THE HIMACHAL PRADESH TAX ON ENTRY OF GOODS INTO LOCAL AREA (AMENDMENT) ACT, 2011 Act No. 28 of 2011

Dated 7th April, 2011

(AS ASSENTED TO BY THE GOVERNOR ON 6TH APRIL, 2011)

AN

ACT

further to amend the Himachal Pradesh Tax on Entry of Goods into Local Area Act, 2010 (Act No. 9 of 2010).

BE it enacted by the Legislative Assembly of Himachal Pradesh in the Sixty-second Year of the Republic of India as follows:—

1. Short Title and commencement -

(1) This Act may be called the Himachal Pradesh Tax on Entry of Goods into Local Area (Amendment) Act, 2011.

(2) It shall be deemed to have come into force on 22nd day of January, 2011.

2. Amendment of section 3

In section 3 of the Himachal Pradesh Tax on Entry of Goods into Local Area Act, 2010, (hereinafter referred to as the "principal Act"

(a) for sub-section (3), the following sub-section shall be substituted, namely:-

" (3) Every dealer who brings any goods into local area for use in manufacturing, processing, conversion, job-work, assembling or packing of goods and such goods sold inside the State otherwise than Value Added Tax sales or sent outside the State otherwise than in the course of inter-state sale or in the course of export out of territory of India, shall be liable to pay tax under this Act."

(b) In sub-section (4), after clause (iii), the following new clause shall be inserted, namely:-

"(iv) "in respect of goods specified in Schedule -II which after entry into local area are used or consumed in manufacturing, processing, conversion, job-work, assembling or packing of goods and such goods are sent outside the State by way of sale in the course of inter-state sale or in the course of export out of territory of India;" and

3. Insertion of new section 6-A

After section 6 of the principal Act, the following new section shall be inserted, namely:-

"6-A Payment of tax and returns.-

(1) Every registered dealer shall furnish monthly return within 15 days from the expiry of such month and in such manner containing such particular as may be prescribed.

(2) Before filing of return under subsection (1), a dealer shall deposit full amount of tax due on fortnightly basis for the period of preceding fortnight and shall furnish the proof of payment of such tax to the Assessing Authority.

(3) If a dealer fails without sufficient cause to furnish the monthly returns under sub-section (1), he shall be liable to pay, by way of penalty, a sum equal to Rs. 100 per day for delay in furnishing such return upto ten days, where after the penalty shall be Rs. 500 per day till the default continues; provided that where no tax is payable, such penalty shall not exceed Rs. 500 for every return.

(4) If a dealer fails without sufficient cause to comply with the requirements of provisions of sub-section (2), the Commissioner or any other person appointed to assist him under sub-section (1) of section 3 of Himachal Pradesh Value Added Tax Act, 2005, may, after giving such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty a sum equal to 50 percentum of the amount of tax due."

4. Amendment of section 7

In section 7 of principal Act, in sub-section (1),-

(a) after existing clause (c), the following new clause shall be inserted, namely:-

"(d) the value of goods which after manufacturing, processing, conversion, job-work, assembling or packing are sent outside the State in the course of inter-state sale or in the course of export out of the territory of India;" and

(b) The existing clause (d) shall be renumbered as clause (e).

5. Amendment of section 8

In section 8 of the principal Act,-

(a) before the words "where entry tax" the signs and figure "(1)" shall be inserted; and

(b) after existing proviso, the following new sub-section shall be inserted, namely:-

"(2) where entry Tax has become payable on the value of goods specified in Schedule-II and such goods are used in manufacture, processing, conversion, job-work, assembling or packing and sent outside the State by way of interstate sale or in the course of export out of territory of India, the dealer shall be entitled to a set off of tax under this Act proportionate to the turnover of Value Added Tax sales made within State or inter-state sale or export out of territory of India. "

6. Repeal of Ordinance No. 1 of 2011 and savings.-

(1) The Himachal Pradesh Tax on Entry of Goods into Local Area (Amendment) Ordinance, 2011 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed shall be deemed to have been done or taken under the corresponding provisions of this Act.