INTRODUCTION TO ACTS ADMINISTERED BY THE … week Sep/Bihar... · INTRODUCTION TO ACTS ADMINISTERED...
Transcript of INTRODUCTION TO ACTS ADMINISTERED BY THE … week Sep/Bihar... · INTRODUCTION TO ACTS ADMINISTERED...
DEPARTMENT OF COMMERCIAL TAXES
KARNATAKA
INTRODUCTION TO ACTS
ADMINISTERED BY THE
DEPARTMENT
ACTS ADMINISTERED: KVAT Act 2003:- This enactment came into force from: 01-04-2005 KST Act 1957:- This Act continues to be in force and provides for levy of
tax only on few goods - Petrol, Diesel, Aviation Turbine Fuel and Sugarcane which are exempt under and VAT Act.
CST Act 1956:- The provisions of this Act for levy of tax on inter State sales
came into force from July 1957. KTEG Act 1979:- Karnataka Tax on Entry of Goods Act 1979- provides for
levy of Entry on Entry of specified goods in to local Area for consumption use or sale therein.
KTPTC Act:- The Karnataka Tax on profession, Trade and callings Act
provides for levy of tax on notified professions. Luxury Tax Act:- The Luxury Tax Act provides for tax on Luxuries defined
under the Act. Agricultural Income Tax:- Provides for levy of Agricultural Income Tax on
Company Estates on income from Coffee, Tea and Rubber grown in the Estates.
Betting Tax:- Karnataka Betting Tax Act provides for levy of tax on Betting
amount. The Betting Tax is realized from Two Race Courses in the State.
Taxes realized by the department under different Acts for the year 2013-14 are as under:-
Name of the Act Name of the Act in Short
Collection ₹. in crore
Value Added Tax
VAT 23546.31
Sales Tax ST 7231.93
Entry Tax KTEG 2645.65
Central Sales Tax
cst 1896.65
Profession Tax pt 808.32
Luxury Tax LT 300.46
Entertainments Tax
ET 168.69
Betting Tax BT 153.70
Agricultural Income Tax
AIT 21.29
KVAT ACT – 2005 : -
KVAT Act 2003 came into force from 01-04-2005
providing for levy of tax on sale or purchase of
goods with provision for Input tax credit.
The KST Act has not been repealed or replaced.
Continues to provide for levy of tax on Petrol,
Diesel, Aviation turbine fuel and sugar cane.
Those Commodities are exempt under KVAT Act.
All other commodities are exempt under KST Act.
Important Definition : -
Definition of words under KVAT Act are similar to KST Act.
Business : Includes any trade, commerce, manufacture,
adventure or concern. Whether or not such activity is
carried on in furtherance of loss or profit.
Dealer : Means a person who carries on business of
buying , supplying or distributing goods – whether for cash
or delayed payment or commission or other valuable
consideration, includes industrial undertaking, statutory
authorities, casual dealer, commission agent, non resident
dealer, works contractor, engaged in transfer of right to
use goods or hire purchase.
Input : Any goods purchased by a dealer including
capital goods in the course of business for resale or use
in manufacturing or processing, packing.
Input Tax : Sum total of tax paid on purchase of
inputs.
Output Tax : Is the tax payable on the sale of taxable
goods and includes tax payable by a commission agent.
Return : any return required to be furnished under the
Act including Revised Return.
Tax Period : Means such periods as may be
prescribed. It is calendar month under Rule 37 and
quarterly for composition dealer
REGISTRATION :
Every dealer whose taxable turnover exceeds Rs.5 Lakh per
annum.
Whose taxable turnover exceeds Rs.40,000/- per month.
To whom part or whole of business is transferred
Who brings in taxable goods from outside the state as a result of
purchase or otherwise.
Who effects within state sale of taxable goods or despatches to
outside the state.
Casual dealer, non resident dealer or an agent or a works
contractor.
Voluntary Registration.
Suo Motu Registration.
Registration is online
CANCELLATION OF REGISTRATION :
Where a business has been discontinued,
transferred or otherwise disposed.
Any change in status of ownership
Taxable turnover has not exceeded Rs.5 Lakhs over
a period of 12 consecutive months.
An Application by a dealer for any reason or Suo
Motu.
Cancellation of Registration will not effect the tax
liability of the dealer.
The Incidence and Levy of Tax :
The Tax shall be levied on every sale of goods in
the state by a Registered dealer or a dealer liable
to be registered.
The tax shall also be levied and paid by every
registered dealer or a dealer liable to be registered
on the sale of taxable goods to him for use in the
course of business by a person who is not
registered under the Act.
Liability to Tax and Rates of Tax :
Section 4(1)(a) :-
Every registered dealer shall be liable to pay tax on his taxable
turnover in respect of goods mentioned in:
Second Schedule @ 1%
Third Schedule @ 5.5%
Third Schedule – entry 20, capital goods, 51-
Industrial inputs, 53 – IT Products have been notified
and commodities are identified through H.S.N. Code
(Harmonized system of nomenclature of Central Excise
Tariff Act)
Fourth Schedule @ 20%
Liability to Tax and Rates of Tax :
Section 4(1)(b) :-
Declared goods specified in Sec. 14 of CST Act at the maximum
rate prescribed under Sec. 15 of CST Act.
Cigarettes, Cigar, Gutkha and other manufactured Tobacco
products – 17%.
All other goods – 14.5%.
Liability to Tax and Rates of Tax :
Section 4(1)(c): Works Contract – Sixth Schedule.
Section 4(2): Containers to be taxed at the same rate
as content.
Section 4(3): State Government may by Notification
reduce the tax payable in respect of any goods.
Section 4(4): Registered dealer may elect to pay tax
on M.R.P. (Pharmaceutical goods).
Section 4(5): Cigarettes, Cigar, Gutkha, Tobacco
products shall pay on M.R.P. when sale exceeds
Rs.500/- or any other amount as may be notified. If
such goods are not taxable at the hands of purchaser on
his sales, then refund adjustment applicable.
Exemption from Tax: First Schedule by Notification.
Collection of Tax by Registered Dealer,
Governments,
Statutory Bodies
Every registered dealer liable to pay Tax under the Act shall
collect Tax at the rate or rates at which he is liable to pay Tax.
Central Government, State Government, Statutory Body, Local
Authority shall collect similar to a registered dealer.
Deduction of tax in respect of Works Contract by Government,
industrial, commercial undertaking, trading units equivalent to
payable by such dealer.
Deduction shall be made on the basis of tax calculated by
dealer. If the tax calculated is less than actual payable by 15%,
then the same may be intimated to tax deduction authority and
also issue a certificate to the tax deducting authority.
Deduction of tax at source in case of Canteens by factories or
industrial undertakings.
COMPOSITION OF TAX
Composition of Tax, by other than a dealer who purchases or
obtain goods from outside the state.
Whose Turnover in a year does not exceed Rs.25 Lakhs.
A dealer executing works contract.
Hotelier, Restaurant, Caterer, Sweet meet Stall, Bakery.
Mechanized crushing unit producing granite or other
metals.
Accounts & Documents:
Tax Invoice: By a dealer effecting sale of taxable goods
containing particulars.
Sale Bill: By a dealer selling non-taxable goods opting to pay
tax under Composition or opting for Special Accounting
Scheme of value more than Rs.100/-
Registered dealer to maintain true and correct account in any
language notified by the Government.
Commissioner may require a registered dealer to install and
use an electronic tax register for the purpose of accessing
information regarding any matter which may affect tax liability
of such dealer.
Every registered dealer to issue tax invoice or bill of sale
through electronic tax register.
Dealer with taxable turnover of more than Rs.100 Lakhs to
have accounts audited by Chartered Accountant or Tax
Practitioner.
Books to be maintained for 5 years or till assessment reaches
Administration and Collection of Tax:
Returns:
Every registered dealer shall furnish a return within
15 / 20 days after the end of the month or any
other tax period and shall pay taxes due on such
return.
VAT Form -100 :
(a) By VAT registered dealers, monthly.
(b) Could be filed quarterly by dealers with turnover
of less than Rs.25 Lakhs (With permission)
Administration and Collection of Tax:
VAT Form 120 : By dealers opting to pay tax
under Composition monthly, 15th of each month.
(a) Hoteliers – Monthly.
(b) Mechanized Crushing Units – Monthly – Tax on
each crusher – depending on size of granites
obtained.
(c) Works Contractors – Monthly.
(d) Dealers having Turnover less than Rs.25 Lakhs per
annum and opting tax composition – tax period
quarterly @ 1% (June, September, December
month)
e- filing – e- VARADHI.
Administration and Collection of Tax:
Dealers under both COT, VAT to file separate return
in Form 100 & 120.
Belated Return – with interest.
Annual Statement – Consolidated monthly returns.
Corrected return Rule 39 – incomplete return to be
corrected and filed within 10 days from notice.
Final Return – At closure of business.
Return by a casual dealer.
Details of purchase and sales to be filed with return
e-UPaSS.
Assessments and Re-assessments:
Sec. 38(1)
(a) deemed assessment on the basis of return except cases
notified by the Commissioner for scrutiny assessment.
(b) To the best of its judgment if return filed is incorrect or
incomplete.
Sec. 38(2) - Dealer fails to file return – best of Judgment
assessment, if dealer subsequently files return, assessment
made could be withdrawn, but penalty and interest
applicable.
Sec. 38(5) – Protective assessment : Where any evidence
of tax liability comes to the notice – with the prior
permission from JCCT or Adcom.
If this order is found to be erroneous based on application
from dealer or on own motion, JCCT /
Adcom may pass necessary orders.
Sec. 38(7) – The prescribed authority may assess a dealer
Re-assessments:
Sec. 39 - If there is ground to believe any return
furnished which is deemed to have been assessed
or assessment issued u/s.38 under states the tax
liability, re-assessment could be taken up.
C.A.S: Comprehensive Assessment Scheme-
Period of
limitation is 5 years.
Sec.41: Rectification of assessment/ Re-
assessment
Appeals and Revisions.
Payment and Recovery of Tax:
Every registered dealer to pay taxes along with returns
Commissioner may permit installment facility
Payment of deferred taxes-Permission to pay by
isntalments.
Any tax due or shall be recovered as if it were an
arrears of land revenue, or by attachment and sale of
property or sale without attachment , or as fine imposed
on the dealer by a Magistrate or an application to
Magistrate.
Recovery from certain other persons
Arrears of tax to be first charge on property- claim of
to have preference over other secured
Recovery- limitation 12 years.
Refunds and Interest:
Refund of input tax to exporters.
Refund resulting out of appeal orders.
Refund of excess input tax over output tax payable.
Power to withheld refunds.
Enforcement Activities:
Inspections
Mobile Check-post
Permanent checkpost at Borders.
e-Sugam
e-Suvega
• VAT 100-Box No 10-ineligible Input Credit
• 10.1- Restricted under Section 11
• 10.2-Pre Registration Purchases-Sec 13
• 10.3-Special Rebating Scheme-Sec 14 Read
with 11
• 10.4-Partial Rebating Scheme
• 10.5-Return of the goods purchased
• 10.6-Others, Please Specify
2 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• (a) Input Tax shall not be deducted in calculating the net tax payable, in respect of.-
• 11(1)- Input Tax attributable to exempted goods exempted under section 5, except when they are exported
• 11(2)- Input Tax relatable to Schedule V, other than for (i) Resale, or (ii) manufacture or any other process of other goods for sale;
• 11(3)- Input Tax relatable to Notification by CCT or Govt, subject certain conditions
• 11(4)- Input Tax relatable to Capital Goods other than those falling under clause(2) or (3) except as provided in section 12
3 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• 11(5)- Input Tax attributable to Stock Transfer/Branch transfer/consignment sale, as provided in section 14
• 11(6)- Input Tax relatable naphtha, LPG, Furnace oil, Superior Kerosene Oil, Kerosene and any other petroleum product, when used as fuel in motor vehicle,
• but when used as fuel in production of goods for export/taxable goods or captive power- Input Tax deducted as per section 14
• 11(7)- Input Tax relatable to Tax Paid under section 3(2) on the purchase of fuel
• 11(8)- Input Tax relatable to Tax Paid under section 3(2) on the purchase of goods other than fuel, until output tax is payable on such goods or other goods in which such goods are put to use, except when they are exported.
• 11(9) Input tax relatable – who is required to be registered but, has failed to register
4 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• 11(b) IT shall not be deducted by an agent Purchasing or Selling goods on behalf of any other person other than non resident principal.
• (if any one selling/purchasing agents can claim input tax, not both.)
• 11©ITR towards the Sub contractor payment-Sec 11© from 1.4.2006-Introduced in Aug 2008/ 01.04.2012
• (Cannot claim both Input Tax and Sub Contractor Turnover of a particular RA Bill/Tax Invoice)
• ITR towards purchase of consumables, claimed as deduction- Sec 11©(ii)-Ex: Dyeing of Textiles
5 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Fifth Schedule-Input Tax Restricted Goods
• Five Entries
• 1. Motor Vehicles of all kinds…
• 2.Articles of Food & Drink….
• 3.All Electrical & Electronic Goods…except.
• 4.Textiles, Crockery, cutlery, carpets, paintings & artifacts
• 5. Furniture, including slotted angles…Construction materials including bricks, timber, wood ,glass, mirror..etc.,
6 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Tax Paid on purchases as notified by the Govt or Commissioner.
• FD 55 CSL 2005(6) Dt 23.03.2005(2005-2006)
• 1.All Input relating to liquor including beer, fenny, liquer and wine, narcotics, molasses, rectified spirit
• 2.Cement used as input - Pipe & fittings.
• FD 116 CSL 2006(10) Dt 31/03/2006
• 1.All Input relating to liquor including beer, fenny, liquer and wine, narcotics, molasses, rectified spirit
• 2.Cement used as input - Pipe & fittings
• 3.Naphtha used as a raw material in the manufacture of other goods.
• FD 373 CSL 06 Dt 15/12/2006
• Furnace oil used as fuel in captive power generation and for other purpose by a dealer engaged in the mfr of chemical fertilizers.
• FD 141 CSL 07(2) Dt 30/03/2007
• and wine, narcotics, molasses, rectified spirit, substituted wine and narcotics
7 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• FD 141 CSL 07(1), Dt 30/03/2007(2007-2008)
• 1. Cement as input- relating to Cement Bricks
• 2. All goods-used as inputs- relating to molasses other than molasses used for resale
• 3. All goods-used as inputs- relating to denatured anhydrous alcohol, other than used for resale
• 4. All goods-used as inputs- relating to denatured spirit, other than used for resale [omitted w.e.f 01.04.2008 : FD 507 CSL 2007(VI) dt 25/03/2008]
• 5. All goods-used as inputs- relating to ethyl alcohol, other than used for resale
• 6.All goods-used as inputs- relating to rectified spirit, other than used for resale
8 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Section 12-Deduction of Input Tax..
• Subject to the restrictions in Section 11
• For Mfr and sale of taxable goods/ for export
• Is allowed, if the goods are purchased on or after the commencement of Act
• Is allowed, if the goods are purchased and used after the commencement of commercial production
• So if it is held in stock, without commercial production ?
9 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Section 13
• Subject to the restrictions in Section 11
• Goods purchased with in three months prior to
registration-Input Tax is allowed, if the goods
are in stock
• If they are sold/ or disposed otherwise before
registration, the Input tax is not allowed to that
extent
10 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Section 14- Deduction of Input Tax
• Towards goods specified in 11(a)(5) &(6), to
the extent of the Input tax charged at a rate
higher than four percent or any lower rate as
may be notified by the Government
• FD 115 CSL 2007(11) Dt 30/03/2007
• Input tax charged at a rate higher than three
percent
11 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Section 15 (4)/ Rules 135/141
• In case of a composite dealers, No Input tax is
allowed
12 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Section 17- Rules 131
• Subject to Section 11 and 5
• When the goods purchased are not identifiable to Stock Transfer/Consignment- if One to One relation is absent
• Goods purchased- put use for any other purpose(other than sale, manufacturing, processing, packing or sorting of goods), in addition to use in the course of his business
• Purchase of any petroleum product for use as fuel in production of any goods or captive power
13 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• In accordance with rules or special method- approved by the commissioner,
• Special formula, if the formula does not fit
“Sale of Taxable Goods”: would be the aggregate of: Rule 3(1) (b)- Local sale turnover, ©, works contract TO, (d) Right To use TO
(e) hire purchase TO (f) CST sale/Export/Import TO,
(a)URD Purchase TO- Not included
-Relating to sale of goods and other than those exempt under section 5
“Total sales” : means Total Turnover less: Rule 3 (1)(a)- URD Purchase TO ,Rule 3(2)(e)- Sales/purchase returns, CST Subsequent sale TO,
Penultimate Purchase TO for export, Import Turnover
14 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Section 19- After deduction of Input Tax
• Prevent misuse of the benefit of input tax
deduction
• After deducting, the goods are not used in the
course of business,-Self consumption, lost,
destroyed.
• Applies to capital goods misuse also
• Repay the deducted input tax- on the market
value of the goods.
15 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Computer Work Stations
• Own Consumption
• Disposed other than by way of sales
• Related to warranty sales
• Purchase of Advertisement Materials
• Purchase of Sales Promotion Materials
• Claim of Insurance- when goods are destroyed
• Inputs used in power generation
• Return of goods
16 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Goods Purchased for own consumption
• Goods Purchased & disposed other than by
way of sale
• Goods Purchased and not used in
manufacture/processing
17 Input Tax Restrictions Under KVAT Act 2003 9/1/2014
• Performance always comes from
passion and not from
pressure…..Always be passionate…..
• Love what you do and do what you
love…..
• Success is yours……..
Input Tax Restrictions Under KVAT Act 2003 18 9/1/2014
19
“Taxes shall be collected like honey bee collects honey from a flower”- Chanakya
Input Tax Restrictions Under KVAT Act 2003 9/1/2014
OUTPUT TAX, INPUT TAX AND NET TAX
(1) Output tax is relation to any registered dealer means the tax
payable under the Act in respect of taxable sales of goods made by
the dealer in the course of his business and includes tax payable
by a commission agent in respect of taxable sales of goods made on
behalf of such dealers subject to issue of a prescribed declaration
by such agent.
(2) Subject to input tax restriction specified in section 11,12, 14, 17
and 18 input tax in relation to any registered dealer means the tax
collected or payable under the Act on the sale to him of any goods
for use in the course of his business and includes the tax on the
sale of goods to his agent who purchases such goods on his behalf
subject to the manner as may be prescribed to claim input tax in
such cases.
(3) The net tax payable by a registered dealer in respect of each tax
period shall be the amount of output tax payable by him in that
period less the input tax deductible.
(4) No deduction of input tax shall be made unless a tax invoice debit
note on credit note in relation to a sale has been issued. Where
input tax exceeds the output tax, the excess amount shall be
adjusted or refunded.
RESTRICTIONS ON INPUT TAX REBATE:
(1) The entire amount of tax paid by a dealer under the Act has not
qualify for input tax rebate/ deduction from the output tax lent
governed by Sec. 11,12,13, 14, 17, 18, 19 and 20 of the Act. A
dealer has to claim input tax rebate in the return on revised return
within six months.
Sec.11 Input tax shall not be deducted in calculating the net tax
payable, in respect of
(i) Tax paid on purchases attributable to sale of exempted
goods exempted under Sec.5, except when such goods are
sold in the course of export.
Ex: Goods purchased for use in manufacturing of first
schedule goods.
(ii) Tax paid on purchase of goods specified in Fifth schedule put
to use for purposes other than resale or manufacture or any
other process of other goods for sale. Stock transfer, sent for
commission, exhibition cum sale outside the state, job work/
conversion
(iii) Tax paid on purchase of goods as may be notified by the
Government or commissioner. For Ex. Notification for inputs
relating to liquor, rectified spirit etc., cement used in pipes
and fittings. Naphtha used as raw material in manufacturing
of other goods.
(iv) Tax paid on capital goods other than those falling under
clause (2) and (3) except as provided under Sec.12. Input tax
paid on capital goods other than those mentioned in fifth
schedule qualify for deduction subject to Sec. 12 and Rule
133.
(a) A dealer carrying on business in goods generally exempt
not eligible to claim input tax except when exported.
(b) Input tax deduction allowable only after commencement of
commercial production in case of manufacturer and in
other cases on commencement of sale of taxable goods or
on sale of goods taxable or exempt in the course of export.
(c) In respect of eligible capital goods where input tax is
claimed, when sold within 3 years from the date of
claiming deduction, dealer cannot claim input tax credit.
However purchasing dealer can claim to the extent of tax
paid.
(5) Tax paid on purchase of goods that are dispatched outside the
state or used as inputs in the manufacturing, processing or
packing of other taxable goods despatched to a place outside the
state other than as a result of sale or purchase in the course of
interstate trade except as provided u/s.14. Input tax deduction
can be claimed on tax exceeding the rate under CST Act i.e. 2%.
Full input tax allowable on goods sent for manufacturing or
processing and brought to the state for sale or export.
(6) Tax paid on Naphtha, LPG, Furnace oil, Superior Kerosene oil,
Kerosene and any other petroleum product when used as fuel in
motor vehicles but when used as fuel in production of any goods for
sale in the course of export or taxable goods or captive power, input
tax shall be deducted as per sec.14.
(7) Tax paid u/s.3 (2) on the purchase of fuel.
(8) Tax paid u/s.3 (2) on the purchase of goods excluding fuel until
output tax is payable on such goods.
(9) Tax paid on purchase of goods by a dealer required to be registered
but has failed to register.
(10) Input tax shall not be deducted by an agent purchasing or
selling goods on behalf of any other person other than a non-
resident principal.
(11) Input tax shall not be deducted by any dealer executing
works contract
(i) In respect of amount paid or payable to any sub-contractor
that is claimed as deduction and amount actually expended
towards labour and other like charges i.e. claimed as
deductions.
Input tax shall not be deducted by a works contractor who is
claiming deductions on any amount paid or payable to any
sub contractors for execution of works. The principal
contractor who claims deductions of input tax paid to a sub-
contractor in determining the net tax liability is not entitled
to claim deduction of amount paid to sub-contractor.
(12) Sec.12: Input tax in respect of capital goods- by a dealer
dealing only in taxable goods, (b) dealing in exempted and also
taxable goods etc. as per Rule 131.
(ii) A dealer whose taxable turnover is less than prescribed in
Sec.22 (5 lakhs) is not eligible for the benefit of tax
deduction on capital goods. A dealer selling capital goods
within 3 years shall pay tax on sale consideration but not
eligible for input credit. A dealer stock transfer or despatches
for commission sales within 3 years, such dealer liable to pay
output tax on the prevailing market price of capital goods.
(13) Pre-Registration purchases – Input tax shall be allowed to a
dealer on tax charged by a seller on purchases effected within 3
months prior to the date of his registration but no input tax on the
goods sold or disposed prior to the date of registration.
(14) Special rebating scheme:- Input tax purchases of goods specified
in Sec. 11 (5) and 11(6) to the extent of tax charged at rate higher
than 2% or any lower rate as may be notified. (CST rate of tax as
per provisions of Sec.8(1) of CST Act).
(15) Sec.17- Partial rebating:- A dealer in taxable goods, exempt
goods, dealer despatching goods outside the state not as a result
of sale, puts to use input purchased for the purposes other than
sale or manufacture or processing, purchases petroleum products
for use as fuel in production of captive power or goods,
apportionment of input tax deductible shall be made in
accordance with the rule 131 (3) to arrive at non-deductible
input tax.
(16) Non-identifiable input tax on purchase of taxable goods for resale,
manufacture or processing goods for sale which cannot be
identified as relatable to transactions of sale, stock transfer /
consignment transfer, exempted goods etc., commissioner can
also specify a special formula for computing non-deductible input
tax.
(17) Sec.19 change in use after deduction of input tax:
Where a registered dealer has deducted any input tax on any
goods and those goods are not used in the course of his business
or lost or destroyed, any input tax deducted shall become
repayable in the period following which those goods were put such
other use.
Input tax payable shall be calculated on the prevailing market
value at the time of change of use.
Where a dealer after deducting input tax opts for composition of tax
u/s.15, the input tax deducted on the goods held in the stock shall
be repayable.
(18) Deduction of input tax on exports and interstate sales (and to
special economic zone units and developers) tax paid under the
act on purchase of input tax in respect of any goods sold in the
course of export or in the course of interstate trade shall be
deducted as per sec.10. Further, tax paid under the Act on
purchase of inputs by a registered dealer who is a developer of any
SEZ or a unit located in SEZ shall be refunded or deducted out of
output tax payable.
PAYMENT AND RECOVERY OF TAX
Every registered dealer shall furnish return and pay taxes payable
along with the return.
On application by a0 dealer, the Government or Commissioner may
permit, subject to condition prescribed, payment of tax or any other
amount due in installment.
Government by Notification defers payment of tax by a new
industrial unit subject to condition that Government has already
notified such deferment under the provisions of KST Act 1957.
Where a dealer has been offered deferment and liability equal to
other amount any such tax has been created as loan by the
Department of Industries and Commerce, then such tax shall be
deemed to have been paid.
Repayment of deferred tax does not attract interest.
Commissioner or Government subject to condition may remit the
whole or any part of the interest payable.
Where the amount paid falls short of aggregate of tax interest
payable, the amount so paid shall be adjusted towards interest
payable and the balance if any towards tax or any other amount
due.
Any amount unpaid under the Act after the due date of payment
shall be recoverable from the dealer
Any tax due under the Act, may without prejudice to any other
mode of collection be recovered:
(a) as if it were an arrears of land revenue
(b) by attachment and sale or by sale without attachment of any
property of such dealer by the prescribed authority, any
certificate issued by prescribed authority shall be deemed to be
decree of civil court and shall be executed in the same manner
as a decree of such court
(c) On application to any Magistrate, by such Magistrate as if it
were a fine imposed by him where
(d) a dealer has applied for appeal or revision, recovery proceedings
should not be taken or continued until the disposal of such
application.
Recovery through receivers – Liquidation proceedings, recovery
from certain other persons.
Section 48:- Tax to be First Charge on properly. The claim of the
State to recover the arrears shall have preference over the other
secured creditors except the claims of Central Government and
State Financial Corporation.
Recovery action cannot be initiated after expiry of 12 years from the
date on which amount due is finally determined.