THE TRIPURA VALUE ADDED TAX ACT , 2005
CHAPTER II : INCIDENCE AND LEVY OF TAX

Body 3. Incidence of Tax -

(1) Every dealer -

(a) at the time of commencement of this Act -

(i) whose taxable turnover of sales during the year immediately preceding the commencement of this Act exceeded the taxable limit, or

(ii) who is registered or liable to be registered under the Tripura Sales Tax Act, 1976 or the Central Sales Tax Act, 1956, or Tripura Purchase Tax Act 1990, or

(iii) who is engaged in purchase of taxable goods as mentioned in schedule VIII.

(b) to whom clause (a) does not apply, and

(i) whose taxable turnover first exceeds the taxable limit during any period of twelve consecutive months, or

(ii) who is registered as a dealer under the Central Sales Tax Act, 1956,

shall be liable to pay Value Added Tax (VAT) in accordance with the provisions of this Act.

Provided that the State Government may keep certain goods as listed in the schedule II(d) outside VAT which will be taxable in the first point of sale within the State without any tax credit at such rates as may be specified by the Government from time to time by notification in the Official Gazette.

Provided further that the rates of different items may be different.

(2) Every dealer is liable to pay tax under sub-section (1) on sales effected by him,

(a) in case of sub-clause (i) & (iii) of clause (a) of sub-section (1), with effect from the date of commencement of this Act;

(b) In case of sub-clause (i) of clause (b) of sub-section (1), with effect from the date immediately following the day on which his taxable turnover first exceeded the taxable limit during a period of any twelve consecutive months,

(c) in case of sub-clause (i) and (ii) of clause (b) of sub-section (1), with effect from the date of registration or the date on which he becomes so liable whichever is earlier.

(d) in case of sub-clause (iii) of clause of sub-section (1) with effect from the date as notified in the official Gazette or from the registration, the date on which he becomes so liable whichever is earlier.

(3) For the purpose of this Act, taxable limit means in relation to any dealer who:

(a)	imports for sale any taxable goods into the State of Tripura on his own behalf or on behalf of his principal	Nil
(b)	manufactures or processes any taxable goods for sale	Nil
(c)	is engaged in any other business other than clause (a) and (b)	Rs.3,00,000/-
(d)	involved in the execution of works contract and transfer of right to use any goods for any purpose, lease or hire purchase	Nil
(e)	involved in purchase of goods as mentioned in the schedule VIII	Nil