(1) Every dealer who would have continued to be liable to pay tax under the Act of 1973 had this Act not come into force, and every other dealer whose gross turnover during the year immediately preceding the appointed day exceeded the taxable quantum as defined or specified in the Act of 1973, shall, subject to the provisions of sub‑section (4), be liable to pay tax on and from the appointed day on the sale of goods effected by him in the State.
(2) Every dealer to whom sub‑section
(1) does not apply and who is of the class or classes
mentioned in column 2 of the Table below and whole gross turnover in any year
first exceeds the taxable quantum specific in column 3 there against, shall,
subject to the provisions of sub‑section (4), be liable to pay tax on and
from the day mentioned in column 4 there against on the sale of goods effected
by him in the State
TABLE
|
Sr. |
Description of class or |
Taxable |
Day on and from |
|
No. |
Classes of dealers |
quantum |
which the dealer is liable to tax |
|
1 |
2 |
3 |
4 |
|
1 |
Dealer who sells or purchases |
Nil |
On and from the day |
|
|
any goods in the course of |
|
he makes such sale |
|
|
inter-State trade or commerce |
|
or purchase for the |
|
|
or in the course of export of the |
|
first time |
|
|
goods out of, or the import of the |
|
|
|
|
goods into, the territory of India |
|
|
|
2. |
Dealer who imports any goods |
Nil |
On and from the day |
|
|
into State |
|
he imports any goods |
|
|
|
|
into State for the first |
|
|
|
|
time |
|
3. |
Dealer who purchases any goods |
Nil |
On and from the day |
|
|
in the Sate and exports out of |
|
he makes purchase of |
|
|
State such goods or the goods |
|
such goods in the |
|
|
manufactured there from |
|
State for the first time |
|
4. |
Dealer who is a brick-kiln owner |
Nil |
On and from the |
|
|
or a Halwaii or a liquor licensee |
|
day his gross turn- |
|
|
under the Pun ab Excise Act,
1914 (1 of 1914), or who deals in minerals, lottery tickets or such other
goods as may be prescribed |
|
over in any year first exceeds the taxable quantum |
|
5. |
Any other class or classes of |
One lakh |
On and from the |
|
|
dealers |
ruppes or |
day following the |
|
|
|
such oth- |
day his gross |
|
|
|
er sum as |
turnover in any year |
|
|
|
may be |
first exceeds the |
|
|
|
prescribed |
taxable quantum and different sums including nil may be
prescribed for differerent classes of dealers |
Provided
that this sub‑section shall not apply to a dealer who deals exclusively
in exempted goods.
Note ‑
Where a dealer is covered under more
than one of the class or
classes mentioned in the Table above, the liability to pay tax shall commence
from the earliest day he becomes liable to tax.
(3) If a dealer liable to pay tax under sub‑section (1) or sub‑section (2) purchases any taxable goods in the State from any source in the circumstances that no tax is levied or paid under this Act on their sale to him and he either exports them out of State or uses or disposes them of in the circumstances in which no tax is payable under this Act or the Central Act by him to the State on them or the goods manufactured there from, then, he shall, subject to the provisions of sub‑section (4), be liable to pay tax on the purchase thereof:
Provided
that where such goods (except those
specified in Schedule F) or
the goods manufactured there from are sold in the course of export of the goods
out of the territory of India, no tax shall be levied on their purchase:
Provided
further that where the goods purchased are used or disposed of partly in the
circumstances mentioned in the foregoing provisions of this sub‑section
and partly otherwise, the tax leviable on such goods shall be computed pro
rata.
(4) The tax levied under sub‑sections
(1), (2) and (3) shall be calculated on the taxable turnover, determined in
accordance with the provisions of section 6, at the rates of tax applicable
under section 7, and where the taxable turnover is taxable at different rates
of tax, the rate of tax shall be applied separately in respect of each part of
the taxable turnover liable to a different rate of tax.
(5) If the tax calculated
under sub‑section (4) is more than the input tax, determined in
accordance with the provisions of section 8, the difference of the two shall be
the tax payable; and if the input tax is more than the tax calculated, the
excess amount shall be either refundable or adjustable with future tax
liability in accordance with the provisions of section 20; but if the input tax
is a negative value on account of reversal of input tax under the second
proviso to sub‑section (1) of section 8, the absolute value thereof shall
be added to the tax calculated under subsection (4) and the resultant amount
shall be the tax payable.
Illustration:
|
Sr. |
Tax
calculated under |
Input
Tax |
Tax
Payable |
Refundable/ |
|
No. |
sub-section
(4) |
|
|
Adjustable |
|
1. |
Rs. 100 |
Rs.50 |
Rs.50 |
Nil |
|
2. |
Rs. 100 |
Rs. 150 |
Nil |
Rs.50 |
|
3. |
Rs. 100 |
(-)
Rs.50 |
Rs. 150 |
Nil |
(6) Every dealer who has
become liable to pay tax, shall continue to be so liable until after the expiry
of three consecutive years during each of which his gross turnover has failed
to exceed the taxable quantum and such further period after the date of such
expiry, as may be prescribed, and on the expiry of this latter period his
liability to pay tax shall cease.
(7) Every dealer, whose
liability to pay tax has ceased under the provisions of sub‑section (6),
shall again be liable to pay tax in accordance with the provisions of sub‑section
(2).
[NO TAX PAYABLE IN CASE OF INTER‑STATE TRADE ETC.]
Notwithstanding
anything contained in this Act, a tax on the sale or purchase of goods shall
not be imposed under this Act,
(a) where such sale or purchase takes place outside the State;
(b) where such sale or
purchase takes place in the course of import of the goods into, or export of
the goods out of, the territory of India; or
(c) where such sale or purchase takes place in the course of inter‑State
trade or commerce.
Where any assessee claims ‑
(a) that any receipt or
dispatch of goods by him is otherwise than by way of purchase or sale of such
goods by him;
(b) that any sum of money
received or receivable or paid or payable by him by any means including
adjustment against a debt is not in the course of business, and where in the
course of business such sum is not valuable consideration for any sale or
purchase of goods effected by him in the year in which the said sum was
received or receivable or paid or payable;
(c) that any purchase or sale of goods by
him is not liable to tax by reason of such purchase or sale being outside the
State or in the course of inter‑State trade and commerce or in the course
of the import of the goods into, or the export of the goods out of, the
territory of India;
(d) that any purchase or sale of goods
effected by him is exempt from tax or leviable to tax at a particular rate;
(e) that any purchase or sale of goods
effected by him is not taxable because of return of such goods;
(f) that he is entitled to any deduction from gross turnover or any deduction of input tax from the tax calculated on the sale of goods;
(g) that in case of a composite works contract, he is entitled to a deduction in respect of labour and service charges from the valuable consideration for the execution of the contract;
(h) that any particular sum has been paid by him as tax, interest
or penalty under this Act;
(i) that any goods, book of account and document discovered at his business premises, or at any other place or in any goods carrier or other vehicle, over which he has control at the time of such discovery,
do
not relate to his business; or
(j) that any relief under this Act or the rules made there under is admissible to him, the burden of so proving shall be on him.
[DETERMINATION OF TAXABLE TURNOVER]
(1) Subject to the provisions of sub‑section
(2) in determining the taxable turnover of a dealer for the purposes of this
Act, the following deductions shall be made from his gross turnover, namely:
(a) turnover of sale of goods outside the State;
(b) turnover of sale of goods in the course of inter‑State trade and commerce;
(c) turnover of sale of goods in the course
of the import of the goods into the territory of India;
(d) turnover of sale of goods in the course
of the export of the goods out of the territory of India;
(e) turnover of export of goods out of
State;
(f) turnover of disposal of goods otherwise
than by sale;
(g) turnover of sale of exempted goods in
the State;
(h) turnover of sale of goods to such
foreign diplomatic missions/ consulates
and their diplomats, and agencies and organisations of the United Nations and
their diplomats as may be rescribed; and
(i) turnover of sale of goods returned to
him, subject to such restrictions and conditions as may be prescribed, and to
the remainder shall be added the purchases taxable under sub‑section (3)
of section 3, if any.
Note.‑1. In this sub‑section
"turnover" means, ‑
(i) for the purpose of
clauses (a), (b), (c), (d), (g) and (h), the aggregate of the sale prices of
goods which is part of the gross turnover;
(ii) for the purpose of
clauses (e) and (f), the aggregate of value of goods exported out of State or
disposed of otherwise than by sale, as the case may be, which is part of the
gross turnover; and
(iii) for the purpose of
clause (i), the aggregate of the sale prices of goods which is or has been part
of gross turnover (including under the Act of 1973).
Note.‑2.
If the turnover in respect of any goods is included in a deduction under any
clause of this sub‑section, it shall not form part of deduction under any
other clause of the sub‑section.
(2) The deductions mentioned
in sub‑section (1) shall be
admissible on furnishing to
the assessing authority in such circumstances, such documents or such proof, in
such manner as may be prescribed.
(3) Save as otherwise provided in sub‑section (1), in determining the taxable turnover of a dealer for the purposes of this Act, no deduction shall be made from his gross turnover.
[RATES OF TAX ON SALE OR PURCHASE OF GOODS IN THE STATE]
(1) The tax payable by a dealer on his taxable turnover in so far as such turnover or any part thereof relates to, ‑
(a) the sales of goods not falling within
sub section (2),
(i) in the case of goods specified in
Schedule A, shall be calculated at the rates specified therein;
(ii) in the case of declared goods except those specified in Schedule B, shall be calculated at four per cent or such other rate not exceeding the ceiling specified in clause (a) of section 15 of the Central Act as the State Government may, by notification in the Official Gazette, direct;
(iii)
in the case of goods specified in Schedule C, shall be
calculated at four per cent or such other rate not exceeding ten percent as the
State Government may, by notification in the Official Gazette, direct;
(vi) in the case of other
goods, shall be calculated at ten percent or such other rate not exceeding
fifteen per cent, as the State Government may, by notification in the Official
Gazette, direct:
Provided that where any goods are sold in containers or packed in any packing materials, the rate of tax applicable to such containers or packing materials shall, whether the price of the containers or packing materials is charged separately or not, be the same as those applicable to the goods contained or packed therein; and where such goods are exempt from tax, the sale of the containers or packing materials shall also be exempt from tax;
(b) the purchase of goods,
shall be calculated at four per cent or such lower rate applicable on sale of
such goods had it been a sale falling under clause (a):
Provided
that the State Government may, by notification in the Official Gazette, direct
that the tax shall be calculated at a lower rate.
(2) The tax payable by a
dealer on his taxable turnover in so far as such turnover or any part thereof
relates to goods sold to the Government or to goods of the description referred
to in sub‑ section (4) sold to a VAT dealer or such other registered
dealer as may be prescribed (hereinafter both referred to in this section as
'authorised dealer'), shall be calculated
(a) if the goods are of the
description contained in Schedule D, at the rate mentioned against such goods,
otherwise;
(b) at four per cent or such
lower rate applicable on sale of such goods had it been a sale falling under
clause (a) of sub‑section (1):
Provided
that the State Government may, by notification in the Official Gazette, direct
that tax under clause (b) shall be calculated at a lower rate:
Provided
further that the State Government, if
satisfied that it is necessary
or expedient so to do in the interest of promotion of exports out of the
country may, by notification in the Official Gazette, direct that tax under
clause (b) on the taxable turnover which relates to the sale of goods of such
class or classes to such class or classes of authorised dealers for such use by
them, as may be specified in the notification, shall be calculated at zero
rate.
(3) The provisions of sub‑section
(2) so far as the rate of tax applicable there under on a sale of goods in the
State is lower than the rate of tax applicable under clause (a) of sub‑section
(1) if such sale had been a sale falling within that clause, shall not apply
unless the dealer selling the goods furnishes to the assessing authority in the
prescribed circumstances and in the prescribed manner
(a) if the goods are sold to
an authorised dealer, a declaration duly filled in and signed by him containing
the prescribed particulars in the prescribed form obtained from the prescribed
authority and in case such form is not available with such authority, a self
printed and serially numbered form authenticated by such authority in the
prescribed manner; or
(b) if the goods are sold to
the Government, not being a registered dealer, a certificate in the prescribed
form duly filled in and signed by a duly authorised officer of the Government.
(4) The goods sold to an authorised dealer
referred to in sub‑section (2) ‑
(a) are goods of the class
or classes specified in the certificate of registration of the authorised
dealer purchasing the goods as being intended, subject to any rules made by the
State Government in this behalf, for use by him
(i) in the manufacture of goods for sale;
(ii) in the telecommunications network;
(iii) in mining; or
(iv)
in the generation or distribution of
electricity or any other form of power;
(b) are goods of the class
or classes specified in the certificate of registration of the authorised
dealer who is covered under the notification issued under the second proviso to
clause (b) of sub section (2),
purchasing the goods as being intended for use by him for the purposes
specified in the said notification;
(c) are containers or other
materials used for the packing of any goods or classes of goods specified in
the certificate of registration referred to in clause (a) or clause (b).
(5) If an authorised dealer
after purchasing any goods for any of the purposes specified in clause (a),
clause (b) or clause (c) of sub‑section (4) fails, without reasonable
excuse, to make use of the goods for any such purpose, the assessing authority
may, after giving him a reasonable opportunity of being heard, by order in
writing, impose upon him by way of penalty a sum not exceeding one‑and‑a‑half
times the tax which would have been levied additionally under clause (a) of sub‑section
(1), if the sale made to him had been a sale falling within that clause:
Provided
that no penalty shall be imposed where an authorised dealer voluntarily pays
the tax which would have been levied additionally, as referred to in the
foregoing provision, with the return for the period when he failed to make use
of the goods purchased for the specified purposes.
(1) Input tax in respect of any goods purchased by a VAT dealer shall be the amount of tax paid to the State on the sale of such goods to him and shall, in case, of a dealer who is liable to pay tax under sub‑section (1) of section 3 or, as the case may be, makes an application for registration in time under sub‑section
(2) of section 11, include the tax paid under this Act and the Act of 1973 in respect of goods (except capital goods) held in stock by him on the day he becomes liable to pay tax but shall not include tax paid in respect of goods specified in Schedule E used or disposed of in the circumstances mentioned against such goods:
Provided
that where the goods purchased in the State are used or disposed of partly in
the circumstances mentioned in Schedule E and partly otherwise, the input tax
in respect of such goods shall be computed pro rata:
Provided
further that if input tax in respect of any goods purchased in the State has
been availed of but such goods are subsequently used or disposed of in the
circumstances mentioned in Schedule E, the input tax in respect of such goods
shall be reversed.
(2) A tax invoice issued to
a VAT dealer showing the tax charged to him on the sale of invoiced goods shall,
subject to the provisions of sub‑section (3), be sufficient proof of the
tax paid on such goods for the purpose of sub‑section (1).
(3) Where any claim of input
tax in respect of any goods sold to a dealer is called into question in any
proceeding under this Act, the authority conducting such proceeding may require
such dealer to produce before it in addition to the tax invoice issued to him
by the selling dealer in respect of the sale of the goods, a certificate
furnished to him in the prescribed form and manner by the selling dealer; and
such authority shall allow the claim only if it is satisfied after making such
inquiry as it may deem necessary that the particulars contained in the
certificate produced before it are true and correct.
(4) The State Government
may, from time to time, frame rules consistent with the provisions of this Act
for computation of input tax and when such rules are framed, no input tax shall
be computed except in accordance with such rules.
[PAYMENT OF LUMPSUM IN LIEU OF TAX]
(1) The State Government
may, in the public interest and subject to such conditions as it may deem fit,
accept from any class of dealers, in lieu of tax payable under this Act, for
any period, by way of composition, a lump sum linked with production capacity
or some other suitable measure of extent of business, or calculated at a flat
rate of gross receipts of business or gross turnover of purchase or of sale or
similar other measure, with or without any deduction there from, to be determined
by the State Government, and such lump sum shall be paid at such intervals and
in such manner, as may be prescribed, and the State Government may, for the
purpose of this Act in respect of such class of dealers, prescribe simplified
system of registration, maintenance of accounts and filing of returns which
shall remain in force during the period of such composition.
(2) No dealer in whose case composition under sub‑section (1) is in force,
shall issue a tax invoice for sale of goods by him and no dealer to whom goods
are sold by such dealer shall be entitled to any claim of input tax in respect
of the sale of the goods to him.
(3) A dealer in whose case composition under sub‑section (1) is made and is in force may, subject to such restrictions and conditions, as may be prescribed, opt out of such composition by making an application containing the prescribed particulars in the prescribed manner to the assessing authority, and in case the application is in order, such composition shall cease to have effect on the expiry of such period after making the application as may be prescribed.
(1) The amount of tax,
penalty or interest payable and the amount of refund due, under the provisions
of this Act, shall be rounded off to the nearest rupee and for this purpose
fifty paise or more shall be increased to one rupee and less than fifty paise
shall be ignored.
(2) If after rounding off,
as provided in sub‑section (1), the sum payable by an assessee or
refundable to him, as the case may be, is less than ten rupees, the same shall
be ignored.
(3) Nothing in this section shall apply for the purpose of collection by a dealer of any amount by way of tax in respect
of any purchase or sale of goods by him.