Sikkim Sales Tax (Amendment) Act, 1994*
| [Sikkim Act No. 3 of 1994] | [29th March, 1994] |
An Act further to amend the Sikkim Sales Tax Act, 1983.
Be it enacted by the Legislature of Sikkim in the Forty-fifth Year of the Republic of India as follows:-
* Received the assent of the Governor on the 29th day of March, 1994 and published in the Sikkim Government Gazette, Extraordinary, No. 21/LD/1994, Dated Gangtok the 11th April, 1994.
1. Short title and commencement.- (1) This Act may be called the Sikkim Sales Tax (Amendment) Act, 1994.
(2) It shall come into force on 1994.
2. Amendment of.- In Section 1 of the Sikkim Sales Tax Act, 1983 (hereinafter referred to as the principal Act)-
(a) after clause (a), the following Explanation shall be inserted, namely:
"Explanation.- Transfer, delivery, supply, sales or disposal of goodd in any of the manner referred to in clause (m) shall be deemed to be included within the meaning of this expression."
(b) after clause (b) the following clause shall be inserted namely:-
"(ba) "contractor" means any dealer who undertakes any works - contract for execution and includes a sub-contractor;"
(c) in clause (c), after Explanation 2, the following Explanation shall be inserted, namely:-
"Explanation 3.- Any person as aforesaid who transfers, delivers, supplies, sells or otherwise disposes of goods in any of the manner referred to 10 clause (m) for commission, remuneration or otherwise, for cash, deferred payment or other valuable consideration, shall be deemed to be a dealer for the purposes of this Act."
(d) Explanation below clause (e) shall be deleted;
(e) in clause (r),-
(i) for the existing Explanation, the following Explanation shall be substituted, namely:-
"Explanation.- The turnover in each year shall include-
(a) the amounts realised by a dealer by sale of surplus, unserviceable and discarded goods, fixed or other assets, of the business, byproducts and subsidiary products of manufacture or processing, and
(b) the aggregate amount for which goods are transferred, delivered, supplied, sold or otherwise disposed of in any of in the manner referred to in clause (m) by a dealer;
but shall not include sales in a canteen owned and run by a dealer for the benefit of his workmen or labourers;
(f) after clause (r), the following clause shall be inserted, namely:-
"(ra) "works contract" means and Includes any agreement for carrying out, for cash, deferred payment or other valuable consideration, the construction, fitting out, improvement or repair of any building, road, bridge or other immovable property or the installation, fitting out, improvement or repair of any movable property.
Explanation- A sub-contract for carrying out any or all of the aforesaid works shall be deemed to be a works contract."
3. Insertion of new sections 4A and 4B.- After section 4 of the principal Act, the following sections shall be inserted, namely:-
"4A. Levy of tax on transfer of property in goods involved in the execution of works contracts.- (1) Notwithstanding anything contained in section 4, but subject to other provisions of this Act, every dealer shall pay for each year, a tax under this Act on his taxable turnover for transfer or property in goods (whether as goods or in some other form) involved in the execution of works contract, determined at the rates and in the manner specified by or under section 5.
(2) If a contractor proves to the satisfaction of the Commissioner that tax on the turnover of goods supplied in the course of execution of works contract has been paid by his sub-contractor the contractor shall not be liable to pay tax again on the turnover of such goods.
(3) If a sub-contractor proves to the satisfaction of the Commissioner that the tax has actually been paid by his principal contractor on the turnover of goods supplied in the course of execution of works contract, the subcontractor shall not be liable to pay tax again on the turnover of such goods.
Explanation 1. For the purposes of this Act, the transfer of property in goods involved in the execution of a works contract shall be deemed to have taken place in Sikkim, if the goods so transferred are within that State at the time of their use, application or appropriation for the execution of the works contract, irrespective of the place, where the agreement for the works contract is made end whether the consent of the other party prior or subsequent to such use, application or appropriation has been obtained or not.
Explanation 2. The levy of tax under this section shall be made whether the works contract is executed fully or partly during a year, or abandoned or terminated before completion.
4B. Levy of tax on the transfer of right to use any goods.- Notwithstanding anything contained in section 4, but subject to the other provisions of this Act, every dealer shall pay for each year, a tax under this Act on his taxable turnover in respect or the right to use any goods (whether or not for a specified period) at the rates specified by or under section 5 applicable to the sales of the same goods, had they been sold otherwise than by the transfer of the right to use them:
Provided that if the transfer of the right to use any goods is made by a dealer on more than one occasion in a year to the same or different party, the tax shall be leviable on each such occasion;
Explanation- For the purposes of this Act, the transfer of the right to use any goods for any purpose (whether or not for a specified period) shall deemed to have taken place in Sikkim, if such goods so transferred are in the State at the time of such transfer irrespective of the place where the agreement for the transfer of right to use the goods is made,
4. Amendment of section 13.- In section 13 of the principal Act, after sub-section (4), the following sub-section shall be inserted, namely:-
"(4a) If a registered dealer fails to prove to the satisfaction of the prescribed authority, the correctness of the sale price of the goods transferred, delivered, supplied, sold or otherwise disposed of in any of the manner referred to in clause (m) of sections, the said authority may determine the said price according to the best of its judgement subject to such rules as may be prescribed."
5. Insertion of new section 14A.- After section 14 of the principal Act, the following section shall be inserted, namely:-
"14A. Deducation of tax at source from bills of contractors.- (1) Notwithstanding anything contained in sections 14 and at source from the State Government may presribe that every person or any specified class of persons, making any payment to contractors as valuable consideration tors for the transfer of property in goods, whether as goods or in some other form, involved in the execution of works contracts, shall deduct such amount, as may be prescribed, not exceeding four percentum of the said payment, towards tax payable under this Act and remit the amounts so deducted to the State Government.
(2) The manner in which the deduction under sub-section (1) shall be made, the period within which the amounts so deducted shall be remitted to the State Government, the form in which the certificate of deduction should be issued to the contractors and other incidental and ancillary matters shall be such as may be prescribed.
(3) If any person fails to deduct, or having deducted, fails to remit to the State Government within the prescribed time, the amount deductible under sub-section (1), he shall be liable for a penalty of a sum not exceeding twice the amount deductible.
(4) The amount deductible and actually deducted under sub-section (1) and penalty levied under sub-section (3) shall be deemed to be a tax for the purpose of the Sikkim (Collection of Taxes and Prevention of Evasion Payment of Taxes) Act, 1987 (7 of 1987).
6. Amendent of section 18.- In section 18 of the principal Act, after sub-section (1), the following sub-section shall be inserted, namely:-
"(1a) Every registered dealer who transfers, delivers, supplies, sells or otherwise disposes of goods in any of the manner referred to in sub-clauses (b), (c) and (d) of clause (m) of section 2 shall keep and maintain in his place of business, the original copies of all the agreements or contracts entered into by him which are under operation end statement of expenditure involved in any such work contract:
Provided that the Commissioner may, on application and for reasons to be recorded, permit any such dealer to keep and maintain the aforesaid documents at any other place in the State of Sikkim or keep and maintain xerox or other copies thereof only in the place of business, the originals being made available on demand by the prescribed authority under this section.
7. Amendment of section 18.- In section 28 of the principal Act, in sub-section (4), after clause section (f), the following clauses shall be inserted, namely:-
"(fa) the manner in which the price is to be determined under sub-section (4a) of section 13;
(fb) prescribing the rate of tax, the manner of its deduction, the time within which the amount is to be remitted and the form of certificate of deduction to be issued to the contractors and other incidental and ancillary matters under section 14A;"