Tamil nadu act 010 of 1995 : Tamil Nadu General Sales Tax (Amendment) Act, 1995

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Tamil Nadu General Sales Tax (Amendment) Act, 1995.

(2) It shall be deemed to have come into force on the 1st day of April, 1994.

Section 2. Amendment of section 3

2. Amendment of section 3.- In Section 3 of the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act ??? 1959) (hereinafter referred to as the principal Act), in sub-section (3), in the first proviso, in clause (a), the expression "items 23, 24 and 25 in PART-E" shall be omitted.

Section 3. Insertion of new section 7-D

3. Insertion of new section 7-D.- After section 7-C of the principal Act, the following section shall be inserted, namely:-

"7-D. Payment of compounded amount by dealers in lottery tickets.

(1) Notwithstanding anything contained in sub-section (2) of section 3 dealer to lottery tickets in the State may, at his option, instead of paying tax in accordance with the provisions of that sub-section, compound the tax liability in respect of sale of lottery tickets and pay the compounded amount at the following rate namely:-

(2) Any dealer in lottery tickets may apply to the assessing authority along with first monthly return in such form as may be prescribed, for the financial year, his option to compound the tax liability, under sub-section (1) and shall pay the compounded amount, thirty days prior to the draw, and for that purpose shall furnish such monthly return in such form, within such period and in such manner, as may be prescribed:

Provided that the option under this sub-section for the financial year commercing on the 1st day of April, 1995 shall be exercised on or before the 30th day of June, 1905.".

Section 4. Amendment of section 12

4. Amendment of section 12- In section 12 of the principal Act, in sub-section (3), in clause (b), for sub-clause (i), the following sub-clauses shall be substituted, namely:-

"(i) twenty-five per cent of the difference of the tax assessed and the tax paid as per return, if the tax paid as per the return falls short of the tax assessed on final assessment by not more than five per cent.

(i-a) fifty per cent of the difference of the tax assessed and the tax paid as per return, if the tax paid as per the return falls short of the tax assessed on final assessment by more than five per cent but not more than fifteen per cent;"

Section 5. Insertion of new section 16AAA

5. Insertion of new section 16AAA.- After section 16-AAA of the principal Act, the following section shall be inserted, namely:-

"16-AAA. Assessment of draw not declared under section 7-D.- (1) Where for any reason, any draw has escaped assessment from the payment of compounded amount under section 7-D, the assessing authority may, at any time within a period of five years from the expiry of the year in which the draw is held, determine to the best of its judgement, the amount in respect of the draw which has escaped amendment and reassess the amount payable in respect of such draw (including the draw already assessed under section 7-D) in accordance with the provisions of section 7-D.

(2) Before making the re-assessment under sub-section (1), the assessing authority may make such enquiry as it may consider necessary and give the dealer concerned a reasonable opportunity to show cause against such re-assessment.

(3) The compounded amount already paid by the dealer concerned ??? pursuance of the option under section 7-D shall be adjusted towards compounded amount due as the result of re-assessment under sub-section (1).

(4) In making an assessment under sub-section (1), the assessing authority may, if it is satisfied that the escape from the assessment is due to wilful non-disclosure of assessable amount in respect of a draw by the dealer, direct the dealer to pay, in addition to the amount assessed under sub-section (1), by way of penalty, a sum which shall be-

(a) ??? per cent of the amount due on the draw that was wilfully not disclosed if the amount due on such draw is not more than ten per cent of the amount paid as per the return:

(b) one hundred per cent of the amount due on the draw that was wilfully not disclosed, if the amount due on such draw is more than ten per cent but not more than fifty per cent of the amount paid as per the return

(c) one hundred and fifty per cent of the amount due on the assessable draw that was wilfully not disclosed, if the amount due on such draw is more than fifty per cent of the amount paid as per the return;

Provided that no penalty under this sub-section shall be imposed unless the dealer affected has had a reasonable opportunity of showing cause against such imposition.

(5) The provisions of sub-sections (3) to (5) of section 16 shall, as far as may apply to re-assessment under sub-section (1) as they apply to the re-assessment ??? escaped turn-over under sub-section (1) of section 16.

Section 6. Amendment of First Schedule

6. Amendment of First Schedule.- In the First Schedule to the principal Act,-

(1) in PART-B,-

(a) after item 51 and the entries relating thereto, the following items and entries shall be inserted, namely:-

"51-A. At the point 3 of first sale in the State.- Small transformers used in electronic equipments, including-

(i) Transformers (Power and Control), (step down from 230 V to less than 100V, of power rating not exceeding 250VA)

(ii) Buck/boost transformers (230V/less than 100V)

(iii) Invertor transformers

(iv) Isolation transformers

(v) Rectifier transformers

(vi) Ferro Resonant transformers

(vii) Line driver transformers (less than 50VA)

(viii) Fly back transformers/Line output transformers/Extra High Tender transformers

(ix) Main filter transformers

(x) Line driver transformers

(xi) Toroidal core transformers and ??? transformers

(xii) Switch mode power supply transformers.

(Sub-items (viii) to (xii) above are ferrite transformers).

Explanation- All the above transformers shall be deemed to fall undo this item, only if each of them has not even one of the windings rated above 500VAC.

51-B. Capacitors other than those specified under item 338-A of Part-D.

(b) items 77, 85, 86 and 93 and the entries relating thereto shall be omitted;

(2) in PART-C,-

(a) in item 9, for the entries in column (2), the following entries shall be substituted, namely:-

"Food and drinks (other than those falling elsewhere under the Schedules), sold by-

(i) star hotels recognised as such by the Tourism department of the State Government or the Government of India;

(ii) restaurants attached to such star hotels; and

(iii) all sweet stalls";

(b) in item 39, for the entries in column (2), the following entries shall be substituted, namely.:-

"Card board boxes, corrugated boxes and cartons";

(3) in PART-D, after item 38 and the entries relating thereto, the following item and entries shall be inserted, namely:-

"38-A. All power factor and shunt capacitors (1 KVAR to 100 KVAR-415V or 660V)"

(4) in PART-E, in item 21, for the entries in column (2), the following entries shall be substituted, namely:-

"(a) Generators, Generating sets, Transformers and "Non-Electronic voltage stabilisers;

(b) All electrical transformers (other than the small transformers mentioned under item 51-A of PART-B) including-

(i) Transmission power transformers (33 KV to 232 KV)

(ii) Distribution transformers (33 KV to 3.3 KV)

(iii) Traction power transformers (110 KV)

(iv) Booster transformers (25 KV or thereabouts)

(v) Furnace transformers

(vi) Resin potted transformers (11 KV or thereabouts)

(vii) Welding transformers

(viii) Step up transformers 230 V/up, 5 to 50 KV and 415/5 to 50 KV

(ix) Auto transformers (variac)

(x) Instrument transformers like current transformers and potential transformers;

(c) Parts and accessories of sub-items, (a) and (b) above".

Section 7. Amendment of Third Schedule

7. Amendment of Third Schedule.- In the Third Schedule to the principal Act, in PART-B-

(1) for item 9 and the entries relating thereto, the following item and entries shall be substituted namely:-

"9. Water including plain water sold in bulk in large barrels or drums or tanks pulled by animals or tractors or lorries (other than water sold in bottles, sachets, jugs or jerry cans and distilled water or mineral water sold in any form of container)";

(2) in item 21,-

(a) under the heading "??? List of agricultural implements exclusively used with human, power", after sub-item (13), the following sub-items shall be added, namely:-

"(14) Levellers

(15) Hoes";

(b) under the heading "II. List of agricultural implements exclusively used with animal power", after sub-item (4), the following sub-item shall be added, namely:-

"(5) Levellers";

(3) for item 48 and the entries relating thereto, the following items and entries shall be substituted, namely:-

"48. Food and drinks falling under item 9 of PART-C of the First Schedule, told by-

(i) any hotel other than a star hotel recognised as such by the Tourism Department of the State Government or the Government of India;

(ii) any restaurant other than those attached to such star hotels

(iii) any other eating house;

48-A. Food and drinks falling under item 9 of PART-C of the First Schedule, sold by-

(i) any Star Hotel recognised as ??? by the Tourism Department of the State Government or the Government of India;

(ii) any restaurant attached to such Star Hotel;

(iii) any Sweet Stall,

whose total turnover does not exceed three lakhs of rupees per annum";

(4) after item 70 and the entries relating thereto, the following items and entries shall be added, namely:-

"71. Candles

72.(i) Hurricane lights and bedroom lights burning on oil

(ii) Kerosene lamps (other than gas lights and petromax lights)

(iii) Wicks and Chimneys of sub-items (i) and (ii) above

73. Non-pressure kerosene stoves

74. Rubber play balls.".