In pursuance of the provision of clause (3) of article 348 of the Constitution of India, the Governor is pleased to order the publication of the following English translation of 'The Uttarakhand Value Added Tax (Amendment Act, 2010 (Adhiniyam Sankya 25 of 2010)
As passed by the Uttarakhand Legislative Assembly and assented to by the Governor on 04 October, 2010
THE UTTARAKHAND VALUE ADDED TAX (AMENDMENT) ACT, 2010
(Act No. 25 of 2010)
An
Act
Further to amend The Uttarakhand Value Added Tax Act, 2005-
(Be it enacted by the Uttarakhand legislative Assembly in the Sixty year of the Republic of India, as follows:-
1. Short title and Commencement:
(1) This Act may be called The Uttarakhand Value Added Tax Act, 2005 (Amendment) Act, 2010.
(2) It shall come into force with immediate effect.
2. Amendment of Section 15:
In the Uttarakhand Value Added Tax Act, 205, (hereinafter referred to as the Principal Act) after the existing sub-section (5) of Section 15, the following a new proviso shall be added; namely:-
"Provided that an application for registration without furnishing the prescribed details shall not be accepted."
3. Amendment of Section 17:
(1) In Section 17 of the Principal Act-
(a) the words "subject to the provisions of sub-section (5) of Section 15" shall be added in the beginning of sub-section (6);
(b) Sub- clause (iii) of clause (a) of sub-section (7), for the words, "including penalty or interest", occurring therein, the words "including penalty or interest, and late fee, if any," shall be substituted.
(c) For the existing proviso of clause (b) of sub-section (7), the following, proviso shall be substituted; namely-
"Provided that under clause (a) above the certificate of registration of a dealer shall not be suspended if he has furnished return or returns and deposited the amount o tax due, interest and late fee, if any, payable within the time prescribed in the notice."
(d) Sub-section (8), for the existing words "including penalty or interest, if any" occurring therein, the words "including penalty, interest or late fee, if any," shall be substituted.
4. Amendment of Section 23:
(1) In section 23 of the "Principal Act"-
(a) For the existing sub-section (6), the following sub-section shall be substituted; namely-
"(6) Every dealer required to file return under this Section shall pay the amount of tax payable according to the return and also late fee, if any, or the differential tax payable according to the revised return furnished, along with any such amount which has been wrongly realized in excess of an amount of tax due under this Act and also the amount of tax, if any, deducted at source as per the provisions under Section 35, in such manner as may be prescribed, and shall furnish along with the return or revised return, as the case may be, a receipt showing full payment of such amount."
(b) The following proviso shall be added in sub-action (7); namely-
"Provided that every dealer required by sub-section (1) of section 23 to furnish a return shall be liable to pay such late fee not exceeding rupees 2000/ for each month or part thereof, of delay in furnishing return, as may be prescribed, and pay before furnishing such return the full amount of tax, interest and late fee, if any, payable according to such return in the manner as may be prescribed."
5. Substitution of Section 25:
For the existing section 25 of the Principal Act, the following section shall be substituted; namely-
"25. (1) There shall be an assessment of taxable turnover, amount of tax payable on such turnover, and amount of input tax credit admissible to a dealer for each assessment year or where the dealer has carried on his business for a part of an assessment year, for such part of assessment year during which the dealer has carried on business.
(2) Every dealer shall, for the assessment year, submit to the assessing authority in addition to periodical returns, an annual return of his turnover and the amount of tax due from him, complete in all material particulars, in the prescribed form and manner, including electronic methods, within the prescribed time, containing such information, particulars and annexure as may be prescribed, accompanied by supporting documents, including.
(a) Particulars of turnover of purchase, sale and other transactions and value of opening and closing stocks;
(b) Computation of his own final assessment of amount of tax due from him on the basis of such return including claim for input tax credit;
(c) Such declarations, certificates, and such other evidences on which the dealer relies in support of his claim of exemption, concession or rebate of tax declared in "the computation of his own final assessment of amount of tax due from him;
(d) Proof of payment of the additional tax, interest, composition, money or fee due as per computation of his own assessment;
(e) Proof of tax or part thereof, if any, claimed to have been deducted at source (TDS).
(f) Proof of payment of late fee as may be prescribed in case such return is not filed within the prescribed time;
(g) a true copy of the audit report as required under Section 62 of the Act and
(h) such other particulars, information, documents and statements as may be prescribed.
An annual return shall not be treated as such if it is not complete in all material particulars, is not filed in the prescribed form and manner, does not contain such information, particulars and annexures as may be prescribed or does not comply with the requirements of this sub-section. The date, on which the annual return as contemplated above is submitted, shall be treated as the date of its submission;
Provided that every dealer required to furnish annual return shall be liable to pay such late fee not exceeding rupees 2000/- for each month or part thereof, of delay in furnishing annual return, as may be prescribed, and pay before furnishing such return the full amount of tax, interest and late fee, if any, payable according to such return in the manner, as may be prescribed.
(3) Deemed Assessment:
Subject to the provisions of sub-section (4) and sub-section (9) of this Section, every dealer, excluding works contractors who have not opted for composition under the provisions of sub-section (2) of Section 7, shall be deemed to have been assessed to tax, based on annual return filled by him as provided in sub-section (2) of Section 25, provided that it is filed within the prescribed time or if filed late, but not beyond 30th June of the succeeding assessment year, along with the proof of the payment of late fee, if any.
(4) Notwithstanding anything contained in this section, from among the dealers who are deemed to have been assessed under sub section (3), a dealer or dealers may be selected for assessment under sub-section (6) and sub-section (7). Selection of such dealer/s shall be made after scrutiny. Selection of dealer/s for scrutiny and thereafter selection for assessment, for an assessment year, shall be made in the manner as may be prescribed by the Commissioner.
(5) For the purposes of this Act and the rules made there under-
(a) the annual return, referred to in sub-section (2) of Section 25 of in sub-section (13) of Section 23, filed by the dealer, shall be deemed to be the assessment order and the facts disclosed and the figures mentioned in such return shall be deemed to be part of such assessment order; and
(b) the last date, prescribed for submission of annual return or the actual date, on which such return is filed along with the prescribed late fee, if any, whichever is later, shall be deemed to be the date of such assessment order.
(6) Notwithstanding anything contained in this section, to assess a dealer who has not been deemed assessed under sub-section (3) or who has been selected for assessment under sub-section (4), the assessing authority shall serve on such dealer, a notice requiring him to appear on a date and at a place specified therein, to attend and submit periodical returns and annual return of his turnover, if not filed earlier, along with the proof of payment of late fee, if any, and to produce or cause to be produced the books of accounts and all evidence on which the dealer relies in support of his returns including sale and purchase invoices, or to produce such evidence as may be specified in the notice.
Explanation: Opportunity given under this Sub-section for submission of periodical returns and annual return shall not prevent the Assessing Authority from imposing penalties, interest or late fee, if any, under any other provisions of the Act, for not filling such returns within the time prescribed.
(7) If the dealer complies with the notice issued under sub-section (6) and the assessing authority after examining periodical returns, the annual return, books of accounts and documents and after considering all the evidences produced in the course of proceedings or the evidences collected or received by the assessing authority and after making such enquiry, as he may deem fit.
(a) is satisfied that turnover of Sales and purchases disclosed and amount of tax shown as payable by the dealer in the annual return is correct, assess the dealer to tax in accordance with the provisions of the Act, by an order in writing.
(b) if the assessing authority is of the opinion that the turnover or the liability of the tax disclosed by the dealer and the amount of tax paid by the dealer does not appear to be correct shall give him reasonable opportunity of being heard by giving him a show cause notice stating the reason, for non acceptance of the turnover of sales or purchase or liability of tax as disclosed by the dealer, and after considering the reply submitted by the dealer;
(i) if he is satisfied that the turnover disclosed by the dealer in the annual return is correct, shall assess the dealer to tax by an order in writing according to the provisions of the Act.
(ii) if he is not satisfied with the reply submitted by the dealer, shall determine the turnover to the best of his judgment and the tax payable thereon according to the provisions of the Act, by an order in writing;
Provided that where the opportunity under sub-section (6) for submission of periodical returns and annual return along with the proof of deposit of late fee and production of books, accounts and documents and evidences on which the dealer relies in support of his returns including sale invoices, or for production of such evidences as may be specified in the notice has been afforded to the dealer but for any reason he has not availed such opportunity and thereby the assessing authority could not examine the correctness and propriety of particulars shown in such returns, it shall not be necessary to issue show cause notice to such dealer before making an assessment order to the best of his judgment;
Provided further that, no assessment order under this sub-section shall be passed after the time limit as prescribed in section 32 of the Act.
(8) Any provisional assessment order in respect of any tax period under Section 24 shall not prevent the assessing authority to make final assessment and the provisional assessment order shall merged in the final assessment order passed under this Section.
(9) Tax audit:
(a) Notwithstanding anything contained in this Act tax audit of records and related documents of a dealer, selected for this purpose may be conducted for the purpose of ensuring the compliance by the dealer of the requirements of the Act or for examining the correctness of periodical and final returns and admissibility of various claims including input tax credit;
Provided that no dealer may be selected for tax audit, for an assessment year for which proceedings under sub-section (6) or (7) of section 25 have been initiated or completed by the assessing authority;
Provided further that no dealer may be selected for tax audit for an assessment year after the expiration of five years from the end of such assessment year.
(b) Tax audit may be conducted by an officer, posted in the tax audit wing or by any other officer authorized for this purpose by the commissioner;
(c) The selection of dealer or dealers for the purpose of tax audit shall be in the manner as may be prescribed by the Commissioner;
(d) Tax audit may be taken up in the office, business premises or warehouse of the dealer. However, the officer conducting, audit may, if he deems fit, require the dealer either to attend and produce or cause to be produced the books of accounts and other documents in his office or any other place which may be specified in the notice,
If in Compliance of the notice served in this sub-section, the dealer does not attend the office of the officer in charge of tax audit or any other place which may be specified in the notice; or if attends does not produce or cause to be produced the books of accounts and other documents, the officer in charge of tax audit may impose a penalty of upto Rs. 5000/- for each non compliance of the notice. No such penalty shall be imposed without giving the dealer a reasonable opportunity of being heard. The provisions relating to recovery of dues shall mutatis mutandis apply for recovery of imposed penalty;
(e) The officer conducting the tax audit shall have powers to make or cause to be made extracts or copies from the books of accounts and other documents, seek such information or statement, which may be useful and relevant to any proceeding under this Act. The dealer shall provide full co-operation and assistance to the audit party during the course of audit.
If the dealer prevents or obstructs the officer from making extracts or copies from the books of the account and other documents required for the purpose of tax audit, or from seeking such information or statements required for the purpose of tax audit or does not cooperate and assist the audit party during the course of audit, the officer in charge of the tax audit may impose a penalty upto Rs. 10,000/- for each non compliance. No such penalty shall be imposed unless a reasonable opportunity of being heard has been given to the dealer. The provisions relating to recovery of dues shall mutatis mutandis apply for recovery of imposed penalty;
(f) After the completion of the tax audit, a tax audit report shall be sent to the Assessing Authority and the dealer concerned;
Provided that in case the officer conducting the audit has reason to believe that;
(i) the whole or any part of the turnover in respect of any tax has escaped the assessment; or
(ii) the whole or any part of the turnover in respect of any tax has been under assessed; or
(iii) the whole or any part of the turnover in respect of any tax has been has been assessed, at a rate lower than the rate at which it is assessable; or
(iv) any exemption or deduction has been wrongly claimed; or
(v) any tax credit has been wrongly claimed, no tax audit report shall be finalized without giving the dealer a reasonable opportunity of being heard.
(g) The Assessing authority on the basis of the "tax audit report" may initiate necessary proceedings as per the provisions of the Act;
(10) In case of the following dealers or class of dealers in respect of different transactions more than one assessment may be made for the same assessment year and will be treated as part of one assessment year-
(a) dealer who has obtained more than one authorized for transit of goods through the State; in respect of each authorization for transit of goods to the State;
(b) casual dealer who has no fixed place of business, by different assessing authorities in whose jurisdiction he has carried on business;
(c) unregistered dealer who imports taxable goods on each occasion, he imports the goods;
(d) unregistered dealer who either executes works contracts or effects transfer of right to use any goods, for any purpose in jurisdiction of more than one assessing authorities and has no fixed place of business, by each assessing authority in respect of business carried out in his jurisdiction;
Provided that more than one assessment shall not be made in respect of the same turnover of sales or the same turnover of purchase.
(11) Where during the course of an assessment year the rate of tax on the turnover of any goods or class of goods is varied or an exemption in respect thereof is granted or cancelled the assessment, so far as it relates to the portion of such turnover for the period after the date of variation, exemption or cancellation shall be made on the basis of the rate so varied or the exemption so granted or cancelled.
(12) Any assessment made under this section shall be without prejudice to any penalty imposed under the Act."
6. Amendment of Section 34:
(1) In section 34 of the Principal Act-
(a) In sub-section (1), after the words "Any other amount" occurring therein, the words "including late fee, if any," shall be added;
(b) For the existing sub-section (2), the following sub-section shall be substituted; namely-
"(2) A registered dealer furnishing return under section 23 shall pay into the Government treasury, in such manner and at such interval as may be prescribed, the amount of tax due from him for the period covered under the return along with the amount of penalty or interest or late fee, if any, or all the three payable by him under section 23 or late fee, if any, payable by him under section 25 and shall furnish a receipt from the Treasury or proof of e-payment showing the payment of such amount."
(c) In sub-section (10), in the first line, after the words "Any tax or other dues", occurring therein, the words "Any tax or other dues including late fee, if any," shall be added.
7. Amendment of Section 35:
In the existing section 35 of the "Principal Act", after sub-section (12), a new sub-section (13) shall be added; namely-
"(13) (i) Every person responsible for making tax deduction at source in accordance with the provisions of this Section, if he is not registered dealer, shall submit an application in the prescribed form to the Assessing Authority for allotment of Tax Deduction Account Number. The application shall be disposed of by the Assessing Authority in such time and manner as may be prescribed.
(ii) If the application is in order and particular given therein are correct, the Assessing Authority shall allot him a Tax Deduction Account Number;
(iii) Tax Deduction Account Number shall be mentioned in all the documents pertaining to deposit of tax and in all correspondence and returns filed. No person other than a registered dealer can make tax deduction at source unless he has applied for a Tax Deduction Account Number;
(iv) If any person referred to in clause (i) above fails to apply for Tax Deduction Account Number, he shall be liable for penalty as per the provisions of this Act".
8. Amendment of Section 36:
In section 36 of the "Principal Act-
(a) For the existing sub-section (3) of the following sub-section shall be substituted; namely-
"(3) If any amount is found to be refundable in accordance with sub-section (1) or sub-section (2), the refund shall be made in the prescribed manner including electronic methods within one month from the date of order of refund or the date of receipt, of the order of refund by the assessing authority, if such order is passed by any other competent authority or Court. If the refund is not made within sixty days of the date of such order or as the case may be, the date of receipt of such order of refund, by the assessing authority, the dealer shall be entitled to simple interest on such amount at the rate of nine percent per annum from the date of expiry of such period to the date of refund;
Provided that if any amount is found to be refundable in the cases deemed to have been self assessed in accordance with sub-section (3) of Section 25, the refund shall be made within one month of the expiry of one year from the last date prescribed for filling the annual return relating to the particular assessment year or the actual date, when the annual return is filed, whichever is later.
(b) For the existing explanation (2) of Sub-section (5), the following explanation shall be substituted; namely-
Explanation (2)- If the refund is made electronically the date of refund shall be deemed to be the date on which the refund is made, otherwise the date of refund shall be deemed to be the date on which intimation regarding preparation of the refund voucher is sent to the dealer in the manner prescribed.
9. Amendment of Section 41:
For the existing sub-section (1) of Section 41 of the "Principal Act", the following sub-section shall be substituted; namely-
"(1) Any dealer or a person entitled to refund in pursuance of any order under this Act (including assessment under Section 24, Section 25, or Section 26) or in pursuance of any order by any court, shall subject to rules, be entitled to receive, in additional to the refund, a simple interest at the rate of nine percent per annum if the refund voucher/electronic intimation of refund is not sent to him as per the provisions of section 36."
10. Amendment of Section 48:
For the existing sub-section (7) of Section 48 of the 'Principal Act", the following sub-section shall be substituted; namely-
"(7) The provisions of sub-section (3), Sub-section (6), sub-section (7), sub-section (8), sub-section (9) and sub-section (10) of Section-43 shall mutatis mutandis apply to such detention as they apply to seizure under that section."
11. Amendment of Section 51:
In the existing sub-section (1) of Section 51 of the "Principal Act", after the words "Any dealer or other person aggrieved by an order made by the Assessing authority" the words "or by an officer in charge of tax audit", shall be added.
12. Amendment of Section 56:
In the existing Section 56 of the "Principal Act', after clause (b), the following clause (c) shall be added; namely-
"(c) any order under sub-section (4) of Section 25 or clause (c) of sub section (9) of Section 25."
13. Amendment of Section 58:
In sub-section (1) of Section 58 of the Principal Act-
(a) For the existing penalty provision of clause (iv) mentioned in column-2, the following provisions shall be substituted; namely-
"(iv) a sum not less than ten percent, but not exceeding twenty five percent of the tax due if the tax due is up to ten thousand rupees and fifty percent if the tax due is above ten thousand rupees;
Provided where the time for extension has been obtained and late fee deposited the said penalty shall not be imposed;
Provided further in cases where the tax liability is nil and the extension of time with late fee has not been obtained, a sum not exceeding rupees two thousand for each month or part thereof shall be imposed as penalty."
(b) After clause (xxxvi), a new clause (xxxvii) shall be added; namely-
14. Amendment of Section 60:
In the existing clause (a) and (b) of sub-section (2) of section 60 of the "Principal Act", after the words "registration certificate number" occurring therein, the words "i.e. Taxpayer's Identification Number (TIN)" shall be added.
15. Amendment of Section 62:
The existing section 62 of the "Principal Act"-
(a) In sub-section (1), the words "before 31st December in the following year" occurring therein shall be deleted.
(b) For sub-section (2), the following sub-section shall be substituted namely-
"(2) A true copy of such report shall be furnished by such dealers to the assessing authority along with the annual return as prescribed in section 25."
(c) In sub-section (3), for the words "by 31st December of the following year" occurring therein, the words "along with the annual return as prescribed in Section 25" shall be substituted.
By Order,
RAM SINGH,
Principal Secretary,