EXTRACT OF THE RAJASTHAN FINANCE ACT 2011

ACT No. 15 of 2011

(Passed in the Rajasthan Legislative Assembly on 23-03-2011)

AN

ACT

further to amend the Rajasthan Value Added Tax Act, 2003, the Rajasthan Entertainments and advertisements Tax Act, 1957, the Rajasthan Electricity (Duty) Act, 1962, the Rajasthan Stamp Act, 1998, the Rajasthan Excise Act, 1950, the Rajasthan Motor Vehicles Taxation Act, 1951 and the Rajasthan Local Fund Audit Act, 1954, in order to give effect to the financial proposals of the State Government for financial year 2011-12 and to make certain other provisions.

Be it enacted by the Rajasthan State Legislature in the Sixty- Second Year of the Republic of India, as follows:-

CHAPTER I

PRELIMINARY

1. Short title.-

(1) This Act may be called the Rajasthan Finance Act, 2011.

2. Declaration under section 3, Rajasthan Act No. 23 of 1958.-

In pursuance of section 3 of the Rajasthan Provisional Collection of Taxes Act, 1958 (Act No. 23 of 1958) it is hereby declared that it is expedient in the public interest that provisions of clauses 7, 22, 24, 28 and 29 of this Bill shall have immediate effect under the said Act.

CHAPTER II

AMENDMENT OF THE RAJASTHAN VALUE ADDED TAX ACT, 2003

3. Amendment of Section 2, Rajasthan Act No. 4 of 2003. -

In Section 2 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003) hereinafter in this chapter referred to as the Principal Act,-

(i) after the existing sub-clause (d) and before the existing explanation of clause (26), the following new sub-clause shall be inserted, namely:-

"(e) any warehouse, railway station, railway goods yard, parcel office, or any other place where goods for transportation in the course of business or otherwise are kept by dealers;" and

(ii) for the existing clause (44), the following new clause shall be substituted, namely:-

(44) "works contract" means a contract for carrying out any work which includes assembling, construction, building, altering, manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property:".

4. Amendment of Section 3, Rajasthan Act No. 4 of 2003.

In sub-section (2) of section 3 of the Principal Act, for the existing expression "rupees fifty lakhs" the expression "rupees sixty lacs" shall be substituted.

5. Amendment of Section 4, Rajasthan Act No. 4 of 2003.

In sub-section (7) of section 4 of the Principal Act, for the existing punctuation mark "." appearing at the end of the existing proviso, the punctuation mark ":" shall be substituted and after the existing proviso, so amended, the following new proviso shall be added, namely:-

"Provided further that a dealer who opts payment of tax under this sub-section shall not allow any trade discount or incentive in terms of quantity of goods in relation to any sale of goods covered under this sub-section, effected by him, for the purpose of calculating his tax liability.".

6. Amendment of Section 15, Rajasthan Act No. 4 of 2003.

In sub-section (1) of section 15 of the Principal Act, for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after thereafter the following new proviso shall be added, namely:-

"Provided that no security under this section shall be required to be furnished by a department of the Central Government or the State Government or a public sector undertaking, Corporation or Company owned or controlled by the Central Government or the State Government.".

7. Amendment of Section 18, Rajasthan Act No. 4 of 2003.

In section 18 of the Principal Act,

(i) for the existing clause (g) of sub-section (1), the following shall be substituted, namely:-

(g) being used in the State as capital goods in manufacture of goods other than exempted goods;

(ii) after the existing clause (ii) and before the existing clause (iii) of sub-section (3), the following shall be inserted namely:-

(iia) of goods taxable at first point in the series of sales, from a registered dealer who pays tax at the first point;

Explanation.- For the purpose of this clause, "first point in the series of sales" means the first sale made by a registered dealer in the State; or"; and

(iii) after the existing sub-section (3) and before the existing sub-section (4), the following new sub-section shall be inserted, namely:-

"(3A) Notwithstanding anything contained in this Act, where any goods purchased in the State are subsequently sold at subsidized price, the input tax allowable under this section in respect of such goods shall not exceed the output tax payable on such goods.".

8. Amendment of Section 21, Rajasthan Act No. 4 of 2003.

for the existing sub-section (1) of section 21 of the Principal Act, the following shall be substituted, namely:-

(1) Every registered dealer shall assess his liability under this Act, and shall furnish return, for such period, in such form and manner and within such time and with such late fee not exceeding fifty thousand rupees, for delayed furnishing of returns, as may be prescribed, to the assessing authority or to the officer authorized by the Commissioner.".

9. Amendment of Section 25, Rajasthan Act No. 4 of 2003.

After the existing sub-section (4) of section 25 of the Principal Act, the following explanation shall be inserted, namely:-

"Explanation.- For the purpose of this Section the expression "date of making out the case" means the date on which notice in pursuance of this section is issued for the first time to the dealer.".

10. Amendment of Section 38, Rajasthan Act No. 4 of 2003.

In sub-section (4) of section 38 of the Principal Act, for the existing punctuation mark "." appearing at the end of the existing proviso, the punctuation mark ":" shall be substituted and after the existing proviso, so amended, the following new proviso shall be added, namely:-

"Provided further that no security under this section shall be required to be furnished by a department of the Central Government or the State Government or a public sector undertaking, Corporation or Company owned or controlled by the Central Government or the State Government.".

11. Amendment of Section 53, Rajasthan Act No. 4 of 2003.

In section 53 of the Principal Act,

(i) in sub-section (1), the existing proviso shall be deleted; and

(ii) for the existing sub-section (4), the following shall be substituted, namely:-

(4) An amount refundable under this Act shall be refunded within thirty days from the date on which it becomes due and if such amount is not refunded within the aforesaid period of thirty days, it shall carry interest with effect from the date of expiry of the aforesaid period upto the date of payment, at such rate as may be notified by the State Government.".

12. Deletion of Section 58, Rajasthan Act No. 4 of 2003.

The existing Section 58 of the Principal Act shall be deleted.

13. Amendment of Section 80, Rajasthan Act No. 4 of 2003.

In section 80 of the Principal Act,

(i) the existing expression "obtain certificate and", appearing in the marginal heading, shall be deleted; and

(ii) for the existing sub-section (1), the following shall be substituted, namely:-

(1) A clearing or forwarding agent who in the course of his business renders his service for booking or taking delivery of any consignment of goods liable to tax or handles any document of title relating to goods liable to tax, shall furnish information about his place of business to the Assistant Commissioner or the Commercial Taxes officer, as the case may be, in whose territorial jurisdiction he conducts his business, within such time , in such form and in such manner as may be prescribed.".

14. Amendment of Section 83, Rajasthan Act No. 4 of 2003.

In sub-section (7) of section 83 of the Principal Act, for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and thereafter the following new proviso shall be added, namely:-

"Provided that no security under this section shall be required to be furnished by a department of the Central Government or the State Government or a public sector undertaking, Corporation or Company owned or controlled by the Central Government or the State Government.".

15. Insertion of new Section 97B, Rajasthan Act No. 4 of 2003.

After the existing section 97A and before the existing Section 98 of the Principal Act, the following new Section shall be inserted, namely:-

"97B. Delegation of powers,-

The State Government may, by notification in the Official Gazette, direct that subject to such conditions, if any, as may be specified in the notification, any power exercisable by an assessing authority under this act may be exercised by such officer of the State Government, as may be specified in the notification.".