4. Levy of tax and its rate.
(1) Subject to the other provisions of this Act and the provisions of the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956), the tax payable by a dealer under this Act, shall be at such point or points, as may be prescribed, in the series of sales by successive dealers and shall be levied on the taxable turnover of sale of goods specified in Schedule III to Schedule VI at the rate mentioned against each of such goods in the said Schedules.
(2) Every dealer who in the course of his business purchases any good other than exempted goods in the circumstances in which no tax under sub–section (1) is payable on the sale price of such goods and the goods are disposed off for the purpose other than those specified in clause (a) to (g) of sub–section (1) of section 18, shall be liable to pay tax on the purchase price of such goods at the rate mentioned against each of such goods in Schedule–III to Schedule VI of the Act.
(3) Notwithstanding anything contained in sub–section (1), the tax payable by the dealer covered by sub–section (2) of section 3, shall be levied at the rate not exceeding two percent on the turnover, as may be notified by the State Government.
(4) Where any goods are sold packed in some material, whether charged for separately or not, notwithstanding anything contained in sub–section (1), the tax liability of and the rate of tax on the packing material shall be according to the tax liability of and the rate of tax on the goods packed therein.
(5) Subject to such conditions as it may impose, the State Government may, if it considers necessary so to do in the public interest, by notification in the Official Gazette, add to or omit from, or otherwise amend or modify the Schedules, prospectively or retrospectively, or reduce the rate of tax payable in respect of any goods and thereupon the Schedule shall be deemed to have been amended accordingly.
(6) Every notification issued under sub–section (5) shall be laid, as soon as may be after it is so issued, before the House of the State Legislature, while it is in session for period of not less than thirty days which may comprised in one session or in two successive sessions "and if before the expiry of the sessions" in which it is so laid or of the session immediately following the House of the State Legislature makes any modification in such notification or resolves that any such notification should not be issued, such notification thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of any thing previously done there under.
(7) Notwithstanding anything contained in this Act, any registered dealer, who imports into, or manufactures in, the State such goods as may be notified by the State Government, may, at his option, pay, in lieu of the tax payable by him on sale price of such goods under this Act, a tax at full rate on the maximum retail price of such goods in the manner as may be prescribed:
Provided that where a dealer has purchased any goods –
(a) from aforesaid importer or manufacturer upon payment of tax on the maximum retail price of such goods; or
(b) from another registered dealer where tax on the maximum retail price of such goods was paid in the State on an earlier occasion, the purchasing dealer, irrespective of whether he is registered or not, while making resale of such goods in the State, shall, notwithstanding anything contained elsewhere in the Act, be entitled to recover from the buyer the amount of tax paid by him at the time of purchase of such goods under such conditions and restrictions, and in such manner, and within such time, as may be prescribed:”
" Provided further that a dealer who opts payment of tax under this sub-section shall not allow any trade discount or incentive in terms of quality of goods in relation to any sale of goods covered under this sub-section, effected by him, for the purpose of calculating his tax liability," |