(1) Subject to the provisions of this Act, there shall be levied a tax, -

(a) at every point of sale in respect of the goods specified in the second column of Schedule 'A',

(b) at the prescribed points of purchase in respect of goods specified in the second column of Schedule 'C' ,and

(c) at the first point of sale in respect of the goods specified in the second column of Schedule 'D',

on the taxable turnover of a dealer, at the rates as specified in the respective Schedules or at such rates not exceeding 100 paise in a rupee as the State Government may, by notification, direct:

(d) at every point of sale in respect of the goods specified in the second column of Schedule "E"

Provided that the State Government may notify different rates in respect of different goods or classes of goods:

Provided further that the rate of tax in respect of declared goods shall not exceed the maximum rate of tax specified in clause (a) of section 15 of the Central Sales Tax Act, 1956(74 of 1956):

Provided further that subject to furnishing of a declaration as may be prescribed, the Government may, by notification, reduce the rate of tax levied under sub-section (1) upto 4% in respect of goods sold to the Government, not being a registered dealer, for captive use in telecommunication network, or in the generation or distribution of electricity or any other form of power.

(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) In this Act, the expression "taxable turnover" means that part of the dealer's gross turnover during any period which remains after deducting therefrom -

(a) his turnover during that period on-

(i) the sale of goods declared tax free under section 9;

(ii) sale or purchase of goods falling under section 58; and

(iii) such other sales or purchases as may be prescribed; and

(b) the amount of tax included in the gross turnover.