THE UTTAR PRADESH VALUE ADDED TAX ORDINANCE, 2007
December, 21, 2007
India Sales Tax And VAT Database
THE UTTAR PRADESH VALUE ADDED TAX ORDINANCE, 2007
UTTAR PRADESH SARKAR
VIDHAYI ANUBHAG-1
NO. 2643 (2) / 79-V-I-07-2 (ka)41/2007
LUCKNOW:DATED: December 20, 2007,
NOTIFCIATION
Miscellaneous
In pursuance of the provisions of clause (3) of article 348 of the Constitution, the Governor is pleased to order the publication of the following English translation of the Uttar Pradesh Mulya Samvardhit Kar Adhyadesh,2007 (Uttar Pradesh Adhyadesh Sankhya 37 of 2007) promulgatedby the Governor:-
By order,
(S.M.A.Abidi)
Pramukh Sachiv.
By order,
(Ishwar Dayal)
Vishesh Sachiv Evam Upper
Vidhi Paramarshi
THE UTTAR PRADESH VALUE ADDED TAX ORDINANCE, 2007
(U.P. ORDINANCE NO. 37 OF 2007)
(Promulgated by the Governor in the Fifty eighth Year of the Republic of India)
AN
ORDINANCE
to provide for introducing Value Added System of taxation for the levy and collection of tax on sale or purchase of goods in the State of Uttar Pradesh and for matters connected therewith and incidental thereto.
WHEREAS, the State Legislature is not in session and the Governor is satisfied that circumstance exist which render it necessary for him to take immediate action.
NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 213 of the Constitution, the Governor is pleased to promulgate the following Ordinance:-
CHAPTER I
Preliminary
1. Short title, extent and commencement
(1) This Ordinance may be called the Uttar Pradesh Value Added Tax Ordinance, 2007.
(2) It extends to the whole of Uttar Pradesh.
(3) It shall come into force on such date as the State Government may by notification appoint:
Provided that the State Government may appoint different dates in respect of different provisions and any reference in any such provision to the commencement of this Ordinance shall be construed as a reference to the coming into force of that provision.
2. Definitions
In this Ordinance, unless there is anything repugnant in the subject or context;
(a) "appellate authority" means the authority to whom an appeal lies under section 55;
(b) "assessing authority" means any person -
(i) appointed and posted by the State Government; or
(ii) appointed by the State Government and posted by the Commissioner; or
(iii) appointed and posted by the Commissioner, and empowered under rules framed under this Ordinance to perform all or any of the functions of the assessing authority under this Ordinance.
(c) "assessment year" means the period of twelve months commencing on the first day of April of a calendar year;
(d) "board" means the Uttar Pradesh State Tax Board established under section 79.
(e) "business" in relation to business of buying or selling goods includes-
(i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern;
(ii) the execution of any works contract or the transfer of the right to use any goods for any purpose (whether or not for a specified period);
(iii) any transaction of buying, selling or supplying plant, machinery, raw materials, processing materials, packing materials, empties, consumable stores, waste or by products, or any other goods of a similar nature or any unserviceable or obsolete or discarded machinery or any parts or accessories thereof or any waste or scrap or any of them or any other transaction whatsoever, which is ancillary to or is connected with or is incidental to, or results from such trade, commerce, manufacture, adventure or concern, works contract or lease,
but does not include any activity in the nature of mere service or profession which does not involve the purchase or sale of goods.
(f) "capital goods" means any plant, machine, machinery, equipment, apparatus, tool, appliance or electrical installation used for manufacture or processing of any goods for sale by the dealer and includes:-
(i) components, spare parts and accessories of such plant, machine, machinery, equipment, apparatus, tool, appliance or electrical installation;
(ii) moulds and dies;
(iii) storage tank;
(iv) pollution control equipment;
(v) refractory and refractory materials;
(vi) tubes and pipes and fittings thereof,
(vii) lab equipments, instruments and accessories,
(viii) machinery, loader, equipment for lifting or moving goods within factory premises, or
(ix) generator and boiler
used in manufacture of goods for sale by him but for the purpose of section 13 of this Ordinance, does not include:-
(i) air-conditioning units or air conditioners, refrigerators, air coolers, fans, and air circulators if not connected with manufacturing process;
(ii) an automobile including commercial vehicles, and two or three wheelers, and parts, components and accessories for repair and maintenance thereof;
(iii) goods purchased and accounted for in business but utilised for the purpose of providing facility to the employees.
(iv) vehicle used for transporting goods or passengers or both;
(v) capital goods used in the execution of a works contract; and
(vi) captive power plant used for generation of electrical energy and its parts, components and accessories for repair and maintenance thereof;
(g) "Commissioner" means the person appointed by the State Government as the Commissioner of Commercial Taxes and includes a Special Commissioner of Commercial Taxes, an Additional Commissioner of Commercial Taxes and a Joint Commissioner of Commercial Taxes.
(h) "dealer" means any person who carries on in Uttar Pradesh (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods directly or indirectly, for cash or deferred payment or for commission, remuneration or other valuable consideration and includes, -
(i) a local authority, body corporate, company, any co-operative society or other society, club, firm, Hindu undivided family or other association of persons which carries on such business;
(ii) a factor, broker, arhati, commission agent, del credere agent, or any other mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who carries on the business of buying, selling, supplying or distributing goods belonging to any principal, whether disclosed or not;
(iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not, and whether the offer of the intending purchaser is accepted by him or by the principal or nominee of the principal;
(iv) a Government which, whether in the course of business or otherwise, buys, sells, supplies or distributes goods, directly or otherwise, for cash or for deferred payment or for commission, remuneration or other valuable consideration;
(v) any person who acts within the State as an agent of a dealer residing outside the State, and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as-
(A) a mercantile agent as defined in Sale of Goods Act, 1930 or
(B) an agent for handling of goods or documents of title relating to goods; or
(C) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or such payment;
(vi) a firm or a company or other body corporate, the principal office or head quarter whereof is situated outside the State, having a branch or office in the State, in respect of purchases or sales, supplies or distribution of goods through such branch or office;
(vii) any person who carries on the business of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(viii) any person who carries on the business of transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash or for deferred payment or other valuable consideration;
(ix) railway container contractor, transporter or any other carrier or a forwarding agent of goods including owner of a cold storage who fails to disclose the complete address of consigner or consignee or if disclosed name and address of consigner or consignee is bogus, forged or not verifiable;
(x) an owner or person in-charge of a godown or warehouse who stores commercial goods;
Provided that a person who, not being a body corporate, sells agricultural or horticultural produce grown by himself or grown on any land in which he has an interest, whether as owner, usufructuary mortgagee, tenant, lessee or otherwise, or who sells poultry or dairy products from fowls or animals kept by him shall not, in respect of such goods, be treated as a dealer;
(i) "declared goods" means goods declared under section 14 of the Central Sales Tax Act, 1956, to be of special importance in the inter-State trade or commerce;
(j) "document" means any matter expressed or described upon any substance by means of letters, figures or marks, or by more than one of those means, intended to be used, or which may be used for the purpose of recording that matter and includes-
(i) an electronic document including data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche; and
(ii) such other document as may be notified by the State Government.
(k) "erstwhile Act" means the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. 15 of 1948)
(l) "exempt goods" means any of the goods mentioned or described in column (2) of the Schedule-I of this Ordinance;
(m) "goods" means every kind or class of movable property and includes all materials, commodities and articles involved in the execution of a works contract, and growing crops, grass, trees and things attached to, or fastened to anything permanently attached to the earth which, under the contract of sale, are agreed to be severed, but does not include actionable claims, stocks, shares or securities;
(n) "import" In relation to any goods, means to bring or receive any goods at any place within the State from any place situated outside the State where journey of such goods originates from such place outside the State and terminates at any place within the State;
(o) "importer" means a dealer who brings or receives any goods into the State from any place outside the State and includes a dealer -
(i) who makes first sale of any goods brought or received into the State from any place outside the State; or
(ii) who receives any goods into the State on behalf of any other person from any place outside the State; or
(iii) on whose behalf any goods are received into the State from any place outside the State by any other person;
(p) "input tax", in relation to a registered dealer who has purchased any goods from within the State, means the aggregate of the amounts of tax, -
(i) paid or payable by such registered dealer to the registered selling dealer of such goods in respect of purchase of such goods; and
(ii) paid directly to the State Government by the purchasing dealer himself in respect of purchase of such goods where such purchasing dealer is liable to pay tax under this Ordinance on the turnover of purchase of such goods;
(q) "lease" means any agreement or arrangement whereby the right to use any goods for any purpose is transferred by one person to another (whether or not for a specified period) for cash, deferred payment or other valuable consideration without the transfer of ownership and includes a sub-lease but does not include any transfer on hire purchase or any system of payment by installments;
(r) "lessee" means any person to whom the right to use goods for any purpose is transferred under a lease;
(s) "lessor" means any person by whom the right to use any goods for any purpose is transferred under a lease;
(t) "manufacture" means producing, making, mining, collecting, extracting, mixing, blending, altering, ornamenting, finishing, or otherwise processing, treating or adapting any goods; but does not include such manufacture or manufacturing processes as may be prescribed;
(u) "manufacturer" in relation to any goods mentioned or described in column (2) of Schedule IV of this Ordinance, means a dealer who, by application of any process of manufacture, after manufacture of a new commercial commodity inside the State, makes first sale of such new commercial commodity within the State, whether directly or otherwise; and includes a selling agent who makes sale of such new commodity on behalf of the person who has manufactured it;
(v) "non-vat goods" means any of the goods mentioned or described in column (2) of the Schedule-IV of this Ordinance;
(w) "officer-in-charge of a check-post or barrier" includes an officer not below the rank of assessing authority posted at a check post or barrier,
(x) "place of business" means any place where a dealer carries on business and includes-
(i) any shop, ware-house, godown or other place where a dealer stores his goods;
(ii) any place where a dealer produces or manufactures goods;
(iii) any place where a dealer keeps his books of accounts and documents;
(iv) any place where a dealer executes the works contract or where the right to use goods is exercised;
(v) in a case of a dealer who carries on business through an agent (by whatever name called), the place of business of such agent;
(y) "purchase price" means the amount payable by a purchaser to a seller as consideration for the purchase of any goods made by or through him after deducting the amount, if any refunded to the purchaser by the seller in respect of any goods returned to such seller within such period as may be prescribed.
Explanation: Purchase price does not include:
(i) the amount representing the cost of outward freight or cost of installation, charged by the seller from the purchaser of goods if such amount has been shown separately on sale invoice or tax invoice issued by the seller;
(ii) amount of tax if such amount is shown separately on the sale invoice or tax invoice.
(z) "registered dealer" means a dealer registered under section 17 or section 18;
(aa) "registering authority" means the officer empowered under the rules framed under this Ordinance to deal with issue, suspension, cancellation of registration certificate or any other matter related to registration under this Ordinance and includes an assessing authority;
(ab) "re-sale" means a sale by any person, of any goods in the same form and condition in which such goods were purchased by such person;
(ac) "sale" with its grammatical variations and cognate expressions, means any transfer of property in goods (otherwise than by way of a mortgage, hypothecation, charge or pledge) by one person to another, for cash or for deferred payment or for any other valuable consideration and includes, -
(i) a transfer, otherwise than in pursuance of a contract of property in any goods for cash, deferred payment or other valuable consideration;
(ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(iii) the delivery of goods on hire purchase or any other system of payment by installments;
(iv) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
(v) the supply of goods by an association or body of persons (whether incorporated or not) to a member thereof for cash, deferred payment or other valuable consideration;
(vi) the supply, by way of or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration
and such delivery, transfer or supply of any goods under subclause (i) to sub-clause (vi) above shall be deemed to be sale of those goods by the person making the delivery, transfer or supply and a purchase of those goods by the person to whom such delivery, transfer or supply is made.
(ad) "sale price" means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of goods at the time of or before the delivery of such goods, other than cost of outward freight or delivery or cost of installation in cases where such cost is separately charged;
Explanation:
(i) In a case in which any amount of any duty payable by a dealer is deferred for a period or in a case in which point of payment of any duty is shifted, amount of such duty shall be deemed part of the sale price;
(ii) The price of packing material in which any goods are packed shall be deemed part of sale price of goods sold.
(iii) Sale price of goods in relation to transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, shall be determined after deducting the aggregate of actual amount incurred towards labour and services, amount of profit relating to supply of labour and services and such other amounts as may be prescribed from the total amount received or receivable in respect of such works contract;
(iv) In respect of transfer of right to use goods, any goods for any purpose (whether or not for a specified period) sale price means the valuable consideration received or receivable in respect of such transfer of right to use goods but does not include any sum payable as a penalty or as compensation or damages for breach of contract;
(ae) "Schedule" means any of the Schedule appended to this Ordinance;
(af) "Settlement Commission" means the Commission constituted under section 62;
(ag) "tax" means a tax leviable under this Ordinance, on the sale or purchase of goods other than newspapers; and shall include, -
(a) tax or lump sum, as the case may be, payable, in lieu of actual amount of tax due on turnover of sales, in accordance with provisions of section 6; or
(b) amount of reverse input tax credit;
(ah) "taxable dealer" means a dealer who is liable to pay tax in accordance with provisions of sub-section 2 of section 3 read with provisions of sub-section 5 of the said section;
(ai) "taxable goods" means any goods except goods mentioned or described in column (2) of Schedule I of this Ordinance;
(aj) "tax invoice" means a bill or a cash memo issued in the prescribed form and manner by a registered selling dealer to a registered purchasing dealer or to a person or body referred to in clauses (ii), (iii, (iv) and (v) of sub-section (1) of section 22 in respect of sale of any goods except exempt goods and non-vat goods;
(ak) "tax period" means period for which a dealer is liable to submit a tax return of turnover and tax under section 24 and where a dealer either commences or discontinues his business during any tax period, tax period includes part of such tax period during which business of the dealer has remained in existence;
(al) "tax return" means any return of turnover and tax prescribed or required to be furnished under this Ordinance or the rules made thereunder;
(am) "taxable turnover of purchase" means turnover obtained after deducting from the gross turnover of purchase such amounts as may be prescribed;
(an) "taxable turnover of sale" means turnover obtained after deducting from the gross turnover of sale such amounts as may be prescribed;
(ao) "Tribunal" means the Tribunal constituted under section 57;
(ap) "turnover of purchase" with its cognate expressions means the aggregate of the amounts of purchase prices paid or payable in respect of purchase of goods made by a dealer either directly or through another dealer, whether on his own account or on account of others, after deducting the amount, if any, refunded by the seller in respect of any goods returned to such seller within such period as may be prescribed;
(aq) "turnover of sale" means the aggregate of amount of sale prices of goods, sold or supplied or distributed by way of sale by a dealer, either directly or through another, whether on his own account or on account of others;
(ar) "vehicle" means any kind of mode of transportation used for carriage of goods including motor vehicle constructed or adapted for the carriage of goods, or any other motor vehicle not so constructed or adapted when used for the carriage of goods solely or in addition to passengers including every wheeled conveyance, pull or push cart including animal drawn cart, animal, trailer, trolley, bicycle, tricycle, carrier and such other mode of transportation as may be specified in the notification issued by the State Government in this behalf;
(as) "vessel" includes any container, ship, barge, boat, raft, timber, bamboo or floating materials propelled in any manner;
(at) "Web Site" means World Wide Web of the Uttar Pradesh Commercial Tax Department with such domain "tradetax.nic.in" and with address "http://tradetax.nic.in" or any other website as may be notified by the State Government.
(au) "works contract" includes any agreement for carrying out, for cash, deferred payment or other valuable consideration, the building construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property.
CHAPTER - II
Incidence, Levy and Rate of Tax
3. Incidence and levy of tax
(1) Subject to the other provisions contained in this Ordinance, every dealer shall be liable to pay tax under this Ordinance, for each assessment year, on his taxable turnover of sale or purchase or both, as the case may be, of taxable goods, at such rates and at such point of sale or purchase as provided under section 4 or section 5:
Provided that tax shall be levied on and charged from every dealer on such sales and purchases as are made on or after the date on which the dealer becomes liable for payment of tax in accordance with provisions of sub-section (3) or sub-section (5), as the case may be.
(2) Where a dealer carries on business for part of any assessment year he shall, subject to the other provisions contained in this Ordinance, be liable to pay tax on the taxable turnover of sale or purchase or both, as the case may be, of taxable goods, at such rates and at such point of sale or purchase as provided under section 4 or section 5, where such sales or purchases are affected during the period in which he is liable for payment of tax in accordance with the provisions of sub-section (3) or sub-section (5).
(3) Dealers, of the class mentioned in column (2) against the serial no. Mentioned in column (1), shall be liable to pay tax on sales or purchases or both, as the case may be, where such sales or purchases of goods are made by them on or after the date mentioned in column (3) against the same serial no. of the table below:
| Serial No. | Class of dealers | Date | |
| (1) | (2) | (3) | |
| 1 | (i) | Dealers whose registration certificate, under this Ordinance, is effective on the date of the commencement of this Ordinance | Date of the commencement of this Ordinance |
| (ii) | Dealers whose registration certificate, issued under the Central Sales Tax Act, 1956, is valid on the date of the commencement of this Ordinance | ||
| (iii) | Dealers who hold any imported taxable goods in opening stock on the date of the commencement of this Ordinance | ||
| (iv) | Dealers who hold any taxable goods in opening stock on the date of the commencement of this Ordinance where such goods have been manufactured, processed or packed by using or consuming of any imported goods | ||
| (v) | Dealers who hold any taxable goods in opening stock on the date of the commencement of this Ordinance where such goods have been manufactured, processed or packed by using or consuming any goods purchased after furnishing to the selling dealer any form of declaration or certificate prescribed under the erstwhile Ordinance or the rules framed there under. | ||
| (vi) | Dealers who hold any goods in opening stock on the date of the commencement of this Ordinance where such goods have been purchased after furnishing to the selling dealer any form of declaration or certificate prescribed under the erstwhile Act or the rules framed thereunder | ||
| (vii) | Dealers who, in the assessment year of
commencement of this Ordinance, have commenced exclusive business of purchase
of any goods from within the State or sale of any goods within the State or
both, as the case may be, on any date before the date of commencement of this
Ordinance and-
(a) whose aggregate, of the turnover of such purchase and turnover of such sale, of all goods, as defined hereunder, during the assessment year of commencement of this Ordinance, from first day of the business during such assessment year, has, on or before the date of the commencement of this Ordinance, exceeded the taxable quantum as provided in sub-section (4);and (b) who have not made any change in the nature of their business before their aggregate of turnovers as stated in clause (a) has exceeded the taxable quantum as provided in sub-section (4) |
||
| (viii) | Dealers who have been carrying on exclusive business of purchase of any goods from within the State or sale of any goods within the State or both, as the case may be, of any goods during the assessment year immediately preceding first assessment year under this Ordinance and whose aggregate, of the turnover of such purchase and turnover of such sale, of all goods, as defined hereunder, during such preceding assessment year had exceeded the taxable quantum as provided in subsection | ||
| (ix) | Dealers who, in the year of
commencement of this Ordinance, have, before the date of commencement of this
Ordinance,-
(a) made an inter-state sale of any taxable goods; or (b) made a sale in the course of the export of the goods out of the territory of India; or (c) consigned any taxable goods outside the State except by reason of a sale and such goods are delivered in the other State without a sale; or (d) brought or received any taxable goods from any place outside the State; |
||
| 2 | Dealers, who with or without any other kind of business, import any taxable goods on or after the date of commencement of this Ordinance | Date on which a dealer receives taxable goods for the first time | |
| 3 | Dealers who obtain registration certificate under the Central Sales tax Act, 1956 on or after the date of commencement of this Ordinance | Date from which registration certificate is effective | |
| 4 | Dealers, who, with or without any other kind of business, make sale of any taxable goods in the course of inter-State trade or commerce on or after date of the commencement of this Ordinance | Date on which a dealer makes first sale of any taxable goods in the course of inter-State trade or commerce | |
| 5 | Dealers, who, with or without any other kind of business, on or after the date of commencement of this Ordinance, make a sale, in the course of export of the goods out of the territory of India, of any taxable goods or make such sale of any exempt goods where in manufacture, processing or packing of such exempt goods any taxable goods have been used, consumed or utilized | Date on which a dealer makes first sale of the goods in the course of export of the goods | |
| 6 | Dealers, who, with or without any other kind of business, consign any taxable goods on or after the date of commencement of this Ordinance at any place outside the State except by reason of a sale and such goods are delivered in the other State without a sale | Date on which a dealer for the first time consigns any taxable goods outside the State | |
| 7 | Dealers who have been
carrying on exclusive business of purchase of any goods from within the State
or sale of any goods within the State or both, as the case may be, of any goods
from a date prior to the date of commencement of this Ordinance or dealers who
commence such business on or after the date of commencement of this Ordinance
and-
(i) whose aggregate, of the turnover of such purchase and turnover of such sale, of all goods, as defined hereunder, in any assessment year including assessment year of the commencement of this Ordinance, from first day of business during such assessment year, exceeds the taxable quantum as provided in subsection (4) of this section on any date after the date of the commencement of this Ordinance; and (ii) who do not make any change in the nature of their business before their aggregate of the turnovers as stated in clause (a) exceeds the taxable quantum as provided in sub-section (4) of this section |
Date on which aggregate of the turnovers of purchase from within the State and turnover of sale within the State or both, as the case may be, of all goods of a dealer, as defined hereunder, for the first time in any assessment year exceeds the taxable quantum | |
| 8 | Transporter or any other carrier or a forwarding agent or railway container contractor of goods where such transporter, carrier or forwarding agent or railway container contractor fails to disclose the name and address of the consignee or consigner in Uttar Pradesh or if disclosed name and address of consigner or consignee is bogus, forged or not verifiable or fails to furnish copy of invoice, challan, transport receipt or consignment note or document of like nature in respect of any taxable goods, which are held in possession or custody or carried in his vehicle; or An owner or person in-charge, of a godown or cold storage or warehouse who fails to disclose the name and address of the owner of any taxable goods stored in such godown, cold storage or warehouse. | First date on which any taxable goods are found in the possession or custody | |
| 9 | Dealers who do not fall in any of the classes mentioned against serial no. 1 to 8 above and who obtain registration certificate voluntarily under section 18. | Date from which registration certificate is effective | |
Provided that a dealer who exclusively deals in purchase or sale, or both, as the case may be, of exempt goods, shall not be liable to pay tax under this Ordinance.
Explanation (1) - For the purposes of this sub-section and sub-section (5) the expression "aggregate of turnover of purchase from within the State and turnover of sale within the State or both, as the case may be, of all goods" shall mean the aggregate of the turnover of-
(a) purchase of all taxable goods where such purchases are made by the dealer from within the State from persons other than registered dealers; and
(b) sale of all goods except goods included in clause (a) where such sales are made by the dealer within the State
Explanation (2) - Where a dealer falls in more than one category, mentioned in column (2) of the table given above, then he shall be liable for payment of tax with effect from the earliest date of all dates mentioned in column (3) of the table referred to above.
(4) Taxable quantum referred to in sub-section (3) shall be five lakh rupees.
(5) Every dealer who has once become liable for payment of tax shall continue to be so liable till the date on which he discontinues his business:
(6) For the purposes of this Ordinance, following shall be determined in the prescribed manner:-
(a) Turnover of sale of goods-
(i) involved in the execution of works contract in which property in goods is transferred; or
(ii) in cases of transfer of right to use any goods;
(b) Taxable turnover of sale; and
(c) Taxable turnover of purchase.
(7) Where in respect of transfer of property in goods involved in the execution of a works contact, the contractor does not maintain proper accounts or the accounts maintained by him are not found by the assessing authority to be worthy of credence and the amount actually incurred towards charges for labour and other services and profit relating to supply of labour and services are not ascertainable, for the purpose of determining turnover of sale of goods under sub-clause (i) of clause (a) of sub-section (6) such charges for labour and other services and such profits, may be determined on the basis of deduction of such percentage of the value of works contract as may be prescribed and different percentages may be prescribed for different types of works contract.
(8) Amount of tax, for which a dealer is liable for payment under any provision of this Ordinance, shall be paid in the prescribed manner.
(9) Notwithstanding anything to the contrary in this Ordinance, where any goods are sold or purchased together with any packing material, sale or purchase of packing material shall, notwithstanding the fact that contracts of sale or purchase of such goods and such packing material have been made separately or price of sale or purchase, as the case may be, of the goods and the packing material has been shown separately,-
(a) be liable to tax under this Ordinance at the rate applicable to sale or purchase of the goods sold or purchased together with such packing material;
(b) not be liable to any tax under this Ordinance if the sale or purchase of such goods is exempt from tax at the hands of the dealer.
(10) Where tax is payable, and has been so paid by a commission agent on any turnover of sale or turnover of purchase or both, as the case may be, of any goods on behalf of his principal, the principal shall not be liable to pay tax in respect of such turnover.
Explanation: For the purposes of this Ordinance, the dissolution of a firm or association of persons or partition of a Hindu Undivided Family or transfer by a dealer of his business shall be deemed to be cessation or discontinuance of business.
4. Levy of tax on turnover of sale
(1) The tax, payable on sale of goods under this Ordinance, shall be levied and paid on the taxable turnover of sale of -
(a) goods named or described in column (2) of the Schedule II, at every point of sale and at the rate of four percent;
(b) goods named or described in column (2) of the Schedule III at every point of sale and at the rate of one percent;
(c) goods named or described in column (2) of the Schedule IV at the point of sale mentioned in column (3) and at the rate of tax mentioned in column (4) of the Schedule against such goods;
(d) goods named or described in column (2) of the Schedule V at every point of sale and at the rate of twelve and half percent;
Provided that in respect of goods mentioned in column (2) of Schedule IV, the State Government may, by notification, declare different rates of tax, not exceeding fifty percent, in respect of different goods or class of goods.
Provided further that turnover of sale of textile and sugar except khandsari sugar, mentioned or described in column (2) of Schedule II, shall be liable to tax from such date and at such rate, not exceeding four percent, as may be notified by the State Government.
(2) In respect of any entry of any Schedule of this Ordinance, explanation or clarification, if any, given in footnotes of such Schedule, shall be deemed to be a part of such entry of such Schedule.
(3) Where a dealer, selling any goods, is not entitled to realise amount of tax, payable by him on the turnover of sale of such goods, separately on tax invoice, sale invoice, cash memo or bill from the purchaser of the goods, amount of tax payable by him on the turnover of such sale shall be computed using the formula-
| Amount of tax payable = | Rate of tax X aggregate of sale prices |
| -----------------------------------------------
100 + Rate of tax |
(4) The State Government may, by notification in the Gazette, amend any entry of any Schedule, add any new entry in any of the Schedule and in the like manner omit any entry of any Schedule.
(5) Every notification made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature, while it is in session, for a total period of not less than fourteen days, extending in its one session or more than one successive sessions, and shall, unless some later date is appointed take effect from the date of its publication in Gazette subject to such modifications or annulments as the two Houses of the Legislature may during the said period agree to make, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done thereunder except that any imposition, assessment, levy or collection of tax or penalty shall be subject to the said modification or annulment.
5. Levy of Tax on turnover of purchase
(1) Every dealer, who, in the course of business, makes purchase of any taxable goods -
(i) other than non-vat goods from a person other than a registered dealer; or
(ii) non-vat goods, the earlier sale or purchase of which has not suffered levy of tax either under the provisions of the erstwhile Act or under the provisions of this Ordinance,
shall be liable to pay tax on the turnover of purchase of such taxable goods except non-vat goods or turnover of purchase of non-vat goods or both, as the case may be.
(2) Tax on the turnover of purchase of taxable goods referred to in clause (i) or clause (ii) of sub-section (1) shall be levied at the same rate at which turnover of sale of such goods is liable to tax in accordance with the provisions of section 4.
6. Composition of tax liability
(1) Notwithstanding anything contained in any other provision of this Ordinance, but subject to other provisions of this section and the directions of the State Government, the assessing authority may agree to accept a composition money either in lump sum or at an agreed rate on his turnover of sale in lieu of tax that may be payable by a dealer in respect of such goods or class of goods and for such period as may be agreed upon:
Provided that in case of a dealer who carries on exclusive business of re-sale of goods within the State after their purchase from within the State and whose turnover of sale of such goods, for any assessment year, is neither likely to exceed fifty lakh rupees nor his such turnover, for the assessment year preceding such assessment year, has exceeded fifty lakh rupees, the State Government may notify a rate percent on sale of such goods. Different rates may be notified for different goods.
Provided further that any change in the rate of tax which may come into force after the date of such agreement shall have the effect of making a proportionate change in the lump sum or the rate agreed upon in relation to that part of the period of assessment during which the changed rate remains in force.
(2) Any dealer, who opts for payment of lump sum under this section, shall not be entitled to claim credit of input tax under section 13 in respect of purchase of goods which are re-sold by him during the period in which he is liable to pay tax or lump sum, as the case may be, under this section or in respect of purchase of goods which have been used, consumed or utilized in manufacture or processing of goods which are sold by him during such period and where the dealer has claimed credit of input tax in respect of any such goods, the same shall stand reversed and the dealer shall pay such amount of reverse input tax credit in accordance with provisions of section 14.
(3) Any dealer who opts for payment of tax or a lump sum, as the case may be, under this section shall not issue any tax invoice and shall not realise any amount from the purchaser of goods by way of tax or by giving it a different name or colour.
(4) A dealer who makes purchase of any goods from a dealer, who has opted for payment of tax or a lump sum, as the case may be, under this section, shall not be entitled to claim credit of input tax in respect of goods purchased from such dealer.
7. Tax not to be levied on certain sales and purchases.-
No tax under this Ordinance shall be levied and paid on the turnover of-
(a) sale or purchase where such sale or purchase takes place -
(i) in the course of inter-state trade or commerce; or
(ii) outside the State; or
(iii) in the course of the export out of or in the course of the import into, the territory of India;
(b) sale or purchase of any goods named or described in column (2) of the Schedule I of this Ordinance or;
(c) such sale or purchase; or sale or purchase of such goods by such class of dealers, as may be specified in the notification issued by the State Government in this behalf:
Provided that while issuing notification under clause (c), the State Government may impose such conditions and restrictions as may be specified.
Explanation: For the purposes of this Ordinance, sections 3, 4 and 5 of the Central Sales Tax Act, 1956, shall apply respectively for determining whether or not a particular sale or purchase of any goods falls under any of the subclauses (i), (ii) and (iii) of clause (a).
8. Liability on fraudulent issuance and procurement of tax invoice and sale invoice
Notwithstanding anything to the contrary contained in any other provision of this Ordinance and without prejudice to the provisions of section 54, where it is found that any dealer has issued tax invoice or sale invoice without making actual sale of goods shown in such invoice then the selling dealer and the purchasing dealer who has received such invoice, jointly and severally, be liable for payment of an amount equal to amount of tax shown to have been charged in such invoice:
Provided that before taking any action under this section, persons concerned shall be given an opportunity of being heard.
9. Liability of firm, association of persons and Hindu undivided family
(1) Subject to the provisions of this Ordinance, where the dealer is a firm or association of persons or a Hindu Undivided Family -
(a) such firm or association and every person who is a partner of such firm or a member of such association or Hindu undivided family shall be liable jointly and severally for the payment of tax assessed and penalty imposed or any amount due under this Ordinance and is payable by such firm or association or Hindu Undivided Family; and
(b) where such firm or association or Hindu Undivided Family has discontinued its business, -
(i) tax, including penalty payable under this Ordinance by such firm or association or Hindu Undivided Family up to the date of such discontinuance may be assessed and determined as if no such discontinuance had taken place ; and
(ii) every person who was at the time of such discontinuance a partner of such firm or a member of such association or Hindu Undivided Family shall, notwithstanding such discontinuance, be liable jointly and severally for the payment of tax assessed and penalty imposed and payable by such firm or association or Hindu Undivided Family whether such assessment is made or penalty is imposed prior to or after such discontinuance, and, subject to as aforesaid, the provisions of this Ordinance shall apply as if every such person or partner were himself a dealer:
Provided that where it is found that a change has occurred in the constitution of the firm or association, the firm or association as reconstituted as well as partners or members of the firm or association, as it existed before re-constitution, shall jointly and severally be liable to pay tax including penalty, if any, due from such firm or association for any period before its reconstitution.
(2) Where the ownership of the business of any dealer, liable to pay, tax is transferred, the transferor and transferee shall jointly and severally be liable to pay the tax including penalty, if any, payable in respect of such business till the time of such transfer, whether the assessment is made or the penalty is imposed prior to or after such transfer.
(3) Where a tax including penalty, if any, is recovered from a reconstituted firm or association under the proviso to sub-section (1) or from a transferee under sub-section (2), such firm or association or a transferee shall be entitled to recover the same from the person who was originally liable to pay the tax.
10. Tax due from deceased person payable by his representatives
(1) Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for the purposes of this Ordinance and the provisions of this Ordinance shall apply to him in respect of the business of the said deceased dealer:
Provided that -
(a) in respect of any liability of the deceased, his executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hand;
(b) any proceeding including the proceeding for recovery may be continued from the stage at which it was pending at the time of the death of the dealer.
(2) The provisions of sub-section (1) shall mutatis mutandis apply to a dealer being a partnership firm, which may stand dissolved in consequence of the death of any partner.
11. Tax liability in case of minor or incapacitated person
In the case of any guardian, trustee or agent of any minor or other incapacitated person, carrying on business on behalf of and for the benefit of such minor or other incapacitated person, the tax shall be, levied upon and recoverable from such guardian, trustee or agent, as the case may be, in like manner and to the same extent as it would be leviable upon and recoverable from any such person or other incapacitated person, if he were of full age and sound mind and if he were conducting the business himself; and all the provisions of the Ordinance and the rules made thereunder shall apply accordingly.
12. Liability in case of court of wards
In the case of business owned by a dealer whose estate or any portion of whose estate is under the control of the Court of Wards, the Administrator General, the Official Trustee or any Receiver or Manager (including any person whatever his designation, who in fact manages the business on behalf of the dealer) appointed by him or under any order of a court, the tax shall be levied upon and recoverable from such Court of Wards, Administrator General, Official Trustee, Receiver or Manager, in like manner and in the same terms as it would be leviable upon and recoverable from the dealer, as if he were conducting the business himself, and all the provisions of the Ordinance and the rules made thereunder shall apply accordingly.
13. Input tax credit
(1) Subject to provisions of this Ordinance, dealers referred to in the following clauses and holding valid registration certificate under this Ordinance, shall, in respect of taxable goods purchased from within the State and mentioned in such clauses, subject to conditions given therein and such other conditions and restrictions as may be prescribed, be allowed credit of an amount, as input tax credit, to the extent provided by or under the relevant clause:
(a) Subject to conditions given in column (2), every dealer liable to pay tax, shall, in respect of all taxable goods except non-vat goods, capital goods and captive power plant, where such taxable goods are purchased on or after the date of commencement of this Ordinance, be allowed credit of the amount, as input tax credit, to the extent provided in column (3) of the table below:
Table
| Serial No. | Conditions | Extent of amount of input tax credit |
| (1) | (2) | (3) |
| 1 | If purchased goods are re-sold- (i) inside the State, or (ii) in the course of inter-state trade or commence; or (iii) in the course of the export of the goods out of the territory of India. | Full amount of input tax |
| 2 | If purchased goods are used in
manufacture of -
(i) any goods except non-vat goods and where such manufactured goods are sold in the course of the export of the goods out of the territory of India; or (ii) any taxable goods except non-vat goods and where such manufactured goods are sold either inside the State or in the course of inter-state trade or commerce |
Full amount of input tax |
| 3 | If purchased goods are -
(i) transferred or consigned outside the State otherwise than as a result of a sale; or (ii) used in manufacture of any taxable goods except non-vat goods and such manufactured goods are transferred or consigned outside the State otherwise than as a result of a sale. |
Partial amount of input tax, which is in excess of rate prescribed under sub-section(1) of section-8 of the Central Sales Tax Act, 1956 of the purchase price on which the dealer has paid tax either to the registered selling dealer or to the State Government |
(b) Input tax credit of full amount of input tax shall be allowed to every dealer, liable to pay tax, in respect of capital goods purchased on or after the date on which dealer becomes liable for payment of tax under this Ordinance, if such goods are to be used in manufacture of any -
(b.1) taxable goods except non-vat goods and where such manufactured goods are -
(i) sold within the State, in the course of inter-state trade or commerce or in the course of the export of the goods out of the territory of India; or
(ii) transferred or consigned outside the State otherwise than as a result of a sale;
(b.2) exempt goods except non-vat goods and where such manufactured goods are sold in the course of export of the goods out of the territory of India.
(c) Subject to conditions mentioned in column (2) of the table under clause (a), every dealer, who is liable to pay tax on the date of commencement of this Ordinance shall, in respect of all taxable goods except non-vat goods, capital goods and captive power plant, where such goods have been purchased within a period of six months ending on the date of commencement of this Ordinance and where such goods-
(i) are held in opening stock on the date of commencement of this Ordinance in the same form and condition in which they were purchased; or
(ii) have been used in manufacture of finished or semi-finished goods (in the process of manufacture of taxable goods except non-vat goods) or finished taxable goods, except non-vat goods and such finished or semi-finished goods are held in opening stock on the date of commencement of this Ordinance; and
(iii) have suffered levy of tax under the erstwhile Ordinance,
be allowed credit of partial or full, as provided in column (3) against relevant entry of the said table, amount of input tax as input tax credit and for this purpose amount of input tax shall be computed in the prescribed manner.
(d) Subject to conditions mentioned in column (2) of the table under clause (a), every dealer, who becomes liable to pay tax on a date after the date of commencement of this Ordinance, shall, in respect of all taxable goods, except non-vat goods, capital goods and captive power plant, where such taxable goods have been purchased on or after the date of commencement of this Ordinance but within a period of six months ending on the day preceding the date on which such dealer has become liable to pay tax and -
(i) are held in opening stock, on the date on which the dealer has become liable to pay tax, in the same form and condition in which they were purchased;
(ii) have been used in manufacture of semi-finished goods (in the process of manufacture of taxable goods except non-vat goods) or finished taxable goods, except non-vat goods and such semifinished or finished goods as are held in opening stock on the date on which the dealer has become liable to pay tax; or
(iii) have been purchased from a registered dealer after obtaining sale invoice bearing name and address of purchasing dealer,
be allowed credit of partial or full, as provided in column (3) against relevant entry of the said table, amount of input tax as input tax credit and for this purpose amount of input tax shall be computed in the prescribed manner.
(e) Every dealer who is liable to pay tax and who opts for payment of tax or lump sum under provisions of section 6, shall, in respect of all taxable goods, except non-vat goods, capital goods and captive power plant, which are held in stock at the end of the period during which provisions of section 6 remain applicable, be allowed credit of full or partial amount of input tax or deemed input tax, as the case may be, in accordance with provisions of clauses (a) to (d) above, as may be applicable:
Provided that unless the State Government, in exercise of its powers under second proviso of sub-section (1) of section 4, issues notification prescribing rate of tax and point of tax in respect of sale of sugar or textile referred to therein, no facility of input tax credit, in respect of goods purchased for use in manufacture of said goods, shall be allowed under any of the aforesaid clauses.
Explanation: For the purposes of this sub-section, -
(a) for entry against serial no. (1) of the table under clause (a), re-sale of goods includes transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(b) goods, required for use in manufacture of any goods, do not include captive power plant, or parts, components and accessories of a captive power plant or any other goods required for running or maintenance of a captive power plant.
(2) Notwithstanding anything to the contrary in any provision of sub-section (1) of this section, credit of full or partial amount of input tax, in respect of all taxable goods, may be allowed to developer, co-developer and units established in Special Economic Zone for authorized operations subject to such conditions as may be specified in the notification issued by the state government.
Explanation - For the purposes of this sub-section the word "co-developer" or "developer" and expressions "Special Economic Zone" or "authorized operations" shall have the meanings assigned to them in the Special Economic Zones Act, 2005.
(3) Where purchased goods are to be used or disposed of partially for the purposes specified in clause (a) of sub-section (1), the input tax credit shall be claimed and allowed proportionate to the extent they are used or disposed of for the purposes specified in such clause.
(4) Except as provided otherwise in any provision of this Ordinance or the rules framed thereunder, in respect of purchase of any goods in respect of which facility of input tax credit is admissible, input tax credit of the full amount of input tax can provisionally be claimed on the date on which tax invoice related to such goods is received by the dealer and where dealer himself is liable to pay tax in respect of purchase of any goods, on the date on which amount of tax payable is accounted for by the dealer in the account of tax payable by him.
(5) Where a dealer has claimed input tax credit in respect of any goods under subsection (4), but such goods; or goods manufactured by using such goods; or goods packed by using or consuming such goods, are consigned outside the State or disposed of or dispossessed in a manner for which facility of input tax credit is not admissible or such facility is admissible for partial amount of input tax, the amount which is the difference, of the full amount of input tax and admissible amount of input tax credit, shall be deducted from the amount of the input tax credit, already claimed by the dealer by debiting such amount into the account of input tax credit maintained by him.
Provided that before debiting the amount of input tax credit reasonable opportunity of being heard shall be given to the dealer.
(6) In the circumstances referred to in sub-section (5), the amount of difference of full amount of input tax and admissible amount of input tax credit, shall be debited by the dealer into the account of input tax credit maintained by him on the day on which -
(i) goods, in respect of which credit of full amount of input tax was claimed; or
(ii) goods, manufactured by using goods in respect of which credit of full amount of input tax was claimed; or
(iii) where goods, in respect of which credit of full amount of input tax was claimed, are used or consumed in packing of any goods, such packed goods,
are consigned outside the State; or disposed of or dispossessed by the dealer in a manner for which facility of input tax credit is not admissible or such facility is admissible for partial amount of input tax:
Provided that where the dealer discontinues his business, full amount of input tax, which was claimed under sub-section (4), in respect of-
(i) goods held by the dealer in the same form and condition in which those were purchased; or
(ii) goods which have been used in manufacture of any goods held by the dealer, (whether in semi-manufactured or manufactured state);
(iii) goods which have been used or consumed in packing of any goods held by the dealer,
in closing stock on the day on which he has discontinued business, shall, before end of the tax period prescribed for submission of the tax return for the tax period in which business is discontinued, shall be debited by the dealer into the account of input tax credit maintained by him.
(7) Except where-
(a) purchased goods; or
(b) manufactured goods which are manufactured by using purchased goods; or
(c) packed goods which are packed by using or consuming purchased goods are to be sold in the course of the export of the goods out of the territory of India, no credit of any amount of input tax shall be claimed by a dealer under sub section (4) and no facility of input tax credit shall be allowed to a dealer in respect of purchase of any goods where -
(i) sale of such goods by the dealer is exempt from payment of tax under clause (c) of section 7; or
(ii) such goods are to be used or consumed in manufacture or packing of any goods and sale of such manufactured or packed goods by the dealer is exempt from payment of tax either under clause (b) or clause (c) of section 7.
(8) Amount of admissible input tax credit for a tax period and for an assessment year shall be computed in the prescribed manner and shall be claimed and allowed within such time and in such manner as may be prescribed.
(9) Where any goods, purchased from within the State, are sold by a principal through a selling agent or where any goods are purchased by a purchasing agent on behalf of a principal, input tax credit, in respect of purchase of such goods, shall be claimed by and be allowed to the principal in such manner as may be prescribed.
(10) Every dealer, who claims input tax credit under this section, shall, in respect of input tax, input tax credit and inventory of goods, maintain such records and furnish such statements as may be prescribed.
(11) Where it appears to the assessing authority that amount of input tax or amount of input tax credit shown in any statement furnished by any dealer is incorrect or is not worthy of credence, it may, after giving reasonable opportunity of being heard to such dealer and after making such inquiry as it may deem fit, determine the amount of input tax or amount of input tax credit, as the case may be, by making an order in writing:
Provided that where matter relates to any tax return submitted under section 24 or in any assessment proceedings under any section of this Ordinance, proceedings shall be completed in accordance with provisions of relevant sections.
Explanation (1) For the purposes of this section, -
(i) goods for use in manufacture of any goods includes goods required for use, consumption or utilization in manufacture or processing of such goods or goods required for use in packing of such manufactured or processed goods;
(ii) manufacture of any goods includes processing of such goods and packing of such manufactured or processed goods; and
(iii) where during the process of manufacture of any taxable goods any exempt goods are produced as by-product or waste-product, it shall be deemed that purchased goods have been used in the manufacture of taxable goods. Conversely, where during the process of manufacture of any exempt goods any taxable goods are produced as by-product or waste-product; it shall be deemed that purchased goods have been used in the manufacture of exempt goods.
14. Reverse input tax credit
(1) Consistent with the provisions of this Ordinance, the State Government may prescribe the circumstances in which and the goods in respect of which input tax credit shall be neither claimed nor allowed.
(2) Where, in respect of any goods, a dealer has already claimed input tax credit against the provisions of this Ordinance or the rules framed thereunder or has wrongly claimed input tax credit in respect of any goods, benefit of input tax credit to the extent it is not admissible, shall stand reversed and such amount of reverse input tax credit shall be deducted from the amount of input tax credit already claimed by the dealer in the tax period in which event giving rise to reverse input tax credit has occurred:
Provided that where event, giving rise to reverse input tax credit, comes to the notice of the dealer after the tax return, for the tax period in which such event has occurred, has been submitted, the dealer shall be liable to pay such amount of reverse input tax credit within thirty days after the event comes to the notice of the dealer, along with simple interest at a rate of fifteen percent per annum for the period commencing on the date following the last date prescribed for submitting tax return of the tax period in which event has occurred and ending on the date on which amount has been deposited.
15. Net amount of tax payable and treatment of input tax credit exceeding tax liability
(1) For any tax period, net amount of tax payable shall be computed using the following equation:
Net amount of tax payable for any period = Gross amount of tax payable for such period - Gross amount of admissible input tax credit for the period
Where-
[a] gross amount of tax payable for the period is the aggregate of amounts of-
(i) tax payable on the turnover of sale of goods made during the tax period;
(ii) tax payable on turnover of purchase of goods made during the tax period;
(iii) tax on the turnover of sale made during the period or any installment of lump sum falling due during the period, as the case may be, payable under the provisions of section 6;
(iv) any other amount of tax payable; and
[b] gross amount of admissible input tax credit for the period is the aggregate of amounts of-
(i) input tax credit claimed in respect of purchase of goods made during the period less amount of reverse input tax credit, if any;
(ii) input tax credit carried forward from the immediately preceding tax period;
(iii) any installment of input tax credit in respect of goods held in opening stock on the date from which dealer has become liable to pay tax or in respect of purchase of capital goods;
(iv) input tax credit in respect of goods held in opening stock on the date on which, in case of a dealer who has opted for payment of tax or a lump sum under section 6 of this Ordinance, provisions of section 6 cease to apply and the dealer continues his business:
Provided that where a dealer has been allowed moratorium for payment of tax under section 42, gross amount of tax payable for the period shall not include amount in respect of which facility of moratorium is applicable. Amount for which facility of moratorium is applicable shall be paid by the dealer separately in accordance with provisions of section 42.
(2) If, for any tax period, gross amount of admissible input tax credit under subsection (1) exceeds the differential amount of gross amount of tax payable under that sub-section and the aggregate of amounts of tax paid by the dealer towards tax for such tax period, the excess amount of admissible input tax credit may be adjusted by the dealer against amount of tax payable in the tax return of the corresponding tax period under the Central Sales Tax Act, 1956 and where gross amount of such admissible input tax credit is a negative figure, the dealer, while computing net amount of tax payable under subsection (1), shall add such amount to gross amount of tax payable by the dealer.
Explanation: For the purpose of this sub-section, expression "aggregate of amounts of tax paid by the dealer towards tax of such tax period" shall mean the aggregate of amounts of-
(a) tax deposited by the dealer towards tax of such tax period;
(b) tax deducted at source under provisions of section 34 in respect of any sale of goods where such sale is made during such tax period; and
(c) refund adjusted towards tax of such tax period:
Provided that amount under clause (a), (b) or (c) shall not be included in the aggregate of amounts of tax paid by the dealer towards tax of such tax period unless the dealer furnishes adequate documentary proof in respect thereof alongwith tax return of such tax period.
(3) Any excess amount of input tax credit left over after adjustment as provided in sub-section (2) shall be carried forward and be added to the amount of input tax credit for the next tax period: Provided that in case of a dealer whose main business is to sell goods in the course of the export of the goods out of the territory of India, subject to provision of section 41, assessing authority shall, on the application of the dealer, along with the proof of export, allow provisional refund of excess amount of input tax credit for any tax period, after the dealer has submitted return for such tax period, within thirty days from the last date prescribed for submission of tax return or from the date of submission of tax return, whichever is later.
(4) Where a dealer has submitted returns for all tax periods of an assessment year, and if any amount of excess admissible input tax credit still exists according to the tax return of the last tax period, such excess amount of admissible input tax credit, subject to provisions of sections 40, shall be refunded to the dealer within thirty days after the last date prescribed or allowed for submission of the return of last tax period of such assessment year.
Provided that excess amount of admissible input tax credit remaining in balance on the last day of the assessment year in which dealer has become liable for payment of tax, shall, subject to provision of sub-section (3), be carried forward to the first tax return of the next assessment year and any excess amount of input tax credit according to the tax return of the last tax period of later assessment year shall be refunded to the dealer within thirty days after the last date prescribed or allowed for submission of return of the last tax period of the such later assessment year.
(5) Notwithstanding anything contained in sub-section (4) where a dealer discontinues business, refund of any excess amount of admissible input tax credit relating to last tax period of the assessment year during which business has been discontinued shall be allowed within Ninety days after the date of passing of assessment order for such assessment year.
(6) Where tax return for any tax period of any assessment year has not been submitted by the last date prescribed or allowed for submission of tax return of the last tax period of the assessment year, excess amount of admissible input tax credit, if any, for such assessment year, subject to provisions of sections 40 shall be refunded to the dealer within a period of Ninety days after the assessment order in respect of such assessment year has been passed.
(7) Notwithstanding anything contained contrary to in sub-section (3) and subsection (4), any excess amount of admissible input tax credit left over in the tax return of the last tax period of any assessment year, at the option of the dealer, may be carried forward to the tax return of the first tax period of the succeeding assessment year.
16. Burden of proof
In any assessment proceedings where any fact is specially within the knowledge of the assessee, the burden of proving that fact shall lie upon him, and in particular, the burden of proving the existence of the circumstances bringing the case within any of the exemptions, exceptions or reliefs under any provisions of this Ordinance including claim of any amount as input tax credit, shall lie upon him and assessing authority shall presume the absence of such circumstances.
Chapter III
Registration, Security and Maintenance of Accounts
17. Registration of dealers
(1) Every dealer liable to pay tax under this Ordinance shall obtain registration certificate issued by the prescribed registering authority in the prescribed form.
(2) Except as provided under sub-sections (3), (4) and (5), every dealer liable to pay tax shall, for issue of registration certificate, apply to the registering authority within a period of thirty days from the date on which such dealer has become so liable, in the prescribed form and manner along with proof of deposit of registration fee of one hundred rupees:
Provided that a dealer who fails to apply for issue of registration certificate within the time prescribed, without prejudice to any other liability under this Ordinance, may apply after depositing late fee at the rate of rupees one hundred for every month or part thereof for the period of delay.
(3) Every dealer who has held immediately before the commencement of this Ordinance a registration certificate or a provisional registration certificate issued under the erstwhile Act and is liable to pay tax under this Ordinance from the date of commencement of this Ordinance, shall be deemed a registered dealer with effect from the date of commencement of this Ordinance:
Provided that where a dealer was required to pay any fee for renewal of the registration certificate under the provisions of the erstwhile Act, if the same has not been paid, the registration certificate shall not be deemed valid unless such dealer deposits renewal fee along with late fee of one hundred rupees within a period of thirty days form the date of commencement of this Ordinance.
(4) In the case of a dealer, who is liable for payment of tax under this Ordinance from the date of commencement of this Ordinance and whose application for issue of registration certificate under the erstwhile Act, is pending on the date of commencement of this Ordinance, shall be deemed a registered dealer under this Ordinance with effect from the date of commencement of this Ordinance if -
(i) registration certificate is issued to him under the erstwhile Act; and
(ii) the dealer deposits renewal fee payable under the erstwhile Act and late fee payable under this Ordinance, if any, within thirty days from the date on which registration certificate is issued to him under the erstwhile Act.
(5) Every dealer who holds a registration certificate issued under the erstwhile Act shall present it before the registering authority or the assessing authority, as the case may be, for necessary endorsement by such authority relating to validity of such certificate under this Ordinance, within sixty days of the date of commencement of this Ordinance or date on which registration certificate is issued under the erstwhile Act, whichever is later in such form as may be prescribed.
(6) (a) No transporter, carrier or transport agent or railway container contractor shall operate its transport business in the State relating to taxable goods without being registered with the registering authority in such manner as may be prescribed.
(b) A transporter or carrier or transporting agent or railway container contractor already operating transport business in the State relating to taxable goods shall, within a period of thirty days from the date of commencement of this Ordinance, apply to registering authority for registration in the prescribed manner.
(c) If a transporter or carrier or transporting agent or railway container contractor carries or transports any taxable goods in contravention of the provisions of this Ordinance or the rules made thereunder, his registration shall be liable to be cancelled or suspended for such period as may be determined by the registering authority after giving him a reasonable opportunity of being heard.
(d) Every transporter or carrier or transporting agent or railway container contractor operating its transport business shall maintain such records as may be prescribed.
(e) No taxable goods shall be delivered by the transporter or carrier or transporting agent or railway container contractor unless the prescribed requirements have been complied with.
(7) Where the registering authority is satisfied that -
(a) the application for issue of registration certificate is in order;
(b) the information furnished is correct and complete; and
(c) any requisite fee has been deposited and security where needed is furnished,
the registering authority may, after making such inquiry as it may deem necessary, cause the dealer to be registered and issue registration certificate in the prescribed form and prescribed time.
(8) If the dealer who has applied for issue of registration certificate does not fulfill any of the conditions mentioned in this section, or if any person having interest in the business is a defaulter in payment of any dues, relating to any other business, under this Ordinance or under the Central Sales Tax Act, 1956 or under the erstwhile Act, the registering authority, shall, after giving a reasonable opportunity of being heard to the applicant, reject the application by an order in writing.
(9) Registration certificate issued under the erstwhile Act and validly held under this Ordinance shall be valid with effect from such date as may be prescribed.
(10) Subject to provisions of sub-section (9), every registration certificate shall remain in force till the date of discontinuance of business:
(11) The registering authority, after giving reasonable opportunity of being heard to the dealer, may cancel the registration certificate with effect from the date -
(a) on which dealers' liability for payment of tax has ceased; or
(b) on which the dealer has discontinued the business; or
(c) of order of cancellation where-
(i) the dealer has obtained registration certificate by fraud or by mis-representation of facts; or
(ii) the dealer has failed to furnish security or additional security, as the case may be; or
(iii) the dealer has transferred any prescribed form of declaration or certificate obtained by him to any person against provisions of this Ordinance or the rules made thereunder; or
(iv) the dealer has permitted some other person to carry on business in his name; or
(v) the dealer has issued any tax invoice to a dealer without making actual sale of goods; or
(vi) where a transporter or carrier or transporting agent or railway container contractor fails to file return or otherwise acts in contravention of the provisions of this Ordinance or rules made thereunder;
(vii) a person acts in contravention of provisions of section 43;
(viii) where a dealer has failed to pay the tax, penalty or other dues within three months of the date such tax, penalty or other dues become payable.
(ix) registration certificate has been cancelled for any other sufficient cause.
(12) During cancellation proceedings under sub-section (11), where the registering authority is satisfied that the dealer will succeed in causing revenue loss, pending action for cancellation under subsection (11), it may, after assigning reasons therefore, suspend the registration certificate by passing an order in writing, for the period during which the proceedings are pending:
Provided that if the dealer, by furnishing adequate security to the satisfaction of the registering authority, satisfies that revenue loss, if any, shall be made up by him, the registering authority may revoke the suspension of registration certificate.
(13) During the period of suspension of registration certificate under subsection (12), the dealer shall be treated as unregistered dealer.
(14) The registering authority, after considering any information furnished or otherwise received and after making such inquiry as it may deem fit, amend from time to time any certificate of registration which shall take effect:
(a) in the case of change in the name, ownership or place of business, or opening of a new place of business, from the date of the event necessitating the amendment whether or not information in that behalf is furnished within the time prescribed under section 75.
(b) in case of any addition or modification in the description of any goods or class of goods in the certificate of registration, from the date of event necessitating the amendment if information in that behalf is furnished within the time prescribed under section 75 and in any other case, from the date of receipt of request for such addition or modification by the registering authority or the assessing authority, as the case may be;
(c) in case of deletion of any goods or class of goods, from the date of order of deletion.
Provided that where in consequence of a change in the ownership of a business, liability for payment of tax of any dealer ceases, the amendment of the certificate of registration shall take effect from the date on which information in respect of such change is furnished under section 75.
Explanation (I) - Any amendment of a certificate of registration under this sub-section shall be without prejudice to any liability for tax or penalty imposable, or for any prosecution for an offence under this Ordinance.
Explanation (II)-For the removal of doubts, it is hereby declared that where a registered dealer-
(a) affects a change in the name of his business; or
(b) is a firm and there is change in the constitution of the firm without dissolution thereof; or
(c) is a trustee of a trust and there is a change in the trustees thereof; or
(d) is a guardian of the ward and there is a change in the guardian; or
(e) is a "Hindu Undivided Family" and the business of such family is converted into a partnership business with all or any of the coparceners as partners thereof,
then merely by reason of any of the circumstances aforesaid, it shall not be necessary for the dealer or the firm the constitution whereof is changed, or the new trustees, or the new guardian or, as the case may be, the partners of such partnership business, to apply for a fresh certificate of registration, and on information being furnished in the manner required by section 75, the certificate of registration shall be amended.
(15) The registration certificate shall not be cancelled or amended by the registering authority on its own motion unless the dealer has been given reasonable opportunity of being heard.
18. Voluntary Registration
(1) On the commencement of this Ordinance, a dealer, who is otherwise not liable to pay tax, and if such dealer either carries on business or intends to carry on business, may apply at any time on or after the commencement of this Ordinance for issue of registration certificate in the form and manner prescribed under sub-section (2) of section 17 alongwith proof of deposit of fee prescribed under that sub-section.
(2) Every other dealer who has held immediately before the commencement of this Ordinance a registration certificate under the erstwhile Act but otherwise is not liable to pay tax under this Ordinance, shall be deemed a voluntarily registered dealer under this Ordinance provided he informs the registering authority within a period of thirty days from the date of commencement of this Ordinance in the form prescribed under sub-section (5) of section 17, of his intention to remain registered dealer under this Ordinance:
Provided that where a dealer was required to pay any fee for renewal of the registration certificate under the provisions of the erstwhile Act, if the same has not been paid, the registration certificate shall not be deemed valid unless such dealer deposits renewal fee along with late fee of one hundred rupees within a period of thirty days form the date of the commencement of this Ordinance.
(3) A dealer to whom registration certificate is issued under the erstwhile Act after commencement of this Ordinance and where such dealer is not otherwise liable to pay tax under this Ordinance from the date of commencement of this Ordinance, shall be deemed a registered dealer if such dealer, after depositing renewal fee and late fee, if any, informs the registering authority or the assessing authority, as the case may be, in the prescribed form, within thirty days from the date on which registration certificate is issued to him, of his intention to retain registration certificate voluntarily.
(4) Provisions of sub-sections (5) and (7) to (14) of section 17 shall mutatis mutandis apply to every registration certificate issued or held under this section.
19. Security in the interest of revenue
(1) Where it appears necessary to the registering authority so to do -
(a) for the proper realisation of any tax, penalty or other sums due or payable under this Ordinance; or
(b) for the proper custody or use of forms prescribed under this Ordinance or the rules framed thereunder; or
(c) as a condition for the grant or, as the case may be, the continuance in effect of registration certificate,
it may, by an order in writing and for reasons to be recorded therein, direct, before the grant or as the case may be, at any time while such certificate is in force, that the dealer or the person concerned shall furnish, in the prescribed manner and within such time as may be specified in the order such security or, if dealer or person concerned has already furnished such security, additional security of any nature, as may be specified, for all or any of the aforesaid purposes:
Provided that a valid security or an additional valid security, furnished for any of the aforesaid purposes under the provisions of the erstwhile Act, shall also be deemed valid for such purpose under this Ordinance, if the dealer informs his assessing authority or the registering authority, as the case may be, of his intention to continue in effect such security or additional security alongwith undertaking from the sureties on the stamp paper of proper face value and denomination.
(2) No dealer or the person concerned shall be required to furnish any security or additional security under sub-section (1) by the registering authority unless he has been given an opportunity of being heard, and the amount of such security or additional security that may be required to be furnished by any dealer shall also in no case exceed the tax payable, in accordance with the estimate of such authority on the turnover of the dealer for the assessment year in which such security is required to be furnished.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2) the Commissioner may, in respect of any goods notified by the Government in this behalf, by a general order in writing, direct that a cash security of such amount as may be specified in such order shall be required to be furnished by a dealer or person requiring any of the forms prescribed under this Ordinance.
(4) Where the security furnished by a dealer or person concerned under sub-section (1) is in the form of a surety bond and any surety dies or becomes insolvent, the dealer or the person concerned shall, within thirty days of the occurrence of any of the aforesaid events, inform the authority granting the certificate under section 17 or section 18 or the authority issuing the forms referred to in clause (b) of sub-section (1), as the case may be, and shall within sixty days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond.
(5) The assessing authority may, by order and for good and sufficient cause, forfeit the whole or any part of the security furnished by a dealer or the person concerned -
(a) for realising any amount of tax, penalty or other amount payable by the dealer or the person concerned; or
(b) if any dealer or person concerned is found to have misused any of the forms referred to in sub-section (1) or to have failed to keep them in proper custody;
Provided that no order shall be passed under this sub-section without giving the dealer or the person concerned an opportunity of being heard.
(6) Where by reason of an order under sub-section (5) the security furnished by any dealer or the person concerned is rendered insufficient, he shall make up the deficiency in such manner and within such time as may be directed by the assessing authority.
(7) The registering authority may -
(a) refuse to grant registration certificate; or
(b) suspend any registration certificate already issued; or
(c) refuse to issue any of the forms referred to in sub- section (1) or sub-section (3),
to any dealer or the person concerned, who has failed to comply with an order under sub-section (1) or sub-section (3), or with the provisions of sub-section (4) or sub-section (6), until the dealer or the person concerned has complied with such order or such provisions, as the case may be:
Provided that no order, under clause (a) or clause (b) above, shall be passed without giving the dealer or the person concerned an opportunity of being heard.
(8) The registering authority may, on application by the dealer or the person concerned, order the discharge of the surety or refund any amount or part thereof deposited by way of security by the dealer or the person concerned under this section or under any other section if it is not required for the purpose of this Ordinance.
(9) An appeal under section 55 shall lie against an order passed under this section.
(10) Any person aggrieved by an order of the appellate authority may, within ninety days of the service of the order on him but after furnishing the security, file an appeal before the Tribunal under section 57.
(11) The provisions of this section shall mutatis mutandis, apply in relation to security required to be furnished under the order of any authority under this Ordinance or the Court.
20. Quoting of Taxpayers' Identification Number
(1) Every registered dealer shall quote his Taxpayers' identification number, allotted to him on his registration certificate, on all correspondence made, statement and return submitted, information furnished and documents issued by him and on each copy of treasury challan while depositing amount of tax, fee or any other dues under this Ordinance.
(2) While making sale of any taxable goods, if purchaser of such goods demands, the selling dealer shall show his registration certificate.
(3) While making purchases of any taxable goods, every purchasing dealer shall give his name, address and Taxpayers' Identification Number, to the selling dealer and the selling dealer shall mention such particulars on tax invoice, sale invoice, transport memo, challan or transfer invoice, as the case may be, issued by him.
(4) Every registered dealer shall present registration certificate issued to him before an officer or official authorized by the State Government whenever required by such officer or official in connection with any proceedings under this Ordinance.
(5) Every dealer who possesses Permanent Account Number allotted under the Income-Tax Act, 1961, shall mention such number on annual return of turnover and tax and shall furnish such number whenever required by any authority under this Ordinance.
21. Accounts and documents to be maintained by dealers
(1) Every taxable dealer shall keep and maintain a true and correct account showing the value of the goods sold and bought by him, and in case the accounts maintained in the ordinary course do not show the same in an intelligible form, he shall maintain true and correct account in such form, as may be prescribed in this behalf.
(2) A manufacturer liable to pay tax under this Ordinance shall, in addition to the accounts referred to in other sub-sections, maintain stock books in respect of goods used or consumed in manufacture as well as the products obtained at every stage of production.
Provided that in the case of any class of manufacturers, the aggregate of whose turnover, in an assessment year does not exceed twenty five lakh rupees, the Commissioner, or in any other case the State Government, may relax the requirements of this sub-section subject to such conditions and restrictions as may be deemed fit to be specified.
(3) The accounts, documents and the stock books required to be maintained under this section shall be preserved by the dealer for such period as may be prescribed.
(4) Every registered dealer who consigns or delivers any goods or class of goods specified in the rules made thereunder or such other goods or class of goods, as the State Government may, by notification in the Gazette, specify in this behalf, of such quantity, measure or value as may be notified, to a dealer whether by reason of sale or otherwise, shall issue to the purchaser or consignee person of goods, a transport-memo in prescribed manner and in prescribed form obtained from the assessing authority having jurisdiction over the area in which principal place of business of such dealer is situated.
(5) Except as provided in sub-section (4) every dealer liable to pay tax while consigning or delivering any taxable goods to another dealer whether as a result of sale or otherwise, shall issue to the purchaser or consignee of goods, a legible challan or transfer invoice in the prescribed manner containing such particulars, as may be prescribed,.
(6) Where any goods are transported by road, original copy of transport memo referred to in sub-section (4), challan or transfer invoice referred to in sub-section (5), as the case may be, completed in all respects shall accompany the goods during journey of goods.
(7) Person transporting the goods for delivery to the consignee shall fill in the particulars in the relevant columns provided on transport memo, challan or transfer invoice, as the case may be, and shall deliver such transport memo, challan or transfer invoice to the consignee dealer along with goods.
(8) Every dealer who receives any form of declaration or certificate prescribed under this Ordinance or rules made thereunder, from its assessing authority or from any other person, shall use them in the prescribed manner and shall keep an account, in the prescribed manner, of all such used and unused forms of declaration or certificates including forms of declaration or certificates received from other persons.
(9) No dealer shall transfer to any person and no person shall receive from any person any certificate or any form of declaration prescribed under the rules made under this Ordinance except as provided under this Ordinance or the rules made thereunder.
(10) Where a dealer disposes of taxable goods in more than one of the following ways:
(i) makes sale of goods inside the State; or
(ii) consigns goods to other dealers for sale inside the State; or
(iii) makes sale of goods in the course of inter-state trade or commerce; or
(iv) makes sale of goods in the course of the export of the goods out of or in the course of the import of the goods into, the territory of India; or
(v) consigns goods out side the State otherwise than as a result of sale,
shall, as far as possible, keep separate account of purchase, sale, receipt and dispatch of goods for each such purpose.
(11) A dealer who claims input tax credit under section 13 shall maintain a register in respect of tax period wise computations of amount of input tax credit.
(12) A dealer who maintains or keeps books, accounts or documents in a computer, shall also maintain day to day print out of all such books, accounts and documents.
(13) Every dealer liable to pay tax shall prepare an inventory of all goods held in stock, as mentioned hereunder, along with their purchase value, on following dates:
(a) goods held in opening stock on the date on which the dealer becomes liable to pay tax;
(b) goods held in closing stock on the last date of each assessment year;
(c) goods held in closing stock on the date of discontinuance of business;
(d) in case of a dealer who has opted for payment of tax or lump sum under section 6, goods held in opening stock on the date from which provisions of section 6 cease to apply:
Provided that a manufacturer shall also prepare a list of goods used or consumed in manufacture, processing or packing of any manufactured or semi-manufactured goods held in stock on the aforesaid dates along with their purchase value.
(14) Where in any tax invoice, issued by the registered selling dealer to the registered purchasing dealer, in respect of sale of any goods, amount shown as tax exceeds the amount of tax payable on such sale under this Ordinance, such selling dealer, within 30 days from the date of issue of tax invoice, shall provide such purchasing dealer with a credit note of excess amount realized as tax and the purchasing dealer shall provide to the selling dealer with a debit note of such amount containing such requisite particulars as may be prescribed.
(15) Where in respect of sale of any goods, amount of tax payable under this Ordinance exceeds amount shown as tax in the tax invoice issued by the registered selling dealer to the registered purchasing dealer, such selling dealer, within 30 days from the date of issue of tax invoice, shall provide to such purchasing dealer with a debit note of differential amount of tax and the purchasing dealer shall provide to the registered selling dealer a credit note containing such requisite particulars as may be prescribed.
(16) In case of goods returned or rejected by the purchaser, a credit note shall be issued by the selling dealer to the purchasing dealer and debit note shall be issued by the purchasing dealer to the selling dealer containing such requisite particulars as may be prescribed:
Provided that where any goods sold in any assessment year are returned or rejected in the succeeding assessment year within six months from the date of sale, the amount of sale price of goods returned or rejected and amount of tax relating to such goods which have been shown to have been realized by selling dealer from purchasing dealer and shown in the debit note or credit note, as the case may be, shall be adjusted with the turnover of sales or the turnover of purchases, as the case may be, in the assessment year in which goods are returned or rejected.
(17) If in respect of any particular assessment year, gross turnover of purchase or sale or both, as the case may be, of any dealer exceeds rupees one crore, then such dealer shall get his accounts verified and audited by a specified authority within six months from end of that assessment year and obtain within that period a report of such audit in the prescribed form duly signed and verified by such specified authority alongwith such particulars as may be prescribed. A true copy of such report shall be furnished by such dealer to the assessing authority within such period as may be prescribed.
Explanation: For the purpose of this section, expression "specified authority" means-
(i) a Chartered Accountant within the meaning of the Chartered Accountants Act, 1940 and includes persons by virtue of provisions of sub-section (2) of section 226 of the Companies Act, 1956, is entitled to be appointed to act as an auditor of companies;
(ii) a Cost Accountant within the meaning of the Cost and Works Accountant Act, 1959;
(iii) any other authority specified by the State Government.
(18) If any dealer liable to get his accounts audited under sub-section (1) fails to furnish copy of such report within the prescribed time, the assessing authority shall, after giving the dealer a reasonable opportunity of being heard, impose on him in addition to tax payable, a sum by way of penalty not exceeding ten thousand rupees, as he may determine.
22. Tax invoice, sale invoice and purchase invoice to be issued by a dealer
(1) In respect of all taxable goods, except non-vat goods, in the circumstances mentioned below, every registered dealer except a dealer who opts for payment of tax or a lump sum under section 6, where such dealer is liable for payment of tax on sale of any such goods, shall, while making sale of the goods, issue to the purchaser, a tax invoice in the prescribed form and manner containing such particulars as may be prescribed, and shall charge separately on such tax invoice the amount of tax payable by him, where such goods are sold to -
(i) a registered dealer; or
(ii) an official or personnel of any foreign diplomatic mission or consulate in India; or
(iii) the United Nations or any other similar International body, entitled to privileges under any convention to which India is a party or under any other law for the time being in force; or
(iv) any consulate or diplomatic agent of any mission, the United Nations or other body referred to in clause (ii) or clause (iii); or
(v) any developer or co-developer of any Special Economic Zone, for use or consumption in the authorized operations:
Provided that the State Government may prescribe different forms of tax invoice for different class of dealers or for different goods or class of goods:
Provided further that where the State Government does not prescribe the format of tax invoice, the selling dealer shall, in the cases referred to as aforesaid, issue tax invoice in the manner
prescribed and containing such particulars, including name and complete address and Taxpayer's Identification Number, if any, of the person purchasing the goods, as may be prescribed.
(2) The dealer selling the goods referred to in sub-section (1) shall prepare tax invoice referred to in sub-section (1) in three copies marked original, duplicate and office copy and shall deliver copies marked original and duplicate to the person purchasing the goods. Copy of tax invoice marked as duplicate shall accompany the goods during transportation of such goods.
(3) Every registered dealer, who is liable for payment of tax on sale of any -
(a) non-vat goods and who realises tax from the purchaser, shall, while making sale of such goods, issue to the purchaser, a sale invoice in the prescribed manner containing such particulars as may be prescribed, and shall charge separately on such sale invoice the amount of tax; or
(b) taxable goods except non-vat goods and makes sale of such goods to a dealer other than a registered dealer, shall, while making sale of such goods to such dealer, issue a sale invoice after mentioning name, complete address of purchasing dealer and such other particulars as may be prescribed.
(4) Subject to provisions of sub-section (1) and sub-section (3), every taxable dealer shall, in respect of sale of all goods, where-
(i) sale value of single sale exceeds the amount prescribed in this behalf; or
(ii) purchaser of goods demands a cash memo or bill; or
(iii) any other law prescribes for issue of a bill or cash memo in respect of sale of any goods; or
(iv) selling dealer as a practice issues a bill or cash memo in respect of sales made by him,
issue to the purchaser a cash memo or bill in the prescribed manner containing such particulars as may be prescribed.
(5) Every dealer referred to in sub-section (1) or clause (a) of sub-section (3) shall charge amount of tax separately on every tax invoice or sale invoice, as the case may be.
(6) Office copy of tax invoice, sale invoice, cash memo or bill, as the case may be, prepared by the selling dealer and copies of tax invoice, sale invoice, cash memo or bill, as the case may be, received by the purchasing dealer shall be preserved by them for the period prescribed under sub-section (3) of section 21.
(7) Every dealer, while making purchase of any goods from a registered dealer, shall give his name, address and taxpayers' identification number, if any, to the selling dealer.
(8) The dealer, making sale of goods to any purchaser referred to in subsection (1), shall not issue tax invoice to such purchaser unless the purchaser has furnished his name, complete address and taxpayer's identification number.
(9) Where a dealer liable to pay tax makes purchase of any taxable goods from a person other than a registered dealer and if the person selling such goods does not issue cash memo or bill, the purchasing dealer shall issue to the person selling the goods a purchase invoice in respect of such purchase in the prescribed manner containing such particulars as may be prescribed and shall obtain signature or thumb impression of the person selling the goods.
(10) The purchasing dealer referred to in sub-section (9) shall prepare purchase invoice in two copies marked as original copy and office copy. The purchasing dealer shall deliver original copy of such purchase invoice to the person selling the goods and shall preserve office copy of such purchase invoice for the period prescribed under sub-section (3) of section 21.
23. Realisation of tax on sale or purchase of goods
(1) Except as provided in section 22, no person shall, in respect of a sale or purchase of any goods, realise any amount either in the name of tax or by giving it a different name or colour.
(2) Where -
(i) the amount of tax charged in tax invoice or sale invoice, as the case may be, exceeds the amount of tax payable; or
(ii) the amount of tax payable in respect of a sale exceeds the amount of tax charged in a tax invoice or a sale invoice, as the case may be, or
(iii) a tax invoice or sale invoice has been issued by the selling dealer to the purchasing dealer in respect of any goods but such goods or any part of such goods is returned or rejected by such purchasing dealer,
debit note and credit note, of the amount of tax involved in each case, s