FILING OF RETURNS, ASSESSMENT AND
COLLECTION OF TAX, REFUND
[SUBMISSION OF RETURNS AND PAYMENT OF TAX]
(1) Tax payable under this Act shall ' be paid in the manner and
at such intervals as hereinafter provided.
(2) The following dealers or class or classes of dealers, whether
or not liable to pay tax, namely: ‑
(a) such class or classes of dealers as may be prescribed;
(b) such dealer as may be required so to do by the assessing authority by notice in the prescribed form served in the prescribed manner;
(c) a dealer who has applied for the grant of registration certificate but no final decision on his application has been taken; and
(d) every registered dealer, shall furnish
such returns including for statistical
purposes at such
intervals,
verified by such persons, by such dates and to such authority, as may be
prescribed and different returns may be prescribed for different class or
classes of dealers, and if the tax due according to such returns is more than
the tax paid under sub section (3) or
sub‑section (4), as the case may be, he shall, in the manner prescribed,
pay the balance with interest at the rate specified in sub‑section (6) before furnishing the returns and attach
therewith the proof thereof.
(3) Every dealer whose aggregate
liability to pay tax under this Act, Act of 1973 and the Central Act for the
last year or part thereof according to the returns filed by him is equal to or
more than one lakh rupees or such other sum, as may be prescribed, shall, in
the manner prescribed, pay on or before the fifteenth day of each month the
full amount of tax payable by him for the previous month, computed by him in
accordance with the provisions of this Act and the rules made there under:
Provided
that if he is not able to quantify his tax liability accurately by that time,
he shall pay an amount equal to monthly average of his tax liability in the
last year (or such shorter period for which he has been liable to pay tax in
that year) as tax provisionally, and he shall pay the balance, if any, on or
before the twenty‑fifth day of the month, and the excess, if any, he may
adjust with his future tax liability.
(4) Every dealer on whom sub‑section
(3) does not apply, shall, in the prescribed manner, pay in the month
immediately following each quarter, the full amount of tax payable by him for
the quarter, computed by him in accordance with the provisions of this Act and
the rules made thereunder.
(5) If a dealer discovers in
any return furnished by him, any omission or other error, which he could not
have rectified after the exercise of due diligence before furnishing the
return, he may at any time before the date prescribed for furnishing of return
for the next period by him, furnish a revised return, and if the revised return
shows a greater amount of tax to be due than was shown in the original return,
it shall be accompanied by a receipt showing payment of the extra amount along
with simple interest thereon calculated at the rate of one‑and‑a‑half
percent per month for the period the amount remained unpaid due to the omission
or error, in the State Government treasury in the manner prescribed.
(6) If any dealer fails to
make payment of tax as required by sub‑sections (3), (4) and (5), he
shall be liable to pay in addition to the tax payable by him, simple interest
at one‑and‑a‑half per cent per month if the payment is made
within ninety days from the last date specified for the payment of tax, but if
the default continues thereafter, he shall be liable to pay simple interest at
three per cent per month for the whole of the period from the last date
specified for the payment of tax to the date he makes
the payment.
[ASSESSMENT OF REGISTERED DEALER]
(1) The returns furnished by a dealer shall
be duly acknowledged in the manner prescribed, and where all
the
returns relating to an assessment year have been filed and are complete in
material particulars, the dealer shall, subject to the provisions of sub‑section
(2), be deemed to have been assessed for that year:
Provided
that where the returns are not complete in material particulars, the dealer
shall be given an opportunity to complete them.
Explanation.‑ A return is
complete in material particulars if it contains the information required to be
furnished therein, is correct arithmetically, accompanied with the statutory
lists, documents and proof of payment of tax due according to the return in
full and is duly signed by the dealer.
(2) Subject to the rules
which the State Government may frame for selection of cases for scrutiny in
respect of dealers required to file returns under sub‑section (2) of
section 14, the assessing authority shall, in respect of each selected case,
serve on the dealer concerned the prescribed notice in the prescribed manner
requiring him, on a date and at a place specified therein, either to attend in
person or to produce or to cause to be produced any evidence on which such
dealer may rely in support of the returns filed by him relating to the period
under assessment (hereinafter referred to in this section as 'assessment
period'):
Provided
that the assessment period covered by a notice referred to in the foregoing
provision shall not exceed one year and such notice shall be served on the
dealer before the expiry of one year from, the last date prescribed for filing
the last return relating to the assessment period or, the actual date when any
return relating to the assessment period has been filed last, whichever is
later.
(3) On the day specified in
the notice or as soon afterwards as may be, the assessing authority shall,
after hearing such evidence as the dealer may produce and such other evidence
as it may require on specified points, assess the amount of tax due from him:
Provided
that no order under this sub‑section shall be passed after the expiry of
three years from the close of the year to which the assessment relates.
(4) If a dealer, having
furnished returns in respect of a period, fails to comply with the terms of a
notice issued under sub‑section (2) or subsection (3), the assessing
authority shall, before the expiry of three years from the close of the year to
which such returns relate, assess to the best of its judgement the amount of
tax due from him.
(5) If a dealer fails to
furnish return(s) in respect of any period by the prescribed date, the
assessing authority may, at any time before the expiry of three years from the
close of the year to which such return(s) relate, after giving the dealer a
reasonable opportunity of being heard, assess, to the best of its judgment, the
amount of tax, if any, due from him and for this purpose he may presume that
his taxable turnover for the assessment period is the same as for the
corresponding period of the last year and input tax is nil:
Provided
that if the return(s) is(are) filed in the mean time the assessing authority
may consider the same.
(6) The assessing authority
may, for the purpose of complying with the requirements of this section, visit
after prior notice any or all place(s) of business of a dealer of such class or
classes as may be prescribed, and may inspect and examine with the assistance
of such persons as it considers necessary all business activities, processes,
accounts, records, documents and other things relevant to the proceedings, and
the dealer shall render all the necessary assistance in carrying out such
inspection and examination for as long a period as such authority considers
necessary.
(7) Any assessment made
under this section shall be without prejudice to any penalty imposed under this
Act.
Note ‑ An assessment relating to
a part of a year shall, for the purpose of computing time limitation under this
section, be deemed to relate to the year.
[ASSESSMENT OF UNREGISTERED DEALER LIABLE TO TAX]
If upon
information which has come into his possession, the assessing authority is
satisfied that any dealer has been liable to pay tax in respect of any period
but has failed to apply for registration, it shall, before the expiry of three
years following the end of such period, after giving him a reasonable
opportunity of being heard, assess, to the best of its judgment, the amount of
tax due from him in respect of such period and all subsequent periods and shall
direct him further to pay by way of penalty a sum equal to the amount of tax
found due as a result of such assessment.
Explanation. ‑ For the purposes of this
section, a dealer shall be deemed to have failed to apply for registration, if
he makes an incomplete application for registration or, having made an
application for registration, fails to comply with any direction given to him
by the assessing authority within the time specified by it as a result of which
his application is filed.
If in consequence of definite information which has come into its possession, the assessing authority discovers that the turnover of the business of a dealer has been under assessed or has escaped assessment or input tax or refund has been allowed in excess in any year, it may, at any time before the expiry of five years following the close of that year or before the expiry of two years following the date when the assessment for that year becomes final, whichever is later, after giving the dealer a reasonable opportunity, in the prescribed manner, of being heard, reassess the tax liability of the dealer for the year for which the reassessment is proposed to be made; and for the purpose of reassessment the assessing authority shall, in case the dealer fails to comply with the terms of the notice issued to him for the purpose of reassessment, have power to reassess to the best of its judgment.
[PERIOD OF LIMITATION FOR COMPLETION OF
ASSESSMENT OR REASSESSMENT NOT TO APPLY IN CERTAIN CASES]
(1) Notwithstanding the
provisions relating to the period of limitation contained in sections 15, 16
and 17, assessment or reassessment, as the case may be, may be made
(i) in consequence of, or to give effect
to, any order made by any court, or any authority under this Act within a
period of two years of receipt of copy of such order by the assessing
authority;
(ii) before the expiry of
five years following the close of the year, which any book, account, register
or document seized under section 29 relates to, provided the proceedings do not
extend after the expiry of the period specified in third proviso to sub‑section
(4) of section 29.
(2) Where the assessment or
reassessment proceedings relating to any dealer remained stayed including stay
of passing the final order for any period, by order of any court, or any
authority under this Act, such period shall be excluded in computing the period
of limitation for assessment or reassessment specified in section 15, section
16 or section 17, as the case may be.
[RECTIFICATION OF CLERICAL MISTAKES]
Any taxing authority or appellate authority, may, at an time, within a period of two years from the date of supply of' copy of the order passed by it in any case, rectify any clerical or arithmetical mistake apparent from the record of the case:
Provided
that no order shall be passed under this section without giving the person
adversely affected thereby a reasonable opportunity of being heard.
(1) If any person has charged any amount purported to be tax in excess of the tax leviable, no order allowing refund of the excess amount shall be passed in his favour by any authority under this Act or by any court unless he refunds such amount to those from whom it was charged, and where charged from a VAT dealer, the input tax shall be duly adjusted.
(2) No refund of input tax shall be admissible to a VAT dealer except ‑
(a) in respect of input tax relating to the goods which have been sold in the course of export of goods out of the territory of India or have been used in manufacture and the manufactured goods have been sold in the course of export of goods out of the territory of India, in full; and
(b) in respect of input tax
relating to the goods which have been sold in the State or in the course of
inter‑State trade or commerce or have been used in manufacture and the
manufactured goods have been sold in the State or in the course of inter‑State
trade or commerce, only to the extent of such input tax exceeding the tax
including the central sales tax calculated on sale of goods on account of
difference in rate of tax between the input tax and the tax calculated on
sales, and the balance input tax after reducing there from the tax including
the central sale tax levied on the sale or purchase of goods, as the case may
be, shall be carried over for adjustment with future tax liability.
(3) A VAT dealer may seek
refund by making an application containing the prescribed particulars
accompanied with the prescribed documents in the prescribed manner to the
assessing authority who shall, after examination of the application, allow
provisionally refund to the dealer.
(4) Where the assessing
authority finds on assessment of a dealer that he has paid any amount in excess
of tax, interest or penalty assessed or imposed on him under this Act, it shall
allow refund of the excess amount or allow the same to be carried forward for
adjustment with future tax liability, as the case may be.
(5) Any amount refundable to
any person as a result of an order passed by any court, appellate authority or
revising authority, shall be refunded to him on an application containing the
prescribed particulars accompanied with the prescribed documents made in the
prescribed manner to the prescribed authority.
(6) The amount refundable
under the foregoing provisions of this section to any person shall be subject
to the approval in the prescribed manner of the prescribed authority who may,
by order in writing passed after providing opportunity of being heard to the
affected person, change the amount of refund or order that no refund is due.
(7) Before any refund is
given to any person under this Act it shall be first adjusted with any amount
due from him under this Act or the Central Act for any period and the balance,
if any, only shall be refunded to him.
(8) Any amount ultimately found
due to any person, which he paid as a result of an order passed under this Act,
shall be refunded to him with simple interest at the rate of one per cent per
month for the period from the date of payment to the date when refund is given
to him.
(9) Any amount, not falling within sub‑ section (8), refunded after a period of sixty days from the date of making an application under sub‑section (5) shall carry with it simple interest at the rate of one per cent per month for the period from the date of making the application to the date when the refund is made.
(10) Any amount due to a
dealer under sub‑section (4) but not refunded to him within sixty days
from the date of passing the order allowing the refund, shall carry with it
simple interest at the rate of one per cent per month for the period from the
date of passing the order allowing the refund to the date when the refund is
made.
(11) Where any question arises as to any period to be excluded for the purposes of calculation of interest payable under sub‑section (9) or subsection (10) because the delay for the period in question has been due to the fault of the assessee entitled to the refund, such question shall, after giving the assessee a reasonable opportunity of being heard, be determined by the Commissioner by an order in writing.
(1) Where an order giving
rise to a refund is the subject matter of further proceedings and the taxing
authority interested in the success of such proceedings is of the opinion that
the grant of the refund is likely to adversely affect the recovery in the event
of success of such proceedings, he may, for reasons to be recorded in writing,
withhold the refund and shall, if such authority is below the rank of
Commissioner, refer the case, within thirty days of the application for the
refund, to the Commissioner for order.
(2) If a reference has been
made to the Commissioner under sub‑section (1) in time, he may either
pass an order withholding refund or direct that refund be made on furnishing of
security except cash security of the like amount or decline to withhold the
refund:
Provided
that if no order withholding the refund is received within ninety days of
making the reference to the Commissioner, the refund shall be given forthwith.