The Bihar Value Added Tax (Amendment) Act, 2008
[Bihar Act 26 of 2008]
(Dated : 11th August, 2008)
An Act to amend the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)
Be it enacted by the legislature of the State of Bihar in the fifty-ninth year of Republic of India as follows :-
1. Short title, extent and commencement.-
(1) This Act may be called the Bihar Value Added Tax (Amendment) Act, 2008.
(2) It shall extend to the whole of the State of Bihar.
(3) It shall come into force at once.
2. Amendment of Section 14 of Bihar Value Added Tax Act, 2005 (Act 27 of 2005).-
(1) Sub-section (1) (c) of section 14 of Act, 27 of 2005 shall be substituted in the following way, namely-
"The goods specified in the Schedule IV, at the rate not below ten per cent and not exceeding fifty percent and subject to such conditions and restrictions, as the State Government may, by notification specify."
3. Amendment of Section-19 of Bihar Value Added Tax Act, 2005-(Act, 27 of 2005).-
(1) After sub-section (4) of Section-19 of Act, 27 of 2005 a new sub-section (5) shall be inserted in the following way, namely :-
(5)(1) The certificate of registration shall be deemed to be inoperative-
(a) in case of any business in respect of which a certificate of registration has been issued to a dealer under this Act is discontinued or in the case of transfer of whole business by a dealer, the transferee already holding a certificate of registration under this Act, with effect from the date of discontinuance or as the case may be, transfer of the business;
(b) in case of an incorporated body has been wound up or it otherwise cease to exist or the owner of a proprietorship business dies leaving no successor to carry on the business or in case of a firm or association of persons, it is dissolved or a delaer has ceased to be liable to tax under this Act, notwithstanding the fact that the order of suspension is passed or not.
(2) If a dealer has failed to file return for twelve consecutive months under this Act or has failed to pay the tax due for twelve consecutive months under the provisions of this Act or discontinues his business and has failed to furnish information regarding such discontinuing or has failed to inform the changes in his business if any; the competent authority may at any time, for reasons to be recorded in writing and after giving the dealer an opportunity of being heard, suspend his certificate of registration from such date as may be specified by him.
(3) During cancellation proceedings under Section-20, where the registering authority is satisfied that the dealer will succeed in causing revenue loss, pending action for cancellation under Section-20, it may, after assigning reasons therefore, suspend the registration certificate by passing an order in writing, for the period during which the proceedings are pending:
Provided that if the dealer, by furnishing adequate security to the satisfaction of the registering authority, satisfies that revenue loss, if any, shall be made up by him, the registering authority may revoke the suspension of registration certificate.
(4) where a dealer, whose certificate of registration is suspended for the failure of any of the requirements specified in sub-section(5)(1), fulfils the requirements, the competent authority shall, by an order in writing withdraw the suspension order from such date as may be specified therein.
(5) the dealer whose certificate of registration is suspended under sub-section(5) shall not be entitled to claim input tax credit during the period of suspension of registration.
(6) If an order of suspension or cancellation is passed under this section and is set aside as a result of an appeal or other proceedings under this Act, the certificate of registration of the dealer shall be restored and he shall deemed to be treated as if his registration was not suspended or cancelled.
(7) Suspension of a certificate of registration shall not affect the liability of any dealer to pay tax, penalty or interest due for any period till the date of such suspension and which has remained unpaid or is assessed thereafter.
(8) The competent authority shall publish the particulars of dealers whose certificate of registration has been suspended under the provisions of this Act.'.
(2) After sub-section-(5) of Section-19 of Act, 27 of 2005 a new sub-section(6) shall be inserted in the following way, namely :-
(6)(a) No transporter, carrier or transport agent or railway container contractor or courier shall operate its transport business in the State relating to taxable goods without being registered with the registering authority in such manner as may be prescribed.
(b) A transporter or carrier or transporting agent or railway container contractor or courier already operating transport business in the State relating to taxable goods shall apply to registering authority for registration in the prescribed manner.
(c) If a transporter or carrier or transporting agent or railway container contractor or courier carries or transports any taxable goods in contravention of the provisions of this Act or the Rules made thereunder, his resignation shall be liable to be cancelled or suspended for such period as may be determined by the registering authority after giving him a reasonable opportunity of being heard.
(d) Every transporter or carrier or transporting agent or railway container or courier contractor operating its transport business shall maintain such records as may be prescribed.
(e) No taxable goods shall be delivered by the transporter or carrier of transporting agent or railway container contractor or courier unless the prescribed requirements have been complied with.
4. Amendment of Section-25 of Bihar Value Added Tax Act, 2005-(Act, 27 of 2005) .-
A new clause (f) of sub-section (1) of Section-25 of the Act, 27 of 2005 shall be inserted as follows, namely:-
"(f) The correct claim of input tax credit has been made in the return by the dealer for such period".
Clause(b) of sub-section (2) of Section 25 of Act, 27 of 2005 will be substituted as follows, namely:-
"(b) explain, within thirty days, that the return or returns filed by him do not suffer from any error and all requirements specified in clauses (a) to (f) of sub-section (1) have been complied with."
5. Amendment of Section-26 of Bihar Value Added Tax Act, 2005-(Act, 27 of 2005) .-
The sub-section (3) of Section-26 of Act, 27 of 2005 shall be substituted as follows, namely:-
"(3) The audit of a dealer selected under sub-section (2) shall be conducted, in the manner prescribed, within a period of thirty six months from the due date within the meaning of sub-section (3) of section-24".
6. Amendment of Section-73 of Bihar Value Added Tax Act, 2005-(Act, 27 of 2005).-
(i) in Sub-section (1) of Section-73 of the said Act, after the words, any of the authorities mentioned in Section-10' the words or any person' shall be substituted by the words" or dealer or any other person".
(ii) In Sub-section (2) of Secion-73 of the said Act, afte the words `unless such dealer' the words" or any other person" shall be added.
7. Amendment of Section-94 of Bihar Value Added Tax Act, 2005-(Act, 27 of 2005).-
After sub-section (4) of Section 94 of the Act 27 of 2005, a new sub-section (5) shall be inserted as follows:-
(5)(a) The Bihar Value Added Tax (Amendment) Ordinance, 2008 (Bihar Ordinance No. 1, 2008) are hereby repealed.
(b) Notwithstanding such repeal, anything done or any action taken in the exercise of any powers conferred by or under the said Ordinance shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act as if this Act was in force on the day on which such thing or action was done or taken.