The Haryana Value Added Tax, 2003

Regd. No. PB/0176/2003
:Haryana autiernmEntGamine
EXTRAORDINARY
Published by Authority
C Govt. of Haryana -
CHANDIGARH, FRIDAY, MARCH 28, 2003
(CHA1TRA 7, 1925 SAKA)
Legislative Supplement
Contents
PART -I Acts
1. The Haryana Value Added Tax Act, 2003.
(Haryana Act No. 6 of 2003)
(Only in English)
PART -II Ordinances
Nil
PART -III Delegated Legislation
1. Notification No. S. 0. 37 /P.A.1/1914 /S. 56/2003,
dated the 28th March, 2003, Exemption from
Haryana Excise Duty to the Indian Made Foreign
Liquor
2. Notification No. S. O. 38/P. A. I/1914/Ss. 20 and
26/2003, dated the 28th March, 2003, Notification
under Sub -section (3) of Section 20 and Clause(5)
of the Punjab Excise Act, 1914
Price : Rs. 5.00 (xxix)
Pages
69 -1 33
209-210
211-214

(xxx) HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003
(CHTR. 7, 1925 SAKA)
3. Notification No. S. O. 39/P. A. 1/1914/S. 57-A/2003
dated the 28th March, 2003, Notification under Sub-
section (1) of Section 57-A of the Punjab Excise Act,
1914 215-216
(Authorised English Translation)
PART -IV Correction Slips, Republications and Substitution
Nil

HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 69
(CHIR. 7, 1925 SAKA)
PART I
LEGISLATIVE DEPARTMENT
Notification
The 28th March, 2003
No. Leg. 7/2003.—The following Act of the Legislature of the State of
Haryana received the assent of the Governor of Haryana on the 26th March, 2003,
and is hereby published for general information :—
HARYANA ACT NO, 6 OF 2003
THE HARYANA VALUE ADDED TAX ACT, 2003
A N
A CT
to provide for levy and collection of tax on the sale or
purchase of goods in the State of ilaratta and
matters incidental thereto and
connected therewith.
Bi-. it enacted by the Legislature of the State of Haryana in the Fifty-fourth
Year of the Republic of India as follows :— •
Chapter -I
Preliminary
I. (1) This Act may be called the Haryana Value Added Tax Act, 2003.
(2) It extends to the whole of the State of Haryana.
(3) It shall come into force on the appointed day.
2. (1) In this Act, unless the context otherwise requires,- -
(a) "Act of 1973" means the Haryana General Sales Tax Act,
1973 (Act 20 of 1973);
(b) "appellate authority" means an officer referred to in, or
appointed under, clause (a) or clause (b) of sub -section (I) of
section 33 to entertain and decide appeals made under this
Act and includes the Tribunal;
(c) "appointed day" means the 1' day of April, 2003, unless
declared, by notification in the Official Gazette, otherwise by
the State Government;
(d) "assessee" means any person who is required to pay any tax,
interest, penalty, fee or any other sum under this Act or the
rules made thereunder;
(e) "assessing authority" means any person authorised by the State
Government to make any assessment under this Act and to
perform such other duties as may be required, by or under
this Act;
(f) "business" includes --
(I) any trade, commerce or manufacture, or any adventure
or concern in the nature of trade, commerce or
• Short title,
extent and
commencement
Detinittons,

70 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003
(CHTR. 7, 1925 SAKA)
(g)
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
(ii) any transaction, casual or otherwise, in connection
with, or incidental or ancillary to, such trade.
commerce, manufacture or concern.
Explanation.—"Trade" includes trade of goods and
services;
"capital goods" means plant, machinery, dies, tools and
equipment purchased for use in the State in manufacture or
processing of goods for sale or in the telecommunication
network or in mining or in the generation or distribution of
electricity or other form of power. provided such purchase is
capitalised;
(h) "casual trader" means a dealer who imports into and sells
goods in the State for a period not exceeding thirty days at a
time or such other period as may be prescribed;
(i) "Central Act" means the Central Sales Tax Act, 1956 (Act 74
of 1956);
(i) "contractee" means any person for whom or for whose benefit
a works contract is executed;
(k) "contractor" means any person who executes either himself
or through a sub -contractor a works contract;
(I) "date of sale" means a date recorded on an invoice or a delivery
note, as the case may be, issued in accordance with the
provisions of clause (a) of sub -section (2) of section 28;
(m) "dealer" means any person including a department of
Government who carries on, whether regularly or otherwise,
business, directly or otherwise, in the course of. or as a result
of, which, or incidental, ancillary or causal thereto, whether
regularly, casually, occasionally or otherwise, whether for
cash, deferred payment, commission, remuneration or other
valuable consideration, such person purchases, sells, supplies
or distributes any goods in the State, or imports into, or exports
out of, the State, any goods, irrespective of the fact that the
main place of business of such person is outside the State and
where the main place of business of such person is not in the
State, includes the local manager or agent of such person in
the State in respect of such business:

HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 71
(CHTR. 7, 1925 SAKA)
Provided that a person or a member of his family
who sells within the State exclusively the agricultural
produce grown by himself or grown on any land in which
he has an interest whether as owner, usufructuary
mortgagee, tenant or otherwise, shall not be deemed to be
a dealer.
Explanation,—For the purpose of this clause,—
(i) a co-operative society or a club or any association
which carries on business for and on behalf of its
members, is a dealer;
(ii) a factor, a broker, a commission agent, a del credere
agent, a dealer's agent, an auctioneer or any other
mercantile agent by whatever name called and whether
of the same description as hereinbefore mentioned or
not, who carries on any trade as principal, agent or in
any other capacity, is a dealer;
(iii) any person or a body of persons including a department
of Government who disposes of any goods in exercise
of a statutory authority or a court order, or as
unclaimed, confiscated or acquired property, or as
unserviceable, scrap, surplus, old, obsolete or discarded
material or waste products whether by auction or
otherwise, directly or through an agent, for cash or for
deferred payment or for any other valuable
consideration shall, notwithstanding anything
contained in clause (f) of this section or section 3 or
any other provision of this Act, be deemed to be a
dealer liable to pay tax, to the extent of such disposalS,
without prejudice to any liability which may accrue
on account of the other provisions of this Act;
In) "declared goods" shall have the meaning assigned to that
expression in clause (c) of section 2 of the Central Act;
(o) "document" means title deeds, writing or inscription and
includes electronic data, computer programs, computer tapes,
computer discs or equipment and the like that furnishes
evidence;
(p) "exempted goods" means the goods specified in Schedule B;
(q) "export out of State" means transfer of goods by a dealer to
any other place of his business or to his agent or principal,
as the case may be, outside the State otherwise than by reason
of sale of such goods but shall, subject to such restrictions

72 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003
(CHTR. 7, 1925 SAKA)
and conditions as may be prescribed, not include transfer of
goods for a job work where the goods are received back after
the job work;
Explanation.— "Job work" includes assembling, altering.
manufacturing, processing, fabrication, fitting out,
improvement, rectification or repair of any goods.
(r) "goods" means every kind of movable property, tangible or
intangible, other than newspapers, actionable claims, money,
stocks and shares or securities but includes growing crops,
grass. trees and things attached to or forming part of the land
which are agreed to be severed before sale or under the contract
of sale;
(s) "goods carrier" includes motor vehicle, vessel, boat, cart, animal
or any other means of conveyance but shall exclude railway
wagon or'coach;
(t) "Government" means the Central or any State Government;
(u) "gross turnover" when used in relation to any dealer means the
aggregate of the sale prices received or receivable in respect
of any goods sold, whether as principal, agent or in any other
capacity, by such dealer and includes the value of goods
exported out of State or disposed of otherwise than by sale;
Explanation.— (i) The aggregate of prices of goods ii'
respectof transactions of forward contracts, in which goods
are actually not delivered, shall not be included in the gross
turnover.
(ii) Any amount received or receivable or paid or
payable on account of variation, escalation or de-escalation
in the price of any goods sold previously to any person but
not exactly determinable at that time, shall, subject to such
conditions and restrictions, as may be prescribed, be included
in, or excluded from, the gross turnover, as the case may be,
in the manner prescribed.
(iii) Any amount collected by the dealer by way of tax
shall not be included in the gross turnover and where no tax
is shown to have been charged separately, it shall be excluded
from the taxable turnover (denoted by `TT0') taxable at a
particular rate of tax in per cent (denoted by 'r') by applying
the following formula — •
tax —r x TTO,
100 + r

HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 73
(CHTR. 7, 1925 SAKA)
Illustration - If TTO is 220 and r is 10 (per cent), tax will
be 20.
( v) - import into State" means bringing or receiving goods in the
State from outside the State otherwise than by purchase of
such goods in the course of inter -State trade or commerce or
import of goods into the territory of India;
(w) "input tax" means the amount of tax paid to the State in respect
of goods sold to a VAT dealer, which such dealer is allowed
to take credit of as payment of tax by him, calculated in
accordance with the provisions of section 8;
(x) "manufacture" means processing of goods resulting into
production of different commercial goods including
by-products and waste products;
Note -Every processing of goods may not result into different
commercial goods;
(y) "minerals" mean all substances which can be obtained from
the earth by mining, digging, drilling, dredging, hydraulicing,
quarrying or by any other operation and include these
substances processed for marketing;
(z) "place of business" in relation to a dealer means any place
where the dealer carries on his business and includes -
(i) a place where he sells or purchases any goods, or carries
on any process of manufacture of goods;
(ii) a warehouse, godown or other place where he stores
his goods;
(iii) a place where he keeps his books of account;
(iv) any of his office or branch office; and
(v) the place of business of his agent, by whatever name
called;
(za) "prescribed" means prescribed by rules made under this Act;
(zb) "quarter" means a period of three months ending on 30th June,
30th September, 31st December or 31st March;
(zc) "registered" means registered under this Act;
(zd) "revising authority" means a person who exercises power of
revision under this Act;
(ze) "sale" means any transfer of property in goods for cash or
deferred payment or other valuable consideration except a
mortgage or hypothecation of or a charge or pledge on goods;

74 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003
(CHTR. 7, 1925 SAKA)
and includes—
(1) the transfer, otherwise than in pursuance of a contract,
of property in any goods for cash, deferred payment
or other valuable consideration;
(ii) the transfer of property in goods (whether as goods or
in some other form) involved in the execution of a
works contract;
(iii) the delivery of goods on hire-purchase or any system
of payment by instalments;
-(iv) the transfer of the right to use any goods for any
purpose (whether or not for a specified period) for cash,
deferred payment or other valuable consideration;
(v) the supply of goods by any unincorporated association
or body of persons to a member thereof for cash,
deferred payment or other valuable consideration;
(vi) the 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,
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 a purchase of those goods by the personto whom
such transfer, delivery or supply is made;
(zf) "sale in the State" in relation to a sale as defined in sub -clause
(ii) of clause (ze) means transfer of property in goods (whether
as goods or in some other form) involved in the execution of
a works contract in the State; _
(zg) "sale price" means the amount payable to a dealer as
consideration for the sale of any goods, less any sum allowed
at the time of sale as cash or trade discount according tothe
practice, normally prevailing in the trade, but inclusive of
any sum charged for anything done by the dealer in respect
of the goods at the time of or before the delivery thereof and
the expression "purchase price" shall be construed
accordingly;
Explanation.— (i) In relation to the transfer of property in goods
(whether as goods or in some other form) involved in
execution of a works contract, sale price shall mean such

HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 75
(CHTR. 7, 1925 SAKA)
,
amount as is arrived at by deducting from the amount of
valuable consideration paid or payable to a person for the
execution of such works contract, the amount representing
labour and other service charges incurred for such execution,
and where such labour and other service charges are not
quantifiable, the sale price shall be the cost of acquisition of
the goods and the margin of profit on them prevalent in the
trade plus the cost of transferring the property in the goods
and all other expenses in relation thereto till the property in
them, whether as such or in any other form, passes to the
contractee and where the property passes in a different form
shall include the cost of conversion.
(ii) In respect of transactions covered under sub -clause(iii) of
clause (ze), the amount to be included in sale price shall be
the total sum payable by the hirer under a hire purchase
agreement in order to complete the purchase of, or the
acquisition of property in, the goods to which the agreement
relates and includes any sum so payable by the hirer under
the hire purchase agreement by way of a deposit or other initial
payment, or credited or to be credited to him under such
agreement on account of any such deposit or payment, whether
that sum is to be or has been paid to the owner or to any
person or is to be or has been discharged by payment of money
or by transfer,pr delivery of goods or by any other means; but
does not include any sum payable as a penalty or as
compensation or damages for breach of the agreement.
(zh) "Schedule" means a Schedule appended to this Act and the
description of any goods specified therein shall be subject to
the excepti?ns, restrictions and conditions, if any, and the
application of the provisions of this Act referring to the
Schedule shall be subject to the circumstances, if any,
mentioned therein generally or against such goods;
(zi) "State" means the State of Haryana;
(zj) "State Government" means the Government of Haryana;
(zk) "tax" means the tax levied under this Act;
(zI) "tax invoice" means an invoice required to be issued according
to the provisions of sub -section (2) of section 28 by a VAT
dealer for sale of taxable goods to another VAT dealer for
resale by him or for use by him in manufacture or processing
of goods for sale, and which entitles him to claim input tax in
accordance with the provisionsof section 8;

Incidence ot tax
76 HARYANA GOVT. GAL. (EXTRA.), MARCH 28. 2003
CCHT R.7. 1925 SAKA )
tam) "taxable goods- means the goods which are not exempted
goods:
(zn) "taxable turnover" means that part of the gross turnover which
is left after making deductions therefrom in accordance with
the provisions of section 6; plus purchase value of goods liable
to tax undersub-section (3) of section 3;
(zo) "taxing authority" means an officer not below the rank of
Assistant Excise and Taxation Officer appointed under
sub -section (1) of section 55 to carry out the purposes of this
Act and includes an assessing authority and a revising
authority but does not include an appellate authority;
(zp) "Tribunal" means the Tribunal constituted under section 57;
(zq) "value of goods" means, if the goods has been sold or
purchased, the true sale price or the true purchase price, as
thecase may be, of the goods, otherwise, thelair market value
of like goods in like circumstances;
(Zr) "value added tax" means a tax on sale or purchase of goods
payable under this Act:
(Zs) "VAT dealer" means a registered dealer who is not a casual
trader and in whose case composition of tax under section 9
is not in force, whether by choice or exclusion by law;
(zt) "works contract" includes any agreement for carrying out for
cash, deterred payment qr other valuable consideration, the
assembling, construction, building, altering, manufacturing,
processing, fabrication, installation, fitting out, improvement,
repair or commissioning of any movable or immovable
property;
(zu) "year" means the financial year.
(2) Words and expressions not defined under this Act or the rules made
thereunder shall have the same meaning as assigned to them in section 2, section 3,
section 4, section 5 or section 6A of the Central Act or the Punjab General Clauses
Act, 1898 (Punjab Act1of 1898), as applicable to the State of Haryana, ast h ecase
may be.
Chapter -II
Incidence and levy of tax
3. (1) Every dealer who would have continued to be liable to pay tax
under the Act of 1973 had this Act not come into force, and every other dealer
whose gross turnover during the year immediately preceding the appointed day
exceeded the taxable quantum as defined or specified in the Act of 1973, shall,
subject to the provisions of sub -section (4), be liable to pay tax on and from the
appointed day on the sale of goods effected by him in the State.

HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 77
(CHTR. 7, 1925 SAKA)
(2) Every dealer to whom sub -section (1) does not apply and who is of
the class or classes mentioned in column 2 of the Table below and whose gross
turnover in any year first exceeds the taxable quantum specified in column 3
thereagainst, shall, subject to the provisions of sub -section (4), be liable to pay tax
on and from the day mentioned in column 4 thereagairtst on the sale of goods
effected by him in the State —
Table
Sr. Description of class or
No. classes of dealers
Taxable
quantum
Day on and from which the
dealer is liable to tax
1 2 3 4
I. Dealer who sells or purchases
any goods in the course of
inter -State trade or commerce
or in the course of export of
the goods out of. or the import
of the goods into, the territory
of India
2. Dealer who imports any goods
into state
3. Dealer who purchases any
goods in the Sate and exports
out of State such goods or the
goods manufactured therefrom
4. Dealer who is a brick -kiln
owner or a Halwaii or a liquor
licensee under the Punjab Excise
Act, 1914(1 of 1914), or who
deals in minerals, lottery tickets
or such other goods as may be
prescribed
S. Any other class or classes of
dealers
Nil On and from the day he makes
such sale or purchase for the first time
Nil On and from the day he i mports
any goods into State for the first time
Nil On and from the day he makes
pur c ha s eof such goods in the State
for the first time
Nil
One lakh rupees
or such other
sum as may be
prescribeda n d
different sums
including nil may
be prescribed for
different classes
of dealers
On and from the day his gross turnover
in any year first exceeds the taxable
quantum
On and from the day fonowingthe day
his gross turnover in anyyear first
exceedsthe taxable quantum
• • • •
Provided that this sub -section shall not apply to a dealer who deals
exclusively in exempted goods.
N ot e —Where a dealer is covered under more than one of the class or classe s
mentioned in the Table above, the liability to pay tax shall commence from tl ae
earliest day he becomes liable to tax.

78 HARYANA GOVT. GAZ. (EXTRA.). MARCH 28, 2003
((MIR . 7, 1925 SAKAI
(3) If a dealer liable to pay tax under sub -section (1 ) or sub -section (21
purchases any taxable goods in the State from any source in the circumstances that
no tax i s l evi ed  or  pa id  under  t his  Ac t on their  sa le  to  hi m and  he  e ither expor ts
them out of State  or uses or disp oses them of in t he circumstances  in which no tax
is  p ay a bl e und er  t his  A ct  or  t he Ce nt r al  A c t by  hi m to  the St a te  o n t he m o r the
go o d s  ma nu f a c t u r e dt he r e t r o m, t he n. he  s ha l l , s u b j e c t  t o  t he  p r o v i s i o ns  o f
sub -section (4), be liable to pay tax on the purchase thereof:
Pr o v i d ed  t ha t whe r e  s u c h go o d s  ( e xc e p t  t h o s e  s p e c i f i e din
Schedule F) or the goods  manufactur ed therefrom are sold in the course
of export of the goods out of the territory of India, no tax shall be levied
on the ir pur cha se:
Pr o v id e d  fu r t he r  t ha t  whe r e  t he  go o d s p u rc ha s ed  a re  u s ed  o r
di s p o s e d  o f  p a r t ly  i n t he  c i r c u ms ta nc e s  me nt i o ne d  i n t he  f o r e go i ng
provisions of  this sub -s ection and p artly otherwise, the tax leviable on
such goods  shal l be  comp uted pro r ata.
(4) The tax levied under sub -sections ( I ), (2) and (3) shall be calculated
on the taxable turnov er, determined in acc ordance with the prov isions of section 6,
at the ra te s of  t ax a pp li ca ble  u nd er  s ec ti on 7 , and where  t he  t axab le  t ur no ve r is
taxable at different rates of tax, the rate of tax shall be applied separately in respect
of each part of the taxa ble turnover liable to a  different rate of tax.
(5) If t he t ax c alcu late d under sub -sec tion (4)  is more  tha n the input
tax, d ete rmi ne d i n a cco rda nc e with the p ro vis ions o f s ec tio n 8 . t he di ffe rence of
the two shall be the tax payable; and if the input tax is more than the tax calculated,
the excess amo unt shall be e ither refundab le or adjustab le with future  tax liability
in a cco rdance with the pr ovi sions o f se cti on 20; but  if the  inp ut tax is a ne gat ive
value on ac count of r eversal of  input tax under the second pro viso to su b -section
(n o f  s e ct io n 8 , t he  ab s ol ut e  v a lu e t he r eo f s ha l l be  ad d ed  t o  t he ta x c a lc ul a te d
under sub -sect ion (4) and the  resultant amo unt shall he the tax payable.
Illu str atio n -
Serial Tax cal cul ated  under Input tax Tax Re f und a bl e !
No. sub -section (4) payable Adjus table
I. Rs  1 00 Rs. 50 Rs. 5 0 Nil
2. R:s.100 Rs. 150 Nil Rs. 50
3. Rs . I0 0 ( - ) Rs.50 Rs. 150 Nil
(6) Every dealer who has become liable to pay tax, shall continue to be
so liabl e until after t he expir y of thr ee cons ecutive years du ring ea ch of which his
gro ss  t ur no ve r has  f ai le d to  e xce ed  t he  t axab le  qu antu m and su ch fu rt he r pe ri od
after the date of such expiry , as may be pr escribed, and on the expiry of this tatter
period his liability to pay tax shall cease.

HARYANA GOVT. GA L . (EXTRA.). MARCH 28. 2003 79
(CHTR. 7, 1925 SAKA)
(7) Every dealer, whose liability to pay tax has ceased under the
provisions of sub -section o. shall again he liable to pay tax in accordance with
thc provision'. s e c t ' 11,2
4. Notwithstanding anything contained in this Act, a tax on the sale or
purchase of goods shall not be imposed under this Act, —
(a) where such sale or purchase takes place outside the State:
(b) where such sale or purchase takes place in the course of import
of the goods into. or export of the goods out of, the territory of
India: or
(Cl where such sale or purchase takes place in the course of inter-
State trade or commerce.
No tax payable in
case of inter -State
trade etc
S. Where any assessee claims — Burden of proof.
(a) that any receipt or dispatch of goods by him is otherwise than by
way of purchase or sale of suoh goods by him;
(b) that any sum of money received or receivable or paid or payable
by him by any means including adjustment against a debt is not
in the course of business, and where in the course of business
such sum is not valuable consideration for any sale or purchase
of goods effected by him in the year in which the said sum was
received or receivable or paid or payable;
that any purchase or sale of goods by him is not liable to tax by
reason of such purchase or sale being outside the State Or in the
course of inter -State trade and commerce or in the course of the
import of the goods into, or the export of the goods out of, the
territory of India;
(d) that any purchase or sale of goods effected by him is exempt
from tax or leviable to tax at a particulai rate;
(e) that any purchase or sale of goods effected by him is not taxable
because of return of' such goods;
(f) that he is entitled to any deduction from gross turnover or any
deduction of input tax from the tax calculated on the sale of goods:
(g) that in case of a composite works contract, he is entitled to a
deduction in respect of labour and service charges from the
valuable consideration for the execution of the contract;
(h) that any particular sum has been paid by him as tax, interest or
penalty under this Act;
(i) that any goods. book of account and document discovered at his
business premises, or at any other place or in any goods carrier
(e)

Determination
of taxable
turnover
80 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003
(CHTR. 7. 1925 SAKA)
or other vehicle, over which he has control at the time of such
discovery, do not relate to his business; or
that any lief unddr '.I•L't Act or the rules made thereundei is
admissible to him,
the burden of so proving shall be on him.
6. (I) Subject to the provisions of sub -section (2), in determining the
taxable turnover of a dealer for the purposes of this Act, the following deductions
shall he made from his gross turnover, namely: —
(a) turnover of sale of goods outside the State;
(b) turnover of sale of goods in the course of inter -State trade and
commerce;
(c) turnover of sale of goods in the course of the import of the goods
into the territory of India;
(d) turnover of sale of goods in the course of the export of the goods
out of the territory of India;
(e) turnover of export of goods out of State;
(f) turnover of disposal of goods otherwise than by sale;
(g) turnover of sale of exempted goods in the State;
(h) turnover of sale of goods to such foreign diplomatic missions/
consulates and their diplomats, and agencies and organisations
of the United Nations and their diplomats as may be prescribed;
and
(i) turnover of sale of goods returned to him, subject to such
restrictions and conditions as may be prescribed,
and to the remainder shall be added the purchases taxable under sub -section (3) of
section 3, if any.
Note. -1. In this sub -section "turnover" means, • —
(i) for the purpose of clauses (a), (b), (c), (d), (g) and (h), the
aggregate of the sale prices of goods which is part of the gross
turnover;
(ii) for the purpose of clauses (e) and (f), the aggregate of value of
goods,exported out of State or disposed of otherwise than by
sale, as the case may be, which is part of the gross turnover; and
(iii) for the purpose of clause (i), the aggregate of the sale prices of
goods which is or has been part of gross turnover (including under
the Act of 1973).

HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 81
(CHTR. 7, 1925 SAKA)
Note. -2. If the turnover in respect of any goods is included in a deduction
under any clause of this sub -section. it shall not form part of deduction under any
other clause of the sub -section.
(2) The deductions mentioned in sub -section (1) shall be admissible on
furnishing to the assessing authority in such circumstances, such documents or
such proof, in such manner as may be prescribed.
(3) Save as otherwise provided in sub -section (1), in determining the
taxable turnover of a dealer for the purposes of this Act, no deduction shall be
made from his gross turnover.
7. (I) The tax payable by a dealer on his taxable turnover in so far as such
turnover or any part thereof relates to, —
(a) the sales of goods not falling within sub -section (2), —
(i) in the case of goods specified in Schedule A, shall be
calculated at the rates specified therein;
(ii) in the case of declared goods except those specified in
Schedule B. shall be calculated at four per cent or such
other rate not exceeding the ceiling specified in clause (a)
of section 15 of the Central Act as the State Government
may, by notification in the Official Gazette, direct;
(iii) in the case of goods specified in Schedule C, shall be
calculated at four per cent or such other rate not exceeding
ten per cent as the State Government may, by notification
in the Official Gazette, direct;
(iv) in the case of other goods, shall be calculated at ten per
cent or such other rate not exceeding fifteen per cent, as
the State Government may, by notification in the Official
Gazette, direct:
Provided that where any goods are sold in
containers or packed in any packing materials, the rate of
tax applicable to such containers or packing materials shall,
whether the price of the containers or packing materials is
charged separately or not, be the same as those applicable
to the goods contained or packed therein; and where such
goods are exempt from tax, the sale of the containers or
packing materials shall also be exempt from tax;
(b) the purchase of goods, shall be calculated at four per cent or such
tower rate applicable on sate of such goods had it been a sale
falling under clause (a) :
Provided that the State Government may, by notification
in the Official Gazette, direct thatthe tax shall be calculated at a
tower rate.
Rates of tax on
sale or purchase
of goods in the
State.

82 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003
(CHTR. 7, 1925 SAKA)
(2) The tax payable by a dealer on his taxable turnover in so far as such
turnover or any part thereof relates to goods sold to the Government or to goods of
the description referred to in sub -section (4) sold to a VAT dealer or such other
registered dealer as may be prescribed (hereinafter both referred to in this section
as 'authorised dealer'), shall be calculated —
(a) if the goods are of the description contained in Schedule D. at the rate
mentioned against such goods, otherwise;
(b) at four per cent or such lower rate applicable on sale of such goods
had it been a sale falling under clause (a) of sub -section (1) :
Provided that the State Government may, by notification in the
Official Gazette, direct that tax under clause (b) shall be calculated at a
lower rate :
Provided further that the State Government, if satisfied that it is
necessary or expedient so to do in the interest of promotion of exports out
of the country may, by notification in the Official Gazette, direct that tax
under clause (b) on the taxable turnover which relates to the sale of goods
of such class or classes to such class or classes of authorised dealers for
such use by them, as may be specified in the notification, shall be calculated
at zero rate.
(3) The provisions of sub -section (2) so far as the rate of tax applicable
thereunder on a sale of goods in the State is lower than the rate of tax applicable
under clause (a) of sub -section ( I ) if such sale had been a sale falling within that • ,
clause, shall not apply unless the dealer selling the goods furnishes to the assessing
authority in the prescribed circumstances and in the prescribed manner —
(a) if the goods are sold to an authorised dealer, a declaration duly
filled in and signed by him containing the prescribed particulars
in the prescribed form obtained from the prescribed authority
and in case such form is not available with such authority, a self
printed and serially numbered form authenticated by such
authority in the prescribed manner; or
(b) if the goods are sold to the Government, not being a registered
dealer, a certificate in the prescribed form duly filled in and signed
by a duly authorised officer of the Government.
(4) The goods sold to an authorised dealer referred to in sub -section
(2)—
(a) are goods of the class or classes specified in the certificate of
registration of the authorised dealer purchasing the goods as being
intended, subject to any rules made by the State Government in
this behalf, for use by him —
(i) in the manufacture of goods for sale;
(ii) in the telecommunications network;

HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 83
(CliTR, 1. 1925 SAK A)
,(i) in mining; or
i i ' • 'fl the generation or distribution of electricity or any other
1; 1, of pos.ker:
it)) are goods of the cL. or classes specified in the certificate of
registration of the authorised dealer who is covered under the
notification issued under the second proviso to clause (b) of
sub -section (2), purchasing the goods as being intended for use
by him for the purposes specified in the said notification:
(c) are containers or other materials used for the packing of any goods
or classes of goods specified in the certificate of registration
referred to in clause (a) or clause (b).
(5) If an authorised dealer after purchasing any goods for any of the
purposes specified in clause (a). clause (b) or clause (c) of sub -section (4) fails,
without reasonable excuse, to make use of the goods for any such purpose, the
assessing authority may, after giving him a reasonable opportunity of being heard.
by order in writing, impose upon him by way of penalty a sum not exceeding
one -and -a -half times the tax which would have been levied additionally under clause
(a) of sub -section (1), if the sale made to him had been a sale falling within that
clause:
Provided that no penalty shall be imposed where an authorised
dealer voluntarily pays the tax which would have been levied additionally,
as referred to in the foregoing provision, with the return for the period
when he failed to make use of the goods purchased for the specified
purposes.
8. 1) Input tax in respect of any goods purchased by a VAT dealer shalt
be the amount of tax paid to the State on the sale of such goods to him and shall, in
case of a dealer who is liable to pay tax under sub -section (1 ) of section 3 or, as the
case may be. makes an application for registration in time under sub -section (2) of
section II. include the tax paid under this Act and the Act of 1973 in respect of
goods (except capital goods) held in stock by him on the day he becomes liable to
pay tax but shall not include tax paid in respect of goods specified in Schedule E
used or disposed of in the circumstances mentioned against such goods ;
Provided that where the goods purchased in the State are used or
disposed of partly in the circumstances mentioned in Schedule E and
partly otherwise, the input tax in respect of such goods shall be computed
pro rata :
Provided further that if input tax in respect of any goods purchased
in the State has been availed of but such goods are subsequently used or
disposed of in the circumstances mentioned in Schedule E, the input tax
in respect of such goods shall be reversed.
(2) A tax invoice issued to a VAT dealer showing the tax charged to
him on the sale of invoiced goods shall, subject to the provisions of sub -section (3),
be sufficient proof of the tax paid on such goods for the purpose of sub -section (1).
Determination
o f input tax.

Payment of
lump sum in
of tax
Rounding off
tax. •
84 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003
(CHTR. 7, 1925 SAKA)
(3) Where any claim of input tax in respect of any goods sold to a
dealer is called into question in any proceeding under this Act, the authority
conducting such proceeding may require such dealer to produce before it in addition
to the tax invoice issued to him by the selling dealer in respect of the sale of the
goods, a certificate furnished to him in the prescribed form and manner by the
selling dealer; and such authority shall allow the claim only if it is satisfied after
making such inquiry as it may deem necessary that the particulars contained in the
certificate produced before it are true and correct.
(4) The State Government may, from time to time, frame rules
consistent with the provisions of this Act for computation of input tax and when
such rules are framed, no input tax shall be computed except in accordance with
such rules.
9. (1) The State Government may, in the public interest and subject to
lieu such conditions as it may deem fit, accept from any class of dealers, in lieu of tax
payable under this Act, for any period, by way of composition, a lump sum linked
with production capacity or some other suitable measure of extent of business, or
calculated at a fiat rate of gross receipts of business or gross turnover of purchase
or of sale or similar other measure, with or without any deduction therefrom, to be
determined by the State Government, a•nd such lump sum shall be paid at such
intervals and in such manner, as may be prescribed, and the State Government
may, for the purpose of this Act in respect of such class of dealers, prescribe
simplified system of registration, maintenance of accounts and filing of returns
which shall remain in force during the period of such composition.
(2) No dealer in whose case composition under sub -section (1) is in
force, shall issue a tax invoice for sale of goods by him and no dealer to whom
goods are sold by such dealer shall be entitled to any claim of input tax in respect
of the sale of the goods to him.
(3) A dealer in whose case composition under sub -section (1) is made
and is in force may, subject to such restrictions and conditions, as may be prescribed,
opt out of such composition by making an application containing the prescribed
particulars in the prescribed manner to the assessing authority, and in case the
application is in order, such composition shall cease to have effect on the expiry of
such period after making the application as may be prescribed.
10. (1) The amount of tax, penalty or interest payable and the amount of
refund due, under the provisions of this Act, shall be rounded off to the nearest
rupee and for this purpose fifty paise or more shall be increased to one rupee and
less than fifty paise shall be ignored.
(2) If after rounding off, as provided in sub -section (1), the sum payable
by an assessee or refundable to him, as the case may be, is less than ten rupees, the
same shall be ignored.
(3) Nothing in this section shall apply for the purpose of collection by
a dealer of any amount by way of tax in respect of any purchase or sale of goods by
him.

HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 85
(CHTR. 7, 1925 SAKA)
Chapter -HI
Registration of dealers
11. (1) Every dealer liable to pay tax under sub -section (1) of section 3, Registration.
who either held registration certificate under the Act of 1973 or whose application
for registration under the said Act was pending till the appointed day, shall inform
the assessing authority of such particulars of his business in such form and manner
within such period as may be prescribed and such authority after receipt of such
information, if it is satisfied about the correctness of the same by making such
inquiry as it may consider necessary, shall issue to him a registration certificate
under this Act which shall be valid from the appointed day, otherwise, it shall, after
giving the affected person a reasonable opportunity of being heard, pass an order
declining registration :
Provided that during the period prescribed for furnishing the
•information and till such time final decision is taken on the same, the
registration certificate issued under the Act of 1973 shall be deemed to
have been issued under this Act except when registration is declined.
(2) Every dealer liable to pay tax, on whom sub -section (1) does not
apply, shall, and any dealer, who does not deal exclusively in exempted goods,
may, nbtwithstanding that he is not liable to pay tax under section 3, make an
application for registration to the assessing authority within such time, in such
-f form and manner, on payment of such fees not -more than five hundred rupees, as
may be prescribed.
(3) If the prescribed authority is satisfied that the applicant is a bonafide
dealer and the application for registration made by him is in order, he shall, subject
to the provisions of section 12, grant him a certificate of registration in the prescribed
form and such certificate of registration shall be valid from such date, as may be
prescribed.
(4) Any dealer to whom a registration certificate has been granted shall,
from the date specified in the registration certificate which shall not be later than
the date of grant of the registration certificate to him, be liable to tax and shall
continue to be liable to tax so long as the registration certificate held by him is not
cancelled notwithstanding that his liability to pay has ceased under sub -section (6)
of section 3.
(5) The assessing authority may, on information furnished to him under
section 13 from time to time, by order, amend any certificate of registration and
may cancel the same if the business is closed and such amendment in, or cancellation
of, the certificate shall take effect from such date as may be prescribed.
(6) When —
(a) any business, in respect of which certificate has been granted,
has been discontinued; or

Security from
c e i t t in class of
dealers.
1-1Ait ANA C.10 VT. GA L (E.XTR MARCH 28, 2003
tCHTR. J 25 SAKA)
(b) the liability to pay tur, oi any dealer ceas es in terms of
sub -section io) ut se e Ln i n
the assessing autnority snail, after giving a reasonaole opportunity or being heard
to me affected prison, %.:aiit.el the certilicaie of registration and the eal.cellation
shall come into force after the expiry of such period. as may be piescrtbed.
(7) A taxing authority not below the rank t I f Deputy I- xci, e and 'taxation
Commissioner incharge of a district may ln the prescribed manner, caned, subject
to such restrictions and conditions. as may be prescribed, the certificate of
registration issued to a dealer -
(a) for being held guilty of avoidance of tax under this Act or the
Central Act;
(b) for misusing the certificate of registration; or
(c) for any other sufficient cause :
Provided that no order affecting any dealer adversely shall be
made under this sub -section without affording him a reasonable
opportunity of being heard.
12. (1) Where it appears to the authority to whom an application is made
under section 11 to be necessary so to do for the proper realisation of the tax payable
or for the proper custody and use of any forms referred to in this Act or the rules
made thereunder which are printed under the authority of the State Government or
are required to oe authenticated by any authority under this Act before use, he may,
by an ()Kier in writing and for reasons to be recorded therein, impose as a condition
for the issue of a certificate of registration. a requirement that the dealer shall furnish
in the prescribed manner and within such time as may be specified in the order
such security as may be N o specified, for all or any of the purposes of this Act.
(2) Where it appears to the assessing authority to be necessary so to
ao for the proper reatisation of tax payable under this Act or for the proper custody
and use of the forms reieirecl to in sub -section (1), he may, at any time while such
certificate is in force. ny an order in writing anu for reasons to be recorded therein,
require the dealer, TO whom the certificate aas been eranted, to furnish within such
time as may be specified in tne owe' ;mu in me prescribed manner such security or,
if the dealer has already furaisned any ,,.:.curity lit irucsuatwe an order under this
sub -section or sun -section (Ii, tap:ii additional security as may be specified in the
order, for all of any of me aforesaid put poses.
(3) N o d e a l e r s t a l l o e r e q u i r e d to f u r n i s h a seeui  ity u n d e r
sup -section (1) or sub -section (2) by tne u t n o r i ty referred to Mei en). unless he has
been given a reasonable opportunity of being f i e i .nd and m e  a m o u n t of security that
f l a y be ret.4a1reu LO  oe  f ur i i is ne d b y a ny d e al e r  u nde r  ei t her  o f t he  a fb r e sa i d
sup -

Excerpt shown. Open the full act in Lexace.

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