The following Act of the Legislature of the State of Haryana received the assent of the Governor of Haryana on the 18th March, 2009 and is hereby published for general information :-
The Haryana Value Added Tax (Amendment) Act, 2009
Haryana Act No. 10 of 2009
An
Act
Further to amend the Haryana Value Added Tax Act, 2003.
Be it enacted by the Legislature of the State of Haryana in the Sixtieth Year of the Republic of India as follows:-
1. Short title -
This Act may be called the Haryana Value Added Tax (Amendment) Act, 2009.
2. Amendment of section 2 of Haryana Act 6 of 2003.
In sub-section (1) of section 2 of the Haryana Value Added Tax Act, 2003 (hereinafter called the principal Act),-
(1) in clause (zg), in Explanation -
(a) for item (i), the following item shall be substituted, namely :-
"(i) In relation to the transfer of property in goods (whether as good or in some other form) involved in execution of a works contract, "sale price" shall mean such amount as is arrived at by deducting from the amount of valuable consideration paid or payable to a person for the execution of such works contract, the amount representing labour and other service charges incurred for such execution, and where such labour and other service charges are not quantifiable, the amount of such charges shall be calculated at such percentage as may be prescribed.";
(b) for item (iv), the following item shall be substituted and shall be demeed to have been substituted with effect from 1st April, 2003, namely :-
"(iv) Amount of bonus, additional bonus and any other relief viz. Drought relief etc. paid to farmers, over and above the minimum support price, by the Central Government subject to the condition that State shall exempt such bonus, additional bonus or any other relief from all State's taxes and levies for which the State Government has agreed, shall not form part of the sale price of such kharif/rabi produce by the procuring agencies; provided that proper orders in support of such arrangement from the concerned Central/State Government Departments have been furnished";
(II) after clause (zh), the following clause shall be inserted, namely :-
`(zhh) "Special Economic zone" shall have the same meaning as assigned in the Haryana Special Economic Zone Act, 2005 (9 of 2006);
3. Amendment of section 3 of Haryana Act 6 of 2003.
For sub-section (3) of section 3 of the principal Act, the following sub-section shall be substituted, namely:-
"(3) If a dealer liable to pay tax under sub-section (1) or sub-section (2) purchases or receives any taxable goods in the State from any source in the circumstances that no tax is levied or paid under this Act and he either exports them out of State or uses or disposes them of in the circumstances in which no tax is payable under this Act or the Central Act by him to the State on them or the goods manufactured therefrom, then, he shall, subject to the provisions of sub-section (4), be liable to pay tax on the purchase or receipt thereof:
Provided that where such goods (except those specified in Schedule F) or the goods manufactured therefrom are sold in the course of export of the goods out of the territory of India, no tax shall be levied on their purchase or receipt.
Provided further that where the goods purchased or received are used or disposed of partly in the circumstances mentioned in the foregoing provisions of this sub-section and partly otherwise, the tax leviable on such goods shall be computed pro rata".
4. Amendment of section 7 of Haryana Act 6 of 2003.
After sub-section (5) of section 7 of the principal Act, the following sub-sections shall be added, namely:-
"(6) Notwithstanding anything contained in this section, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer to a registered dealer for the purpose of setting up, operation, maintenance, manufacture, trading, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as packing material or packing accessories in an unit located in any Special Economic Zone.
Explanation.- The goods referred to in sub-section (6) shall be of such class or classes as specified in the certificate of registration of the registered dealer.
(7) The provisions of sub-section (6) shall not apply to any sale of goods unless the dealer selling such goods furnishes to the prescribed authority referred to in sub-section (3), if so required by him, a declaration in such form and manner, as may be prescribed, and which has been authenticated by the prescribed authority, duly filled in and signed by the registered dealer to whom such goods are sold.".
5. Amendment of section 8 of Haryana Act 6 of 2003.
In sub-section (1) of section 8 of the principal Act, for the first and second provisos, the following provisos shall be substituted, namely :-
"Provided that input tax shall not include the tax paid in respect of the purchase of motor vehicles by a VAT dealer for running and facilitating business activities. However, no tax shall be charged on the subsequent sale of such motor vehicles if the dealer satisfies the assessing authority that the purchase of such motor vehicles has already been subjected to tax within the State:
Provided further that the admissibility of input tax credit or refund of excess tax to a VAT dealer under this sub-section or section 20 of this Act during a given period shall be determined in accordance with the formula provided herein as under:-
FORMULA
Input tax credit.
Input tax credit in respect of a VAT dealer shall be the input tax calculated as per sub-section (1) plus excess tax brought forward from the previous period wherever applicable minus input tax calculated on the goods left in stock other than capital goods either as such or in some other form subject to Schedule E, to be multiplied by fraction "Fr" where "Fr" is (A+B+C) divided by G.
Output tax liability:
Aggregate of tax paid or payable by the dealer under this Act or the Central Act on the sale of goods as such or manufactured goods sold by him during the period whether such goods were manufactured or processed by him during the given period or previous thereto.
A= Turnover of goods sold as such or manufactured goods sold inside the State on payment of tax in the State.
B= Turnover of goods sold as such or manufactured goods sold in the course of inter-State trade and commerce on payment of tax in the State.
C= Turnover of goods sold as such or manufactured goods sold in the course of export out of the territory of India within the meaning of section 5 of the Central Sales Tax Act, 1956 (Act 74 of 1956).
G= Aggregate of "gross turnover" as defined in section 2(u) of this Act".
6. Amendment of section 14 of Haryana Act 6 of 2003.
For sub-section (5) and (6) of section 14 of the principal Act, the following sub-sections shall be substituted, namely:-
"(5) If a dealer discovers in any return furnished by him, any omission or other error, which he could not have rectified after the exercise of due diligence before furnishing the return, he may at any time before the date prescribed for furnishing of return for the next period by him, furnish a revised return, and if the revised return shows a greater amount of tax to be due than was shown in the original return, it shall be accompanied by a receipt showing payment of tax extra amount along with simple interest thereon for the period the amount remained unpaid calculated in accordance with the provisions of sub-section (6), in the State Government treasury in such manner, as may be prescribed.
(6) If any dealer fails to make payment of tax in accordance with the provisions of this Act and the rules made thereunder, he shall be liable to pay in addition to the tax payable by him, simple interest at one per cent per month if the payment is made within ninety days from the last date specified for the payment of tax, but if the default continues thereafter, he shall be liable to pay simple interest at two per cent per month for the whole of the period from the last date specified for the payment of tax to the date he makes the payment:
Provided that the interest leviable under this act shall not exceed the amount of tax or penalty on the non payment or late payment of tax on which such interest is charged".
7. Amendment of section 15 of Haryana Act, 6 of 2003.
In sub-section (5) of section 15 of the principal Act, for the words "taxable turnover", the words "gross turnover" shall be substituted.
8. Insertion of section 15A in Haryana Act 6 of 2003.
After section 15 of the principal Act, the following section shall be inserted, namely :-
"15A Provisional assessment.
If an assessing authority has reason to believe on the basis of documentary evidence available with him that a dealer has evaded or avoided payment of tax under this Act, he may after giving the dealer a reasonable opportunity of being heard, determine at any time and for any period during the currency of the financial year, the taxable turnover of such a dealer on provisional basis to the best of his judgment and assess him to tax accordingly. The amount of tax so assessed shall be payable by the dealer in accordance with the provisions of section 22. Every deposit of tax under this section shall be adjustable against the liability of the dealer in assessment made under section 15."
9. Amendment of section 20 of Haryana Act 6 of 2003-
In section 20 of the principal Act,-
(I) for sub-section (2), the following sub-section shall be substituted, namely:-
"(2) Refund of input tax shall be admissible to a VAT dealer in accordance with the formula provided under sub-section (1) of section 8 of this Act-
(a) in respect of input tax relating to the goods which have been sold in the course of export of goods out of the territory of India or have been used in manufacture and the manufactured goods have been sold in the course of export of goods out of the territory of India, in full; and
(b) in respect of input tax relating to the goods which have been sold in the state or in the course of inter-State trade or commerce or have been used in manufacture and the manufactured goods have been sold in the State or in the course of inter-State trade or commerce, only to the extent of such input tax exceeding the tax including the central sales tax calculated on sale of goods on account of difference in rate of tax between the input tax and the tax calculated on sales,
and the balance input tax after reducing therefrom the tax including the central sales tax levied on the sale or purchase of goods, as the case may be, shall be carried over for adjustment with future tax liability".
(II) for sub-section (10), the following sub-section shall be substituted, namely:-
"(10) Any amount due to a dealer under sub-section (4) but not refunded to him within sixty days from the date of order of approval of the refund by the prescribed authority shall carry with it simple interest at the rate of one per cent per month for the period from the date of order of approval of the refund by the prescribed authority to the date when the refund is made".
10. Amendment of section 23 of Haryana Act 6 of 2003.
In section 23 of the principal Act,-
(i) for the proviso to sub-section (1), the following proviso shall be substituted, namely:-
"Provided that where the recovery of any tax or penalty is stayed by the High Court or the Supreme Court, the amount of such tax or penalty shall be recoverable with simple interest at one per cent per month for the first ninety days and at two per cent per month for the remaining period on the amount ultimately found due for which the stay of recovery of the amount continued".
(ii) sub-section (2) shall be omitted.
11. Amendment of section 33 of Haryana Act 6 of 2003.
For sub-section (5) of section 33 of the principal Act, the following sub-section shall be substituted, namely,-
"(5) No appeal preferred by an assesse to an appellate authority shall be entertained unless it is filed within sixty days from the date of the order appealed against. The appellate authority shall ensure before entertaining the appeal that the appellant has paid the amount of tax admitted to be due and interest thereon, and a bank guarantee or adequate security to the satisfaction of the assessing authority, in the manner, as may be prescribed, for the amount in dispute has also been furnished".
12. Amendment of section 34 of Haryana Act 6 of 2003.
For sub-section (1) of section 34 of the principal Act, the following sub-section shall be substituted, namely:-
"(1) The Commissioner may, on his own motion, call for the record for any case pending before, or disposed of by, any taxing authority or an appellate authority other than the Tribunal for the purposes of satisfying himself as to the legality or to the propriety of any proceeding or of any order made therein which is prejudicial to the interests of the State and may, after giving the persons concerned or reasonable opportunity of being heard, pass such order in relation thereto, as he may think fit.
Provided that no order passed by taxing authority or an appellate authority other than the Tribunal shall be revised on an issue which on appeal or in any other proceeding from such order is pending before, or has been settled by, the Tribunal or the High Court or the Supreme Court, as the case may be:
Provided further that no order shall be revised after the expiry of a period of three days from the date of the supply of the copy of such order to the assessee except where the order is revised as a result of retrospective change in law or on the basis of a decision of the Tribunal in a similar case or on the basis of law declared by the High Court or the Supreme Court".
13 Insertion of section 37A in Haryana Act 6 of 2003.
After section 37 of the principal Act, the following section shall be inserted, namely:-
"37A Failure to furnish returns.
If a dealer, without sufficient cause, fails to comply with the requirements of the provisions of sub-section (2) of section 14, the Commissioner or any officer appointed to assist the Commissioner under sub-section (1) of section 55 of this Act, may, after giving such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty a sum calculated at the rate of one hundred rupees per day for the first ten days and at a rate of two hundred rupees per day thereafter for the period during which the default continues:
Provided that no penalty under this section shall be levied in case the assessing authority comes to the conclusion that in the given period there was nil turnover".
14. Amendment of section 56 of Haryana Act 6 of 2003-
For the proviso to sub-section (5) of section 56 of the principal Act, the following proviso shall be substituted, namely:-
"Provided that where an appeal is preferred against such order to the Tribunal, it shall be heard and decided by the full-member Tribunal or by a larger Bench of three or other odd number of members of the Tribunal".
15. Amendment of section 57 of Haryana Act 6 of 2003-
In section 57 of the principal Act,-
(i) for sub-section (3) and (4), the following sub-sections shall be substituted, namely:-
"(3) If the members of a Bench are divided over some matter, the decision shall be the decision of the majority of the members. If there be a majority, but if the members are equally divided they shall state the point or points on which they differ, and the case shall be heard by the full-member Tribunal or by a larger Bench of three or other odd number of members of the Tribunal and such point or points shall be decided according to the decision of majority of the members of the Tribunal.
(4) The decision of the Tribunal shall be binding on all taxing and appellate authorities under this Act in a similar case. The decision of a larger Bench of three or other odd number of members of the Tribunal shall be binding on a lower Bench but a Bench constituted of all members can by majority overrule any previous decision of the Tribunal on a point of law".
(ii) for sub-section (8), the following sub-section shall be substituted and shall be deemed to have been substituted with effect from 1st April, 2003, namely:-
"(8) (i) A person appointed as Chairman of the Tribunal shall hold office for a term of three years from the date on which he enters upon his office or unit he attains the age of sixty-eight years, which is earlier:
Provided that the State Government may appoint a person as Chairman for a further period of three years or for such period till he attains the age of sixty-eight years, which is earlier.
(ii) A member of the Tribunal other than the Chairman shall hold office for a term of three years from the date on which he enter upon his office or until he attains the age of sixty-five years, whichever is earlier".