Tamil nadu act 024 of 1971 : Tamil Nadu Sales Tax (Surcharge) Act, 1971

Section 1. Short title, extent and commencement

1. Short title, extent and commencement.- (1) This Act may be called the Tamil Nadu Sales Tax (Surcharge) Act, 1971.

(2) It extends to the whole of the State of Tamil Nadu.

(3)(a) This Act shall be deemed to have come into force-

(i) in the City of Madras, on the 19th June, 1971.

(ii) in the City of Madurai and the municipal towns of Salem, Coimbatore and Tiruchirappalli, on the 29th June, 1971; and

(iii) in the suburban area of the City of Madras, on the date of the publication of the Tamil Nadu Sales Tax (Surcharge) Bill, 1971, in the Tamil Nadu Government Gazette.

(b) The Government may, by notification, direct that this Act shall come into force on such date as may be specified in the notification in,-

(i) any other municipal town; or

(ii) any township; or

(iii) the suburban area of the City of Madurai or of the municipal town of Salem, Coimbatore or Tiruchirappalli or of such municipal town or township as is referred to in sub-clauses (i) and (ii).

(4) The Government may, by notification, cancel any notification issued under clause (b) of sub-section (3), but the cancellation shall not be deemed to affect the power of the Government under clause (b) of sub-section (3) again to bring this Act into force in such municipal town or township or suburban area.

(5) A draft of any notification proposed to be issued under clause (b) of sub-section (3) or sub-section (4) shall be laid on the table of the Legislative Assembly and the notification shall not be issued unless the Assembly approves the draft either without modification or addition or with modifications or additions; and upon such approval being given, the notification shall be issued in the form in which it has been approved and such notification on being so issued shall be published in the Tamil Nadu Government Gazette and shall thereafter be of full force and effect.

Section 2. Definitions

2. Definitions.- In this Act, unless the context otherwise requires,-

(a) "date of the commencement of this Act" means-

(i) in relation to the City of Madras, the 19th June, 1971;

(ii) in relation to the City of Madurai or the municipal town of Salem, Coimbatore or Tiruchirappalli, the 29th June, 1971;

(iii) in relation to the suburban area of the City of Madras the date of the publication of the Tamil Nadu Sales Tax (Surcharge) Bill, 1971, in the Tamil Nadu Government Gazette; and

(iv) in relation to-

(A) any other municipal town or township; or

(B) the suburban area of-

(i) the City of Madurai or the municipal town of Salem, Coimbatore or Tiruchirappalli; or

(ii) any other municipal town or township, the date of the publication of the notification in the Tamil Nadu Government Gazette, under clause (b) of sub-section (3) of section 1;

(b) "Government" means the State Government;

(c) "suburban area" means-

(i) an area within thirty-two kilometres of the City of Madras; or

(ii) an area within such distance not exceeding thirty-two kilometres of the City of Madurai or of the municipal town of Salem, Coimbatore or Tiruchirappalli or of any other municipal town or township, as the Government may, by notification, specify.

Section 3. Levy of surcharge on sales tax

3. Levy of surcharge on sales tax.- (1) Every dealer who is liable to pay tax under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereinafter in this section referred to as the said Act), on the sale or purchase of goods within the limits of the area in which this Act is in force shall, on and from the date of the commencement of this Act, pay a surcharge on such tax at the rate of five per cent of such tax:

Provided that in the City of Madras, for the period commencing on the 19th June, 1971 and ending with the 28th June, 1971, the rate of such surcharge shall be ten per cent:

Provided further that if, in respect of declared goods, as defined in clause (h) of section 2 of the said Act,-

(i) the tax under the said Act;

(ii) the additional tax under the Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act 14 of 1970); and

(iii) the surcharge under this sub-section, payable by such dealer, exceeds ¹[four per cent] of the sale or purchase price thereof, the rate of surcharge in respect of such goods, shall be reduced to such an extent that the tax, the additional tax and the surcharge together shall not exceed ¹[four per cent] of the sale or purchase price of such goods.

(2) Save as otherwise provided in this Act, the provisions of the said Act shall apply in relation to the surcharge payable under sub-section (1) as they apply in relation to the tax payable under the said Act.

Section 3-A. Levy of additional surcharge on sales tax

²[3-A. Levy of additional surcharge on sales tax.- (1) In addition to the surcharge leviable under section 3, every dealer who is liable to pay tax under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereinafter in this section referred to as the said Act), on the sale or purchase of goods within the limits of the area in which this Act is in force shall, with effect on and from such date as the Government may, by notification, from time to time specify, pay an additional surcharge on such tax at the rate of five per cent of such tax:

Provided that different dates may be specified for the different areas in which this Act is in force:

Provided further that if, in respect of declared goods, as defined in clause (h) of section 2 of the said Act-

(i) the tax under the said Act;

(ii) the additional tax under the Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act 14 of 1970);

(iii) the surcharge under sub-section (1) of section 3; and

(iv) the additional surcharge under this sub-section payable by such dealer,

exceed four per cent of the sale or purchase price thereof, the rate of additional surcharge in respect of such goods, shall be reduced to such an extent that the tax, the additional tax, the surcharge and the additional surcharge together shall not exceed four per cent of the sale or purchase price of such goods.

(2) Save as otherwise provided in this Act, the provisions of the said Act shall apply in relation to the additional surcharge payable under sub-section (1) as they apply in relation to the tax payable under the said Act.

Section 4. [Omitted]

4. [Omitted]- ¹[* * *]

Section 5. Place of sale or purchase

5. Place of sale or purchase.- (1) For the purposes of this Act, the sals or purchase of goods (including motor spirit), shall be deemed to have taken place in the area in which this Act is in force, where-ever the contract of sale or purchase might have been made if the goods are within such area-

(i) in the case of specific or ascertained goods, at the time the contract of sale or purchase is made; and

(ii) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale or purchase by the seller or by the purchaser; whether the assent of the other party is prior or subsequent to such appropriation.

(2) Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of sub-section (1) shall apply as if there were separate contracts in respect of the goods at each of such places.

Section 6. Removal of doubts

6. Removal of doubts.- For the removal of doubts, it is hereby declared that the surcharge ¹[or additional surcharge] under this Act shall be levied only on the tax payable under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) ²[* * *] and such surcharge ¹[or additional surcharge] shall be levied in addition to any tax or additional tax payable on the sale or purchase of goods under any law for the time being in force.

Section 7. Power to make rules

7. Power to make rules.- (1) The Government may make rules to carry out the purposes of this Act.

(2) All rules made under this Act shall be published in the Tamil Nadu Government Gazette and, unless they are expressed to come into fore; on a particular day, shall come into force on the day on which they are so published.

(3) Every rule made under this Act shall, as soon as possible after it is made, be placed on the table of both Houses of the Legislature and if, before the expiry of the session in which it is so placed or the next session, both Houses agree in making any modification in any such rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.