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THE CHHATTISGARH VALUE ADDED SALES TAX ACT, 2003

THE CHHATTISGARH VALUE ADDED SALES TAX ACT, 2003

PREAMBLE

An Act to levy tax on Sales and Purchases of goods in the State of Chhattisgarh

Be it enacted by the Chhattisgarh Legislature in the fifty fourth year of the Republic of India as follows:

Chapter I - PRELIMINARY

THE CHHATTISGARH VALUE ADDED SALES TAX ACT, 2003

PREAMBLE

An Act to levy tax on Sales and Purchases of goods in the State of Chhattisgarh

Be it enacted by the Chhattisgarh Legislature in the fifty fourth year of the Republic of India as follows:

Section 1 - Short Title, Extent and Commencement

(1) This Act may be called the Chhattisgarh Value Added Sales Tax Act, 2003.

(2) It extends to the whole of Chhattisgarh.

(3) It shall come in to force on such date as the State Government may, by notification, appoint.

Section 2 - Definitions

In this Act, unless there is anything repugnant in the subject of context-

(a) “Appellate Deputy Commissioner” means an Appellate Deputy Commissioner of Sales Tax appointed under section 3 and includes an Additional Appellate Deputy Commissioner of Sales Tax;

(b) ”Assistant Commissioner” means an Assistant Commissioner of Sales Tax appointed under section 3 and includes an Additional Assistant Commissioner of Sales Tax;

(d) “Business “ includes,-

(i) any trade, commerce, manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern and irrespective of the volume, frequency, continuity or regularity of such trade, commerce, manufacture, adventure or concern; and

(ii) Any transaction of sale or purchase of goods in connection with or incidental or ancillary to the trade, commerce, manufacture, adventure or concern referred to in clause (i), that is to say–

(a) Goods whether or not they are in their original form or in the form of second hand goods, unserviceable goods, obsolete or discarded goods, mere scrap or waste material; and

(b) goods which are obtained as waste products or by-products in the course of manufacture or processing of other goods or mining or generation of or distribution of electrical energy or any other form of power;

(e) "Capital Goods" Means plants, machinery and equipment directly used in the process of manufacture excluding such civil works as may be prescribed;

(f) “Commissioner” means the Commissioner of Sales Tax appointed under section 3;

(g) “Dealer” means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment or for commission, remuneration or other valuable consideration and includes–

(i) a local authority, a company, an undivided Hindu family or any society (including a co-operative society), club, firm or association which carries on such business;

(ii) A society (including a co-operative society), club, firm or association, which buys goods from, or sells, supplies or distributes goods to its members;

(iii) a commission agent, broker, a del-credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of the principal;

(iv) Any person who transfers the right to use any goods including leasing thereof for any purpose, (whether or not for a specified period) in the course of business to any other person;

Explanation I- Every person who acts as an agent of a non-resident dealer, that is as an agent on behalf of a dealer residing outside the State and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as-

(i) a mercantile agent as defined in the Sale of Goods Act, 1930 (III of 1930); or

(ii) an agent for handling goods or documents of title relating to goods; or

(iii) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment, and every local branch of a firm or company situated outside the State, shall be deemed to be a dealer for the purpose of this Act.

Explanation II- The Central or a State Government or any of their departments or offices which, whether or not in the course of business, buy, sell, supply or distribute goods, directly or otherwise, for cash or for deferred payment, or for commission, remuneration or for other valuable consideration, shall be deemed to be a dealer for the purpose of this Act.

Explanation III- Any non-trading, commercial or financial establishment including a bank, an insurance company, a transport company and the like which whether or not in the course of business buys, sells, supplies or distributes goods, directly or otherwise, for cash or for deferred payment, commission, remuneration or for other valuable consideration, shall be deemed to be a dealer for the purposes of this Act:

(h) The expression “declared goods” shall have the meaning assigned to it in the Central Sales Tax Act, 1956 (No. 74 of 1956);

(i) “Deputy Commissioner” means a Deputy Commissioner of Sales Tax appointed under section 3 and includes an Additional Deputy Commissioner of Sales Tax;

(j) “Document” means title deeds, writings or inscriptions and includes "electronic record" and "electronic form" as defined in the Information Technology Act, 2000 (No. 21 of 2000) and the like that furnishes evidence;

(k) “Goods” means all kinds of movable property including computer software but excluding actionable claims, newspapers, stocks, shares, securities or Government stamps and includes all materials, articles and commodities, whether or not to be used in the construction, fitting out, improvement or repair of movable or immovable property, and also includes all growing crops, grass, trees, plants and things attached to, or forming part of the land which are agreed to be severed before the sale or under the contract of sale;

(l) "Import" means the bringing or causing to be brought of goods in to the State of Chhattisgarh from any place outside the State;

(m) “Input tax” means an amount paid or payable by way of tax under clause (i) of section 8 by a registered dealer in respect of the purchase of any goods specified in schedule II, to a selling registered dealer and who is liable to pay tax under the said clause on the sale of such goods;:

(n) “Manufacture” includes any activity that brings out a change in an article or articles as a result of some process, treatment, labour and results in transformation into a new and different article so understood in commercial parlance having a distinct name, character use, but does not include such activity of manufacture as may be notified;.

(o) “Place of business” means any place where a dealer purchases or sells any goods or stores goods or keeps documents or accounts of his purchases or sales or both and also includes-

(i) the place of business of an agent where a dealer carries on business through an agent;

(ii) any place or building whether any business is carried on therein or not, in which the person carrying on the business, keeps any of his books of accounts, documents, stocks or other things, relating to his business;

(o) “ Prescribed” means prescribed by rules made under this Act;

(q) “Purchase price” shall comprise of -

(i) the amount payable by a dealer as valuable consideration for the purchase of goods‘ simplicit or;

Provided that where goods are purchased together with the packing material or container, then notwithstanding anything contained in this Act, the purchase price of such goods shall be inclusive of the price or cost or value of such packing material or container, whether such price or cost or value is paid separately or not as if such packing material or container were the goods purchased;

(ii) transport costs, if any;

(iii) trade commission, if any, by whatever name called;

(iv) forwarding and handling charges, if any;

(v) insurance charges, if any;

(vi) local taxes, if any;

(vii) excise duty, if any, leviable under the Central Excise Act, 1944 (No. 1 of 1944);

(viii) cost of packing, if any; and

(ix) any other charges or costs other than those specified above, if incurred or paid in respect of goods so purchased;

Explanation- For the purpose of this clause “transport cost” includes such expenses as are incurred by the dealer on transportation of goods after taking delivery from the seller;

(r) “Registered dealer” means a dealer registered under this Act;

(s) “Sale” with all its grammatical variations and cognate expressions means any transfer of property in goods for cash or deferred payment or for other valuable consideration and includes -

(i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;

(ii) a transfer of property in goods whether as goods or in some other form, involved in the execution of works contract;

(iii) a delivery of goods on hire purchase or any system of payment by installments;

(iv) a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;

(v) a supply, by way of or as part of any service or in any other manner whatsoever, of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration;

(vi) a transfer of the right to use any goods including leasing thereof for any purpose (whether or not for a specified period) for cash deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and purchase of those goods by the person to whom such transfer, delivery or supply is made, but does not include a mortgage, hypothecation, charge or pledge;

Explanation- (a) Notwithstanding anything contained in the Sale of Goods Act, 1930 (III of 1930), where a sale or purchase of goods takes place in pursuance of a contract of sale, such sale or purchase shall be deemed for the purposes of this Act to have taken place in the State of Chhattisgarh irrespective of the place where the contract of sale or purchase might have been made, if the goods are within the State -

(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; and

(b) Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of clause (a) shall apply as if there were separate contracts in respect of the goods at each of such places;

(t) ‘Sale price’ means the amount or any other consideration payable to a dealer as valuable consideration for the sale of any goods less any sum allowed as cash discount according to ordinary trade practice but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof other than the cost of freight or delivery or the cost of installation when such cost is separately charged.

Explanation-(i) Where goods are sold on hire purchase or any system of payment by installments, the sale price of such goods shall be exclusive of insurance charges, interest and hire charges and such other charges as may be prescribed.

(ii) Where goods are sold by way of transfer of right to use such goods, the sale price thereof shall be the amount of valuable consideration received or receivable by the transferor for such transfer;

(u) “Sales Tax Officer” means a sales officer appointed under section 3 and includes an additional Sales Tax Officer.

(v) ‘Tax’ means the tax payable under this Act;

(w) “Taxable turnover” in relation to a dealer for any period means that part of dealer’s turnover which remains after deduction therefrom--

(1) the sale price of goods declared tax free under section 15;

(2) in respect of goods on which tax is payable under clause (i) of section 8;-

(i) the sale price of goods in relation to which deduction is provided under the Act,

(ii) the amount arrived at by applying the following formula:-

(rate of tax under section 8(i) X Aggregate of sale prices)

(100 + rate of tax under section 8(i))

(3) in respect of goods on which tax is payable under clause (ii) of section 8:--

(i) the sale price of such goods which are in the nature of tax paid goods in the hands of such dealer:

(ii) the sale price of goods in relation to which deduction is provided under the Act,

(iii) the amount arrived at by applying the following formula,-

(rate of tax under section 8(ii) X aggregate of sale prices arrived at after allowing deduction under paragraph (ii) of sub-clause (2))

(100 + rate of tax under section 8(ii))

Provided that:-

(a) no deduction on the basis of the above formula under paragraph (ii) of sub-clause (2) or paragraph (iii) of sub-clause (3) shall be made if the amount of tax under clause (i) or clause (ii) of section 8 collected by a registered dealer in accordance with the provisions of the Act, has been otherwise deducted from the aggregate of sale prices;

(b) where the turnover of a dealer is taxable under clause (i) or clause (ii) of section 8 at different rates, the formula under paragraph (ii) of sub-clause (2) or paragraph (iii) of sub-clause (3) shall be applied separately in respect of such part of the turnover liable to a different rate of tax.

Explanation- For the purpose of levy of tax under clause (i) and tax under clause (ii) of section 8 the taxable turnover shall be determined separately.

(x) “Tax paid goods” in relation to goods specified in parts III and IV of schedule II on which tax is payable under clause (ii) of section 8, means any such goods which have been purchased by a dealer from a registered dealer inside the State of Chhattisgarh within the meaning of section 4 of the Central Sales Tax Act, 1956 (No. 74 of 1956);

(y) ‘Turnover’ in relation to any period means the aggregate of the amount of sale prices received and receivable by a dealer in respect of any sale or supply or distribution of goods made during that period, whether or not the whole or any portion of such turnover is liable to tax but after deducting the amount, if any, refunded by the dealer to a purchaser, in respect of any goods purchased and returned by the purchaser within six months from the date of such sale:

Provided that–

(i) in the case of sale by bonafide agriculturist as defined in clause (e) of sub-section (1) of section 2 of the Chhattisgarh Land Revenue Code, 1959 (No. 20 of 1959), of ghee produced by himself; or

(ii) in case of sale by a person of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, when such produce is sold in the form in which it was produced, without being subjected to any physical, chemical or other process for being made fit for consumption save mere dehusking, cleaning, grading or sorting, the amount of consideration relating to such sales, shall be excluded from his turnover;

(z) ‘Value added sales Tax’ means a tax on sale or purchase of goods payable under this Act.

(a-1) ‘Year’ means the twelve months ending on the 31st day of March.

Chapter II - TAXING AUTHORITIES