CHAPTER II
3. Incidence and levy of tax.
(1) Subject to the other provisions contained in this Act, every dealer shall be liable to pay tax under this Act, for each assessment year, on his taxable turnover of sale or purchase or both, as the case may be, of taxable goods, at such rates and at such point of sale or purchase as provided under section 4 or section 5:
Provided that tax shall be levied on and charged from every dealer on such sales and purchases as are made on or after the date on which the dealer becomes liable for payment of tax in accordance with provisions of sub-section (3) or sub-section (5), as the case may be.
(2) Where a dealer carries on business for part of any assessment year he shall, subject to the other provisions contained in this Act, be liable to pay tax on the taxable turnover of sale or purchase or both, as the case may be, of taxable goods, at such rates and at such point of sale or purchase as provided under section 4 or section 5, where such sales or purchases are affected during the period in which he is liable for payment of tax in accordance with the provisions of sub-section (3) or sub-section (5).
(3) Dealers, of the class mentioned in column 2 against the serial no. mentioned in column 1, shall be liable to pay tax on sales or purchases or both, as the case may be, where such sales or purchases of goods are made by them on or after the date mentioned in column 3 against the same serial no. of the table below:
TABLE
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Serial No.
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Class of dealers
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Date
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(1)
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(2)
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(3)
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1.
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(i)
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Dealers whose registration certificate, under this Act, is effective on January 1, 2008
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January 1, 2008
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(ii)
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Dealers whose registration certificate, issued under the Central Sales Tax Act, 1956, is valid on January 1, 2008
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(iii)
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Dealers who hold any imported taxable goods in opening stock on January 1, 2008
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(iv)
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Dealers who hold any taxable goods in opening stock on January 1, 2008 where such goods have been manufactured, processed or packed by using or consuming of any imported goods
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(v)
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Dealers who hold any taxable goods in opening stock on January 1, 2008 where such goods have been manufactured, processed or packed by using or consuming any goods purchased after furnishing to the selling dealer any form of declaration or certificate prescribed under the erstwhile Act or the rules framed there under.
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(vi)
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Dealers who hold any goods in opening stock on January 1, 2008 where such goods have been purchased after furnishing to the selling dealer any form of declaration or certificate prescribed under the erstwhile Act or the rules framed thereunder January 1, 2008
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(vii)
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Dealers who, in the assessment year of commencement of this Act, have commenced exclusive business of purchase of any goods from within the State or sale of any goods within the State or both, as the case may be, on any date before January 1, 2008 and-
(a) whose aggregate, of the turnover of such purchase and turnover of such sale, of all goods, as defined hereunder, during the assessment year of commencement of this Act, from first day of the business during such assessment year, has, on or before January 1, 2008, exceeded the taxable quantum as provided in sub-section (4); and
(b) who have not made any change in the nature of their business before their aggregate of turnovers as stated in clause (a) has exceeded the taxable quantum as provided in sub-section (4).
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(viii)
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Dealers who have been carrying on exclusive business of purchase of any goods from within the State or sale of any goods within the State or both, as the case may be, of any goods during the assessment year immediately preceding first assessment year under this Act and whose aggregate, of the turnover of such purchase and turnover of such sale, of all goods, as defined hereunder, during such preceding assessment year had exceeded the taxable quantum as provided in sub-section (4).
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(ix)
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Dealers who, in the year of commencement of this Act, have, before January 1, 2008,-
(a) made an inter-state sale of any taxable goods; or
(b) made a sale in the course of the export of the goods out of the territory of India; or
(c) consigned any taxable goods outside the State except by reason of a sale and such goods are delivered in the other State without a sale; or
(d) brought or received any taxable goods from any place outside the State;
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2.
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Dealers, who with or without any other kind of business, import any taxable goods on or after January 1, 2008
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Date on which a dealer receives taxable goods for the first time
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3.
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Dealers who obtain registration certificate under the Central Sales tax Act, 1956 on or after January 1, 2008
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Date from which registration certificate is effective
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4.
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Dealers, who, with or without any other kind of business, make sale of any taxable goods in the course of inter-State trade or commerce on or after January 1, 2008
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Date on which a dealer makes first sale of any taxable goods in the course of inter-State trade or commerce
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5.
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Dealers, who, with or without any other kind of business, on or after January 1, 2008, make a sale, in the course of export of the goods out of the territory of India, of any taxable goods or make such sale of any exempt goods where in manufacture, processing or packing of such exempt goods any taxable goods have been used, consumed or utilized
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Date on which a dealer makes first sale of the goods in the course of export of the goods
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6.
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Dealers, who, with or without any other kind of business, consign any taxable goods on or after January 1, 2008 at any place outside the State except by reason of a sale and such goods are delivered in the other State without a sale
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Date on which a dealer for the first time consigns any taxable goods outside the State
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7.
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Dealers who have been carrying on exclusive business of purchase of any goods from within the State or sale of any goods within the State or both, as the case may be, of any goods from a date prior to January 1, 2008 or dealers who commence such business on or after January 1, 2008 and-
(i) whose aggregate, of the turnover of such purchase and turnover of such sale, of all goods, as defined hereunder, in any assessment year including assessment year of the commencement of this Act, from first day of business during such assessment year, exceeds the taxable quantum as provided in sub-section (4) of this section on any date after January 1, 2008; and
(ii) who do not make any change in the nature of their business before their aggregate of the turnovers as stated in clause (a) exceeds the taxable quantum as provided in sub-section (4) of this section
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Date on which aggregate of the turnovers of purchase from within the State and turnover of sale within the State or both, as the case may be, of all goods of a dealer, as defined hereunder, for the first time in any assessment year exceeds the taxable quantum
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8.
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(i) A railway container contractor, an air cargo operator, a courier service provider, who fails to disclose the name and complete address of consigner or consignee or if discloses such name or address of consigner or consignee is found bogus, forged or not verifiable; or the owner or person in-charge of a vehicle who obtained authorization for transit of goods from the officer in-charge of entry check post but failed to deliver the same to the officer in-charge of the exit check post,
(ii) an owner or person in-charge, of a godown or cold storage or warehouse other than a transporter except those covered under clause(i) who fails to disclose the name and address of the owner of any taxable goods stored in such godown, cold storage or warehouse other than transporter except those covered under clause (i) or if discloses such name and address of owner of taxable goods is found bogus, forged or not verifiable,
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First date on which any taxable goods are found in the possession or custody,
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9.
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Dealers who do not fall in any of the classes mentioned against serial no. 1 to 8 above and who obtain registration certificate voluntarily under section 18.
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Date from which registration certificate is effective
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Provided that a dealer who exclusively deals in purchase or sale, or both, as the case may be, of exempt goods, shall not be liable to pay tax under this Act.
Explanation (1) For the purposes of this sub-section and sub-section (5) the expression "aggregate of turnover of purchase from within the State and turnover of sale within the State or both, as the case may be, of all goods shall mean the aggregate of the turnover of-
(a) purchase of all taxable goods where such purchases are made by the dealer from within the State from persons other than registered dealers; and
(b) sale of all goods except goods included in clause (a) where such sales are made by the dealer within the State
Explanation (2) Where a dealer falls in more than one category, mentioned in column 2 of the table given above, then he shall be liable for payment of tax with effect from the earliest date of all dates mentioned in column 3 of the table referred to above.
(4) Taxable quantum referred to in sub-section (3) shall be five lakh rupees.
Provided that where a dealer carries on business during part of an assessment year, taxable quantum shall be partial amount of five lakh rupees which shall be computed on pro rata basis and for this purpose part of the month shall be counted as a full month."
(5) Every dealer who has once become liable for payment of tax shall continue to be so liable till the date on which he discontinues his business:
(6) For the purposes of this Act, following shall be determined in the prescribed manner:-
(a) Turnover of sale of goods-
(i) involved in the execution of works contract in which property in goods is transferred; or
(ii) in cases of transfer of right to use any goods;
(b) Taxable turnover of sale; and
(c) Taxable turnover of purchase.
(7) Where in respect of transfer of property in goods involved in the execution of a works contact, the contractor does not maintain proper accounts or the accounts maintained by him are not found by the assessing authority to be worthy of credence and the amount actually incurred towards charges for labour and other services and profit relating to supply of labour and services are not ascertainable, for the purpose of determining turnover of sale of goods under sub-clause (i) of clause (a) of sub-section (6) such charges for labour and other services and such profits, may be determined on the basis of deduction of such percentage of the value of works contract as may be prescribed and different percentages may be prescribed for different types of works contract.
(8) Amount of tax, for which a dealer is liable for payment under any provision of this Act, shall be paid in the prescribed manner.
(9) Notwithstanding anything to the contrary in this Act, where any goods are sold or purchased together with any packing material, sale or purchase of packing material shall, notwithstanding the fact that contracts of sale or purchase of such goods and such packing material have been made separately or price of sale or purchase, as the case may be, of the goods and the packing material has been shown separately,-
(a) be liable to tax under this Act at the rate applicable to sale or purchase of the goods sold or purchased together with such packing material;
(b) not be liable to any tax under this Act if the sale or purchase of such goods is exempt from tax at the hands of the dealer.
(10) Where tax is payable, and has been so paid by a commission agent on any turnover of sale or turnover of purchase or both, as the case may be, of any goods on behalf of his principal, the principal shall not be liable to pay tax in respect of such turnover.
(11) Subject to such conditions as may be prescribed, the State Government may permit any power project industrial unit engaged in generation, transmission and distribution of electrical energy, having aggregate capital investment of Rs.1000 crore or more to own the tax liabilities of a dealer of such sales as are made to that unit.
Explanation: For the purposes of this Act, the dissolution of a firm or association of persons or partition of a Hindu Undivided Family or transfer by a dealer of his business shall be deemed to be cessation or discontinuance of business. |