LexThe Himachal Pradesh Local Area Development Tax Act, 2005
Himachal Pradesh · state statute
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THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX
ACT, 2005
ARRANGEMENT OF SECTIONS
Sections:
CHAPTER-I
PRELIMINARY
1. Short title and commencement.
2. Definitions.
CHAPTER-II
LEVY OF TAX
3. Levy of tax.
4. Special provisions of levy of tax on the motor vehicles.
5. Exemption of tax in certain circumstances.
6. Registration.
CHAPTER-III
RETURNS, ASSESSMENT, PAYMENT, RECOVERY
AND COLLECTION OF TAX
7. Dedications from gross turnover.
8. The authorities and administration of tax.
9. Power of the State Government to exempt or reduce tax.
10. Power to amend Schedule.
11. Power to make rules.
SCHEDULE.
THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX
ACT, 2005
(ACT NO. 16 OF 20051
Received the assent of the Governor on 9th May, 2005, published in
Hindi and English in the Rajpatra, Himachal Pradesh (Extra-ordinary), dated
10th May, 2005, pp. 673-708.
1. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of
Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary) dated
4th July, 2005, pp. 327 and 344.
2 THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005
An Act to provide for levy and collection of tax on the entry into a local
area of the State of Himachal Pradesh, of a motor vehicles for use
or sale, and of other goods for use or consumption, therein and
matters incidental thereto and connected therewith.
BE it enacted by the Legislative Assembly of Himachal Pradesh in the
Fifty-sixth Year of the Republic of India, as follows:-
CHAPTER-I
PRELIMINARY
1. Short title and commencement.- (1) This Act may be called the
Himachal Pradesh Local Area Development Tax Act, 2005.
(2) It shall come into force on such date as the State Government
may, by notification, appoint.
2. Definitions.- In this Act, unless there is anything repugnant in the
subject or context,-
(a) “Act” means the Himachal Pradesh Local Area Development
Act, 2005;
(b) “assessee” means a person by whom tax is payable under this
Act;
(c) “bring goods into a local area” means causing the entry of
goods into a local area by bringing them inside the local area
or causing the goods to be brought inside the local area from
any place outside the local area;
(d) “bring motor vehicle into a local area” means causing the
entry of motor vehicle into a local area by bringing it inside
the local area or causing it to be brought inside the local area
from any place outside the local area;
(e) “business” includes,-
(i) any trade, commerce, manufacture, works contract,
leasing or any adventure or concern in the nature of
trade, commerce, manufacture, works contract or
leasing, whether or not, such trade, commerce,
manufacture, works contractor, leasing, adventure or
concern is carried on regularly and with a motive to
make gain or profit and whether or not any profit
accrues therefrom; and
(ii) any transaction in connection with or incidental or
ancillary to such trade, commerce, manufacture, works
contract, leasing, adventure or concern;
THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005 3
(f) “Commissioner” means the Commissioner appointed under
sub-section (1) of section 3 of the Himachal Pradesh Value
Added Tax Act, 2005 (12 of 2005);
(g) “entry of goods into a local area” means taking or bringing
goods into a local area from any place outside the State or
from any place inside any other local area in the State;
(h) “entry of a motor vehicle into a local area” with all its
grammatical variations and cognate expressions means entry
of motor vehicle into a local area from any place outside it for
use or sale therein;
(i) “goods” means all kinds of movable property and includes
livestock;
(j) “goods carrier” means any kind of vehicle of transport of
goods including pipeline, motor vehicle, boat, push cart,
animal drawn cart, tractor-trailer and the like;
(k) “gross turnover” used in relation to an importer with
reference to a period of time means the aggregate value of
goods which the importer brings or receives on the entry of
such goods into a local area during the given period;
(l) “importer” means any person who, in the course of business,
whether on his own account or on account of a principal or
any other person, brings any goods into or receives or is
entitled to receive any goods on their entry into a local area
and includes a casual importer;
Explanation.- When a consignee does not take
delivery of goods upon its entry into a local area, and such
goods are sold under the provisions of any law, the buyer who
takes delivery of such goods upon the goods being sold shall
be deemed to be the importer thereof.
(m) “importer of a motor vehicle” means a person who brings a
motor vehicle into a local area from any place outside the
local area for use or sale therein and who owns the motor
vehicle at the time of its entry into a local area and includes a
person who owns the motor vehicle at the time of its
registration in the State under the Motor Vehicles Act, 1988
(59 of 1988);
(n) “local area” means such area within the limits of a local
Authority, as the State Government may , by notification in
the official Gazette, notify;
(o) “manufacturer” means a person who carries on business of
manufacturing or processing of goods, whether wholly or
partly;
4 THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005
(p) “motor vehicle” means any vehicle registered or liable to be
registered under the Motor Vehicles Act, 1988 (59 of 1988);
(q) “place of business” means any place where any importer is
doing business and includes-
(i) any warehouse, godown or other place where the
importer stores or processes his goods;
(ii) any place where the importer produces or manufactures
goods;
(iii) any place where the importer keeps his books of
accounts;
(iv) any place where the importer carries on business through
an agent (by whatever name called), the place of
business of such agent;
(r) “prescribed” means prescribed by rules made under this Act;
(s) “purchase value of a motor vehicle” means the value of motor
vehicle as ascertained from the invoice and includes the value
of accessories fitted to the vehicle, insurance, excise duty,
countervailing duties, sales tax, transport fee, freight charges
and all other charges incidentally levied on the purchase of a
motor vehicle:
Provided that if purchase value of a motor vehicle is not
ascertainable on account of non availability or non-production
of invoice or when the invoice produced is proved to be false
or if the motor vehicle is acquired or obtained otherwise than
by way of purchase, then the purchase value of a motor
vehicle shall be the market value of a motor vehicle:
(t) “receive any goods” means to take delivery or possession of
any goods, whether actual or constructive, or cause the goods
to be received by any other person;
(u) “sale tax” means the tax leviable under the Central Sales Tax
Act, 1956 (74 of 1956) and the tax levied under the Himachal
Pradesh Value Added Tax Act, 2005 (12 of 2005), as the case
may be;
(v) “Schedule” means a Schedule appended to this Act;
(w) “State” means the State of Himachal Pradesh;
(x) “State Government” means the Government of Himachal
Pradesh;
(y) “tax” means the tax leviable under this Act;
(z) “taxable goods” means the goods other than the goods
specified in Schedule;
THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005 5
(za) “turnover” used in relation to any assessee means the
aggregate of the value of goods which the assessee brings or
receives in any local area for consumption or use therein
during any given period and which is determined in
accordance with the provisions of this Act and the rules made
thereunder;
(zb) “value of the goods” means the purchase value of such goods,
that is to say, the purchase price at which an importer has
purchased the goods inclusive of charges borne by him as
cost of transportation, packing, forwarding and handling
charges, commission, insurance, taxes, duties and the like, or
if such goods have not been purchased by him, the prevailing
market price of such goods in the local area;
(zc) “works contract” means any agreement for-
(i) the construction, fitting out, improvement, maintenance or
repair of any building, road, bridge or any other
immovable property, or
(ii) manufacture, processing, fabrication, erection, installation,
fitting out, improvement, modification, repair, conversion
or commissioning of any movable property, for cash,
deferred payment or other valuable consideration; and
(zd) “Year” means the financial year.
CHAPTER-II
LEVY OF TAX
3. Levy of tax.- (1) There shall be levied and collected a tax on the
entry into a local area, of all goods except those specified in Schedule, for
consumption or use therein, at such rates not exceeding the rates of tax
leviable under the Himachal Pradesh Value Added Tax Act, 2005 (12 of
2005), as may, by notification, be specified by the State Government, and
different rates may be specified in respect of different goods or different
classes of goods or different local areas.
(2) The tax levied under sub- section (1) shall be paid by the importer:
Provided that an importer shall not be liable to pay tax so long as the
aggregate value of taxable goods, he brings into or receives on their entry into
any local area does not, in a year, exceed twenty lakhs rupees or such other
sum as the State Government may, by notification, specify:
Provided further that an importer who has once become liable to pay
tax under this Act shall continue to be so liable until the expiry of three
consecutive years during each of which the aggregate value of any taxable
goods he brings into or receives on their entry into any local area does not
exceed the amount specified in the first proviso.
6 THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005
Explanation.- Where the goods are received on its entry into a local
area by a person other than an importer, the importer, if any, who further
receives the goods from such person shall be deemed to have received the
goods on entry into the local area.
(3) The tax shall be levied, assessed and collected in such manner, as
may be prescribed.
(4) Notwithstanding anything contained in sub-section (1), no tax
shall be levied on the notified goods imported by a dealer registered under the
Himachal Pradesh Value Added Tax Act, 2005 (12 of 2005) who brings such
goods into any local area for the purpose of re-sale in the State 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 re-sale, 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.
4. Special provisions of levy of tax on the motor vehicles.- (1)
Notwithstanding anything contained in section 3 of this Act, there shall be
levied and collected a tax on the entry of a motor vehicle into a local area for
use or sale therein:
Provided that such motor vehicle is liable for registration or
assignment of a new registration mark in the State under the Motor Vehicles
Act, 1988 (59 of 1988):
Provided further that no tax shall be levied and collected in respect of
a motor vehicle which was registered in any Union Territory or any other
State under the Motor Vehicles Act, 1988, for a period of fifteen months or
more before the date on which it is registered in the State under that Act.
(2) The tax shall be levied on purchase value of a motor vehicle at the
rate equal to the difference between the sales tax rate applicable in the State
and the sales tax or the central sales tax rate charged on the sale of the motor
vehicle in the invoice relating to the purchase of the vehicle:
Provided that the sales tax rate applicable in the State for the purpose
of this section shall be taken as on the date mentioned in the invoice relating
to the purchase of the motor vehicle:
Provided further that if no invoice in respect of purchase of the motor
vehicle is produced or if the invoice does not show the rate of sales tax or
central sales tax, as the case may be, charged, then the tax rate applicable
under this section shall be the rate of sales tax applicable in the State on the
date of assessment.
5. Exemption of tax in certain circumstances.- Where any person
brings a motor vehicle into a local area for his personal use within a period of
fifteen months from the date of its registration in any Union Territory or any
other State under the Motor Vehicles Act, 1988 (59 of 1988), and that such
THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005 7
entry is occasioned as a result of shifting the place of his residence from such
Union Territory or State into this State, Commissioner may, by order in
writing, on application made to him in this regard, exempt such person from
the payment of entry tax on entry of such vehicle subject to the production of
proof.
6. Registration.- Every importer, who is liable to pay tax under sub-
section (2) of section 3 of this Act shall be liable to be registered under this
Act, in such manner, on payment of such fee and within such period, as may
be prescribed:
Provided that if such importer is registered under the Himachal
Pradesh Value Added Tax Act, 2005 (12 of 2005), he shall be deemed to have
been registered under this Act.
CHAPTER-III
RETURN, ASSESSMENT, PAYMENT, RECOVERY AND
COLLECTION OF TAX
7. Deductions from gross turnover.- (1) In calculating the turnover
liable to tax for a period, an importer may deduct from his gross turnover of
goods purchased during that period,-
(a) the value of goods specified in Schedule;
(b) the value of goods which have, without use or consumption,
been delivered outside the local area;
(c) the value of goods which have been subjected to tax once
under this Act, either as such or in some other form;
(d) the value of goods on which sales tax has been paid or has
become payable to the State;
(e) the value of plant, machinery, equipment and tools, brought
or received on lease for use in manufacture or processing of
goods;
(f) the value of goods brought or received in a local area for
resale or for use or whether as such or in different form, lying
with him in the local area, except when the certificate of
registration issued under this Act is cancelled:
Provided that the value of goods deducted under this
clause shall, except when the certificate of registration issued
under this Act is cancelled, form part of the turnover for the
period immediately succeeding:
Provided further that the value of plant, machinery,
equipment and tools, for use in manufacture or processing of
goods, if forming part of the turnover, may form part of the
losing stock, if capitalised; and
8 THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005
(g) the value of such other goods, as may be prescribed.
Explanation.- For the purpose of this sub-section, deduction of value
of only such goods shall be admissible which forms part of gross turnover of
the importer and if value of certain goods have been deducted under one
clause, then, it shall not be deducted under any other clause.
(2) The deductions claimed under sub-section (1) shall be subject to
production of such proof in such form and in such manner, as may be
prescribed. The Assessing Authority may ask for any relevant evidence to
satisfy itself about the genuineness and correctness of the proof furnished.
8. The authorities and administration of tax.- Subject to the
provisions of this Act and the rules made thereunder, the authorities for the
time being empowered under the Himachal Pradesh Value Added Tax Act,
2005 (12 of 2005), to assess, re-assess, collect and enforce payment of tax,
including any interest or penalty payable by a dealer, shall assess, re-assess,
collect and enforce payment of tax including any interest or penalty payable
by an importer under this Act, as if, the tax or interest or penalty payable by
such importer under this Act, is a tax under the Himachal Pradesh Value
Added Tax Act, 2005, and for this purpose they may exercise all or any of the
powers they have under the Himachal Pradesh Value Added Tax Act, 2005,
and all the provisions of that Act including the provisions relating to
registration, security, payment of tax and returns, payment of interest,
prohibition against collection of tax in certain cases, assessment of tax, re-
assessment of tax, non-application of limitation for completion of assessment
or re-assessment of tax, tax and penalty recoverable as arrears of land
revenue, tax, penalty and interest to be the first charge on the property, special
mode of recovery, refund, accounts, production and inspection of books,
documents and accounts, survey, establishment of check-post and barrier and
inspection of goods in transit, registration and submissions of returns by
carrier of goods and agent of transport companies, assessee etc. permitted to
attend through authorised agent, power to call for information, delegation of
powers, transfer of business, liability to pay tax by a partitioned Hindu family,
dissolved firms etc., liability of legal heirs to pay tax, bar of certain
proceedings, appeal, revision, rectification of mistakes, revision to the High
Court, powers of authorities to take evidence on oath, offences and penalties,
compounding of offences, cognizance of offences, directors of defaulting
companies to be liable to pay tax, disposal of certain property, indemnity,
returns etc. to be confidential, persons appointed to be public servants, power
to seek assistance from police and other officers and burden of proof, shall
apply mutatis mutandis.
(2) Subject to the provisions of sub-section (1), in the case of an
importer other than a dealer, the assessment, payment, enforcement and
collection of tax shall be such as may be prescribed.
(3) All the provisions relating to offences and penalties (including
provisions relating to penalties in lieu of the prosecution for an offence, or in
addition to the penalties or punishment for an offence) and the provisions
THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005 9
relating to levy or charging of interest under the Himachal Pradesh Value
Added Tax Act, 2005 (12 of 2005) shall, with necessary modifications, apply
in relation to the assessment, re-assessment, collection and the enforcement of
any tax required to be collected under this Act or in relation to any process
connected with such assessment, re-assessment, collection or enforcement of
payment, as if, the tax under this Act were a tax under the Himachal Pradesh
Value Added Tax Act, 2005.
9. Power of the State Government to exempt or reduce tax.- (1)
The State Government may, if in its opinion it is necessary in the public
interest so to do, by notification, subject to such restrictions and conditions
and for such period as may be specified in the notification, exempt or reduce
the tax payable by any class of importer under this Act.
(2) Where any restriction or condition specified in the notification
issued under sub-section (1) is contravened or is not observed by an importer
or where a declaration, if any, specified in the said notification for the
observance of any condition or restriction imposed therein, furnished, is found
to be wrong, then such importer shall, in addition to tax calculated at the full
rate, notified under sub-section (1) of section 3, on the value of such goods in
respect of which such contravention or non-observance has taken place or a
wrong declaration has been furnished, be liable to pay interest in terms of
section 8 of this Act:
Provided that before taking any action under this sub-section, the
importer shall be given a reasonable opportunity of being heard.
10. Power to amend Schedule.- The State Government may, by
notification, add to or, delete from or, otherwise, amend the Schedule and
there upon the Schedule shall be deemed to have been amended accordingly.
11. Power to make rules.- (1)The State Government may, by
notification in the Official Gazette, make rules consistent with this Act, for
securing the levy and collection of tax and generally for carrying out the
purposes of this Act.
(2) All rules made under this Act shall be laid, as soon as may be,
after they are made, before the Legislative Assembly, while it is in session, for
a total period of fifteen days which may be comprised in one session or in two
successive sessions and if, before the expiry of the session in which they are
so laid or of the session immediately following, the Assembly agrees in
making any modifications in the rules or the Assembly decides that the rules
should not be made, such rules shall have effect only in such modified form or
be of no effect, as the case may be. However, that any such modification or
annulment shall be without prejudice to the validity of anything done earlier
under that rule.
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10 THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005
SCHEDULE
[See sections 2(v), 3(1), 7(1) (a) and 10]
Sr.
No.
Goods Conditions of
exemption
1. 2. 3.
1. Agriculture or horticulture produce, including herbs
or saplings of trees sold by person or a member of his
family, grown by himself or grown on any land in
which he has an interest whether as owner or
usufructuary mortgagee or as tenant or otherwise.
-
2. Agricultural implements manually operated or animal
driven.
-
3. Aids and implements used by handicapped persons. -
4. Animal feed and feed supplements, namely processed
commodity sold as poultry feed, cattle feed, pig feed,
fish feed, fish meal, prawn feed, shrimp feed and feed
supplements and mineral mixture concentrates,
intended for use as feed supplements including grass,
hay and straw.
-
5. Articles made of bamboo-wood used for agricultural
purposes.
-
6. Baan. -
7. Books, periodicals and journals. -
8. Charkha, Ambar Charkha, handlooms, Himachali
handloom articles, Himachali handloom shawls, caps
and handspun yarn, and Gandhi Topi.
-
9. Charcoal. -
10. Coarse grains other than paddy, rice and wheat. -
11. Condoms and contraceptives. -
12. Cotton yarn in hank and silk yarn in hank. -
13. Curd, lassi, butter milk and separated milk. -
14. Earthen pots (unglazed). -
15. Electric Energy. -
THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005 11
16. Fire wood. When sold for
domestic use .
17. Fishnet, fish fabrics and fish seeds. -
18. Foodgrains supplied free of cost by the Government
of India. -
19. Fresh fruits. -
20. Fresh milk and pasteurized milk. -
21. Fresh plants, sapling and fresh flowers. -
22. Fresh vegetables. -
23. Garlic, ginger, green chillies, onions, potatoes, sweet
potatoes, tapioca and their seeds. -
24. Glass bangles (including plastic shell and lac
bangles). -
25.
Graphite pencils, writing chalk, crayons, sketch,
pens, drawing colour eraser, sharpener, footrules,
geometry boxes, ink tablets, exercise and drawing
books of the type used in schools and takhties used
by students.
-
26. Human blood and blood plasma. -
27. Indigenous handmade musical instruments. -
28. Kumkum, bindi, alta and sindur. -
29. Leaf plates and leaf-cups (when not compressed). -
30. Meat, fish, prawn and other aquatic products when
not cured or frozen, eggs and live stock and animal
hair.
Except when
sold in sealed
containers.
31. National flag. -
32.
Non-Judicial stamp paper sold by Government
Treasuries, postal items like envelope, postcard etc.
sold by Government, rupee note when sold to the
Reserve Bank of India and cheques, loose or in book
form.
-
33. Organic manure. -
34. Raw wool. -
35. Seeds.
36. Semen including frozen semen. -
12 THE HIMACHAL PRADESH LOCAL AREA DEVELOPMENT TAX ACT, 2005
37. Silk worm laying cocoon and raw silk. -
38. Tender green coconut. -
39. Toddy, Neera and Arak. -
40. Unbranded bread. -
41. Unprocessed and unbranded salt. -
42.
Water other than –
(i) aerated, mineral, distilled, medicinal, ionic,
battery, demineralised water, and
(ii) water sold in sealed container.
-
-
43. Writing slate and slate pencils. -
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