(1) Every dealer who would have continued to be liable to pay tax under the Act of 1973 had this Act not come into force, and every other dealer whose gross turnover during the year immediately preceding the appointed day exceeded the taxable quantum as defined or specified in the Act of 1973, shall, subject to the provisions of sub -section (4), be liable to pay tax on and from the appointed day on the sale of goods effected by him in the State.
HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 77 (CHTR. 7, 1925 SAKA)
(2) Every dealer to whom sub -section (1) does not apply and who is of the class or classes mentioned in column 2 of the Table below and whose gross turnover in any year first exceeds the taxable quantum specified in column 3 thereagainst, shall, subject to the provisions of sub -section (4), be liable to pay tax on and from the day mentioned in column 4 thereagairtst on the sale of goods effected by him in the State — Table Sr. Description of class or No. classes of dealers Taxable quantum Day on and from which the dealer is liable to tax 1 2 3 4 I. Dealer who sells or purchases any goods in the course of inter -State trade or commerce or in the course of export of the goods out of. or the import of the goods into, the territory of India
2. Dealer who imports any goods into state
3. Dealer who purchases any goods in the Sate and exports out of State such goods or the goods manufactured therefrom
4. Dealer who is a brick -kiln owner or a Halwaii or a liquor licensee under the Punjab Excise Act, 1914(1 of 1914), or who deals in minerals, lottery tickets or such other goods as may be prescribed S. Any other class or classes of dealers Nil On and from the day he makes such sale or purchase for the first time Nil On and from the day he imports any goods into State for the first time Nil On and from the day he makes purchaseof such goods in the State for the first time Nil One lakh rupees or such other sum as may be prescribedand different sums including nil may be prescribed for different classes of dealers On and from the day his gross turnover in any year first exceeds the taxable quantum On and from the day fonowing the day his gross turnover in any year first exceeds the taxable quantum • • • •
Provided that this sub -section shall not apply to a dealer who deals exclusively in exempted goods.
Note —Where a dealer is covered under more than one of the class or classe s mentioned in the Table above, the liability to pay tax shall commence from tl ae earliest day he becomes liable to tax.
78 HARYANA GOVT. GAZ. (EXTRA.). MARCH 28, 2003 ((MIR . 7, 1925 SAKAI
(3) If a dealer l iable to pay tax under sub -section (1 ) or sub -section (21 purchases any taxable goods in the Sta te from any source in the c ircumstances that no tax i s l evi ed or pa id under t his Ac t on their sa le to hi m and he e ither expor ts them out of Sta te or uses or disp oses them of in t he c ircumstances in which no tax is p ay a bl e und er t his A ct or t he Ce nt r a l A c t by hi m to the St a te o n t he m o r the go o d s ma nu f a c t u re d t he r e t ro m, t he n. he s ha l l , s u b j e c t t o t he p ro v i s i o ns o f sub -section (4), be liable to pay tax on the purchase thereof:
Pro v i d ed t ha t whe re s u c h go o d s ( e xc e p t t h o s e s p e c i f i e d in Schedule F) or the goods manufactured therefrom are sold in the course of export of the goods out of the territory of India , no tax shall be levied on the ir purcha se:
Pro v id e d fu r t he r t ha t whe re t he go o d s p u rc ha s ed a re u s ed o r di s p o s e d o f p a r t ly i n t he c i r c u ms ta nc e s me nt i o ne d i n t he fo re go i ng provis ions of this sub -s ection and p artly otherwise , the tax leviable on such goods shal l be comp uted pro r a ta .
(4) The tax levied under sub -sections ( I ), (2) and (3) shall be calculated on the taxable turnov er, determined in acc ordance with the prov is ions of section 6, a t the ra te s of t ax a pp li ca ble u nd er s ec ti on 7 , and where t he t axab le t urno ve r is taxable at different ra tes of tax, the rate of tax shall be applied separate ly in respect of each part of the taxa ble turnover liable to a different ra te of tax.
(5) If t he t ax c alcu la te d under sub -sec tion (4) is more tha n the input tax, d ete rmi ne d i n a cco rda nc e with the p ro vis ions o f s ec tio n 8 . t he di ffe rence of the two shall be the tax payable; and if the input tax is more than the tax calcula ted, the excess amo unt shall be e ither refundab le or adjus tab le with future tax liabili ty in a cco rdance with the provi s ions o f se cti on 20; but if the inp ut tax is a ne gat ive value on ac count of r eversal of input tax under the second pro viso to su b -section (n o f s e ct io n 8 , t he ab s ol ut e v a lu e t he reo f s ha l l be ad d ed t o t he ta x c a lc ul a te d under sub -sect ion (4) and the resultant amo unt shall he the tax payable .
Illu s tr a tio n - Seria l Tax cal cul a ted under Input tax Tax Re fund a bl e !
No. sub -section (4) payable Adjus table I. Rs 1 00 Rs . 50 Rs . 5 0 Nil
2. R:s.100 Rs. 150 Nil Rs . 50
3. Rs . I0 0 ( - ) Rs.50 Rs . 150 Nil
(6) Every dealer who has become liable to pay tax, shall continue to be so liabl e until after t he expiry of thr ee cons ecutive years du ring ea ch of which his gro ss t urno ve r has f a i le d to e xce ed t he t axab le qu antu m and su ch fu rt he r pe ri od after the date of such expiry , as may be prescribed, and on the expiry of this ta tter period his l iabili ty to pay tax shall cease .
HARYANA GOVT. GAL. (EXTRA.). MARCH 28. 2003 79 (CHTR. 7, 1925 SAKA)
(7) Every dealer, whose liability to pay tax has ceased under the provisions of sub -section o. shall again he liable to pay tax in accordance with thc provis ion' . s e c t ' 11 ,2
4. Notwithstanding anything contained in this Act, a tax on the sale or purchase of goods shall not be imposed under this Act, —
(a) where such sale or purchase takes place outside the State:
(b) where such sale or purchase takes place in the course of import of the goods into. or export of the goods out of, the territory of India: or (Cl where such sale or purchase takes place in the course of inter- State trade or commerce.
No tax payable in case of inter -State trade etc S. Where any assessee claims — Burden of proof.
(a) that any receipt or dispatch of goods by him is otherwise than by way of purchase or sale of suoh goods by him;
(b) that any sum of money received or receivable or paid or payable by him by any means including adjustment against a debt is not in the course of business, and where in the course of business such sum is not valuable consideration for any sale or purchase of goods effected by him in the year in which the said sum was received or receivable or paid or payable;
that any purchase or sale of goods by him is not liable to tax by reason of such purchase or sale being outside the State Or in the course of inter -State trade and commerce or in the course of the import of the goods into, or the export of the goods out of, the territory of India;
(d) that any purchase or sale of goods effected by him is exempt from tax or leviable to tax at a particulai rate;
(e) that any purchase or sale of goods effected by him is not taxable because of return of' such goods;
(f) that he is entitled to any deduction from gross turnover or any deduction of input tax from the tax calculated on the sale of goods:
(g) that in case of a composite works contract, he is entitled to a deduction in respect of labour and service charges from the valuable consideration for the execution of the contract;
(h) that any particular sum has been paid by him as tax, interest or penalty under this Act;
(i) that any goods. book of account and document discovered at his business premises, or at any other place or in any goods carrier
(e) Determination of taxable turnover 80 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 (CHTR. 7. 1925 SAKA) or other vehicle, over which he has control at the time of such discovery, do not relate to his business; or that any lief unddr '. I•L' t Act or the rules made thereundei is admissible to him, the burden of so proving shall be on him.
6. (I) Subject to the provisions of sub -section (2), in determining the taxable turnover of a dealer for the purposes of this Act, the following deductions shall he made from his gross turnover, namely: —
(a) turnover of sale of goods outside the State;
(b) turnover of sale of goods in the course of inter -State trade and commerce;
(c) turnover of sale of goods in the course of the import of the goods into the territory of India;
(d) turnover of sale of goods in the course of the export of the goods out of the territory of India;
(e) turnover of export of goods out of State;
(f) turnover of disposal of goods otherwise than by sale;
(g) turnover of sale of exempted goods in the State;
(h) turnover of sale of goods to such foreign diplomatic missions/ consulates and their diplomats, and agencies and organisations of the United Nations and their diplomats as may be prescribed;
and
(i) turnover of sale of goods returned to him, subject to such restrictions and conditions as may be prescribed, and to the remainder shall be added the purchases taxable under sub -section (3) of section 3, if any.
Note. -1. In this sub -section "turnover" means, • —
(i) for the purpose of clauses (a), (b), (c), (d), (g) and (h), the aggregate of the sale prices of goods which is part of the gross turnover;
(ii) for the purpose of clauses (e) and (f), the aggregate of value of goods,exported out of State or disposed of otherwise than by sale, as the case may be, which is part of the gross turnover; and
(iii) for the purpose of clause (i), the aggregate of the sale prices of goods which is or has been part of gross turnover (including under the Act of 1973).
HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 81 (CHTR. 7, 1925 SAKA) Note. -2. If the turnover in respect of any goods is included in a deduction under any clause of this sub -section. it shall not form part of deduction under any other clause of the sub -section.
(2) The deductions mentioned in sub -section (1) shall be admissible on furnishing to the assessing authority in such circumstances, such documents or such proof, in such manner as may be prescribed.
(3) Save as otherwise provided in sub -section (1), in determining the taxable turnover of a dealer for the purposes of this Act, no deduction shall be made from his gross turnover.
7. (I) The tax payable by a dealer on his taxable turnover in so far as such turnover or any part thereof relates to, —
(a) the sales of goods not falling within sub -section (2), —
(i) in the case of goods specified in Schedule A, shall be calculated at the rates specified therein;
(ii) in the case of declared goods except those specified in Schedule B. shall be calculated at four per cent or such other rate not exceeding the ceiling specified in clause (a) of section 15 of the Central Act as the State Government may, by notification in the Official Gazette, direct;
(iii) in the case of goods specified in Schedule C, shall be calculated at four per cent or such other rate not exceeding ten per cent as the State Government may, by notification in the Official Gazette, direct;
(iv) in the case of other goods, shall be calculated at ten per cent or such other rate not exceeding fifteen per cent, as the State Government may, by notification in the Official Gazette, direct:
Provided that where any goods are sold in containers or packed in any packing materials, the rate of tax applicable to such containers or packing materials shall, whether the price of the containers or packing materials is charged separately or not, be the same as those applicable to the goods contained or packed therein; and where such goods are exempt from tax, the sale of the containers or packing materials shall also be exempt from tax;
(b) the purchase of goods, shall be calculated at four per cent or such tower rate applicable on sate of such goods had it been a sale falling under clause (a) :
Provided that the State Government may, by notification in the Official Gazette, direct that the tax shall be calculated at a tower rate.
Rates of tax on sale or purchase of goods in the State.
82 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 (CHTR. 7, 1925 SAKA)
(2) The tax payable by a dealer on his taxable turnover in so far as such turnover or any part thereof relates to goods sold to the Government or to goods of the description referred to in sub -section (4) sold to a VAT dealer or such other registered dealer as may be prescribed (hereinafter both referred to in this section as 'authorised dealer'), shall be calculated —
(a) if the goods are of the description contained in Schedule D. at the rate mentioned against such goods, otherwise;
(b) at four per cent or such lower rate applicable on sale of such goods had it been a sale falling under clause (a) of sub -section (1) :
Provided that the State Government may, by notification in the Official Gazette, direct that tax under clause (b) shall be calculated at a lower rate :
Provided further that the State Government, if satisfied that it is necessary or expedient so to do in the interest of promotion of exports out of the country may, by notification in the Official Gazette, direct that tax under clause (b) on the taxable turnover which relates to the sale of goods of such class or classes to such class or classes of authorised dealers for such use by them, as may be specified in the notification, shall be calculated at zero rate.
(3) The provisions of sub -section (2) so far as the rate of tax applicable thereunder on a sale of goods in the State is lower than the rate of tax applicable under clause (a) of sub -section ( I ) if such sale had been a sale falling within that •, clause, shall not apply unless the dealer selling the goods furnishes to the assessing authority in the prescribed circumstances and in the prescribed manner —
(a) if the goods are sold to an authorised dealer, a declaration duly filled in and signed by him containing the prescribed particulars in the prescribed form obtained from the prescribed authority and in case such form is not available with such authority, a self printed and serial ly numbered form authentica ted by such authority in the prescribed manner; or
(b) if the goods are sold to the Government, not being a registered dealer, a certificate in the prescribed form duly filled in and signed by a duly authorised officer of the Government.
(4) The goods sold to an authorised dealer referred to in sub -section
(2)—
(a) are goods of the class or classes specified in the certificate of registration of the authorised dealer purchasing the goods as being intended, subject to any rules made by the State Government in this behalf, for use by him —
(i) in the manufacture of goods for sale;
(ii) in the telecommunications network;
HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 83 (CliTR, 1. 1925 SAK A) ,(i) in mining; or i i ' • 'fl the generation or distribution of electricity or any other 1;1, of pos.ker:
it)) are goods of the cL. or classes specified in the certificate of registration of the authorised dealer who is covered under the notification issued under the second proviso to clause (b) of sub -section (2), purchasing the goods as being intended for use by him for the purposes specified in the said notification:
(c) are containers or other materials used for the packing of any goods or classes of goods specified in the certificate of registration referred to in clause (a) or clause (b).
(5) If an authorised dealer after purchasing any goods for any of the purposes specified in clause (a). clause (b) or clause (c) of sub -section (4) fails, without reasonable excuse, to make use of the goods for any such purpose, the assessing authority may, after giving him a reasonable opportunity of being heard.
by order in writing, impose upon him by way of penalty a sum not exceeding one -and -a -half times the tax which would have been levied additionally under clause
(a) of sub -section (1), if the sale made to him had been a sale falling within that clause:
Provided that no penalty shall be imposed where an authorised dealer voluntarily pays the tax which would have been levied additionally, as referred to in the foregoing provision, with the return for the period when he failed to make use of the goods purchased for the specified purposes.
8. 1) Input tax in respect of any goods purchased by a VAT dealer shalt be the amount of tax paid to the State on the sale of such goods to him and shall, in case of a dealer who is liable to pay tax under sub -section (1 ) of section 3 or, as the case may be. makes an application for registration in time under sub -section (2) of section II. include the tax paid under this Act and the Act of 1973 in respect of goods (except capital goods) held in stock by him on the day he becomes liable to pay tax but shall not include tax paid in respect of goods specified in Schedule E used or disposed of in the circumstances mentioned against such goods ;
Provided that where the goods purchased in the State are used or disposed of partly in the circumstances mentioned in Schedule E and partly otherwise, the input tax in respect of such goods shall be computed pro rata :
Provided further that if input tax in respect of any goods purchased in the State has been availed of but such goods are subsequently used or disposed of in the circumstances mentioned in Schedule E, the input tax in respect of such goods shall be reversed.
(2) A tax invoice issued to a VAT dealer showing the tax charged to him on the sale of invoiced goods shall, subject to the provisions of sub -section (3), be sufficient proof of the tax paid on such goods for the purpose of sub -section (1).
Determination o f input tax.
Payment of lump sum in of tax Rounding off tax. • 84 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 (CHTR. 7, 1925 SAKA)
(3) Where any claim of input tax in respect of any goods sold to a dealer is called into question in any proceeding under this Act, the authority conducting such proceeding may require such dealer to produce before it in addition to the tax invoice issued to him by the selling dealer in respect of the sale of the goods, a certificate furnished to him in the prescribed form and manner by the selling dealer; and such authority shall allow the claim only if it is satisfied after making such inquiry as it may deem necessary that the particulars contained in the certificate produced before it are true and correct.
(4) The State Government may, from time to time, frame rules consistent with the provisions of this Act for computation of input tax and when such rules are framed, no input tax shall be computed except in accordance with such rules.