LexThe Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001
Andhra Pradesh · state statute
Open in Lexace · Ask the AI about this act1
THE ANDHRA PRADESH TAX ON ENTRY OF
GOODS INTO LOCAL AREAS ACT, 2001
(ACT NO. 39 OF 2001)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement
CHAPTER – I
2. Definitions
CHAPTER – II
LEVY OF TAX
3. Levy and collection of tax
CHAPTER – III
OFFENCES AND PENALTIES
4. Offences and Penalties
5. Cognizance of trial of offence
CHAPTER – IV
6. Tax Authorities, Returns, Assessments, Payments, Recovery and Refund
of Tax, Appeals, Review and Revisions
7. Power to remove difficulties
8. Protection of Acts done in good faith
9. Burden of proof
10. Power to make rules
11. Repeal of Ordinance 1 of 2001
2
THE ANDHRA PRADESH TAX ON ENTRY OF
GOODS INTO LOCAL AREAS ACT, 2001
(ACT NO. 39 OF 2001)
[16th October, 2001]
AN ACT TO PROVIDE FOR THE LEVY AND COLLECTION OF TAX ON
ENTRY OF CERTAIN GOODS INTO LOCAL AREAS IN THE STATE OF
ANDHRA PRADESH AND FOR THE MATTERS CONNECTED THEREWITH
OR INCIDENTAL THERETO.
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the fifty-second year of the Republic of India as follows :—
1. Short title, extent and commencement - (1) This Act may be called the
Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001.
(2) It extends to the whole of the State of Andhra Pradesh.
(3) It shall be deemed to have come into force on and from the 2nd May,
2001.
CHAPTER – I
2. Definitions - (1) In this Act, unless the context otherwise requires,—
(a) ‘assessing authority’ means,—
(i) in the case of an importer, who is a dealer, the assessing authority
shall be authority as specified under the Andhra Pradesh General
Sales Tax Act, 1957 (Act. No. VI of 1957);
(ii) in the case of an importer, other than a dealer, the office - in-
charge of the Check post, through which the goods are brought into
the State or the Commercial Tax Officer having jurisdiction over the
area, in which such importer ordinarily resides;
(b) ‘Dealer’ shall have the meaning assigned to it under the Andhra
Pradesh General Sales Tax Act, 1957;
(c) ‘Goods’ means all kinds of movable property other than actionable
claims, stocks, shares and securities, and includes all materials,
articles, petroleum products and commodities including the goods as
goods or in some other form, involved in the execution of works contract
or those goods used or to be used in the construction, fitting out,
improvement or repair of movable or immovable property and also
includes all growing crops, grass and things attached to or forming part
of the land which are agreed to be served before sale or under the
contract of sale;
(d) ‘Goods vehicle’ means any motor vehicle constructed or adapted for
the carriage of goods or any other motor vehicle not so constructed or
adapted when used for the carriage of goods solely or in addition to
passengers;
(e) ‘Entry of goods into a local area’ with all its grammatical variations
and cognate expressions, means entry of goods into a local area from
any place outside the State for consumption, use or sale therein;
3
(f) ‘General Sales Tax Act’ means the Andhra Pradesh General Sales Tax
Act, 1957 (Act. No. VI of 1957);
(g) ‘Government’ means the State Government of Andhra Pradesh;
(h) ‘Importer’ means person who brings or causes to be brought goods
whether on his own account or on account of a Principal or any other
person, into a local ar ea, from any place outside the State for
consumption, use or sale therein or who owns the goods at the time of
entry into the local area;
(i) ‘Local area’ means the area of jurisdiction of a local authority;
(j) ‘ Local authority ’ means the area within the limits of, a city as
declared under the Hyderabad Municipal Corporation s Act, 1955 (Act II
of 1956), or the Visakhapatnam Municipal Corporation Act, 1979 (Act
19 of 1979), or the Vijayawada Municipal Corporation Act, 1981 (Act 23
of 1981) or any other Municipal Corporation in the State, as in force or
a Municipality as constituted or deemed to have been constituted under
the Andhra Pradesh Municipalities Act, 1965, (Act. No. VI of 1965 ) or
any notified area, as declared under section 389 -A of the Andhra
Pradesh Municipalities Act, 1965 or the area within the limits of Gram
Panchayats, under the Andhra Pradesh Panchayat Raj Act, 1994, (A.P.
Act. No. 13 of 1994) or a C ontonment Board constitut ed under
Contonments Act, 1924 (Central Act. 2 of 1924).
(k) ‘Notification’ means a notification published in the Andhra Pradesh
Gazette;
(l) ‘Person’ includes any company or association or body of individuals
whether incorporated or not, a firm, a local authority, a Hindu
undivided family, society, club, an indiv idual, the Central Government
or the Government of any other State or Union Territory;
(m) ‘Prescribed’ means prescribed by rules made under this Act;
(n) ‘Value of the goods’ shall mean the purchase value of such goods,
that is to say, the purchase pri ce at which a person has purchased the
goods inclusive of charges borne by him as cost of transportation,
packing, forwarding and handling charges, commission, insurances,
taxes, duties and the like, or if such goods are not purchased by him
the value of g oods as recorded in the documents or the prevailing fair
market price of such goods in the local area as determined by the
assessing authority in the absence of any documents;
(o) ‘State’ means the State Government of Andhra Pradesh;
(p) ‘Tax’ means tax payable under this Act.
(2) Words and expressions used but not defined in this Act and defined in
the Andhra Pradesh General Sales Tax Act, 1957 (Act VI of 1957) shall have the
meanings respectively assigned to them under that Act.
4
CHAPTER – II
LEVY OF TAX
3. Levy and collection of tax - (1) (a) There shall be levied and collected a tax
on the entry of the notified goods into any local area for sale, consumption or
use therein. The goods and the rates at which, the same shall be subjected to
tax shall be notified by the Government. The tax shall be on the value of the
goods as defined in clause (n) of sub -section (1) of section 2 and different rates
may be prescribed for different goods or dif ferent classes of goods or different
categories of persons in the local area;
(b) The tax shall be payable by the importer in such manner and within
such time as may be prescribed;
(c) The rate of tax to be notified by the Government in respect of any
commodity shall not exceed the rate specified for that commodity under
the Andhra Pradesh General Sales Tax Act , 1957 (Act. No. VI of 1957)
or the notifications issued thereunder.
Provided that the tax payable by the importer under this Act shall be
reduced by the amount of tax paid, if any, under the law relating to
General Sales Tax in force in the Union Territory or State, in which the
goods are purchased.
(2) Notwithstanding anything contained in sub -section (1), no tax shall
be levied on the noti fied goods imported by a dealer registered under the
Andhra Pradesh General Sales Tax Act , 1957 who brings such goods into any
local area for the purpose of resale in the State of Andhra Pradesh or during
the course of inter-State trade or commerce :
Provided that if any such dealer, after importing the notified goods for the
purpose of resale, consumes such goods in any form or deals with such goods
in any other manner except reselling the same , he shall forthwith notify the
assessing authority by the 20th of the month succeeding the month in which
such goods are so consumed or dealt with and pay the tax, which would have
been otherwise leviable under sub-section (1), along with interest for the period
of delay at the rate of 18% per annum compounded quarterly.
(3) If any dealer having imported the notified goods for the ostensible
purpose of resale deals with such goods in any other manner or consumes the
same and does not notify to the assessing authority as provided in sub -section
(2) or does not pay the tax as required under sub -section (2) within the
specified period, the assessing authority shall assess the amount of tax which
such dealer is liable to pay and levy penalty equal to the amount of tax due,
apart from collecting interest from th e date of entry of the goods into the local
area.
CHAPTER - III
OFFENCES AND PENALTIES
4. Offences and Penalties – Offences - (1) Any person, who,
(a) fails to pay, within the time allowed any tax assessed or any penalty
imposed on him under this Act; or
(b) wilfully acts in contravention of the provisions of this Act , or the
rules made thereunder, shall, on conviction, be liable to be punished
with fine which may extend to two thousand rupees.
5
(2) Any person, who, –
(a) Wilfully submits an untrue return or fails to submit a return as
required by the provisions of this Act or the rules made thereunder; or
(b) fraudulently evades the payment of any tax, and other amount due
from him under this Act, shall on conviction, be liable to be punished, if
it is a first offence, with fine which may extend to two thousand rupees,
and if it is a second or subsequent offence, with simple imprisonment
which may extend to six months or with fine which may extend to five
thousand rupees or with both.
(3) Any person who makes any statement or declaration in any of the
records or documents, which statement or declaration he knows or has reason
to believe to be false shall, on conviction, be liable to be punished with simple
imprisonment, which may extend six months or with fine which may extend to
two thousand rupees or with both. Any person, who is in any way knowingly
concerned in any frauduelent evasion or attempt at evasion or abatement of
evasion of any tax payable under this Act, shall, on convictio n, be liable to be
punished with simple imprisonment which may extend to six months or with
fine which may extend to two thousand rupees or with both.
5. Cognizance of trial of offence - (1) No Court other than the Court of a
Magistrate of the First Cla ss shall take cognizance of, or try, an offence under
this Act.
(2) No prosecution for an offence under sub -section (2) of section 4 shall
be instituted except with the written consent of the Deputy Commissioner,
having jurisdiction over the local area.
CHAPTER – IV
TAX AUTHORITIES, RETURNS, ASSESSMENTS,
PAYMENTS, RECOVERY AND REFUND OF TAX, APPEALS,
REVIEW AND REVISIONS
6. Tax Authorities, Returns, Assessments, Payments, Recovery and
Refund of Tax, Appeals, Review and Revisions - (1) Subject to the other
provisions of this Act and the rules made thereunder, the authorities for the
time bei ng empowered to assess, reasons , inspect, search, seize , confiscate,
collect and enforce payment of any tax under the Andhra Pradesh General
Sales Tax Act, 1957 shall assess, re -assess, inspect, search, seize, confiscate,
collect and enforce payment of tax, including any interest or pena lty, payable
by a dealer or an importer under this Act as if the tax or interest or penalty by
such a dealer or importer under this Act is a tax or interest or penalty payable
under the General Sales Tax Act, and for this purpose they may exercise all o r
any of the powers they have under the General Sales Tax Act, and the
provisions of General Sales Tax Act, including provisions relating to returns,
provisional assessment, advance payment of tax, imposition of the tax liability
of a person carrying on b usiness on the transferee of, or successor to such
business, transfer of liability of any firm or Hindu undivided family to pay tax
in the event of the dissolution of such firm or partition of such family, recovery
of tax from third parties, appeals, revie ws, revisions, references, refunds,
rebates, penalties, charging or payment of interest, inspection of the premises
of transporters, goods, vehicles, business premises, search of the residential
accommodation, seizure and confiscation of unaccounted for go ods, seizure of
documents, compounding of offences and treatment of documents furnished by
a dealer as confidential, shall apply accordingly.
6
(2) All the provisions relating to offences, interest and penalties including
provisions relating to penaltie s in lieu of prosecution for an offence or in
addition to the penalties or punishment for an offence of the General Sales Tax
Act, shall, with necessary modifications, apply in relation to the assessment,
re-assessment, determination of the value or the fair market price of goods,
collection and the enforcement of payment of any tax required to be collected
under this Act, or in relation to a process connected with such assessment, re-
assessment, collection or enforcement of payment as if the tax under this Act
were a tax under the General Sales Tax Act.
7. Power to remove difficulties - If any doubt or difficulty arises in giving
effect to the provisions of this Act, the Government may by order, make such
provisions or give such directions not inconsistent with the provisions of this
Act as may appear to it to be necessary or expedient for removal of doubt or
difficulty.
8. Protection of Acts done in good faith - (1) No suit, prosecution or other
legal proceeding shall lie against any officer or servant of the Government for
any act done or purporting to be done under this Act without the previous
sanction of the Government, and no such suit, prosecution or other proceeding
shall be instituted after the expiry of six months from the date of the act
complained of.
(2) No officer or servant of the Government shall be liable in respect of
any such act in any civil or criminal proceeding if the act was done in good
faith, in the course of the execution of duties imposed on him or the discharge
of functions entrusted to him by or under this Act.
9. Burden of proof - (1) For the purposes of assessment of tax under this Act,
the burden of proof that goods brought into or caused to be brought into a local
area are not liable to tax under this Act, shall be on such importer.
(2) Where an importer issues or produces a false bill or purchase or sale
voucher, declaration, certificate or other document with a view to support or
make any claim that he is not liable to be taxed under this Act, the assessing
authority shall on detecting such issue or production, direct t he importer to
pay as penalty,-
(i) in the case of first detection, an amount equal to the amount of tax
levied or leviable in respect of such goods; and
(ii) in the case of second and subsequent detection, three times the tax
levied or leviable in respect of such goods;
Provided that an opportunity of being heard sh all be afforded to the
importer before issuing any direction for the payment of penalty under
this Section.
10. Power to make rules - (1) The Government may, by notification, make
rules, to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, such rules may provide for the following matters, namely:-
(a) the duties and powers of officers appointed for the purpose of
enforcing the provisions of this Act;
(b) al l matters expressly required or allowed by this Act, to be
prescribed;
(c) generally regulating the procedure to be followed and the forms to be
adopted in the proceedings under this Act;
7
(d) any other matter including levy of fees for which there is no specific
provision in this Act, and for which provision is, in the opinion of the
Government, necessary for giving effect to the purposes of this Act; and
(e) the procedure for any other matter incidental to the disposal of
appeal and the value of Court Fee Stamp which a Memorandum of
Appeal or Revision should bear.
(3) Every rule made under this section shall immediately after it is made,
be laid before the Legislative Assembly of the State if it is in session and if it is
not in session, in the session immediately following for a total period of
fourteen days which may be comprised in one session, or in two successive
sessions and if before the expiration of the session in which it is so laid or the
session immediately following the Legislative Assembly agrees in making any
modification in the rule or in the annulme nt of the rule, the rule shall from the
date on which the modification or annulment is notified have effect only in
such modified form or shall stand annulled as the case may be, so however ,
that any such modification or annulment shall be without prejudic e to the
validity of anything previously done under that rule.
11. Repeal of Ordinance 2001 - The Andhra Pradesh Tax on Entry of G oods
into Local Areas Ordinance, 2001 is hereby repealed.
G. TRINADHA RAO,
Secretary to Government,
Legislative Affairs and Justice (I/c),
Law Department.