CHAPTER-II
LEVY AND INCIDENCE OF TAX
3. Incidence of Tax :-
(1) Every dealer, who, immediately before the appointed day, holds a valid or effective certificate of registration or licence under any of the earlier laws or, who is liable to pay tax under any of the earlier laws, in the year ending immediately before the appointed day shall, if his turnover of sales or purchases has, in the said year under any of such earlier laws, exceeded rupees 1[five lakh], or, as the case may be, who was an importer in the said year 2[and his turnover of sales or purchases in the said year had] exceeded rupees one lakh, be liable to pay tax, with effect from the appointed day, in accordance with the provisions of this Act, till his certificate or licence is duly cancelled under this Act.
Explanation.”For the purposes of this sub-section, the expressions turnover of sales, turnover of purchases and importer shall have the respective meanings assigned to them under the relevant earlier laws.
(2) A dealer to whom sub-section (1) does not apply and whose 3[turnover either of all sales or, as the case may be, purchases] made, during the year commencing on the appointed day or any year subsequent thereto, first exceeds the relevant limit, specified in sub-section (4), shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act with effect from the 1st day of April of the said respective year:
Provided that, a dealer shall not be liable to pay tax in respect of 4[such sales and purchases] as take place during the period commencing on the 1st day of April of the said respective year upto the time when his 5[turnover of sales or turnover of purchases], as computed from the 1st day of April of the said respective year, does not exceed the relevant limit applicable to him under sub-section (4).
(3) Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until his registration is duly cancelled; and upon such cancellation his liability to pay tax, other than tax already levied or leviable, shall remain ceased until his 6[turnover of sales or turnover of purchases] again first exceeds the relevant limit specified in sub-section (4) or, as the case may be, until he becomes liable to pay tax under 7[sub-sections], (8) or (9).
(4) For the purposes of this section, the limits of 8[turnover] shall be as follows :-
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(a)
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Limit of 8[turnover] Rs. 1,00,000.”
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in the case of a dealer, who is an importer, and the value of taxable goods sold or purchased by him during the year is not less than Rs. 10,000.
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(b)
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9[Limit of 8[turnover] Rs. 10,00,000].”
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in any other case, where the value of taxable goods sold or purchased by him during the year is not less than Rs. 10,000.
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(5) For the purpose of calculating the limit of 8[turnover of sales] for liability to tax,-
10[(a) except as otherwise expressly provided, the turnover of all sales shall be taken, whether such sales are of taxable goods or not]
(b) the 8[turnover of sales] shall include all sales 11[***] made by the dealer on his own account, and also on behalf of his principals whether disclosed or not;
(c) in the case of an auctioneer, in addition to the 8[turnover of sales], if any, referred to in clauses (a) and (b), the 8[turnover of sales] shall also include the price of the goods auctioned by him for his principal, whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal, if the price of such goods is received by him on behalf of his principal ;
(d) in the case of an agent of a non-resident dealer, in addition to the 8[turnover of sales], if any, referred to in clause (a), (b) or (c), the 8[turnover of sales] shall also include the sales 12[***] of the non-resident dealer effected in the State.
12a[(5A) For the purpose of calculating the limit of turnover of purchases for liability to tax, the turnover of purchases of the goods that are liable to purchase tax as specified in section 6A and 6B shall be considered. The provisions of sub-section (5) in respect of sales shall apply mutatis mutandis.]
(6) Notwithstanding anything contained in any contract or any law for the time being in force, but subject to the provisions of this Act, any person covered by 13[sub-clause (a), (b) or (c)] of clause (8) of section 2 shall be liable to pay tax under this Act, whether, or not the principal is a dealer and whether, or not such principal is liable to pay tax under this Act and whether or not the principals are disclosed.
14[(7) * * * deleted w.e.f. 20-6-2006]
(8) Where a dealer liable to pay tax under this Act is succeeded in the business by any person in the manner described in clause (a) of sub-section (1) or sub-section (4) of section 44, then such person shall, notwithstanding anything contained in this section, be liable to pay tax on the sales or purchases of goods effected by him on and after the date of such succession and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year.
(9) Any person who is not liable to pay tax under the foregoing, provisions of this section but has been voluntarily registered under the provisions of this Act shall be liable to pay tax from the date of effect of the certificate of registration duly granted to him and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year.
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1. This word was substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f.1.4.2005.
2. These words were substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f.1.4.2005.
3. These words were substituted for the words turnover of all sales by Mah. Act No. VIII of 2012 dated the 25th April 2012 w.e.f.1.5.2012.
4. These words were substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005 and again substituted by Mah. Act No. VIII of 2012 dated 25th April 2012 w.e.f.1.5.2012.
5. These words were substituted by Mah. Act No. VIII of 2012 dated 25th April 2012 w.e.f.1.5.2012.
6. These words were substituted by Mah. Act No. VIII of 2012 dated 25th April 2012 w.e.f.1.5.2012.
7. This word was substituted for the word, brackets and figure sub-sections (7) by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006.
8. The word turnover was substituted by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006 and again substituted by Mah. Act No. VIII of 2012 dated 25th April 2012 w.e.f.1.5.2012.Prior to substitution read as: turnover of sales.
9. These words, letters and figures were substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.
10. Clause (a) substituted by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006. Prior to substituted the Clause (a) was read as under:-
(a) except as otherwise expressly provided, the turnover of all sales or, as the case may be, the turnover of all purchases shall be taken, whether such sales or purchases are of taxable goods or not;
11. These words were deleted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.
12. These words were deleted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.
12a. This sub-section was inserted by Mah. Act No. VIII of 2012 dated 25th April 2012 w.e.f.1.5.2012.
13. These words, brackets and letters were substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.
14. Sub-section (7) deleted by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006. Prior to deleted the Sub-section (7) was read as under :-
(7) Any person who at any time after the appointed day becomes liable to pay tax under the Central Sales Tax Act, 1956 (74 of 1956), but who is not liable to pay tax under the other provisions of™ this section shall be liable to pay tax on the sales and purchases effected by him on and from the day on which he becomes so liable to pay tax under the Central Sales Tax Act, 1956 (74 of 1956) and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year. |