No suit, prosecution or other legal proceedings shall lie against any Government servant employed for execution of the provisions of this Act and Rules made thereunder for anything which is in good faith done or intended to be done thereunder.
CHAPTER III THE INCIDENCE, LEVY AND RATE OF TAX
8. Incidence of Tax —
(1) Every dealer –
(a) whose gross turnover of sales or purchases during the year immediately preceding the commencement of this Act, -
(i) exceeded the specified quantum, or 10
(ii) who is registered or liable to be registered under the adopted Bihar Finance Act, 1981 or the Central Sales Tax Act, 1956, or
(b) to whom clause(a) does not apply, and
(i) whose gross turnover first exceeds the specified quantum during any period of twelve consecutive months, or
(ii) who has become liable to pay tax under the Central Sales tax Act, 1956, or
(iii) who is registered as a dealer under the Central Sales tax Act, 1956 or under this Act at any time after the commencement of this Act;
shall be liable to pay tax in accordance with the provisions of this Act.
(2) Every dealer is liable to pay tax under sub-Section (1) on purchases and sales effected by him,
(a) in case of clause (a) of sub-Section (1), with effect from the date of commencement of this Act;
(b) in case of sub-clause (i) of clause (b) of sub-Section (1), with effect from the date immediately following the day on which his gross turnover first exceeded the specified quantum during a period of any twelve consecutive months.
(c) in case of sub-clauses (ii) and (iii) of clause (b) of sub-Section (1), with effect from the date of registration or the date on which he becomes so liable whichever is earlier.
(3) Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed the specified quantum and his liability to pay tax under this Act shall cease on the expiry of the period specified above.
(4) Every dealer who has ceased to be liable under sub-Section (3) shall be again liable to pay tax under this Act with effect from the date immediately following a period not exceeding twelve consecutive months during which his gross turnover again exceeds the specified quantum.
(5) For the purpose of this Act, specified quantum means in relation to any dealer who:
(a) imports for sale any goods into the State of Jharkhand on his own behalf or on behalf of his principal Nil
(b) manufactures or produces any goods for sale Rs. 50,000
(c) is engaged in any other business other than clause (a) and (b) Rs. 5 lakh
(d) involved in the execution of works contract and leasing Rs. 25 thousand
(e) is engaged in any other sales or purchases or class of sales or purchases:
other than (a), (b) and (c); the specified quantum shall be, as specified in this behalf, from time-to-time.
Provided that the State Government may, by notification published in the Official Gazette and subject to condition of one month’s previous notice, increase or reduce the amount of specified quantum.
(6) For the purpose of calculating the gross turnover to determine the liability to pay tax under the Act-
(a) except as otherwise expressly provided, the turnover of all sales or as the case may be, the turnover of all purchases shall be taken, whether such sales or purchases are taxable or not, and
(b) the turnover shall include all sales or purchases made by a dealer on his own account and also on behalf of principals whether disclosed or not.
(7) Where by any order passed under this Act, it is found that any person registered as a dealer ought not to have been so registered, then, notwithstanding any thing contained in this Act, such person shall be liable to pay tax for the period commencing with the date of his registration and ending with the date of such order, as if he were a dealer.
(8) A registered dealer: whose liability to pay tax has ceased under this Act, for any reason other than the entire transfer of his business to other persons; shall pay tax on the stock of goods remaining unsold at the termination of his liability, after furnishing such declarations as prescribed 11
(9) Every dealer whose liability to pay tax has ceased under sub-section (8) or otherwise:
shall again be liable to pay tax under this section, with effect from the day following the date, on which his gross turnover during a period not exceeding twelve months immediately preceding such date, again exceed the quantum as specified in this section
(10) Notwithstanding anything contained in this section, where a dealer who is or was, less than six months earlier, liable to pay tax, starts a new business, either singly or jointly with other persons, or joins other business or partnership firm or concern or undivided Hindu family tax: as aforesaid, shall be payable on sales and purchases made from such business or partnership firm or such concern, on and from the date the dealer starts or joins it, unless liability in respect of such business, partnership firm or concern has arisen from an earlier date under the provisions of this section.
(11) Notwithstanding anything contained in this section, a dealer registered under the Central Sales Tax Act, 1956 (LXXIV of 1956), shall irrespective of the quantum of his gross turn-over be liable to pay tax on his sale, made inside Jharkhand of any goods, which he purchased or acquired from outside the State after furnishing a declaration under sub-section (4) of section 8 or under sub-section (1) of section 6A of the said Act, or any goods in the manufacture or processing of which goods so purchased by him have been used
Provided that tax shall not be payable if the dealer shows to the satisfaction of the prescribed authority that the turnover is deductible from his gross turnover, under sub-section (4) of Section 9 for the purpose of determining his taxable turnover.
(12) The provisions of the Central Sales Tax Act, 1956 (LXXIV of 1956) shall apply for determining when a sale or purchase shall be deemed to have taken place inside Jharkhand.
(13) Notwithstanding any contained in this Act, the tax payable under the Act, for each year, may with the previous approval of the Commissioner or any authority empowered in this behalf, be estimated and collected in advance during a year, in such installments as may be fixed by the prescribed authority. For this purpose the prescribed authority may require the dealer to furnish an advance estimate of his taxable turnover for that year and may, provisionally determine the amount of tax payable under this Act, by the dealer in respect of the year. Thereupon the dealer shall pay the amount so determined, by such date as may be fixed by such authority.
9. Levy of Tax on Sale and Determination of Taxable Turnover —
(1) * Subject to the provisions as contained in Section 11 and sub-Section (2) of this Section, the tax payable by a dealer liable to pay tax under Section 8, shall be levied at every stage or stages of sales on sale price(s) of goods.
[Provided; in the circumstances a registered dealer making sales of taxable goods to an unregistered dealer or to any other Person: the output tax payable shall be levied on the Maximum Retail Price for such goods, at the stage of sale by the Registered Dealer.]* *(Proviso : deleted by the Jharkhand Act 21, 2006 w.e.f. 01/04/2006)
(2)* Notwithstanding anything contained in this Section, any registered dealer, who imports into or manufactures Medicines and Drugs; as specified in the Sl. No. 85 of the Part B of Schedule II, excluding Bulk Drugs [and Non Drugs (Prices Control) Order 1995 Medicines, such as Ayurvedic]*, Siddha, Unani or Homeopathic medicines, appended to the Act; in Jharkhand, may, at his option, pay, tax at the full rate on the Maximum Retail Price of such goods, in lieu of tax payable by him under Sub-section (1) of Section 9 of the Act.
(*Deleted by Jharkhand Act of 2007 w.e.f. 01.04.2006)
Provided that where a dealer has purchased such goods, —
(a) From an importer or a manufacturer upon payment of tax on the maximum retail price of such goods; or
(b) From another registered dealer, where tax on the maximum retail price of such goods was paid in Jharkhand at an earlier stage, the purchasing dealer, while making resale of such goods in Jharkhand, shall, notwithstanding anything contained elsewhere in the Act, be entitled to 12 recover from the buyer, the amount of tax paid by him at the time of purchase of such goods, under such conditions and restrictions, and in such manner, as may be prescribed or notified in this behalf.
Provided further that the dealer making resale of such goods, shall not levy any tax payable under the Act, on such goods.
Provided further that if dealers opt to pay tax on maximum retail price; no input tax credit shall be admissible to the subsequent purchasing dealers.
(3) The tax payable by a dealer liable to pay tax under Section 8, on sales of such goods as mentioned in Part-E of Schedule II of this Act, shall be levied on his taxable turnover of sales, at the first stage of sale in the State or at that stage of sale in the series of sales, with such restriction and conditions as may be specified by the State Government by a Notification from time-to-time in this behalf. In the circumstances, if the tax is levied at the first stage of sale in the state by a dealer, subsequent sales of the same goods in the State shall not be levied to tax, if the dealer making subsequent sales of such goods, produces before the Prescribed Authority such evidence(s), as may be prescribed.
Provided, whereby a notification published under this sub-section, in respect of any goods specified in Part-E of Schedule II, that the tax shall be levied at more than one stage or on all the stages of sale, the amount of tax(s) paid at each of the preceding stage of sale, shall be adjusted, against the amount of tax payable at each subsequent stage of sale, in the manner as specified in the notification. #
(4) Taxable turnover of sales in relation to a dealer liable to pay tax on sale of goods under sub-Section (1) of Section 8 shall be part of the gross turnover of sales during any period which remains after deducting there from.
(a) sales of goods declared as exempt from tax in schedule ‘I’.
(b) sales of goods which are shown to the satisfaction of the prescribed authority to have taken place –
(i) in the course of inter-State trade or commence, or
(ii) outside the State of Jharkhand, or
(iii) in the course of the import of the goods into or export of the goods out of the territory of India.
Explanation -Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 shall apply for determining whether or not a particular sale or purchase has taken place in the manner indicated in sub-clause (i) sub-clause (ii) or sub-clause (iii).
(c) * in case of turnover of sales in relation to works contract, the charges towards labour, services other like charges and subject to such conditions as may be prescribed :
Provided that in the cases where the amount of charges towards labour, services and other like charges in such contract are not ascertainable from the terms and conditions of the contract, the amount of such charges shall be calculated at the prescribed percentage.
(d) such other sales on such conditions and restrictions as may be specified or prescribed.
(Added by Jharkhand VAT Ordinance, 2011 – w.e.f. 07.05.2011)
(5) Notwithstanding anything contained in this Act where a registered dealer allows any trade discount or incentive whether in terms of quantity in goods or otherwise in relation to any sale effected by him, the quantity so allowed as trade discount or incentive, shall be deemed to be a sale by the dealer, who allows such trade discount or incentive and a purchase by the dealer who receives such trade discount or incentive and such sale shall form part of the sale in relation to which such trade discount or incentive is allowed.
(New sub-section added by Jharkhand VAT Ordinance, 2011 – w.e.f. 01.04.2010) *(deleted vide notification no. LG 13/leg dated 01.02.2018)