EXTRACT OF THE RAJASTHAN FINANCE ACT, 2016

(Act No. 5 of 2016)

[Received the assent of the Governor on the 8th day of April, 2016]

An

Act

further to amend the Rajasthan Value Added Tax Act, 2003, the Rajasthan Tax on Entry of Goods into Local Areas Act, 1999, the Rajasthan Tax on Luxuries (In Hotels and Lodging Houses) Act, 1990, the Rajasthan Electricity (Duty) Act, 1962, the Rajasthan Stamp Act, 1998, the Rajasthan Motor Vehicles Taxation Act, 1951 and the Rajasthan Fiscal Responsibility and Budget Management Act, 2005, in order to give effect to the financial proposals of the State Government for financial year 2016-17 and to make certain other provisions.

Be it enacted by the Rajasthan State Legislature in the Sixty-seventh Year of the Republic of India, as follows:-

CHAPTER I

PRELIMINARY

1. Short title.- This Act may be called the Rajasthan Finance Act, 2016.

2. Declaration under section 3, Rajasthan Act No. 23 of 1958.-

In pursuance of section 3 of the Rajasthan Provisional Collection of Taxes Act, 1958 (Act No. 23 of 1958) it is hereby declared that it is expedient in the public interest that provisions of clauses 5, 18, 23 and 24 of this Bill shall have immediate effect under the said Act.

CHAPTER II

AMENDMENT IN THE RAJASTHAN VALUE ADDED TAX ACT, 2003

3. Amendment of section 2, Rajasthan Act No. 4 of 2003.-

After the existing clause (7) and before the existing clause (8) of section 2 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003), hereinafter in this Chapter referred to as the principal Act, the following shall be inserted, namely:-

"Explanation.- For the purpose of this clause, generating set for generation of electrical energy to be used in manufacturing shall be treated as capital goods."

4. Amendment of section 13, Rajasthan Act No. 4 of 2003.-

For the existing sub-section (3) of section 13 of the principal Act, the following shall be substituted, namely:-

"(3) Where a dealer, after having been granted registration, changes his principal place of business outside the territorial jurisdiction of the present assessing authority, he shall seek the permission in the prescribed manner for such change of the assessing authority from the Commissioner or any other officer authorised by the Commissioner in this behalf, and unless such permission is granted, the present assessing authority shall continue to be the assessing authority of such dealer. Where a decision on the grant of permission is not taken within a period of thirty days from the date of the application seeking change of assessing authority, such permission shall be deemed to have been granted."

5. Amendment of section 24, Rajasthan Act No. 4 of 2003.-

In proviso to sub-section (5) of section 24 of the principal Act,-

(i) for the existing punctuation mark "." the punctuation mark ":" shall be substituted; and (ii) after the existing proviso so amended, the following new proviso shall be added, namely:-

"Provided further that the assessment for the year 2013-14 shall be made up to 31.07.2016."

6. Amendment of section 33, Rajasthan Act No. 4 of 2003.-

In sub-section (3) of section 33 of the principal Act,-

(i) for the existing expression "within a period of one year" the expression "within a period of six months" shall be substituted;

(ii) for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted; and

(iii) after the sub-section (3), so amended, the following proviso shall be added, namely:-

"Provided that the application pending before assessing authority on 1st April, 2016 shall be disposed of up to 30th September, 2016 or within one year from the date of presentation thereof, whichever is earlier."

7. Amendment of section 51A, Rajasthan Act No. 4 of 2003.-

In section 51A of the principal Act, for the existing expression "interest or penalty" the expression "interest or penalty or late fee" shall be substituted.

8. Amendment of section 53, Rajasthan Act No. 4 of 2003.-

In section 53 of the principal Act, after the existing subsection (3) and before the existing sub-section (4), the following new sub-section (3A) shall be inserted, namely:-

"(3A) Where any amount has been deposited wrongly or in excess, by a dealer and it is found that such amount is not payable or has been deposited in excess of the amount payable by the dealer for the tax period mentioned in the challan, the Commissioner or any officer as authorised by the Commissioner in this behalf shall direct the assessing authority to grant refund of the said amount in the manner as prescribed."