Tamil Nadu General Sales Tax (Second Amendment) Act, 1993*
| [Tamil Nadu Act No. 25 of 1993] | [27th May, 1993] |
An Act further to amend the Tamil Nadu General Sales Tax Act, 1959
Be it enacted by the Legislative Assembly of the State of Tamil Nadu in the Forty-fourth year of the Republic of India as follows:-
* Received the assent of the Governor on the 27th May, 1993 and published in the Tamil Nadu Government Gazette, Extraordinary.
1. Short title and commencement.- (1) This Act may be called the Tamil Nadu General Sales Tax (Second Amendment) Act, 1993.
(2)(a) Sections 3, 4, 5, 6, 7, 8 and 27 shall be deemed to have come into force on the 12th day of March, 1993.
(b) Sections 9, 12 and 14 shall be deemed to have come into forced the 1st day of April, 1993.
2. Amendment of section 2.- In section 2 of the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereinafter referred to as the principal, Act), after clause (aa), the following clause shall be inserted, namely:-
"(aaa) ‘Appellate Deputy Commissioner’ means any person appointed, be an Appellate Deputy, Commissioner of Commercial Taxes under section 28;".
3. Amendment of section 3.- In section 3 of the principal Act,-
(1) for sub-sections (1) and (2), the following sub-sections shall be ???, namely:-
"(1) every dealer other than a casual trader or agent of a ??? for a year is not less than one lakh of ??? casual ??? of a non-resident dealer, whatever be ??? year, shall ??? a tax for each year in accordance with ??? this Act.
(2) Subject to the provisions of sub-section (1), in the case of goods mentioned in the First Schedule the tax under this Act shall be payable by a dealer, at the rate and only at the point specified therein on the turnover in each year relating to such goods:
Provided that all spare parts, components and accessories of such goods shall also be taxed at the same rate as that of the goods if such spare parts, components and accessories are not specifically enumerated in the First Schedule end made liable to tax under that Schedule."
(2) for sub-section (2-A) excluding the proviso thereto, the following sub-section shall he substituted, namely:-
"(2-A) Subject to the provisions of sub-section (1), in the case of goods mentioned in the Fifth Schedule, the tax under this Act shall be payable by a dealer at the rate and at the point specified therein on the turnover in each year relating to such goods:"
(3) for sub-section (2-B) excluding the proviso thereto, the following sub-section shall be substituted, namely:-
"(2-B) Subject to the provisions of sub-section (1), in the case of goods mentioned in the Sixth Schedule, the tax under this Act shall be payable by a dealer at the first point of state and the second point of state and at the rate specified therein on the turnover in each ??? bating to such goods:-"
(4) for sub-section (3), the following sub-sections shall be substituted, namely:-
"(3) Notwithstanding anything contained in sub-section (2) but subject to the provisions of sub-section (1), the tax payable by a dealer in respect of sale of any goods including consumables, packing material and labels, but excluding plant and machinery, to another dealer for use by the latter in the manufacture, and assembling, packing or labelling in connection with such manufacture inside the State, for sale by him of any goods mentioned in the First Schedule, other than those falling under item 56 in Part D of the said Schedule and arrack, shall be at the rate of only three percent on the turnover relating to such sale:
Provided that the provisions of this sub-section shall not apply to-
(a) any sale of goods falling under items 23, 24 and 25 in Part B and item 1 in Part H, of the said Schedule; and
(b) any sale, unless the dealer selling such goods furnishes to the assessing authority in the prescribed manner and within, the prescribed period, a declaration duly filled in and signed by the dealer to whom the goods are sold containing the prescribed particular's in a prescribed form obtained from the prescribed authority:
Provided further that any dealer who, after purchasing the goods in respect of which he had furnished any declaration, fails to make use of the goods so purchased for the purpose specified in the declaration but disposes of such goods in any other manner, shall pay the difference of tax payable on the turnover relating to sale of such goods at the rate prescribed and three percent:
Provided also that the dealer purchasing the goods maintains a separate stock account for each of the goods purchased by him showing such particulars as may be prescribed.
(4) Where any dealer, after availing the concessional rate of tax under sub-section (3), does not sell the goods so manufactured, but despatches them to a place outside the State either by branch transfer or by transfer to an agent, by whatever name called, for sale, or in any other manner, except as a direct result of sale or purchase in the course of inter-State trade or commerce, shall pay, in addition to the concessional rate of tax already paid under sub-section (3), tax at two percent on the value of the goods so purchased."
(5) in sub-section (7), for the expression "Notwithstanding anything contained in sub-section (1), (2), (2-A), (2-B) or (3), but subject to sub-section (8)", the expression "Notwithstanding anything contained in sub-section (2), (2-A), (2-B) or (3) but subject to sub-sections (1) and (8)" shall be substituted.
4. Substitution of section 3-A.- For Ejection 3-A of the principal; Act, the following section shall be substituted, namely:-
"3-A. Levy of tax on the right to use any goods.-(1) Notwithstanding anything contained in stub-sections (2-A), (2-B), (3), (4), (7) and (8) of section 3, or section, 7-A but subject, to the other provisions of this ??? provisions of sub-section (1) of section 3, every dealers referred to in item (viii) of clause (g) of section 2 shall pay, for each year, a tax on his taxable turnover relating to the business of transfer of the right to use any goods; for any purpose at the rates mentioned in sub-section (2) of section 3 or, as the case may be, in section 4.
(2) The taxable turnover of the dealer, of the business of transfer of the right to use any goods for any purpose, shall, on and from the 1st day of April, 1986, be arrived at after deducting the following amounts from the total turnover of that dealer:-
(a) all amounts involved in respect of goods involved in the business of transfer of the right to use any goods, for any purpose, in, the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India or in the course of inter-State trade of commerce;
(b) all amounts for which any goods specified in the Firs Schedule or Second Schedule are purchased; from registered dealers liable to pay tat under this Act and used in the same form in the transfer of the right to use mm goods for any purpose; and
(c) all amount ??? to sale of any goods involved in the business of transfer of the right to use, which are specifically exempted from tax under any of the provisions of this Act".
5. Substitution of section 3-B.- For section 3-B of the principal Act, the following section shall be substituted, namely:-
"3-B. Levy of tax on the transfer of goods involved in works ???.-(1) Notwithstanding anything contained in sub-sections (2-A), (2-B), (8), (4), (7) and (8) of section 3, or section 7-A, but subject to the other provisions of this Act including the ??? of sub-section (1) of section 3, every dealer referred to in item (vi) of clause (g) of section (2) shall pay for each year, a tax on his taxable turnover of transfer of property in goods involved in the execution of works contract at the rates mentioned in sub-section (2) of section 3 or, as the case may be, in section 4.
Explanation.-Where any works contract involves more than one item of work, the rate of tax shall be determined separately for each such item of work.
(2) The taxable turnover of the dealer of transfer of property involved in the execution of works contract shall, on and from the 26th day of June, 1986, be arrived at after deducting the following amounts from the total turnover of that dealer:-
(a) all amounts involved in ??? involved in the execution of works contract in the course of export of the goods out of the territory of India, or in the course of import of the goods into the territory of India or in the ??? of inter-State trade or commerce;
(b) all amounts for which any goods specified in the First Schedule or Second Schedule, are purchased from registered dealer liable to pay tax under this Act nod used in the execution of works ??? same form in which such goods were purchased;
(c) all amounts relating to the sale of any goods involved in the execution of works contract which are specifically exempted from tax under any of the provisions of this Act;
(d) all amounts paid to the sub-contractors as consideration for execution of works contract whether wholly or partly:
Provided that no such deduction shall be allowed unless the dealer claiming deduction, produces proof that the sub-contractor is a registered dealer liable to pay tax under this Act and that the turnover of such amounts is included in the return filed by such sub-contractor; and
(e) all amounts towards ‘labour charges and other like charges’ not involving any transfer of property in goods, actually incurred in connection with the execution of works contract, or such amounts calculated at the rate specified in column (3) of the Table below, if they are not attainable from the books of accounts maintained and produced by a dealer before cue assessing authority.
THE TABLE
| Serial number | Type of works contract. | Labour or other charges as a percentage value of the works contract. |
| (1) | (2) | (3) |
| 1 | Electrical contracts | 15 |
| 2 | All structural contracts | 15 |
| 3 | Sanitary contracts | 25 |
| 4 | Watch and/or clock repair-contracts | 50 |
| 5 | Dyeing contracts | 50 |
| 6 | All other contracts | 30." |
6. Amendment of section 4.- In section 4 of the principal Act,-
(1) for the expression "Notwithstanding anything contained lin section 3 or 3-A", the expression "Notwithstanding anything contained in sub-sections (2) to (8) of section 3 or section 3-A or section 3-B but subject to the provisions of sub-section (1) of section 3" shall be substituted;
(2) the expression "whatever be the quantum of turnover in that year" shall be omitted.
7. Omission of section 5.- Section 5 of the principal Act shall be omitted.
8. Amendment of section 7-A.- The section 7-A of the principal Act, in sub-section (1),-
(1) for the expression "Every dealer", the expression "Subject to the provisions of sub-section (1) of section 3, every dealer" shall be substituted;
(2) for the expression "section 3, 4 or 5" in two places where it occurs, the expression "section 3 or 4" shall be substituted;
(3) in clause (c), for the expression "despatches them", the expression "despatches or carries them" shall be substituted;
(4) in the concluding portion; the expression "whatever be the ??? of such turnover in a year" shall be omitted;
(5) the proviso shall be omitted.
9. Insertion of new section 7-C.- After section 7-B of the principal Act, the following section shall be inserted, namely:-
"7-C. Payment of tax at compounded rates by civil works contractor.-(1) Notwithstanding anything contained in section 3-B, every dealer referred to in item (vi) of clause (g) of section 2, in so far as civil works contract is concerned, may, at ins option, instead of paying tax in accordance with section 3-B, pay, on the total value of the civil works contract executed by him in a year, tax calculated at the rate of two per cent of such total contract value of the civil works executed by him in that year.
(2) Any dealer who executes civil works contract may apply to the assessing authority along with the first monthly return for the financial year, his option to pay the tax under sub-section (1) and shall pay the tax during the year in monthly instalments and for this purpose, he shall furnish such return within such period and in such manner as may be prescribed:
Provided that the option under this sub-section for the financial year commencing on the 1st day of April, 1993 shall be exercised on or before the 30th day of June, 1993.
(3) The option exercised under sub-section (1) shall he final for that financial year.
(4) A dealer, exercising option under sub-section (1) shall, so long as the option remains in force, not be required to maintain accounts of his business, under this Act or the rules made thereunder except the records in originals of the civil works contract, extent of their execution and payments received or receivable in relation to such civil works contract, executed or, under execution.
Explanation.-For the purpose of this section "civil works contract", means civil works of construction of new building, bridge, road, runway, dam or canal including any lining, tiling, painting or decorating which is an inherent part of the new construction; but shall not include any repair, maintenance, improvement or up-gradation of such civil work by means of fixing and laying of all kinds of floor tiles, mosaic tiles, slabs, stones, marbles, glazed tiles, painting, polishing, partition, wall paneling, interior, decoration, false ceiling, carpeting and extra fittings, or any manner of improvement on an existing structure."
10. Amendment of section 12.- In section 12 of the principal Act,-
(1) sub-section (1) shall be renumbered as clause (a) of that sub-section, and for the proviso to clause (a) as so renumbered, the following shall be substituted, namely:-
"Provided that subject to the provisions of clause (b) and the provisions of sub-section (1-A), a dealer whose total turnover, is less than five lakhs of rupees; per year may make a self-assessment for that year and the return filed by him shall be accepted without calling for the accounts.
(b) A dealer shall not be eligible for making a self assessment,-
(i) if he has obtained or deceived any of the declaration Forms prescribed under the Central Sales Tai Act, 1956 (Central Act 74 of ???);
(ii) if he as obtained or received Forms XVII, XX or prescribed under this Act;
(iii) for such period as may be prescribed, if the assessing authority during inspection or otherwise, detects any suppression of the or purchase turnover;
(iv) in respect of his first assessment year or the last assessment year of his business;
(v) if the assessment of the dealer has been made under the proviso to clause (a) continuously for a period of three years immediately preceding the assessment year;
(vi) if the acceptance of return will result in the refund of more than ten thousand rupees;
(vii) if the proof of payment of admitted tax as per return has not accompanied the return.
(c) Where the return submitted by a dealer under the proviso to clause (a) is found to have any enter apparent in the computation of his total or taxable turnover or in respect of the rate of tax applicable to any goods, the assessing authority shall, while making an assessment under sub-section (1), correct such error:
Provided that if any such correction has the effect of increasing the tax liability of the dealer, the assessing authority shall so correct only after obtaining the concurrence of the dealer ???
(d) Every dealer making a self-assessment under the proviso to clause (a), shall maintain true and correct accounts notwithstanding the fact that they are ??? to be assessed under the said proviso to clause (a)";
(2) for sub-sections (3) to (5) including the proviso thereto, the following sub-section shall be substituted, namely:-
"(3) In addition to the tax assessed under sub-section (2), the assessing authority shall, in the same order of assessment passed under sub-section (2) or by a separate order, direct the dealer to pay by way of penalty, a sum-
(a) which shall be, in the case of failure to submit, ??? hundred and fifty percent of the tax assessed on final assessment;
(b) which shall be, in the case of submission of incorrect as incomplete return,-
(i) fifty percent 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 fifteen per cent;
(ii) seventy-five per cent of the difference of the tax assessed and the tax paid as per the return, if the tax paid as per the return, falls short of the tax ??? on final assessment by more than fifteen percent but not more than twenty-five per cent;
(iii) one hundred 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 twenty-five per cent but not more than fifty percent;
(iv) one hundred and twenty-five per cent of the difference of the tax assessed and the tax paid Stepper the return, if the tax paid as per the return, falls short of the tax assessed on the final assessment by more than fifty percent, but not more than Seventy-five per cent;
(v) one hundred and fifty per cent of the difference of the tax assessed and the tax paid as per the return, if the tax paid as per the return, Jails short of the tax assessed on the final assessment by more than seventy-five per cent; and
(c) which shall be, in the case of submission of the prescribed return after ten days after the expiry of the prescribed period, two pet cent of the tax payable for every month or part thereof during which the default in the submission of the return continued:
Provided that no penalty under this sub-section shall be imposed after the period of five years from the date of the order of the final assessment under this section and unless the dealer affected has had a reasonable opportunity of showing cause against such imposition.".
11. Amendment of section 16.- Inaction 16 of the principal Act, for sub-section (2), the following sub-section shall be substituted, namely:-
"(2) In making an assessment under clause (a) of sub-section (1) the assessing authority may, if it is satisfied that the escape from the ??? is due to Wilful non-disclosure of assessable turnover by the dealer direct the dealer, to pay, in addition to the tax assessed under clause (a) of sub-section (1), by way of penalty a sum which shall be-
(a) fifty percent of the tax due on the turnover that was wilfully not disclosed if the tax due on such turnover is not more than ten percent of the tax paid as per the return;
(b) one hundred per cent of the tax due on the turnover that was ??? the tax due on such turnover is more ten percent but not than fifty percent of the tax paid as per the return;
(c) one hundred and fifty percent of the tax due on the assessable ??? was wilfully not ??? if the tax due on such turnover is more than fifty per cent of the ??? as per the return;
(d) one hundred and fifty percent of the tax due on the assessable ??? that was wilfully not ???, in the case of self-assessment ??? to sub-section (1) of section 12:
Provided that no penalty under this sub-section shall be imposed unless the dealer affected has had a ??? opportunity of showing cause against such imposition."
12. Insertion of new section 16-AA.- After section 16-A of the principal Act, the following: ??? shall be inserted, namely:-
"16-AA. Assessment of turnover not declared under section 7-C.-(1) Where for any reason, any part of the turnover of business of a dealer who has been permitted to pay the tax under section 7-C has escaped assessment from the tax, the assessing authority may, at any time within a period of five years from the expiry of the year to which the tax relates, determine to the best of its judgment, the turnover which has escaped assessment and re-assess the tax payable on the total turnover (including the turnover already assessed under section 7-C) in accordance with the provisions of this Act.
(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 amount of tax already paid by the dealer concerned in pursuance of the permission to compound under section 7-C, shall be adjusted towards the amount of tax due as the result of re-assessment under sub-section (1).
(4) The provisions of sub-sections (2) to (5) of section 15 shall, as far as may be, apply to re-assessment under sub-section (1) as they apply to the reassessment of escaped turnover under sub-section (1) of section 16."
13. Amendment of section 16-B.- In section 16-B of the principal Act, in sub-section (1), for the expression "sub-sections (3) and (5)", the expression "sub-section (3)" shall be substituted.
14. Amendment of section 16-C.- In section 16-C of the principal Act, in the opening portion, for the expression "sections 16, 16-A and 16-B", the expression "sections 16, 16-A, 16-AA and 16-B" shall be substituted.
15. Amendment of section 20.- In section 20 of the principal Act,-
(1) in sub-section (1), clause (b) shall be omitted;
(2) in sub-section (2), clause (i) shall be omitted.
16. Amendment of section 22.- In section 22 of the principal Act, in sub-section (2), for the expression "a sum not exceeding one and a half times such amount", the following shall be substituted, namely:-
"a sum which shall be,-
(i) where the excess amount has been collected in the bonafide belief that it had to be collected one hundred per cent of the amount collected;
(ii) where the excess amount has been collected wilfully and knowing that it was not due to be collected, one hundred and fifty per cent of the amount collected.".
17. Amendment of section 24.- In section 24 of the principal Act, after sub-section (3), the following sub-section shall be inserted, namely:-
"(3-A) Where a dealer submits the described return within ten days after the expiry of the prescribed period, he shall also pay, in addition to the amount of tax due as per his return, interest at two pen cent of the tax payable for every month or part thereof."
18. Amendment of section 28.- In section 28 of the principal Act, including the marginal heading, for the expression "Deputy Commissioners of Commercial Taxes", in two places where it occurs, the expression "Appellate Deputy Commissioners of ??? Taxes, Deputy Commissioners of Commercial Taxes shall be ???
19. Amendment of section 31-A.- ??? in section 31-A of the principal Act,-
(1) including the marginal heading, for the expression "Deputy ??? the expression ??? Appellate "Deputy ???
(2) in sub-section (1) for the expression "empowered by the Government this behalf", the expression "having jurisdiction" shall be substituted;
20. Amendment of section 32.- In section 32 of the principal; Act, in sub-section (2), in clause (b), for the expression "or" the Appellate Tribunal the expression "or the Appellate Deputy Commissioner or the Appellate Tribunal" shall be substituted.
21. Amendment of section 34.- In section 34 of the principal Act-
(1) in sub-section (1), for the expression "by the Deputy Commissioner under sub-section (3) of section 31-A or sub-section (1) of section 32", the expression "by the Appellate Deputy Commissioner under sub-section (3) of section 31-A or by the Deputy Commissioner under sub-section (1) of section 32" shall be substituted;
(2) in sub-section (2), in the proviso, for the expression "or Deputy Commissioner the expression" or Appellate Deputy Commissioner or "Deputy Commissioner" shall be substituted.
22. Amendment of section 34-A.- In section 34-A of the principal Act,-
(1) in sub-section (1), for the expression "transfer an appeal pending", the expression "transfer an appeal pending before an appellate Deputy Commissioner to another Appellate Deputy ??? or an appeal pending" shall be substituted;
(2) in sub-section (2), for the expression "before an Appellate Assistant Commissioner" the expression "before an Appellate Deputy Commissioner or any Appellate Assistant Commissioner, as the case may be" shall be substituted.
23. Amendment of section 36.- In section 36 of the principal Act,-
(1) in sub-section (1), for the expression "by the Deputy Commissioner under sub-section (3) of section 31-A or sub-section (1) of section 32", the expression "by the Appellate Deputy Commissioner under sub-section (3) of section 31-A or by the Deputy Commissioner under sub-section f(1) of section 32" shall be substituted;
(2) in sub-section (3), in the first proviso, for the expression "or the; Deputy Commissioner", the expression "or the Appellate Deputy Commissioner or the Deputy Commissioner" shall be substituted;
(3) in sub-section (3-A),-
(a) for the expression "by the Deputy Commissioner under sub-section (3) of section 31-A or sub-section (1) of section 32", the expression by the Appellate Deputy Commissioner under sub-section (3) of section 31-A or by the Deputy Commissioner under sub-section (1) of section 32" shall be substituted;
(b) for the expression "the Appellate Assistant Commissioner or the Deputy Commissioner", the expression "the Appellate Assistant Commissioner or the Appellate Deputy Commissioner on the Deputy Commissioner" shall be substituted.
24. Amendment of section 39-B.- In section 39-B of the principal Act, in sub-section (2), for the expression "The Appellate Assistant Commissioner the expression"; The Appellate Assistant Commissioner or the Appellate Deputy Commissioner shall be substituted.
25. Amendment of section 53.- In section 53 of the principal Act, in sub-section (2), in clause (i), for the expression "sub-sections (3) and (4)", the expression "sub-section (3)" shall be substituted.
26. Amendment of section 57.- In section 57 of the principal Act, in sub-section (2), in clause (vii), in sub-clause (b), for the expression "or an Appellate Assistant Commissioner the expression "or an Appellate Assistant Commissioner or an Appellate Deputy Commissioner" shall be substituted.
27. Omission of Fourth Schedule.- The Fourth Schedule to the principal Act shall be omitted.