THE UTTARAKHAND VALUE ADDED TAX (AMENDMENT) ACT, 2016

(Act No. 02 of 2016)

(As passed by the Uttarakhand Legislative Assembly and assented to by the Governor on 29 March, 2016)

An

Act

further to amend The Uttarakhand Value Added Tax Act, 2005-

(Be it enacted by the Uttarakhand Legislative Assembly in the Sixty seventh year of the Republic of India, as follows :-

1. Short title and Commencement

(1) This Act may be called The Uttarakhand Value Added Tax, (Amendment) Act, 2016.

(2) This shall come into force at once

2. Amendment in Section 17

In Section 17 of the Uttarakhand Value Added Tax Act, 2005 (hereinafter referred to as the "Principal Act") after Clause (h) of sub-section (11), the following clause shall be added; namely -

(11) (hh) If the transaction in connection of business is initiated through any other bank account or accounts other than the bank account or accounts declared in the registration application or effects the closing of the bank account; or

3. Amendment in Section 25

In Section 25 of the "Principal Act", the heading of sub-section (9) and for the existing clause (a), clause (e), clause (f) and clause (g) of sub-section (9), the following shall be substituted; namely -

(9) Tax Audit And Tax Audit Assessment:

(a) Notwithstanding anything contained in this Act tax audit of records, Stock and related documents of a dealer, selected for this purpose may be conducted for the purpose of ensuring the compliance by the dealer for the requirements of the Act or for examining the correctness of periodical and final returns and admissibility of various claims including input tax credits;

Provided that no dealer may be selected for tax audit for an assessment year after the expiration of five year from the end of such assessment year.

(e) The officer conducting the tax audit shall have powers under section 42 of the Act and may also make or cause to be made extracts or copies from the books of accounts and other documents, inventory of stock, seek such information or statement, which may be useful and relevant to any proceeding under this Act. The dealer shall provide full co-operation and assistance to the audit party during the course of audit;

If the dealer prevents or obstructs the officer from making extracts or copies from the books of accounts and other documents, inventory of stock or from seeking such information or statements required for the purpose of tax audit or does not cooperate and assist the audit party during the course of audit, the officer in charge of the tax audit may impose a penalty upto Rs. 10,000/ for each non compliance. No such penalty shall be imposed unless a reasonable opportunity of being heard has been given to the dealer. The provisions relating to recovery of dues shall mutatis mutandis apply for recovery of imposed penalty;

(f) The tax audit authority shall after considering all the evidence collected by him or produced in course of the proceeding may :-

(1) Confirm the self assessment or assessment order which has already been passed; or

(2) Set aside the self assessment or assessment or reassessment order and reassess the turnover and tax of the dealer; or

(3) Assess the amount of tax due from the dealer if no assessment has been made so far;

Provided that no such assessment or reassessment shall be made unless a reasonable opportunity of being heard has been given to the dealer;

Provided further that not more than three adjournments shall be granted to a dealer for hearing of the case under this Section;

Provided further that period of limitation for making Assessment or Reassessment under this section shall be applicable as per section 32 of this Act.

(g) The tax audit officers shall have all the powers of an Assessing Authority.

4. Amendment in Section 29

In Section 29 of the "Principal Act", the heading of existing Section 29, and for the sub-section (1) the following heading and sub-section (1), and after clause (d) of this sub-section, the new following clause (dd) shall be added and for the sub-section (4), the following sub-section shall be substituted; namely -

29. Assessment of the Turnover not Assessed or Assessed at lesser rate during the year:

(1) Where for any year or part thereof, the Assessing Authority has reason to believe that the whole or any part of turnover or tax of the dealer in respect of any tax period has -

(dd) During Assessment rebate or concession has been allowed on the basis of submitted declaration form or certificate but such submitted declaration form or certificate is found to be false or wrong, afterwards; or

(4) If the Commissioner on his own or on the basis of reasons recorded by the Assessing Authority is satisfied that it is just and expedient so to do, he may authorise the Assessing Authority in that behalf, and then such assessment or reassessment not made after the expiration of six years after the end of such assessment year or after the expiration of four year from the date of the order sought to be reassessed, whichever is later notwithstanding that such assessment or reassessment may involve a change of opinion.

5. Deletion of Section 31

Section 31 of the "Principal Act" Shall be deleted.

6. Deletion of Section 32(6)

Section 32(6) of the "Principal Act" Shall be deleted.

7. Amendment in Section 34

In Section 34 of the "Principal Act", after the existing sub-section (17), the following new sub-section (17A) Shall be added; namely-

(17A) If any amount is to be paid by a person to the Assessing Authority, under sub-section (14) of Section 34 of this Act, but the person fails to pay the amount, such person shall be liable to pay such amount not exceeding the amount due, as penalty, as directed by the Assessing Authority in writing, after giving him the opportunity of being heard.

8. Addition of Section 34A

After the existing Section 34 of the "Principal Act", the following new Section 34-A Shall be added; namely -

34A. Tax to be first Charge :

Notwithstanding anything to the contrary, contained in any law or contract, any amount of tax, penalty or other amount, if any, payable by a dealer or other person under this Act shall be first charge on the property of the dealer or such person.

9. Amendment in Section 51

In Section 51 of the "Principal Act"-

(1) After the existing sub-section (4), the following new subsection (4A) Shall be added; namely -

(4A) Notwithstanding anything contained in this Section,

(i) no appeal against an ex-parte order shall be entertained unless the appellant has furnished satisfactory proof of the payment of sum equal to five percent of the amount of disputed tax or penalty or Rupees One Lakh which ever is less;

(ii) no appeal against any other order, besides ex-parte assessment order or penalty shall be entertained unless the appellant has furnished satisfactory proof of the payment of sum equal to twenty percent of the amount of disputed tax, penalty or any other amount or Rupees Five Lakh which ever is less;

(iii) no appeal, against any declaration form or certificate of turnover of concession or rebate, which is being rejected by the Assessing Authority or which are not being produced before the Assessing Authority, shall be entertained unless the appellant has furnished satisfactory proof of the payment of a sum equal to ten percent of the amount at general rate of tax payable under this Act, on the amount of the turnover of such declaration form or certificate, rejected or not produced.

Explanation: The above mentioned amount shall be in addition to the condition of the stay given under Sub-Section (6).

(2) After the existing third proviso of sub-section (8), the following new proviso shall be added; namely -

Provided further that on an appeal, against an order passed after the direction under Clause (c), no further direction to pass a fresh order be made under Clause (c).

10. Amendment in Section 53

In Section 53 of the "Principal Act", the existing second proviso of sub-section (8) shall be deleted.

11. Amendment in Section 58

In Section 58 of the "Principal Act", for the existing clause (xv) of sub-section (1), the following sub-section shall be substituted; namely -

(1)(xv) A sum not exceeding rupees ten thousand for each default.

12. Amendment in Section 61

In Section 61 of the "Principal Act", the word "six years" occurring therein sub-section (1), the words "eight years" shall be substituted.

By Order,

JAI DEO SINGH,

Principal Secretary.