EXTRACT OF BIHAR FINANCE ACT 2012
Bihar Act 6, 2012
(Received the Assent of the Governor on 31st March, 2012)
PREAMBLE TO AMEND THE BIHAR VALUE ADDED TAX ACT, 2005, THE BIHAR ELECTRICITY DUTY ACT, 1948 AND BIHAR TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 2011, BIHAR MOTOR VEHICLES TAXATION ACT, 1994.
Be it enacted by the Legislature of the State of Bihar in the Sixty three year of the Republic of India as follows:
1. Short title, extent and commencement
(1) This Act may be called the Bihar Finance Act, 2012.
(2) It Shall extend to the whole of the State of Bihar.
(3) It Shall come in to force at once.
PART1
Amendment in the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).
2. Insertion of a new section 15A in the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).herein after referred to as Act 27, 2005
After section 15 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the following new section 15A shall be inserted, namely-
"15A. Compounding of tax liability.-
(1) Notwithstanding anything to the contrary contained in the Act and subject to such Rules as may be made in this behalf, the State Government may, by notification and subject to such conditions and restrictions, as may be prescribed, permit any class or description of registered dealers to pay, in lieu of the tax payable by him, an amount calculated at such rate, not exceeding five percent, of his gross turnover as may be specified in the notification.
(2) Every dealer to whom the provisions of subsection (1) apply shall-
(a) not charge any tax on the sale of goods specified in Schedule 1;
(b) not charge any tax in excess of the rate specified in the notification issued under subsection (1); and
(c) not be entitled to issue any tax invoice in respect of any sale made by him.
(3) Notwithstanding anything to the contrary contained in the Act, every dealer to whom the provisions of subsection (1) applies, shall-
(a) furnish to the prescribed authority a true and complete return, containing such particulars in such form and manner and in respect of such period and within such time as the Commissioner may, by notification specify;
(b) maintain such books of accounts and draw up such accounts in such manner in respect of his business as the Commissioner may, by notification, specify.
Explanation.- For the purposes of this section, the expression "books of accounts" shall include registers, statements, invoices, bills, ledgers, contracts and other documents, in relation to his business, issued to or received by him."
3. Amendment in section 16 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).-
(1) Clause (e) of subsection (1) of section 16 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) shall be substituted by the following, namely-
"(e) when a registered dealer purchases any input within the State of Bihar from another such dealer after paying him the tax as specified under section 14 at a rate higher than four per cent and transfers goods manufactured from such goods to another dealer outside the State of Bihar, he shall be allowed credit of such tax and in excess of such percent or in excess of such amount in the manner as may be prescribed :"
(2) The proviso to subsection (1) of section 16 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) shall be substituted by the following, namely-
"Provided that if the claim for input tax credit under clause (a) or clause (b) or clause (c) or clause (d) or clause (e) for any month exceeds the output tax for the same month, such excess shall be carried forward for adjustment against the output tax of subsequent months, not being a month later than the last month of the financial year, and any amount of input tax that remains unadjusted in terms of the return under subsection (3) of section 24 shall be refunded, subject to the provisions of sections 68, 69, 69A and 71 of the Act, within three months following the month in which the return required under subsection (3) of section 24 and the report under subsection (2) of section 54, if required, is furnished."
(3) Subsection (1A) of section 16 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) shall be deleted.
(4) The full stop at the end of clause (f) of subsection (3) of section 16 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) shall be substituted by a semicolon and after the semicolon so substituted the word "or" shall be inserted.
(5) After clause (f) of subsection (3) of section 16 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the following two new clauses (g) and (h) shall be added, namely-
"(g) in respect of inputs purchased from within the State by a registered dealer paying tax under section 15A of the Act;
(h) in respect of inputs which have been sold at a price lower than the corresponding purchase price thereof:
Provided that in the matter of such claims of Input tax credit to which the provisions of clause (h) apply, the claims of input tax credit shall be restricted to the amount of output tax in respect of the sale of such goods as have been sold at a price lower than the corresponding purchase price thereof."
4. Amendment in section 19 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).-
The full stop at the end of the first proviso to subsection (1) of section 19 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) shall be substituted by a colon and, after the colon so substituted, the following new proviso shall be inserted, namely-
"Provided further that no application for registration from a person to whom the first proviso hereto applies shall be accepted unless the applicant furnishes, along with the application for registration, security, in such form and manner as may be prescribed, equivalent to ten thousand rupees."
5. Amendment in section 24 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).-
(1) Subsection (1) of section 24 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) shall be substituted by the following, namely-
"(1) Every person, being a dealer, who is not registered under this Act, by a notice served in the manner prescribed by the prescribed authority, shall furnish a true and complete return to the prescribed authority in such form and manner and by such time as may be prescribed."
"(1A) Every person, being a registered dealer (other than a dealer permitted to pay tax under subsection (1) or subsection (1A) or subsection (4) of section 15 or section 15A) shall furnish, to the prescribed authority, a true and complete return, in the form and manner prescribed, in respect of all his transactions relating to sales, purchases, receipts and dispatches of goods and any other transactions prescribed specifically for each quarter, on or before such date as the Commissioner may, by notification, specify:
Provided that different dates may be specified in respect of different categories of registered dealers."
6. Amendment in section 35 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).-
After subsection (1) of section 35 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the following new subsection (1A) shall be added, namely-
"(1A) Notwithstanding anything contained in subsection (1) and subject to such Rules as may be made in this behalf, the State Government may, in respect of such class or description of dealers paying tax under section 15A of the Act, as may be specified in a notification issued in this behalf, specify deductions from the Gross Turnover calculated at such fixed rates as may be specified in the notification issued in this behalf."
7. Amendment in section 41 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).-
The words "four per cent" in subsection (1) of section 41 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) shall be substituted by the words "five per cent".
8. Insertion of a new section 69A in the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).-
After section 69 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the following new section 69A shall be inserted, namely-
"69A. Refunds in certain cases.-
Notwithstanding anything contained in section 68 or section 69 or the rules made there under, no refund of unadjusted input tax, necessitated by virtue of the proviso to subsection (1) of section 16 of the Act, shall be made without verification and crosschecking in such manner and by such authorities as the Commissioner may, by notification, specify."
9. Insertion of a new section 98A in the Bihar Value Added Tax Act, 2005 (Act 27 of 2005).-
After section 98 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the following new section 98A shall be inserted, namely-
"98A. Extension of time limit and prescription of forms in certain cases.-
(1) Notwithstanding anything to the contrary contained in the Act or the Rules made there under, the Commissioner may, for reasons to be recorded in writing and by notification and subject to such conditions and restrictions as may be specified in the notification, extend the date or, as the case may be, the extended date, specified in the Act in respect of-
(a) making any electronic payment of tax under the Act, or
(b) furnishing any return or statement or report required to be filed electronically
and such extension shall be for a period not exceeding three months from the date, or, as the case may be, the extended date, specified in respect of such electronic payment or electronic return or electronic statement or electronic report, as the case may be.
(2) Notwithstanding anything to the contrary contained in the Act or the Rules made there under, the Commissioner may, by notification, specify the form and manner in which any application, return or statement or report required by or under the Act may be furnished electronically."
PART3
Amendment in Bihar Tax on Professions, Trades, Callings and Employments Acts, 2011.
11. Amendment in section 3 of the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011 (Bihar Act 10 of 2011).-
(1) The full stop at the end of section 3 of the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011 (Bihar Act 10 of 2011)shall be substituted by a colon and after the colon so substituted the following proviso shall be inserted, namely-
"Provided that the tax due from a person, liable to tax under this Act, who has remitted the amount of tax due from him, along with the interest, if any, payable under subsection (3) of section 8 of the Act and has furnished the return required by section 7 of the Act, shall be deemed to have been assessed."
(2) The full stop at the end of subsection (1) of section 7 of the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011 (Bihar Act 10 of 2011)shall be substituted by a colon and after the colon so substituted the following proviso shall be inserted, namely-
"Provided that every person, other than an employer, liable to tax under this Act, who has remitted, by way of tax, an amount equivalent to the maximum amount specified under the Act, along with the interest, if any, payable under subsection (3) of section 8 of the Act shall not be required to furnish the return specified in this section."