(1) Every dealer -

(a) whose gross turnover of sales or purchases during the year immediately preceding the commencement of this Act, -

(i) exceeded the specified quantum, or

(ii) who is registered or liable to be registered under the adopted Bihar Finance Act, 1981 or the Central Sales Tax Act, 1956, or

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

(i) whose gross turnover first exceeds the specified quantum during any period of twelve consecutive months, or

(ii) who has become liable to pay tax under the Central Sales tax Act, 1956, or

(iii) who is registered as a dealer under the Central Sales tax Act, 1956 or under this Act at any time after the commencement of this Act;

Shall be liable to pay tax in accordance with the provisions of this Act.

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

(a) in case 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 gross turnover first exceeded the specified quantum during a period of any twelve consecutive months.

(c) In case of sub-clauses (ii) and (iii) 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.

(3) Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed the specified quantum and his liability to pay tax under this Act shall cease on the expiry of the period specified above.

(4) Every dealer who has ceased to be liable under sub-Section (3) shall be again liable to pay tax under this Act with effect from the date immediately following a period not exceeding twelve consecutive months during which his gross turnover again exceeds the specified quantum.

(5) For the purpose of this Act, specified quantum means in relation to any dealer who:

(a) imports for sale any goods into the State of Jharkhand on his own behalf or on behalf of his principal Nil

(b) manufactures or produces any goods for sale Rs. 50,000

(c) is engaged in any other business other than clauses (a) & (b)Rs. 10 lakhs.

(d) involved in the execution of Works Contract and Leasing Rs. 1 lakh.

(e) is engaged in any other sales or purchases or class of sales or purchases: other than (a), (b) and (c); the specified quantum shall be, as specified in this behalf, from time-to-time.

Provided that the State Government may, by notification published in the Official Gazette and subject to condition of one month's previous notice, increase or reduce the amount of specified quantum.

(6) For the purpose of calculating the gross turnover to determine the liability to pay tax under the Act-

(a) except as otherwise expressly provided, the turnover of all sales or as the case may be, the turnover of all purchases shall be taken, whether such sales or purchases are taxable or not, and

(b) the turnover shall include all sales or purchases made by a dealer on his own account and also on behalf of principals whether disclosed or not.

(7) Where by any order passed under this Act, it is found that any person registered as a dealer ought not to have been so registered, then, notwithstanding any thing contained in this Act, such person shall be liable to pay tax for the period commencing with the date of his registration and ending with the date of such order, as if he were a dealer.

(8) A registered dealer: whose liability to pay tax has ceased under this Act, for any reason other than the entire transfer of his business to other persons; shall pay tax on the stock of goods remaining unsold at the termination of his liability, after furnishing such declarations as prescribed.

(9) Every dealer whose liability to pay tax has ceased under sub-section (8) or otherwise: shall again be liable to pay tax under this section, with effect from the day following the date, on which his gross turnover during a period not exceeding twelve months immediately preceding such date, again exceed the quantum as specified in this section.

(10) Notwithstanding anything contained in this section, where a dealer who is or was, less than six months earlier, liable to pay tax, starts a new business, either singly or jointly with other persons, or joins other business or partnership firm or concern or undivided Hindu family, tax as aforesaid, shall be payable on sales and purchases made from such business or partnership firm or such concern, on and from the date the dealer starts or joins it, unless liability in respect of such business, partnership firm or concern has arisen from an earlier date under the provisions of this section.

(11) Notwithstanding anything contained in this section, a dealer registered under the Central Sales Tax Act, 1956 (LXXIV of 1956), shall irrespective of the quantum of his gross turn-over be liable to pay tax on his sale, made inside Jharkhand of any goods, which he purchased or acquired from outside the State after furnishing a declaration under sub-section (4) of section 8 or under sub-section (1) of section 6A of the said Act, or any goods in the manufacture or processing of which goods so purchased by him have been used:

Provided that tax shall not be payable if the dealer shows to the satisfaction of the prescribed authority that the turnover is deductible from his gross turnover, under sub-section (4) of Section 9 for the purpose of determining his taxable turnover.

(12) The provisions of the Central Sales Tax Act, 1956 (LXXIV of 1956) shall apply for determining when a sale or purchase shall be deemed to have taken place inside Jharkhand.

(13) Notwithstanding any contained in this Act, the tax payable under the Act, for each year, may with the previous approval of the Commissioner or any authority empowered in this behalf, be estimated and collected in advance during a year, in such installments as may be fixed by the prescribed authority. For this purpose the prescribed authority may require the dealer to furnish an advance estimate of his taxable turnover for that year and may, provisionally determine the amount of tax payable under this Act, by the dealer in respect of the year. Thereupon the dealer shall pay the amount so determined, by such date as may be fixed by such authority.