Extract of Bihar Finance Act, 2007
[Bihar Act 8, 2007]
(Published in the Bihar Gazette (Extra Ordinary) dated 31-3-2007 )
To Amend the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), The Bihar Taxation of Luxuries in Hotel Act, 1988 (Act 5 of 1988) and the Bihar Electricity Duty Act, 1948 (Act 36 of 1948), The Bihar Entertainment Tax Act, 1948 (Bihar Act XXXV of 1948), Amendment of the Bihar Motor Vehicle Taxation Act, 1994 And to Enact the Bihar Tax on Advertisements Act, 2007
Be it enacted by the Legislature of the State of Bihar in the fifty-eight year of the Republic of India as follows:-
1. Short title, extent and commencement -
(1) This Act may be called the Bihar Finance Act, 2007.
(2) It shall extend to the whole of the State of Bihar.
(3) It shall come into force at once.
PART I
Amendment of the Bihar Value Added Tax Act, 2005
2. Amendment of section 2 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
(1) After sub-section (j) of section 2 of Act 27 of 2005 a new sub-section (jj) shall be inserted in the following way, namely:-
'(jj) "digital signature" means authentication of any electric record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3 of the Information Technology Act, 2000 (Act 21 of 2000)';
Explanation-For the purpose of this sub-section the word "subscriber" shall have the meaning assigned to it in clause (zg) of sub-section (1) of section 2 of the Information Technology Act, 2000 (Act 21 of 2000).
(2) After sub-section (k) of section 2 of Act 27 of 2005 a new sub-section (ka) shall be inserted in the following way, namely:-
'(ka) "document" shall have the meaning assigned to it in section 29 of the Indian Penal Code, 1860 (45 of 1860);'
(3) After the so inserted sub-section (ka) of section 2 of 27 of 2005, a new sub-section (kb) shall be inserted in the following way, namely:-
'(kb) "electronic form" shall have the meaning assigned to it in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000 (Act 21 of 2000);
(4) After the so inserted sub-section (kb) of section 2 of Act 27 of 2005, a new sub-section (kc) shall be inserted in the following way, namely:-
'(kc) "electronic record" shall have the meaning assigned to it in section 29A of the Indian Penal Code, 1860 (45 of 1860);'
3. Amendment of section 3 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) -After sub-section (8) of section 3 of Act 27 of 2005, a new sub-section (9) shall be inserted in the following way, namely:-
"(9) Notwithstanding contained in sub-section (4), every dealer who has become liable to pay tax under sub-section (1), sub-section (2) or sub-section (3), shall subject to sub-section (5), cease to be so liable for any period which follows the expiry of twelve consecutive months during which his gross turnover has failed to exceed the taxable quantum specified in sub-section (3)."
4. Insertion of new section 3AA after section 3A of Act 27 of 2005-
After section 3A of the said Act a new section 3AA shall be inserted in the following way, namely:
"3AA. Additional tax.
(1) Notwithstanding anything contained in this Act, every dealer whose gross turnover exceeds rupees two hundred and fifty crores shall, on sales or purchases of such goods as the State Government may, by notification published in the official Gazette specify, also pay additional tax, in addition to the tax payable by him, at such rate, not exceeding four per centum of the aggregate value, as may be fixed by the State Government in the said notification.
Explanation -For the purposes of this sub-section, the expression "aggregate value" shall mean the aggregate value (excluding the tax paid or payable under this Act) of the sales, of the goods so notified, at the first point in a series of sales within the State.
(2) All provisions of this Act relating to the payment, assessment, recovery and refund of tax shall apply to the payment, assessment, recovery and refund of additional tax.
(3) Notwithstanding any thing to the contrary contained in this Act, every dealer liable to pay additional tax shall be entitled to collect the amount of this additional tax."
5. Amendment of section 16 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
(1) After the word "any goods mentioned in clauses (a), (b) and (d) of", of clause (c) of sub-section (1) of section 16 of Act 27 of 2005, the word "sub-section (1) of" shall be inserted.
(2) The first proviso to sub-section (1) of section 16 shall be substituted in the following way, namely:-
"Provided that if the claim for input tax credit under clause (a) or clause (b) or clause (c) or clause (d) or clause (e) for any month exceeds the output tax for the same month, such excess shall be carried forward for adjustment against the output tax of subsequent months, not being a month later than the last month of the financial year, and any amount of input tax that remains unadjusted in terms of the return under sub-section (3) of section 24 shall be refunded, subject to the provision of section 68, 69 and 71 of this Act, within three months following the month in which the return required under sub-section (3) of section 24 and the report under sub-section (2) of section 54, if required, is furnished:"
(3) The words "not exceeding thirty-six months from the date of their acquisition" in the second proviso to sub-section (1) of section 16 of Act 27 of 2005 shall be substituted by the words "not exceeding two financial years from the year of their acquisition".
(4) After sub-section (1) section 16 of Act 27 of 2005, a new sub-section (1A) shall be inserted in the following way, namely:-
"(1A) Notwithstanding any thing contained in the first proviso to sub-section (1), the dealer may, at his option, choose to carry forward the unadjusted amount of input tax credit in respect of a financial year for adjustment against the output tax of subsequent months of the following financial year.
Provided that, upon exercise of the option as aforesaid by the dealer, no refund of any unadjusted input tax credit shall be made during the course of such financial year.
Explanation- If a dealer carries forward the unadjusted input tax credit in respect of the financial year for adjustment against the output tax of the subsequent month of the following financial year, he shall be deemed, for the purpose of this sub-section, to have exercised the option."
(5) The full stop at the end of clause (e) of sub-section (3) of section 16 Act 27 of 2005 shall be substituted by a semi colon and the word "or" shall be inserted after the semi colon thus substituted.
(6) After clause (e) of sub-section (3) of section 16 of Act 27 of 2005 a new clause (f) shall be inserted in the following way, namely:-
"(f) in respect of inputs, to be specified by the State Government in a notification, which have been sold at a price lower than their purchase price in accordance with a price control mechanism effected either by the Central Government or the State Government."
6. Amendment of section 19 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
After the second proviso to sub-section (2) of Section 19 of Act 27 of 2005 a new proviso shall be inserted in the following way, namely:-
"Provided also that if the dealer applies for grant of certificate of registration in the prescribed manner and that the application is duly filled in, as aforesaid, he shall be deemed to be in possession of a valid certificate of registration, from the date so applied, for the purposes of exercising all rights and performing all duties or bearing all liabilities under this Act or the rules made thereunder."
7. Amendment of section 20 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
After sub-section (2) of section 20 of Act 27 of 2005, two new sub-sections (3) and (4) shall be inserted in the following way, namely:-
"(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the certificate of registration granted to a dealer who, during any period of twelve consecutive months, has neither deposited any sum by way of tax nor furnished any return required by the Act, may be cancelled by the prescribed authority in the manner prescribed.
(4) The cancellation of the certificate of registration under sub-section (3) shall be without prejudice to any action which is, or may be taken, under section 24, or section 27 or section 31 or section 81."
8. Amendment of section 24 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
(1) Sub-section (2) of section 24 of the said Act shall be deleted.
(2) The explanation to sub-section (3) of section 24 of Act 27 of 2005 shall be substituted in the following way, namely:-
"Explanation - In this sub-section, "due date" means-
(a) the 31st day of December of the year following the year to which such return relates in the case of the following classes of dealers:
(i) a company within the meaning of the Companies Act, 1956, or
(ii) a person, other than a company, whose accounts are required, under this Act or under any other law, to be audited or where the report of an accountant is required to be furnished under section 54;
(b) the 31st day of July of the year following the year to which such return relates, in any other cases."
(3) The word "abstract" in sub-section (4) of section 24 of Act 27 of 2005 shall be deleted.
(4) The word "abstract" in sub-section (5) of section 24 of Act 27 of 2005 shall be deleted.
(5) After the word "or sub-section (2)" in sub-section (6) of section 24 of Act 27 of 2005 the words "or sub-section (4)" shall be inserted.
(6) After the words "or sub-section (2) in sub-section (6) of section 24 of Act 27 of 2005, the words "or sub-section (3)" shall be inserted.
(7) The words "under sub-section (2)" in sub-section (7) of section 24 of Act 27 of 2005 shall be substituted by the words "or sub-section (4)".
9. Amendment of section 25 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
The words "clauses (a) to (d) of " in clause (d) of in clause (b) of sub-section (2) of Section 25 of Act 27 of 2005 shall be deleted.
10. Amendment of Section 26 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
Sub-section (1) of section 26 of Act (Act 27 of 2005) shall be substituted in the following way, namely:-
"(1) Without prejudice to the provisions of section 25 but subject to the provisions of section 32, the tax due in respect of a financial year from every registered dealer who has furnished the returns and statements mentioned in section 24, before the expiry of the due date within the meaning of sub-section (3) of section 24 or the date extended under sub-section (6) of section 24, shall be deemed to have been assessed."
11. Amendment of section 32 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
Clause (b) of sub-section (1) of section 32 of Act 27 of 2005 shall be substituted in the following way, namely:-
"(b) has furnished incorrect statement of his turnover or incorrect particulars of his sales or purchases in the return furnished under sub-section (1) of section 24 or in the quarterly statement under sub-section (4) of section 24 of in the annual return under sub-section (3) of section 24; or"
12. Amendment of section 35 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
(1) The full stop after the word and figure "section 24" in clause (f) of sub-section (1) of section 35 of Act 27 of 2005 shall be substituted by a semicolon.
(2) After clause (f) of sub-section (1) of section 35 of Act 27 of 2005 a new clause (g) shall be inserted in the following way, namely:-
"(g) sale of goods to organizations specified in Schedule V to this Act.'
13. Amendment of section 53 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)- (1) Clause (b) of sub-section (5) of section 53 of Act 27 of 2005 shall be substituted in the following way, namely:-
"(b) the name and complete address of the selling dealer;"
(2) After clause (b) of sub-section (5) of section 53 of Act 27 of 2005 the following new clauses (bb), (bc) and (bd) shall be inserted in the following way, namely:-
"(bb) the Taxpayer Identification Number of the selling dealer if registered;
(bc) nature of purchaser (whether consumer or a dealer not registered under the Act);
(bd) name and address of the purchaser in cause of sale to a dealer;"
14. Amendment of section 54 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
(1) Sub-section (1) of section 54 of Act 27 of 2005 shall be substituted in the following way, namely:-
"(1) Every dealer whose gross turnover exceeds forty lakh rupees shall, for the purposes of this Act, get his annual accounts audited by an accountant before the due date within the meaning of the Explanation to sub-section (3) of section 24 of this Act."
(2) Sub-section (2) of section 54 of Act 27 of 2005 shall be substituted in the following way, namely:-
"(2) Every dealer referred to in sub-section (1) shall obtain, by the date specified in that sub-section, a report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed and a true copy of such report shall be furnished by such dealer to the prescribed authority, on or before the due date within the meaning of the Explanation to sub-section (3) of section 24 of this Act.
Explanation -For the purposes of this section, "accountant" means a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 and includes a person who, by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956, is entitled to be appointed to act as an auditor of companies registered in any State.
Provided that the Commissioner may, by a notification and for specific reasons to be recorded in writing, extend the date of furnishing such report for a period not exceeding three months from the due date."
15. Amendment of section 55 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
After sub-sections (b) of section 55 of Act 27 of 2005, a new sub-section (c) shall be inserted in the following way, namely:-
"(c) if any person referred to in sub-section (a) contravenes the provisions of this section, the prescribed authority shall, after giving the person an opportunity of being heard, direct him to pay by way of penalty a sum equivalent to one thousand rupees."
16. Amendment of section 81 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
the word "five thousand rupees" in sub-section (5) of section 31 of Act 27 of 2005 shall be substituted by the words "fifty thousand rupees".
17. Amendment of section 93 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
After clause (o) of sub-section (2) of 93 Act 27 of 2005, a new sub-section (oa) shall be inserted in the following way, namely:
"(oa) The manner in which the certificate of registration shall be cancelled under sub-section (3) of section 20;"
18. Amendment of section 98 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)-
(1) the colon before the provision to sub-section (1) of section 98 of Act 27 of 2005 shall be substituted by a full stop.
(2) The proviso to sub-section (1) of section 98 of Act 27 of 2005 shall be deleted.