Jharkhand Value Added Tax (Amendment ) Act, 2016

(Jharkhand Act 09, 2017)

An Act to amend Jharkhand Value Added Tax Act, 2005 (Jharkhand Act 05, 2006)

Be it enacted in the Sixty Seventh year of the Republic of India by the State Legislature in the following manner:-

1. Short title, extent and commencement :

(i) This Act may be called the Jharkhand Value Added Tax (Amendment) Act, 2016.

(ii) It shall extend to the whole of the State of Jharkhand.

(iii) It shall come into force with effect from 8th November, 2016 except the date mentioned in the concerned Sections.

2. Amendment in Section 2

(i) In the definition of "Business" in section 2(viii) sub-sections (b) and (c) shall be substituted in the following manner.-

(b) Any trade, commerce, e-commerce, e-commerce portal, manufacture or any adventure or concern in the nature of trade, commerce, e-commerce, e-commerce portal, manufacture, whether or not such trade, commerce, ecommerce, e-commerce portal, manufacture, adventure, concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, e-commerce, e-commerce portal, manufacture, adventure, concern; and

(c) Any transaction in connection with, or incidental or ancillary to such trade or services, commerce, e-commerce, e-commerce portal, manufacture, adventure or concern; referred to in clause (a) and includes any transaction involving goods whether or not in their original form or in the form of second hand goods, unserviceable goods, obsolete or discarded goods, scrap or waste material goods, which are obtained as waste-product, by-product in course of manufacture or processing of other goods or mining or generation and distribution of electricity.

(ii) In sub-section (xiii) of section 2, in the definition of "Dealer" the following words shall be inserted after the words "any goods directly" in the following manner:-

"or through any system of Electronic commerce or otherwise"

(iii) After sub-section (xvii) of section 2, a new sub-section- (xvii) A shall be added in the following manner -

(xvii)A "E-commerce or Electronic commerce including-commerce, e- Business, on-line shopping or similar other variants or nomenclature" means buying, selling, supplying, distributing or delivering of goods and services or anything incidental to such buying, selling, supplying, distributing or delivering directly or indirectly and transmitting valuable consideration or making payment incidental thereto over an electronic Network or Website or by any other means.

(iv) The definition of "works contract" in sub-clause (Ixiii) of section 2 shall be substituted in the following manner-

"Works contract" means a contract for carrying out any work and includes any contract or agreement for carrying out for cash or deferred payment or other valuable consideration for assembling, construction, building, altering, manufacturing, processing, fabrication, erection, installation, modification, fitting out, improvement, repair or commissioning of any building, road , bridge or any other immovable or movable property.

3.Amendment in Section 19-

In Explanation 1 The word "three" appearing in between the words " consecutive" and "months" shall be substituted by the word "twelve" This shall be effective from 07.05.2011.

4. Amendment in Section 25 -

The existing sub-section(10) shall be substituted in the following manner -

Any person intending to establish an industrial unit in the state for manufacture of taxable goods for sale of value exceeding rupees fifty thousand in a year notwithstanding that he is not liable to pay tax under section 8 of this Act, may get himself registered under this Act.

(ii) In sub-section (11), after the word 'generation', the punctuation mark, ',' and word, 'transmission" shall be inserted.

5. Amendment in Section 26 - Proviso under sub-section (2) shall be deleted.

6. Amendment in Section 30

(i) The title of Section 30 shall be substituted as 'Return and Payment Defaults'.

(ii) The existing Section 30 shall be substituted in the following manner-

(1) If a dealer required to furnish return under sub-section (1) or sub-section (2) of Section 29; without any sufficient cause;

(a) fails to furnish any return by the prescribed date as required under sub-section (1) or sub-section (2) of Section 29; or

(b) being required to furnish revised return, fails to furnish the revised return by the date prescribed under subsection (3) of Section 29;

The prescribed authority shall, after giving such a dealer an opportunity of being heard in the manner prescribed, impose a penalty at the rate not exceeding rupees fifty for every day of such default for any month or any tax period, subject to a maximum of rupees twenty-five thousand in a year.

Explanation-'Return' for the purpose of sub-section (1) shall mean and include the Monthly Abstract, Return for any tax period, Revised Return(s) as well as the Annual Return.

(2) If a dealer fails without sufficient cause to pay the amount of tax due, as prescribed, such dealer shall be liable to pay interest in respect of the tax payable by him for the period at the rate of 2% per month from the date the tax payable has become due to the date of its actual payment.

Explanation I - 'Tax due' for the purpose of sub section( 2) of this section shall include the amount claimed as adjustment towards Input Tax Credit but not supported by the evidence as prescribed.

Explanation II- 'Month' for the purpose of sub-section (2) of this section, shall mean thirty days and the interest and penalty payable in respect of a period of less than one month shall be computed proportionately.

7. Amendment in Section -33

The existing section 33 shall be substituted and replaced in the following manner:-

(1) The prescribed authority may, within a period of five years from the end of tax period and in the manner prescribed, scrutinize every return filed under section 29 for the purpose of ascertaining that -

(a) all calculations contained therein are arithmetically accurate,

(b) the output tax, the input tax, the tax payable and interest payable, if any, have been computed correctly and properly,

(c) the rates of tax have been applied correctly,

(d) evidence, as prescribed, has been furnished with regard to payment of tax and interest payable, if any, and

(e) the deductions claimed therein are substantiated in the manner and form prescribed under the Act or under any other law for the time being in force,

(2) If, upon scrutiny under sub-section (1), the prescribed authority discovers any error, he shall serve a notice in the prescribed form on the concerned dealer directing him to-

(a) explain, within thirty days, the reasons for failures to comply with the requirements specified in clauses(a) to (e) of sub-section (1) .

(b) pay, within thirty days, the extra amount of tax along with the interest, if any, payable and furnish the challan evidencing such payment,

3(a) the prescribed authority shall, in a case falling under clause (a) of sub-section (2) and after giving the dealer a reasonable opportunity to adduce necessary evidence, pass such order in the matter as it may deem fit,

(b) if, pursuant to an order under clause (b) of sub-section (2), any tax or interest is found to be payable by a dealer, a notice in the form and manner prescribed, shall be served upon the dealer requiring him to pay the tax and interest within the time as may be prescribed,

(c) If the prescribed authority is satisfied that the dealer has concealed any sales or purchase or any particulars thereof, with a view to reduce the amount of tax payable by him under this Act or has furnished incorrect statement of his turnover or incorrect particulars of his sales or purchases in the return furnished under of section 29;

The prescribed authority shall, after giving such a dealer an opportunity of being heard, by an order in writing direct that he shall in addition to any tax payable which may be assessed under section 35 or 36 or 38, pay by way of penalty a sum equal to twice the amount of tax on the concealed turnover.

(d) Any tax , interest or penalty payable under clause (b) and (c) shall be deemed to be an arrear of tax within the meaning of section 43.

8. Amendment in Section 35

The existing sub-section (3) shall be substituted in the following manner-

Without prejudice to the provisions of section 33 but subject to provisions of section 40, every registered dealer having turnover upto rupees 2 (two) crores per annum who has furnished the returns or revised returns along with evidences in support of payment of tax due with interest if payable, on or before the expiry of due date of filing of annual return according to sub-section (1) of section 29, shall be deemed to have been assessed excluding the dealers covered under section 19 of this Act.

Provided that the dealer shall be required to submit evidences in support of claims made in the returns within four months of the promulgation of this Act or the due date of filing the return whichever is later.

9. Amendment in Section 40

(i) After clause (e) of sub-section (1), a new clause as clause (f) shall be added in the following manner :-

(f) been concealed in the returns filed or accounts maintained or other evidences produced by the dealer are incorrect, incomplete or unreliable;

(ii) After the first proviso of sub section (1), a new proviso shall be added in the following manner-

Provided further that for clause (f) if the tax has already been assessed and levied on the concealed turnover during assessment, the prescribed authority shall impose only penalty on the dealer equal to thrice the amount of additional tax assessed and levied.

Second Para after clause (b) of sub-section (2) shall be substituted in the following manner-

The penalty shall be levied before the completion of the assessment and for determining the amount of penalty payable, the prescribed authority shall quantify the amount of tax payable provisionally under this Act.

10. Amendment in Section 73

In explanation (ii) of sub section (5), after the words,'or a person',the words 'or a courier company engaged in the business of ecommerce or on-line shopping' shall be inserted/added.

11. Insertion/ Addition of a new Section 73 A

After Section 73 a new section shall be inserted as section 73A in the following manner-

73A Enrolment of Transporters, Carriers or Transporting agent or Courier Company.

(1) No transporter carrier or transporting agent or courier company handling goods taxable under this Act shall carry on his business, unless he is enrolled under the provisions of this Act.

(2) Every transporter, carrier or transporting agent or courier company operating his transporting business or e-commerce in Jharkhand for transporting consignment of goods into, or outside, or within Jharkhand shall apply and obtain from the Prescribed authority a certificate of enrolment, in such manner, and within such time, as may be prescribed, and a transporter carrier or a transporting agent or courier company to whom a certificate of enrolment has been issued shall -

i) display the certificate of enrolment or copies thereof at a conspicuous place of his head office and branch office(s) and warehouse(s);

ii) mention the enrolment number as appearing in the certificate of enrolment issued to him on every consignment note-and goods receipt issued by him and on every other document as may be prescribed.

(3) If a transporter, carrier or transporting agent or courier company who is required by sub-section (1) of section 73A to get himself enrolled, fails, without any reasonable cause, to make an application for issue or amendment of the certificate of enrolment, within the prescribed time, the Prescribed authority, may, by an order in writing and after giving such transporter, carrier or transporting agent or courier company an opportunity of being heard, impose upon him a penalty, of a sum not exceeding ten thousand rupees for each month of default for the first three months and Rs fifty thousand per month for subsequent months in making application for issue or amendment of certificate of enrolment, in the manner prescribed, and he shall not be entitled to carry on his transporting business.

(4) The Prescribed authority may amend any certificate of enrolment granted under sub-section (1), in accordance with the information furnished by a transporter, carrier or transporting agent or courier company, as the case may be or otherwise received, after due notice to such transporter carrier or transporting agent or courier company, as the case may be and such amendment may be made with retrospective effect in such circumstances and in such manner, and subject to such restrictions, or conditions, as may be prescribed.

(4) i) A certificate of enrolment granted to a transporter, carrier or transporting agent or courier company under sub-section (1), shall be cancelled by the prescribed authority where he, after giving a reasonable opportunity of being heard, is satisfied that the business of transporting goods of such transporter, carrier or transporting agent or courier company, as the case may be, has discontinued or has ceased to exist, or has obtained such certificate on the basis of document or representations which has subsequently been found to be false, or has failed to comply with any requirement under this section, and such cancellation shall take effect from the date of such order.

ii) The cancellation of the certificate of enrolment may be made on an application of' the transporter, carrier or transporting agent or courier company suomoto on the satisfaction of the appropriate authority.

12. Amendment in Section 79

(i) Sub-section (3) of Section 79 shall be substituted in the following manner :-

'No appeal under sub-section (1) or (2) of Section 79 shall be admitted unless the appellant objecting to an order of assessment or reassessment has paid in full the amount of tax and interest as is admitted by him and a sum equal to ten percent of the remaining amount of tax and interest in dispute arising from the said impugned order in relation to which the appeal is filed.

'Provided that if the appellate authority is satisfied that there exists sufficient ground, he may, on application exempt the appellant from paying ten percentum of the disputed amount of tax and interest or reduce the said amount of 10% for admission of the appeal and the reason for doing so shall be recorded in the order'.

(ii) In sub-section (4) of Section 79, the word 'thirty' shall be substituted by the word 'sixty'.

13. Amendment in Section 80

i) In sub section (3) the words "before the commissioner" appearing after the words " of the order" shall be deleted.

ii) The proviso of sub-section (4) of Section 80 shall be substituted in the following manner:-

'No revision under sub-section (4) of Section 80 shall be admitted unless the appellant objecting to an order of assessment or reassessment or appellate order has paid in full the amount of tax and interest as is admitted by him and a sum equal to twenty percent of the remaining amount of tax and interest in dispute arising from the said impugned order in relation to which the revision is filed'.

Provided that the Commissioner, may exempt the appellant from paying twenty percent of the disputed amount of tax and interest or reduce the said amount of twenty percent for admission of the revision petition.

iii) Sub-section (6) shall be deemed to be deleted w.e.f 07.05.2011

14. Amendment in the title of Part-B of Schedule II

The existing rate of tax 5% shall be substituted by 5.5%

15. Amendment in the title of Part-D of Schedule II

The existing rate of tax 14% shall be substituted by 14.5%.