Tamil Nadu General Sales Tax (Third Amendment) Act, 1989*
| [Tamil Nadu Act No. 19 of 1989] | [25th May, 1989] |
An Act further to amend the Tamil Nadu General Sales Tax Act, 1950
Be it enacted by the Legislative Assembly of the State of Tamil Nadu in Fortieth Year of the Republic of India as follows:-
* Received the assent of the Governor on the 25th May, 1989 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 (Third Amendment) Act, 1989.
(2) It shall come into force on such date as the State Government may, by notification, appoint.
2. Insertion of new section 7-B.- After section 7-A of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as the principal Act), the following section shall be inserted, namely:-
"7-B. Payment of tax at compounded rate by hotels and restaurants.- (1) Notwithstanding anything contained in sub-section (1) of section 3, every dealer whose total turnover is not less than ten lakhs of rupees but not more than fifteen lakhs of rupees on the sale of food and drinks in hotels and restaurants, may at his option instead of paying the tax in accordance with the provisions of that sub-section, pay tax at the following rates, namely:-
| Rate of tax. | |
| (i) Where the total turnover is not less than ten lakhs of rupees, but is less than eleven lakhs of rupees. | Thirty-one thousand five hundred rupees per annum. |
| (ii) Where the total turnover is not less than eleven lakhs of rupees, but is less than twelve lakhs of rupees. | Thirty-seven thousand three hundred and seventy-five rupees per annum. |
| (iii) Where the total turnover is not less than twelve lakhs of rupees, but is less than thirteen lakhs of rupees. | Forty three thousand seven hundred and fifty rupees per annum. |
| (iv) Where the total turnover is not less than thirteen lakhs of rupees, but is less than fourteen lakhs of rupees. | Fifty-four thousand rupees per annum. |
| (v) Where the total turnover is not less than fourteen lakhs of rupees, but is not more than fifteen lakhs of rupees. | Sixty-five thousand two hundred and fifty rupees per annum. |
(2) Any dealer who estimates his total turnover for a year to be not more than fifteen lakhs of rupees may apply to the assessing authority to be permitted, to pay the tax under this section and on being so permitted he shall pay the tax due in advance during the year in monthly or prescribed instalments and for that purpose shall submit such returns in such manner as may be prescribed:
Provided that any dealer paying tax under sub-section (1) of section 3 and desirous of paying tax for any year under this section may, at any time before final assessment for that year, exercise his option to be assessed under this section and for that purpose shall submit such returns in such manner as may be prescribed:
Provided further that any dealer paying tax trader this section and desirous of paying tax under sub-section (1) of section 3 may, at any time before final assessment for that year, exercise his option to pay tax in accordance with that sub-section and for that purpose shall submit such returns in such manner as may be prescribed.
(3) The permission granted by the assessing authority under sub-section (2) shall continue in force so long as the dealer is eligible to be assessed under this section and has not withdrawn his option to be so assessed.
(4) The tax paid under sub-section (2) shall be subject to such adjustmen as may be prescribed on the completion of final assessment in the manner prescribed.
(5) A dealer who has been permitted to pay the tax under sub-section (1), shall not collect any amount by way of tax or purporting to be by way of tax on the sales so long as he opts to pay the tax as provided under sub-section (1).".
3. Amendment of section 16-A.- In section 16-A of the principal Act,-
(i) in the marginal heading, after the expression "section 7", the expression "or section 7-B" shall be inserted;
(ii) in sub-section (1),-
(a) for the expression "under section 7" in the two places where they occur, the expression "under section 7 or section 7-B" shall be substituted;
(b) for items (i) and (ii), the following shall be substituted, namely:-
"(i) in case where such total turnover is not more than two lakhs of rupees in accordance with the provisions contained in sub-section (1) of section 7 or in case where such total turnover is not more than fifteen lakhs of rupees in accordance with the provisions contained in sub-section (1) of section 7-B; and
(ii) in other cases, where the total turnover is more than two lakhs of rupees under section 7 or fifteen lakhs of rupees under section 7-B, in accordance with the other provisions contained in this Act.";
(iii) in sub-section (3), for the expression "section 7", the expression "section 7 or section 7-B" shall be substituted.