Wednesday, August 29, 2012
Sunday, August 26, 2012
REGISTRATION
CHAPTER - IV
Persons liable to register.
REGISTRATION
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Persons liable to register.
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21. (1) No person other than a casual trader, who
is liable to pay tax under this Act, shall carry on business, unless he is
registered under this Act.
(2) Every person required to be registered
under sub-section (1), shall make an application for registration, within a
period of thirty days from the date when such person becomes liable to pay tax
under this Act, in the prescribed manner to the designated officer.
(3) If the designated officer is satisfied that
the application for registration is in order, he shall, in accordance with such
manner and on payment of such fee, as may be prescribed, register the applicant
and grant him a registration certificate in the prescribed form:
Provided that if the designated officer is
satisfied that the particulars contained in the application are not correct, or
are incomplete or that any evidence or information required for registering the
applicant, is not furnished, he may, after necessary inquiry and after giving
the applicant an opportunity of being heard, reject the application for reasons
to be recorded in writing. However, the applicant may submit a fresh
application for registration in accordance with the provisions of this Act:
Provided further that during the pendency
of an application for registration, he shall file return and pay the due amount
of tax, in the prescribed manner.
(4) Where a person has contravened the
provisions of sub-section (1), the designated officer shall, subject to action
under section 52 or section 60, as the case may be, register such person and
grant him a registration and such registration shall take effect as if, it had
been granted under sub-section (3) on
the application made by the person.
(5) When any person, who was registered before
the appointed day under the repealed Act, and continues to be so registered on
the day, immediately before such appointed day, and is liable to pay tax under
this Act on such appointed day, the designated officer shall, within thirty
days of receipt of application in the prescribed form, issue to such person, in
the prescribed manner, a fresh registration under this Act for VAT or TOT, as
the case may be.
(6) For the purpose of identification of
taxpayers, the Commissioner or the designated officer, shall issue a VAT Registration
Number ( hereinafter in short referred to as VRN) to every taxable person and
TOT Registration Number (hereinafter in short referred to as TRN) to every
registered person.
(7) Every taxable person or a registered
person, who is allocated a registration number, shall mention his VRN or TRN,
as the case may be, in all returns, forms or any other documents, used for the
purposes of this Act.
(8) Every person, who is liable to pay tax, and
who is a Hindu undivided family or an association of persons, club or society
or firm or company or, who is engaged in business as the guardian or trustee or
otherwise on behalf of another person, shall make a declaration to the
designated officer, stating the name of the person or persons, who shall be
deemed to be the manager or managers of such person’s business for the purposes
of this Act.
(9) Save as otherwise provided in section 77, a
registration, granted under this Act, shall be personal to the person to whom
it is granted and shall not be transferable.
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22. (1) Subject
to the provisions of sub-section (3) of section 6, any person except one
dealing exclusively in goods declared tax-free under section 16, may apply in
the prescribed manner to the designated officer for registration under this
Act.
(2) The provisions of
sub-sections (2), (3) and (5) of section 21, shall apply in respect of
applications for registration under this section.
(3) Every person, who has been
registered upon application made under this section shall, for so long as his
registration remains in force, be liable to pay tax under this Act whether his
gross turnover exceeds the taxable quantum or not.
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23. The
designated officer may from time to time, by order in writing, amend
registration on information furnished under section 76.
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24. (1) The
designated officer may, on an application made to him, or otherwise, by an
order in writing, cancel registration, on -
(a)
an information
received that a business, in respect of which a registration was granted under
sub-section (3) of section 21, has been discontinued; or
(b)
an information
received that the person has violated any of the provisions of this Act or the
rules made there-under; or
(c)
non-filing of
return or non-payment of due tax under this Act; or
(d)
any other
sufficient cause including misuse of the registration or cessation of liability
to payment of tax under this Act; or
(e)
the registration
granted under the Central Sales Tax Act, 1956, to a person liable to pay tax by
virtue of the provisions of section 7,
but who is not otherwise liable to pay tax under section 6, has
been cancelled.
(2)
Where registration is cancelled under this section without making an
application by the person concerned, no order for such cancellation shall be
passed by the designated officer, without affording an opportunity of being
heard.
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25. (1) Every person applying for registration
under this Act, shall furnish a security of rupees fifty thousand in the
manner, prescribed for securing proper and timely payments of tax or any other
sum, payable by him under this Act:
Provided
that the security already furnished by a person registered under the repealed
Act, shall be deemed to have been furnished under this Act.
(2) The designated officer
granting registration, may, on application made by a person for release, discharge
or refund of the security, order the release, discharge or refund of the whole
security or any part thereof, furnished by him, if the same is not required.
Explanation.- The
designated officer shall not be required to retain security or surety furnished
by a person on behalf of a taxable person or registered person, if the
registration of such a person has been cancelled under this Act and nothing
remains due against such a person.
(3) Where it appears expedient
to the designated officer, granting registration, so to do, for the proper
realisation of, tax payable under this Act, he may, at any time while such
certificate is in force, by an order in writing and for reasons to be recorded
therein, require the person, to whom the registration has been granted, to
furnish within such time, as may be specified in the order and in the
prescribed manner, such additional security, not exceeding rupees two lac in
addition to the security, furnished under sub–section (1), as may be specified
in the order, for the aforesaid purpose:
Provided
that no person shall be required to furnish any additional security under this
sub-section, unless he has been given an opportunity of being heard.
(4) The designated officer,
granting the registration, may, by an order in writing, for good and sufficient
cause, forfeit or realise the whole or any part of the security or additional
security furnished by a person for recovery of any amount of tax or penalty due
or payable by a person:
Provided
that no order shall be passed under this sub-section without giving the person
concerned, an opportunity of being heard.
(5) In case the security is
rendered insufficient because of the order made under sub–section (4), the
person concerned shall furnish further security to make up for the amount,
which has fallen short, in such manner and within such time, as may be
prescribed.
LEVY OF PURCHASE TAX
CHAPTER – III
LEVY OF PURCHASE TAX
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19. (1) Notwithstanding anything contained in this Act, there shall be
levied VAT on the taxable turnover of purchase of the goods specified in
Schedule-H at the rate applicable
to such goods as per the Schedules.
(2) The tax
shall be leviable on the first purchase of these goods from within the State.
In case of Milk, however, first purchase shall be, when purchase is made by a
manufacturer of taxable goods:
Provided that on subsequent sales of such goods, VAT on sale price shall
be leviable as per the provisions of this Act.
(3) Subject to the provisions of this Act, the
purchaser of the goods, specified in Schedule-H, shall have to be registered
for VAT.
(4) The purchase tax paid by a taxable person,
shall not be admissible as input tax credit, unless the goods are sold within
the State or are used for manufacture
of taxable goods in the State for sale or are sold in
the course of inter-State trade or commerce or in the course of export:
Provided that if, purchases are used
partially for the purpose of manufacture of taxable goods and partially for the
purpose of manufacture of tax free
goods, then the purchase tax paid by a person shall be allowed to be treated as
input tax credit proportionately, to the extent, the purchases are used for
such purposes in the prescribed manner.
(5) Input tax credit, on goods liable to tax
under sub-section (1), when sold in the course of inter-State trade or
commerce, shall be available only to the extent of Central Sales Tax chargeable
under the Central Sales Tax Act, 1956.
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20. (1) Where a taxable person purchases taxable
goods from a person other than a taxable person or a registered person, and -
(a)
uses such goods
in the manufacture of goods, declared tax-free under section 16; or
(b)
uses such goods
in the manufacture of any goods other than those specified in Schedule-A, and
sends the goods so manufactured outside the State otherwise than by way of sale in the course of inter-State trade or
commerce or exports out of India; or
(c)
disposes of such
goods in any manner other than by way of sale in the State; or
(d)
despatches them
to a place outside the State otherwise than as a result of sale in the course of inter-state
sale, trade or commerce or export out of India,
there shall be levied a tax on the taxable turnover
of purchases of such goods at the rate
applicable to such goods as per the
Schedules :
Provided that no tax shall be levied
under this section, if a tax has already been paid on such goods under section
19.
(2) Where a registered person purchases taxable
goods from a person, other than a taxable person or a registered person, and
disposes of such goods in any manner,
there shall be levied a tax on the turnover of such purchases at the rate(s)
specified in the Schedule(s).
incidence and levy of VAT
CHAPTER – II
Incidence of tax.
INCIDENCE AND LEVY OF TAX
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Incidence of tax.
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6. (1) Every person, except a casual trader and one
dealing exclusively in goods declared tax free under section 16, whose gross
turnover during the year immediately preceding the commencement of this Act or
during any year subsequent thereto, exceeded the taxable quantum, as provided
in clause (a) of sub-section (3), shall be liable to pay tax under this Act by
way of VAT on the taxable turnover.
(2)
Every person, except a casual trader and
one dealing exclusively in goods declared tax free under section 16, whose
gross turnover during the year immediately preceding the commencement of this
Act or during any year subsequent thereto, exceeded the taxable quantum, as
provided in clause (b) of sub-section (3), shall be liable to pay tax under
this Act by way of TOT on the taxable turnover.
(3)
For the purpose of this section, the
expression ‘taxable quantum’ means-
(a) for registration as a taxable person for
VAT -
(i)
in relation to
any person, who imports taxable goods for sale or use in manufacturing or
processing any goods in the State, rupee one;
(ii)
in relation to a
person, who receives goods on consignment/branch transfer basis from within or
outside the State on which no tax has been paid under this Act, rupee one;
(iii)
in relation to a
person, liable to pay purchase tax under section 19, rupee one;
(iv)
in relation to a
person, who is a manufacturer, rupees one lac;
(v)
in relation to a
person, who is running a hotel/restaurant, rupees five lac;
(vi)
in relation to a
person, who is running a bakery, rupees ten lac;
(vii)
in relation to
voluntary registration, rupees five lac; and
(viii) in relation to any other person, rupees fifty lac.
(b) for registration as a registered person for
TOT –
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(4) Every
person, who has become liable to pay tax under this Act, either by way of VAT
or TOT, shall continue to be so liable, until the expiry of three consecutive
years during each of which his gross turnover does not exceed the taxable
quantum and such further period after the date of such expiry, as may be
specified by notification by the State Government and on the expiry of such
specified period, his liability to pay tax, shall cease.
(5) Every person whose liability to pay tax has ceased under
sub-section (4), shall again be liable to pay tax under this Act from the date
on which his gross turnover again exceeds the taxable quantum.
(6) Every
casual trader shall be liable to pay tax under this Act by way of VAT on the
taxable turnover including sales through agent within the State.
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8. (1) Subject to the provisions of this Act,
there shall be levied on the taxable turnover of a person other than a
registered person, VAT at such rate, as specified in Schedules, but not
exceeding thirty paise in a rupee:
Provided that the rate of tax applicable
on purchase or sale of declared goods, shall not exceed four percent or such
rate, as specified in clause (a) of section 15 of the Central Sales Tax Act,
1956.
(2)
Notwithstanding
anything contained in this section, where any goods are sold in container or
are packed in any packing material, the rate of tax applicable to such
container or packing material, shall, whether the price of the container or
packing material is charged separately or not, be the same as is applicable to
the goods, contained or packed therein and the turnover in respect of the
container and packing material, shall be included in the turnover of such
goods. Where the goods, sold in container or packed in packing material are tax
free, the sale of such container or packing material shall also be tax free.
(3)
The State
Government after giving fifteen days notice by notification, of its intention
so to do, may by like notification, alter the rate of tax specified in any of
the Schedules, add to or omit from or otherwise amend the Schedules and
thereupon, the Schedule shall be deemed to have been amended accordingly:
Provided that if, the State Government is
satisfied that circumstances exist, which render it necessary to take immediate
action, it may, for reasons to be recorded in writing, dispense with the
condition of previous notice.
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10. The
amount of VAT or TOT shall be calculated to the nearest rupee by ignoring fifty
paise or less and counting more than fifty paise as one rupee.
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11. (1) No person, who, is not registered
under this Act or if registered, is not liable to pay tax in respect of any
sale or purchase, shall collect any amount by way of tax from any person.
(2) No
person, who is registered under this Act, shall collect any amount by way of
tax in excess of the amount of tax leviable under this Act.
(3) No
person, who is registered under this Act, shall collect any amount by way of
tax in respect of sale of goods, which are tax free under section 16.
(4) If
a person collects tax in contravention of the forgoing provisions of this Act,
he shall be liable to deposit the tax so collected immediately after such
collection, in the Government treasury. In the event of failure of such person
to deposit the tax, the Commissioner or the designated officer, as the case may
be, shall, by order in writing, recover such tax, as per provisions of this
Act.
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(2) Sale
of taxable goods held in stock by a registered person on the appointed day,
which were purchased without payment of tax under the repealed Act, shall be
liable to tax at the rate, specified for those goods under this Act.
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(4) A registered person shall not be entitled
to input tax credit for any purchase.
(5) A registered person shall issue only a
retail invoice for sale made by him and shall not be eligible to issue a VAT
invoice.
(6) A registered person shall not be eligible
to hold registration under the Central Sales Tax Act, 1956.
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13. (1) A taxable person shall be entitled to the
input tax credit, in such manner and
subject to such conditions, as may be prescribed, in respect of input tax on
taxable goods, including capital goods,
purchased by him from a taxable person within the State during the tax
period:
Provided that such goods are for sale in the State or
in the course of inter-State trade or commerce or in the course of export or
for use in the manufacture, processing or packing of taxable goods for sale
within the State or in the course of inter-State trade or commerce or in the
course of export:
Provided further that a taxable person shall be entitled to
partial input tax credit in any other event, as may be provided in this section
in such manner and subject to such conditions as may be prescribed:
Provided further that if, purchases are used partially for
the purposes specified in this sub-section and the taxable person is unable to
identify the goods used for such purposes, then the input tax credit shall be
allowed proportionate to the extent, these are used for such purposes, in the
prescribed manner:
Provided further that input tax credit in respect of
purchase tax paid or payable by a taxable person under section 19, shall be
allowed subject to the conditions laid therein.
(2) Input
tax credit shall be allowed only to the extent by which the amount of tax paid
in the State exceeds four percent on purchase of goods –
(a)
sent outside the State other than by way of
sale in the course of inter-State trade or commerce or in the course of export
out of territory of India; and
(b)
used in manufacturing or in packing of
taxable goods sent outside the State other than by way of sale in the course of
inter-State trade or commerce or in the course of export out of the territory
of India.
(3) Where a taxable person sends any goods as
such or after being partially processed for further processing on job work
basis, he shall debit the ITC by four
percent of the value of such goods. If such goods after processing are received
back by such person, the ITC debited at the time of despatch, shall be
restored. Such person shall, however, be required to produce proper evidence in
the shape of records, challans or memos or any other document evidencing
receipt of such goods, whenever asked for.
(4)
Input tax credit on furnace oil, transformer oil, mineral turpentine
oil, water methanol mixture, naphtha and lubricants, shall be allowed only to
the extent by which the amount of tax paid in the State exceeds four per cent:
Provided that these goods are used in production of taxable
goods or captive generation of power.
(5) A
taxable person under this section, shall not qualify for input tax credit in
respect of the tax paid on purchase of, -
(a)
automobiles including commercial vehicles,
two wheelers, three wheelers and spare parts for the repair and maintenance
thereof, unless the taxable person is in the business of dealing in such automobiles
or spare parts;
(b)
petrol, diesel, aviation turbine fuel,
liquefied petroleum gas and condensed natural gas, unless the taxable person is
in the business of selling such products;
(c)
civil structure and immovable goods or properties;
(d)
office equipment and building material,
unless the taxable person is in the business of dealing in such goods;
(e)
furniture fixtures including electrical
fixtures and fittings, unless the taxable person is in the business of such
goods;
(f) air-conditioning
units, air circulators and refrigeration units, unless the taxable person is in
the business of dealing in such goods or where air-conditioning, air
circulating or refrigeration is essential for sale or storage of taxable goods
or in the manufacturing process of taxable goods;
(g)
weigh bridge, except when installed inside
the manufacturing premises for use in the manufacturing process of taxable goods;
(h)
goods used in manufacture, processing or
packing of goods specified in Schedule ‘A’;
(i)
goods used in generation, distribution and
transmission of electrical energy unless such generation, distribution and
transmission of electrical energy is for captive consumption, in which case, it
would be allowed subject to the provisions of sub-section (4) of this section;
(j)
the provisions of food, beverage and
tobacco products, unless the taxable person is in the business of selling food,
beverage and tobacco products; and
(k)
goods used for personal consumption or
gifts.
(6) A
person, who was earlier registered for VAT and has subsequently got himself registered
for TOT, shall reverse the input tax credit availed by him before such change
of option, on the stock of goods held by him on the day, when he is registered
as a registered person.
(7) A
person, who was earlier registered for TOT and has subsequently got himself
registered for VAT, shall not be entitled for input tax credit on the stock of
goods held by him on the day, when he got registered as a taxable person and
shall be liable to pay TOT on such stock, if sold within thirty days from such
date.
(8) A
person, who exports goods out of India and has claimed refund of
input tax under sub–section (2) of section 18, shall reverse the input tax
credit, if any, availed by him on such goods.
(9) A
person shall reverse input tax credit availed by him on goods which could not
be used for the purposes specified in sub-section (1) of this section or which
remained in stock at the time of closure of the business.
(10) Where
the selling taxable person has made any modification in respect of a sale by
issuance of debit or credit note on the invoice book, the purchasing taxable
person shall make necessary adjustment of input tax credit availed.
(11) Input
tax credit shall be non-transferable, except where the ownership of the
business of a person is entirely transferred.
(12) Save
as otherwise provided hereinafter, input tax credit shall be allowed only
against the original VAT invoice and will be claimed during the period in which
such invoice is received.
(13) In
case the original VAT invoice is lost or mutilated, the input tax credit will
be available only after the designated officer has determined the credit in the
prescribed manner.
(14) If
upon audit or cross verification or otherwise, it is found that a taxable
person has made a false input tax credit claim, the Commissioner or the
designated officer, as the case may be, shall order for recovery of the whole
or any part of such input tax credit, as the case may be, without prejudice to
any action or penalty provided for in this Act.
(15)
The onus to prove that the VAT invoice on the basis of which, input tax
credit is claimed, is bonafide and is issued by a taxable person, shall lie on
the claimant.
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14. (1) A taxable person, who was registered under
the repealed Act and
whose registration has been continued under section 21,
shall be entitled to input tax credit in respect of the tax paid or payable
under the repealed Act on the goods, other than capital goods, lying in stock
with him on the appointed day, to such extent and in such manner and subject to
such conditions, as may be prescribed. He shall, however, be eligible for input
tax credit on capital goods, if he is in the business of resale of such goods:
Provided that such stock
is out of the purchases made within twelve months prior to the appointed
day.
(2) The taxable person, who intends to claim
input tax credit under sub-section (1), shall within forty five days from the
appointed day, furnish in the specified form to the designated officer, a
statement of tax-paid goods held in stock.
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(4) Input tax credit on the stock, held on the
appointed day, shall be allowed on the basis of the rate of tax, prevailing on
the day preceding the appointed day or on the day of purchase of such goods
under the repealed Act or the rate of tax, leviable under this Act, whichever
is the lowest.
(5) Input tax credit available under this
section, shall be proportionately adjusted in equal installments over a period
of one year beginning after three months from the appointed day in such manner,
as may be prescribed.
(6) No input tax credit under this section
shall be allowed in respect of goods held in stock -
(a)
which are not
included in the statement of taxable goods specified under sub-section (2); and
(b) for which the person does not have in his
possession sales vouchers, issued by a person, registered under the repealed
Act, against the purchases of the said goods, or which are not recorded in his
books of accounts.
(7) Onus to prove that the taxable goods held
in the stock on the appointed day, has suffered tax under the repealed Act,
shall be on the claimant of input tax credit.
(8) Save as otherwise provided in this section,
the provisions of section 13, shall apply mutatis mutandis to the input
tax credit claimed under this section.
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(2) If the amount of input tax credit, is more
than the amount of output tax, the same may be adjusted, at the option of the
taxable person, against the tax liability for the said tax period, if any,
under the Central Sales Tax Act, 1956 and only the remaining amount of the
Central Sales Tax shall be payable.
(3) Excess amount of input tax credit, if any,
after adjustment under sub-section (2) shall be adjusted against any
outstanding tax, penalty or interest under this Act or under the Central Sales
Tax Act, 1956, as the case may be.
(4) Excess
amount of input tax credit, if any, after adjustment under sub-section (2) and
(3), may be carried over to subsequent tax period or at the option of taxable
person, on application being made in the prescribed manner, be refunded in
accordance with the provisions of this Act.
(5) The
net tax payable for a tax period by a person, liable to pay tax, but not
registered under this Act, shall be equal to the output tax, payable for the
said tax period as per the provisions of this Act and no input tax credit shall
be admissible to him.
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16. No tax shall be
payable on the sale of goods specified in Schedule-A and no person including a
taxable person or a registered person shall charge tax on the sale of goods
which are declared tax free goods under this section.
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17. Where any taxable goods are exported outside the territory of India or are supplied in the course of
such export falling within the scope of section 5 of the Central Sales Tax Act,
1956, such sales shall be zero-rated. On such sale, no output tax is
payable by any person:
Provided that a taxable
person making zero-rated sale shall be eligible for input tax credit in
relation to such sales.
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18. (1) The persons or organizations listed in
Schedule-G, shall be entitled to claim refund of tax, paid for goods, purchased
in the State, on every single purchase, exceeding rupees five thousand,
excluding tax amount, on proper application, subject to such conditions, as may
be prescribed.
(2) A taxable
person shall be entitled to claim refund in respect of input tax paid on goods
exported out of the territory
of India, subject to such
conditions and the manner, as may be prescribed.
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