“(4) The Government may, on the recommendations of the Council, by notifi cation, specify a class of registered persons who shall, in respect of supply of specifi ed categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.”.
Amendment of section 10.
5. In section 10 of the principal Act,—
(1) in sub-section (1),—
(a) for the expression “in lieu of the tax payable by him, an amount calculated at such rate”, the expression “in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate” shall be substituted;
(b) in the proviso, for the expression “one crore rupees, as may be recommended by the Council.”, the expression “one crore and fi fty lakh rupees as may be recommended by the Council:” shall be substituted;
(c) after the proviso, the following proviso shall be added, namely:— “Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent of turnover in the State in the preceding fi nancial year or fi ve lakh rupees, whichever is higher.”;
(2) in sub-section (2), for clause (a), the following clause shall be substituted, namely:— “(a) save as provided in sub-section (1), he is not engaged in the supply of services;”.
Amendment of section 12.
6. In section 12 of the principal Act, in sub-section (2), in clause (a), the expression “sub-section (1) of ” shall be omitted.
Amendment of section 13.
7. In section 13 of the principal Act, in sub-section (2), the expression “sub-section (2) of” in two places where it occurs, shall be omitted.
Amendment of section 16.
8. In section 16 of the principal Act, in sub-section (2),—
(1) in clause (b), for the Explanation, the following Explanation shall be substituted, namely:— “Explanation.— For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services—
(i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;
(ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person.”;
TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY 7
(2) in clause (c), for the expression “section 41”, the expression “section 41 or section 43A” shall be substituted.
9. In section 17 of the principal Act,—
(1) in sub-section (3), the following Explanation shall be added, namely:— Amendment of section 17.
“Explanation.—For the purposes of this sub-section, the expression “value of exempt supply’’ shall not include the value of activities or transactions specifi ed in Schedule III, except those specifi ed in paragraph 5 of the said Schedule.”;
(2) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely:— “(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:— (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used—
(i) for making the following taxable supplies, namely:— (A) further supply of such vessels or aircraft; or (B) transportation of passengers; or (C) imparting training on navigating such vessels; or (D) imparting training on fl ying such aircraft;
(ii) for transportation of goods;
(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause
(aa):
Provided that the input tax credit in respect of such services shall be available—
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specifi ed therein;
(ii) where received by a taxable person engaged— (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both—
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specifi ed therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fi tness centre; and
(iii) travel benefi ts extended to employees on vacation such as leave or home travel concession:
8 TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY
Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.”.
Amendment of section 20.
10. In section 20 of the principal Act, in the Explanation, in clause (c), for the expression “under entry 84”, the expression “under entries 84 and 92A” shall be substituted.
Amendment of section 22.
11. In section 22 of the principal Act,—
(1) in sub-section (1), after the proviso, the following proviso shall be added, namely:— “Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the fi rst proviso, he shall be liable to be registered if his aggregate turnover in a fi nancial year exceeds the amount equivalent to such enhanced turnover.”;
(2) in the Explanation, in clause (iii), the following shall be added at the end, namely:— “except the State of Jammu and Kashmir and the States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.”.
Amendment of section 24.