the Act held in stock which were taxable
under the Karnataka Sales Tax Act (Karnataka Act 25 of 1957) (hereinafter
referred to as the said Act) and were purchased during the preceding twelve
months within the State from other dealers registered under the said Act for
resale or use in manufacture as component part or raw material in whatever for
they are held in stock on such date or consumable other than as fuel as defined
under the said Act, at an amount equivalent to
(a) the tax payable under section 5 or 5A or
6 of the said Act; or
(b)
the tax payable under section 4 of the Act, whichever is lower.
(2)
Any goods sold prior to the date of
the commencement of the Act,
(a) which are
returned from the purchasers within a period of six months from the date of
delivery of such goods and in respect of which deduction is allowed under the
said Act; or
(b) which are
received by the purchasing registered dealer after such date, shall be deemed
to be held in stock for the purpose of sub‑rule (1).
(3)
The amount of tax payable for the
purpose of sub‑rule (1) shall be,
(a) the amount
charged and collected by the selling dealer in the bill of sale issued or
calculated on the value of the goods at which the selling dealer has charged
tax at the applicable rate, and
(b) in respect of
tax payable under clause (b) of sub‑section (3) of section 5 and section
6 of the said Act, the amount paid as tax.
(4) If the selling
dealer has not charged tax in the bill of sale for the reason of him not being
the first or the earliest of the successive dealers liable to tax under the
said Act or for any other reason including for the reason that the selling
dealer is a new industrial unit exempt by a notification issued under sub‑section
(1) of section 19‑C of the said Act but excluding when goods are sold in
the course of inter‑State trade or commerce or in the course of import
into the territory of India, the amount of tax deemed as paid or payable shall
be calculated at the rate specified under section 5 of the said Act or section
4 of the Act, whichever is lower, on the value of goods as shown in the bill of
sale less ten per cent.
(5) In respect of
any goods purchased from a selling dealer who is a new industrial unit exempt
by a notification issued under sub‑section (1) of section 19‑C of
the said Act relief would be allowed under sub‑rule (1) only if the goods
are for re‑sale in the State.
(6) Every
registered dealer claiming relief under sub‑rule (1) shall make an
application in Form VAT 265 to the jurisdictional Local VAT officer or VAT sub‑officer
within thirty days of the commencement of the Act and also make a revised
application in respect of any change in the application made on account of
goods returned by him or by the purchasers, within ten days of such return of
goods.
(7) The
jurisdictional Local VAT officer or VAT sub‑officer shall review such
application including any revised application made and issue a certificate in
Form VAT 270, indicating the amount to which the dealer is entitled as relief.
(8) The relief
under sub‑rule (7) may be refunded or adjusted towards arrear of any tax
or output tax payable by the dealer in the manner prescribed under sub‑rule
(1) of rules 127 and 128 in equal monthly instalments over a period of six
months from the end of three months after the commencement of the Act and any
amount not adjusted during such period shall be allowed to be adjusted towards
the output tax payable for any subsequent tax period.
The
Authorities as may be authorised by the joint Commissioner shall exercise the
powers specified in section 82.
168. Provisions relating to an
Accountant or Tax Practitioner
(1) An Accountant
competent to appear before any authority under clause (c) of section 86 shall
be a person possessing the qualification of an auditor of a Company in the
State of Karnataka referred to in section 226 of the Companies Act, 1956
(Central Act 1 of 1956).
(2) An application
in Form VAT 545 along with a treasury receipt in support of having paid an
enrolment fee of one thousand rupees, may be made to the Commissioner of
Commercial Taxes for enrolment as Tax Practitioner by any person who satisfies
any of the conditions specified below, namely
(a) that, before
the commencement of this Act, he had appeared before any authority under the
Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) for not less than two
years on behalf of any dealer, otherwise than in the capacity of an employee or
relative of such dealer, in proceedings under the said Act; or
(b) that he is a
retired officer of the Commercial Tax Department of the Government of Karnataka
or any other State Government who, during his service under the Government, had
worked in a post not lower in rank than that of a VAT sub‑officer for a
period of not less than two years; or
(c) that he has
passed
(i) a degree
examination in Commerce, Law, Banking including Higher Auditing, Corporate
Secretaryship or Business Administration or Business Management of any Indian
University established by any law for the time being in force; or
(ii)
a degree examination of any Foreign
University recognized by any Indian University as equivalent of the degree
examination mentioned in clause (i); or
(iii) any other examination notified by
Government for this purpose; or
(iv) any degree examination
of an Indian University or of any Foreign University recognized by any Indian
University as equivalent of the degree examination and has also passed any of
the following examinations, namely:
(a) final
examination of the Institute of Cost and Works Accountants of India,
constituted under the Cost and Works Accountants Act, 1959 (Central Act XXIII
of 1959); or
(b) final
examination of the Institute of Company Secretaries of India, New Delhi; or
(c) final
examination of the Institute of Chartered Accountants of India, constituted
under the Chartered Accountants Act, 1949 (38 of 1949). or (d) any other
examination notified by the Government for this purpose.
(3) On receipt of
the application referred to in sub‑rule (2), the Commissioner shall, after
making such enquiry as he considers necessary, enrol the applicant as a Tax
Practitioner.
(4) Where the
applicant is a retired officer of the Commercial Tax Department, the
Commissioner may place such restrictions as he thinks fit, regarding the areas
in which such applicant may practice as a Tax Practitioner till the expiry of a
period of five years from the date of his retirement.
(5) The enrolment
made under sub‑rule (3) shall be valid until it is cancelled.
(6) If any Tax
Practitioner is found guilty of misconduct is connection with any proceeding
under the Act, the Commissioner may, by order, direct that he shall hence
forward be disqualified from the profession under section 86, after giving him
the opportunity of showing cause in writing against such disqualification.
(7) Any person
whose application for enrolment made under sub‑rule (2) has been rejected
and any Tax Practitioner against whom an order under sub‑rule (6) is
made, may, within thirty days from the date of receipt of the order of
rejection or the order under sub‑rule (6), appeal to the State Government
against such order.
(8) The
Commissioner shall maintain the list of Tax Practitioners enrolled under sub‑rule
(2) in Form VAT 550 and make such amendments to the list as may be necessary
from time to time, by reason of any change of address or death or
disqualification of any practitioner.
169. Conditions for purposes of
appearance under clause (c) of section 86
(1) No person
shall be eligible as a Tax Practitioner to attend before any authority in
connection with any proceeding under the Act on behalf of any dealer or person
unless his name has been entered in the list maintained by the Commissioner
under sub‑rule (8) of rule 163.
(2) An Accountant
or a Tax Practitioner attending on behalf of a dealer or a person in any
proceeding under the Act before any authority shall produce before such
authority an authorization given by the dealer or person in Form VAT 555.
170. Liabilities of a legal
representative, etc.
(1) Where any dealer
doing business in respect of which tax is payable under this Act is dead, the
executor, administrator, successor‑in‑title or other legal
representative of the deceased shall, in respect of such business, be liable to
submit the returns due under section 35 or to assessment under section 38 and
to pay out of the estate of the deceased dealer any tax or other amount due
from the deceased dealer.
(2) The provisions
under sections 62 to 66 relating to appeals and revisions shall be applicable
to assessments made under sub‑rule (1) as if the executor, administrator,
successor‑in‑title or other legal representative were himself the
dealer.
(3) The provisions
of sub‑rules (1) and (2) shall apply mutatis mutandis to a partnership
firm of which any of the managing partners have died.
(4) Where any
Hindu undivided or Aliyasanthana family, firm or other association of persons
is partitioned, dissolved or discontinued, notice, summons or orders issued
under the Act or these rules may be served on such person who was a member of
the family or a partner or a member of the association immediately before such
partition, dissolution or discontinuance.
(5) Where any
business is carried on by or is in‑charge of any guardian, trustee or
agent of a minor or other incapacitated person, on behalf and for the benefit
of such minor or other incapacitated person, such guardian, trustee or agent
shall in respect of the turnover of the said business be liable to submit the
returns due under section 35 or to assessment under section 38, and the tax or
any other amount shall be levied upon and be recoverable from such guardian,
trustee or agent, as it would be leviable upon and be recoverable from any such
minor or other incapacitated person, if he were of full age, of sound mind and
if he were conducting the business himself.
(6) Where the
estate or any portion thereof of a registered dealer who is liable to pay tax
or any other amount under this Act is under the control of the Court of Wards,
the Administrator‑General, the Official Trustee or any Receiver or
Manager or any other person who manages the business on behalf of such dealer
appointed by or any order of a Court, such Court of Wards, Administrator‑General,
Official Trustee, Receiver, Manager or any other person, shall in respect of
all the turnover of such business be liable to submit the returns due under
section 35 or to assessment under section 38, and the tax or any other amount
due shall be levied upon and be recoverable from such Court of Wards,
Administrator‑General, Official Trustee, Receiver or Manager or any
person as it would be leviable upon and recoverable from the dealer if he were
conducting the business himself.
Every
dealer liable for registration under section 22 shall within sixty days from
the date on which he becomes liable for registration submit to the prescribed
authority a declaration in Form VAT 5C, stating the name or names of the person
or persons who are authorised to sign returns under the Act on their behalf, or
to make statements in any enquiry under the Act, and all returns signed and
statements so made by such person or persons shall be binding on such dealer,
and the declaration so furnished may be revised.
(1) Every dealer liable
for registration under section 22 shall exhibit at the entrance to his place of
business, including branches and godowns, a name board showing the name of the
dealer or the trade name with full address.
(2) The Government
or the Commissioner, may by notification published in the Official Gazette,
require all dealers or any class thereof specified in such notification to
display at a conspicuous place in the premises of their place of business in
such a manner as to be within the view of the customers,
(a) a notice
containing a request to the customers to insist upon the issue of a tax invoice
or bill of sale for goods purchased by them; and
(b) a notice
containing a list of goods available for sale together with the rate of tax
applicable to each of such goods.
(3) Any dealer who
fails to comply with the requirements of a notification issued under the sub‑rule
(2) shall, on conviction by a Magistrate of First Class, be punishable with
fine of rupees one thousand, and where non‑compliance is continuous, with
a further fine of one hundred rupees for every day of non‑compliance.
(4) An offence
under this rule may be compounded by any officer of the Department for a sum of
rupees one thousand, only after the dealer has complied with the requirements
of a notification issued under sub‑rule (2).
173. Powers of an Officer or
Authorities to summon
Any officer of the Commercial Taxes Department
(1) may require
any person whose evidence he considers necessary for the purpose of any enquiry
under the Act or these rules to appear before him and give evidence and may
examine such person on oath or affirmation;
(2) shall have all
the powers conferred on a Court by the Code of Civil Procedure, 1908 (Central
Act V of 1908), for the purposes of securing attendance of persons or the
production of the documents;
(3) may issue a
summons in Form VAT 485 for the production of any document or the appearance of
any person.
174. Powers of Appellate and
Revisional Authorities
The
powers conferred on the officers of the Commercial Taxes Department by rule 172
may also be exercised by an Appellate or Revisional Authority or by the
Appellate Tribunal.
175. Under‑valuation of
goods and power to levy penalty
Exercise
of the powers under sub‑section (1) of section 55 shall be subject to the
control and direction of the joint Commissioner and the Commissioner.
The
service on a dealer of any notice, summons or order under the Act or these
rules may be effected in any of the following ways, namely:‑
(1) by giving or tendering it to such
dealer or his manager or agent; or
(2) if such
dealer or his manager or agent is not found, by leaving it at his last known
place of business or residence or by giving or tendering it to some adult
member of his family; or
(3) if the
address of such dealer is known to the prescribed authority by sending it to
him by registered post; or
(4) if none of
the modes aforesaid is practicable, by affixing it in some conspicuous place at
his last known place of business or residence.
The
fees payable for the grant of certified copies of any document under the Act or
these rules shall be five rupees per page which shall be paid in cash.
178. Particulars to be furnished
by Banks, Clearing Houses and others
(1) Every Bank in
the State shall, if so required by an officer of the Department furnish any
such particulars as he may require in respect of the transactions of any dealer
with such Bank, including copies of statement of profit and loss account,
trading account, balance sheet and stock inventory, filed by the dealer with
such Bank.
(2) Every person
who during the course of his business bandles, possesses or manufactures any
goods liable to tax under the Act, shall, if so required by any officer of the
Department, furnish any such particulars as he may require in respect of the
transaction of any dealer insofar as it relates to the goods handled, possessed
or manufactured by him for or on behalf of such dealer.
Whoever
commits a breach of any of the rules 11, 14, 15, 16, 26, 27, 28, 29, 30, 31,
32, 33, 34, 157, 159, 160,171 and 172 shall on conviction by a Judicial
Magistrate of First Class be punishable with a fine of not less than two
thousand rupees but not exceeding five thousand rupees, and where the breach
continues, a further fine not exceeding one hundred rupees per day.
Where
a form has been prescribed by these rules for the keeping or maintaining of any
accounts or for submission of any returns or any claims, such form prescribed
shall be used for that purpose.
Subject
to these rules, any application made by a dealer for registration under the Act
before the commencement of these rules shall be deemed to be an application
made under rule 4 and such dealer shall be permitted to make any modification
in the application made by submitting an application in Form VAT 3.