LexThe Jharkhand Value Added Tax Act, 2005
Jharkhand · state statute
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JHARKHAND VALUE ADDED TAX ACT 2005
(Jharkhand Act 05, 2006 and as amended by Amendment Act No. 21 of 2006 and
Jharkhand Ordinance No. 02 of 2011)
An Act to provide for and consolidate the law relating to levy of Value Added Tax on sales
or purchases of goods and on Entry of Goods into a local Area in the State of Jharkhand
to collect fund for the purpose of Development of Trade, Commerce and Industries of the
State
BE it enacted in the fifty-sixth Year of Republic of India as follows:
CHAPT I
PRELIMINARY
1. Short title, extent and commencement —
(1) This Act may be called the Jharkhand Value Added Tax Act, 2005.
(2) It extends to the whole of the State of Jharkhand
(3) It shall come into force on such date as the Government may, by Notification in the
Official Gazette, appoint and different dates may be appointed for different
provisions of the Act.
(4) Any Notification, Order, Declaration or Rule and any Appointment to an office may
be issued or made under the Act at any time after passing thereof; but such
Notification, Order, Declaration, Rule or Appointment issued or made, shall not take
effect until the date appointed under sub-Section (3) for bringing into force the
respective provision under which it is issued or made.
2. Definitions —
In this Act unless the context otherwise requires:
(i) “Accountant” for the purpose of this Act means —
(a) A Chartered Accountant within the meaning of the Chartered Accountant’s
Act, 1949 (38 of 1949);
(b) A person, who by virtue of the provisions of sub-section (2) of Section 226 of
the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an
auditor of companies registered; or
(c) A Cost Accountant within the meaning of the Cost and Works Accountants
Act, 1959 (23 of 1959); or
(d) A person referred to in Section 619 of the Companies Act, 1956 (1 of 1956);
(e) A person, who has passed the final examination of Institute of Companies
Secretaries of India, New Delhi;
(f) A person, who has passed any other examination in this behalf, notified by
the Government.
(ii) "Act" means the Jharkhand Value Added Tax Act, 2005;
(iii) “Appointed day”, in relation to any provision of this Act, means the date on which
such provision comes into force;
(iv) "Assessee" means any person by whom tax or any other sum of money is payable
under this Act and includes every person in respect of whom any proceeding under
this Act have been taken for the assessment of tax payable by him;
(v) "Assessing Authority" means any person not below the rank of a Commercial
Taxes Officer authorized by the Government to make any assessment under this Act;
(vi) "Assistant Commissioner” means any person appointed to be an Assistant
Commissioner of Commercial Taxes under this Act;
(vii) “Branded” means any goods sold under a name or Trade Mark registered or pending
registration of transfer under the Trade and Merchandise Act 1958 (Central Act 43 of
1958) or the Trade Marks Act 1999 (Central Act 47 of 1999).
(viii) "Business" includes -
(a) The provisions of any services, but excluding the services provided by an
employee;
* (b) Any trade, commerce, e-commerce, e-commerce portal, manufacture or any adventure
or concern in the nature of trade, commerce, e-commerce, e-commerce portal, manufacture, whether
or not such trade, commerce, e-commerce, e-commerce portal, manufacture, adventure, 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, e-commerce, e-commerce portal, manufacture, adventure, concern; and
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* (c) Any transaction in connection with, or incidental or ancillary to such trade or services,
commerce, e-commerce, e-commerce portal, manufacture, adventure or concern; referred to in
clause (a) and includes any transaction involving goods whether or not in their original form or in the
form of second hand goods, unserviceable goods, obsolete or discarded goods, scrap or waste
material goods, which are obtained as waste-product, by-product in course of manufacture or
processing of other goods or mining or generation and distribution of electricity.
(ix) "Commissioner" means the Commissioner of Commercial Taxes or Additional
Commissioner of Commercial Taxes appointed by the Government under this Act and
includes any other officer upon whom the State Government may by notification,
confer all or any of the powers and duties of the Commissioner under this Act.
(x) "Capital goods" means plant, machinery, equipment, apparatus, tools, appliances or
electrical installation, Pollution/Quality Control Equipments, used in the process of
manufacturing, processing of goods for sale or in the mining, provided such
purchases are capitalized for their purposes excluding goods mentioned in negative
list as in Appendix - I;
(xi) "Commercial Taxes Officer" means any person appointed to be a Commercial
Taxes Officer under this Act;
(xii) "Casual Trader" means a person who whether as principal, agent or in any other
capacity, has occasional transactions involving buying, selling, supplying or
distributing goods or conducting any exhibition cum Sale in the state, whether for
cash or for deferred payment, or for commission, remuneration, or other valuable
consideration; and for the purpose of this Act, Casual Trader shall mean and include
a dealer as defined in clause (xiii) of this Section.
(Added by Jharkhand VAT Ordinance, 2011 w.e.f. 01.04.2006)
(xiii) "Dealer" means any person who carries on the business of buying, selling, supplying
or distributing goods, executing works contract, delivering any goods on hire-
purchase or any system of payment by installments; transferring the right to use any
goods or supplying by way of or as part of any service, any goods directly or
through any system of Electronic commerce or otherwise* otherwise,
whether for cash or for deferred payment, or for commission, remuneration or other
valuable consideration and includes;
(a) a casual trader;
(b) a commission agent, a broker or a del credere agent or an auctioneer or any
other mercantile agent, by whatever name called,
(c) a non-resident dealer or an agent of a non-resident dealer, or a local :
branch of a firm or company or association or body of persons whether
incorporated or not, situated outside the State;
(d) a person who, in the course of business, -
(i) sells goods produced by him by manufacture, agriculture, horticulture
or otherwise; or
(ii) transfers any goods, including controlled goods whether in pursuance
of a contract or not, for cash or for deferred payment or for other
valuable consideration;
(iii) supplies, by way of or as part of any service or in any other manner
whatsoever, goods, being food or any other articles for human
consumption or any drink (whether or not intoxicating), where such
supply or service is for cash, deferred payment or other valuable
consideration;
* The words “executing works contract, delivering any goods on hire-
purchase or any system of payment by instalments; transferring the right to
use any goods” after the words “distributing goods” shall be deleted vide
Noti. No. 13/leg. date 01.02.2018
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(xiv) "Declared goods" means goods declared to be of special importance in inter-State
trade or commerce under Section 14 of the Central Sales tax Act, 1956 (Central Act
74 of 1956);
(xv) "Deputy Commissioner" means any person appointed to be a Deputy
Commissioner of Commercial Taxes under this Act’.
(xvi) “Documents” includes written or printed records of any sort, title deeds and data
stored electronically in whatever forms or any other record or form as defined in the
Information Technology Act 2000.
(xvii) “Documents of Title” means, any document which confers a title to goods and
includes a bill of lading, dock warrant, warehouse-keeper’s certificate, and warrant or
order for the delivery of goods and any other document used in the ordinary course
of business as proof of the possession or control of goods, or authorizing of
purporting to authorize, either by endorsement or by delivery, the possessor of the
document to transfer or to receive goods thereby represented;
(Xvii)A * A "E-commerce or Electronic commerce including-commerce, e-Business, on-line
shopping or similar other variants or nomenclature” means buying, selling, supplying,
distributing or delivering of goods and services or anything incidental to such buying,
selling, supplying, distributing or delivering directly or indirectly and transmitting
valuable consideration or making payment incidental thereto over an electronic
Network or Website or by any other means.
(xviii) “Electronic Record” means, a data, record or data generated, image or sound
stored, received or sent in an electronic form or micro film or computer generated
micro fiche or in a computer disk or in a computer floppy or computer
software/media;
(xix) “Entry of goods” – “Entry of goods” with all its grammatical variations and cognate
expressions means entry of goods mentioned in schedule III into a local Area from
any place out side the state
(xx) “EOU” – (Export Oriented Unit) means any industrial unit, which undertakes to
export their entire production of goods and is approved as such by the Development
Commissioner of the concerned Export Processing Zone or any other competent
authority duly authorized for the purpose by the Ministry of Industry, Government of
India.
(xxi) “EHTP”- (Electronic Hardware Technology Park), is a unit set up under the EHTP,
which undertakes to export their entries production of goods outside the territory of
India and is approved by the Development Commissioner of the Export Processing
Zone or any other competent authority duly authorized by the Ministry of Industry,
Government of India for the purpose.
(xxiA) “Fund” means, the “Jharkhand Trade Development Fund”; as created by the State
Government through a Notification published in the Official Gazette: for the purpose
of development of trade, commerce and industry of the State, for such period(s) as
may be specified in this behalf.
(xxii) ‘Goods’’ means the goods included in Entry54 of List II of the seventh
schedule to the constitution;
(Substituted vide Noti. No. LG- 13/ leg. dated 01.02.2018)
(xxiii) “Goods carrier” shall include motor vehicle, Vessel, boat, animal or any other means of
conveyance but will exclude railway wagon, coach or vehicle or any road transport when
plying in collaboration with rail transport and under the control of the Railway;
(xxiv) "Government" means Government of Jharkhand.
(xxv) “Gross Turnover” means-
(i) for the purposes of levy of sales tax, in respect of sale of goods, aggregate of
sale prices received and receivable by a dealer, including the gross amount
received or receivable for execution of works contract or for the transfer of
right to use any goods for any purposes ( whether or not for a specified
period) during any given period ( and also including the sale of goods made
outside the State, in the course of inter-State trade or commerce or export),
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but does not include sale prices of goods which have borne the incidence of
purchase tax under Section 10.
* The words “including the gross amount received or receivable for execution
of works contract or for the transfer of right to use any goods for any purpose
(whether or not for a specified period)” after the words “by a dealer” in clause
(xxv) (i) of section 2 shall be deleted vide Noti. No. 13/leg. date 01.02.2018
(ii) for the purposes of levy of purchase tax, aggregate of purchase prices paid
or payable by a dealer during any given period in respect of purchase of
goods or class or description of goods which have borne the incidence of
purchase tax under Section 10.
(iii) for the purposes of Section 9, the aggregate of the amounts under sub-
clauses (i) and (ii);
(xxvi) “Importer” means a dealer who brings any goods into the State, or to whom any
goods are dispatched from any place outside the State;
(xxvii) "Import Price" means the amount payable by a dealer or any person, as valuable
consideration in respect of the sale or supply of goods making entry into the State or
into the local area, but shall not include the tax paid or payable under Central Sales
Tax Act or under any other State Taxes Act(s), in respect of such sales or purchases.
(xxviii) "Input" means, goods purchased in course of business - (a) for resale in the same
form; or (b) for use in manufacturing or processing of taxable goods for sale; or (c)
for directly use in mining or use as containers or packing materials for taxable goods;
or (d) for the execution of works contract, but excluding purchases of Petrol, Diesel,
Furnace Oil and steam and Natural Gas and for use as Capital Goods as specified in
Appendix-I of this Act.
(Added by Jharkhand VAT Ordinance, 2011 w.e.f. 07.05.2011)
(xxix) "Input Tax" means the tax paid or payable under this Act, by a registered dealer to
another registered dealer on the purchase of goods, viz purchases debited to
profit and loss account * in the course of business for resale or for use in
manufacturing or processing of taxable goods for sale, or for directly use in mining or
use as containers or packing materials for taxable goods or for the execution of
works contract;
Provided that input tax shall also include tax paid on the entry of goods into the local
area as specified in Schedule-III.
Provided further that input tax shall also include tax paid on the capital goods for
Registered Start-up-business and shall qualify for Input Tax Credit as prescribed.
Provided further, that tax charged at Maximum Retail Price; shall not be treated as
Input Tax, for the purpose of resellers, when reselling medicines or drugs, specified
in the Drugs (Prices Control) Order 1995.
(Added by L.G. 17/2015-26 dated 13.05.2015)
(xxx) "Joint Commissioner" means any person appointed to be a Joint Commissioner of
Commercial Taxes under this Act;
(xxxi) “Local Area” means the areas within the limits of a –
(a) Municipal Corporation (e) Town Board
(b) Municipality (f) Mines Board
(c) Notified Area Committee (g) Municipal Board
(d) Cantonment Board (h) Gram Panchayat
(i) Any Other Local Authority or any Authority by whatever nomenclature called,
constituted or continued under or in any law for the time being in force.
(xxxii) "Manufacture" includes any activity that brings out a change in an article or articles
or goods 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 manufacturer as
may be notified.
(xxxiii) “Maximum Retail Price”, in respect of goods taxable under this Act, means
maximum price printed on the package of any goods at which such goods may be
sold to the ultimate consumer, whether such price is inclusive of tax or not;
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(xxxiv) “Month” means a calendar month;
(xxxv) “Notification” means a notification published in the official Gazette of the
Government.
(xxxvi) “Non Resident Dealer” means a dealer, who effects sales or purchases of any
goods in the State, but who has no fixed place of business or residence in the State;
(xxxvii) "Output Tax" means the tax charged or chargeable under this Act by a registered
dealer for the sale of goods in the course of business;
(xxxviii) "Person" includes:-
(a) an Individual; (b) a Joint Family;
(c) a Company; (d) a Firm;
(e) an association of persons or a body of individuals; whether incorporated or
not;
(f) the Central Government or the Government of Jharkhand or the Government
of any other State or Union Territory in India;
(g) a local Authority or any Authority established under any law;
(xxxix) "Place of Business" means any place where a dealer carries on the business and
includes :-
(a) any warehouse, godown or other place where a dealer stores or processes
his goods;
(b) any place where a dealer produces or manufactures goods;
(c) any place where a dealer keeps his books of accounts;
(d) in cases where a dealer carries on business through an agent (by whatever
name called), the place of business of such agent;
(e) any vehicle or vessel or any other carrier wherein the goods are stored or
used for transporting the goods;
(xl) “Prescribed Authority” and "Prescribed" means prescribed by Rules made under
this Act;
(xli) “Principal Officer”, in relation to a company, means the director or Managing
Director of such company, or the secretary, or any such person of the Company
specially authorized to act as Principal Officer by the Board of Directors or by such
Director or the Managing Director of such company, authorized in this behalf.
(xlii) “Purchase price” means the amount of valuable consideration paid or payable by a
person for any purchase made including any sum charged for anything done by the
seller in respect of the goods at the time of or before delivery thereof, other than the
cost of insurance for transit or of installation, when such cost is separately charged,
and shall not include tax paid or payable under this Act, by a person in respect of
such purchase.
Explanation I – The amount of duties levied or leviable on the goods under the
Central Excise Act, 1944 (1 of 1944), or the Customs Act, 1962 (52 of 1962) or the
Bombay Prohibition Act, 1949 (Bom. XXV of 1949) shall be deemed to be part of the
purchase price of such goods, whether such duties are paid or payable by or on
behalf of the seller or the purchaser or any other person.
Explanation II - ‘Purchase price’ shall include any amount payable by a dealer who
purchases goods for anything done by the seller in respect of the goods at the time
of or before delivery thereof to the buyer.
Explanation III - ‘purchase price’ shall not include –
(a) the cash discount allowed by the seller according to ordinary trade practice, if
shown separately;
(b) the cost of transport of the goods from the seller to the buyer, provided such
cost is separately charged to the buyer;
(xliii) “Quarter” means the quarter ending on the 30th June, 30th September, 31st
December and 31st March:
(xliv) “Resale” means a sale of goods in the State of Jharkhand or in the course of inter-
State trade and commerce and export out of the territory of India;
(a) in the same form in which they are purchased, or
(b) Without doing anything to them, which amounts to, or results in, a
Manufacture.
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and the term “re-sell” shall be construed accordingly;
(xlv) "Registered dealer" means a dealer registered under this Act;
(xlvi) "Reverse tax" means that portion of input tax of the goods on which credit has
been availed but such goods are used subsequently for any purpose other than resale
or manufacture of taxable goods or execution of works contract or use as containers
or packing materials within, the State;
(xlvii) "Sale" with all its grammatical variations and cognate expressions means any
transfer of property in goods for cash or deferred payment or other valuable
consideration but does not include a mortgage or hypothecation of or a charge or
pledge on goods, and the words “sell”, “buy” and “purchase”, with all their
grammatical variations and cognate expressions, shall be construed accordingly and
includes-
(a) transfer of property in any goods, otherwise than in pursuance of a contract;
(b) transfer of property in goods (whether as goods or in some other form)
involved in the execution of a works contract;
(c) delivery of goods on hire purchase or any other system of payment by
installments;
(d) a transfer of the right to use any goods for any purpose, whether or not for
specified period, for cash, deferred payment or any other valuable
consideration;
(e) supply of goods made by a society, trust, club or association, whether
incorporated or not, to its members or otherwise;
(f) 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
made or given for cash, deferred payment or other valuable consideration;
(g) a sale within the State includes a sale determined to be inside the State in
accordance with the principles formulated in Section 4 of the Central Sales
Tax Act, 1956;
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 all
grammatical variations and cognate expression shall be construed accordingly;
and ‘purchase’ means such acquisition of property in goods or purchase of those
goods by the person to whom such transfer, delivery or supply is made.
Explanation I – A transfer or acquisition of goods on hire purchase or under any other
system in which payment of valuable consideration is made by installments, shall,
notwithstanding the fact the seller retains the title in the goods as a security for the
payment of the valuable consideration or for any other reasons, be deemed to be a
sale or purchase.
Explanation II – Notwithstanding anything contained in any law for the time being in
force, two independent purchases or sales shall, for the purpose of this part, be
deemed to have taken place-
(a) when the goods are transferred from principal to his selling agent and from
the selling agent to the purchaser, or
(b) when the goods are transferred from the seller to a buying agent and from
the buying agent to his principal, if the agent is found-
(i) to have sold the goods at one rate and to have passed on the sale
price to his principal at another rate, or
(ii) to have purchased the goods at one rate and to have passed them on
to his principal at another rate, or
(iii) not to have accounted to his principal for the entire collections or
deductions made by him in the sales or purchases effected by him or
on behalf of his principal, or
(iv) to have acted for a fictitious or non-existent principal.
(xlviii) "Sale Price" means the amount payable to a dealer as valuable consideration in
respect of the sale or supply of goods, and shall not include tax paid or payable
under this Act, by a person in respect of such sales.
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Explanation I – The amount of duties or fees or any sum levied or leviable or charged
on the goods under the Central Excise Act, 1944 (I of 1944), or the Customs Act
1962 (52 of 1962) or the State Excise Act or any law shall be deemed to be part of
the sale price of such goods, whether such sum are paid or payable by or on behalf
of the seller or the purchaser or any other person.
Explanation II – Sale price shall include any amount charged by the dealer for
anything done in respect of the goods at the time of, or before delivery thereof to the
buyer;
Explanation III – Sale price shall not include the cash discount, if shown separately;
and allowed by the dealer in the ordinary course of trade practice. [provided the
same is allowed to a registered VAT dealer]* It shall also not include the cost for
transport of the goods from the seller to the buyer, provided such cost is separately
charged to the buyer.
*(Deleted by Jharkhand VAT Ordinance, 2011 w.e.f 01.04.2010)
Explanation IV – For the purpose of this clause, the expression “sale price” shall
mean, the maximum retail price, as referred to in clause (xxxiii) of Section 2 of this
Act, for a dealer, selling goods, specified in Drugs (Prices Control) Order 1995, to any
other dealer.
(xlix) “Schedule” means the schedule appended to this Act;
(l) “SEZ” – means Special Economic Zone, as defined in the Central Excise Act 1944.
(li) "State" means the State of Jharkhand
(lii) “Start up business” means a dealers' intention to set up a factory to manufacture
any taxable goods shall be deemed/ treated as a “start up business” until the date of
commencement of commercial production.
(liii) “STP”- (Software Technology Park), unit means a unit set up under the STP, which
undertakes to export their entire production of goods outside the territory of India
and is approved by the Development Commissioner of the concerned Export
Processing Zone or any other competent authority duly authorized by Ministry of
Industry, Government of India for the purpose.
(liv) "Tax" means the tax payable under this Act;
(lv) "Tax Invoice" means a document listing goods sold with price, quantity and other
details as specified in this Act and includes a statement of account, bill, cash register,
slip, receipt or similar record, regardless of its form;
(lvi) "Taxable Turnover" means the "Turnover", on which a dealer shall be liable to pay
tax as determined after making such deductions from his total Turnover and in such
manner as may be prescribed;
(lvii) “Transporter”, "Carrier" or "Transporting Agent" means any person, including
the driver of the vehicle, who for the purposes of or in connection with or incidental
to or in the course of his business transports or causes to transport goods, or holds
goods in custody for delivery to any person after transportation, and includes railway,
shipping company, air cargo terminal and courier service;
(lviii) "Turnover" means the aggregate amount of purchase price(s) or sale price(s), for
which goods are either bought or sold, supplied or distributed by a dealer, either
directly or through another, on his own account or on account of others, whether for
cash or for deferred payment or for other valuable consideration;
Explanation-
(1) The turnover in respect of delivery of goods on hire purchase or on any
system of payment by installments shall be the market price of the goods so
delivered,
(2) The turnover in respect of the transfer of the right to use any goods shall be
the aggregate amount received or receivable by the dealer as consideration
for such transfer,
(3) Subject to such conditions and restrictions, if any, as may be prescribed in
this behalf;
(a) the amount for which goods are sold shall include any sums charged
for anything done by the dealer in respect of the goods sold at the
time of, or before, the delivery thereof;
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(b) any cash discount on the price allowed in respect of any sale or any
amount refunded in respect of articles returned by customers shall
not be included in the turnover; and
(c) where for accommodating a particular customer, a dealer obtains
goods from another dealer and immediately disposes of the same to
the said customer, the sale in respect of such goods shall be included
in the turnover of the latter dealer but not in that of the former.
(lix) “Tribunal” means the Tribunal constituted under Section 3 of this Act;
(lx) "Value Added Tax" means a tax on sales or purchases levied under this Act;
(lxA) “Value of goods” means, the true sale price or the true purchase price of the
goods, or prevalent fair market value of goods whichever is higher.
Explanation – Fair Market Value means the price that the goods would ordinarily
fetch on sale in the open market on the date of sale or dispatch or transfer of such
goods.
(New definition added by Jharkhand VAT Ordinance, 2011 - w.e.f. 07.05.2011)
(lxi) "Vehicle" includes every wheeled conveyance used for the carriage of goods solely
or in addition to passengers.
(lxii) "Vessel" includes any ship, barge, boat, raft, timber, bamboos or floating materials
propelled in any manner-
* (lxiii) “ Works Contract” “Works contract” means a contract for carrying out any work and
includes any contract or agreement for carrying out for cash or deferred payment or other
valuable consideration for assembling, construction, building, altering, manufacturing,
processing, fabrication, erection, installation, modification, fitting out, improvement, repair or
commissioning of any building, road , bridge or any other immovable or movable property.
(i) "Year" means the financial year beginning from 1st April and ending with 31st March;
(ii) “Zero Rated Sales” for the purpose of this Act means a sale of goods, in the course of
Inter-State Trade or Commerce, export to outside the territory of India including sale
in course of Export and Sale of Goods to any unit located in Special Economic Zone
as may be notified.
Provided further, unless otherwise specified in this Act—
(a) words importing the masculine gender shall include the feminine gender;
(b) words in singular shall include their plural and vice versa;
(c) expressions referring to “writing” shall include printing, typing, lithography,
photography and other methods of representing or reproducing words in a
visible form; and
(d) with reference to a person who is unable to sign his name, the word
“signature” shall include his thumb impression or other mark duly attested to
signify his signature.
* (Added / Substituted vide Notification No. LG-165 dated 04-11-2016)
The following clauses of section 2: as clause (vii), (x), (xiv), (xix), (xx), (xxi),
(xxiA), (xxviii), (xxix), (xxxi), (xxxiii), sub-clause (a), (b), (c)and (d) of clause
(xlvii), explanation of clause (xlvi), (xlvii) ,(lii), (liii), (lxiii) and (lxv) are
hereby deleted vide Notification No. LG- 13/ leg. dated 01.02.2018)
CHAPTER II
TRIBUNAL AND TAXING AUTHORITIES
3. Tribunal —
Subject to such rules as may be prescribed, the State Government shall, by notification
published in the Official Gazette, constitute a Tribunal consisting of one or more members to
exercise all the powers and perform all the functions conferred by or under this Act or any
other law for the time being in force.
4. Taxing Authorities —
(1) There shall be the following classes of authorities to be appointed by the State
Government, for carrying out the purposes of this Act, namely :-
(a) Commissioner of Commercial Taxes;
(b) Additional Commissioner of Commercial Taxes;
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(c) Joint Commissioner of Commercial Taxes:
(d) Deputy Commissioner of Commercial Taxes:
(e) Assistant Commissioner of Commercial Taxes:
(f) Commercial Taxes Officer.
(2) The authorities appointed under sub-Section (1) shall, within such areas (or in
respect of such transaction falling within an area) as the State Government may by
notification specify, exercise such powers as may be conferred and perform such
duties as may be imposed, by or under this Act.
(3) The Commissioner may, at any stage, direct transfer of a proceeding under this Act
in respect of any dealer from the prescribed authority to another authority of the
same or higher rank appointed under sub-Section (1). Where such direction is given
by the Commissioner the authority to whom the proceeding is transferred shall
proceed to dispose it of as if it had been initiated by the said authority, irrespective of
the local limits of its jurisdiction; such transfer shall not render necessary the re-issue
of any notice already issued before the transfer and the authority to whom the
proceeding is transferred may, in its discretion, continue it from the stage at which it
was left by the authority from whom it was transferred.
(4) For smooth functioning of the office, it shall be lawful for the Deputy Commissioner
or the Assistant Commissioner in-charge of a circle or the Commercial Taxes Officer
in-charge of a circle or sub-circle, to allot work and proceedings amongst the officers
posted in circle or sub-circle, as the case may be and it may include transfer of a
proceeding from one officer to another posted in the same office and exercising
concurrent jurisdiction.
(5) For smooth functioning of the office, it shall be lawful for the Joint Commissioner,
VAT Audit to allot work and proceedings amongst the officers posted in VAT audit
division as the case may be and it may include transfer of a proceeding from one
officer to another officer posted in the same office and exercising concurrent
jurisdiction.
(Added vide Not. No. LG 7/ leg. dated 13.02.2014)
5. Powers of Tribunal and Taxing Authorities to take Evidence on Oath, etc.—
(1) The Tribunal, or any authority appointed under sub-Section (1) of Section 4 shall for
the purposes of this Act have the same powers as are vested in a court under the
Code of Civil Procedure, 1908 (V of 1908) when trying a suit, in respect of the
following matters, namely :-
(a) enforcing the attendance of any person and examining him on oath or
affirmation;
(b) compelling the production of books of accounts and other documents; and
(c) issuing commissions for the examination of witness.
(2) Any proceeding under this Act before the Tribunal, or any authority appointed under
sub-Section (1) of Section 4 shall be deemed to be a “judicial proceeding” within the
meaning of Section 193 and 228 and for the purposes of Section 196 of the Indian
Penal Code, 1860 (XLV of 1860).
6. Members of the Tribunal and Taxing Authorities to be Public Servant —
Members of the Tribunal appointed under Section 3 and all the taxing authorities appointed
under Section 4 of this Act shall be deemed to be public servants within the meaning of
Section 21 of Indian Penal Code.
7. Indemnity —
No suit, prosecution or other legal proceedings shall lie against any Government servant
employed for execution of the provisions of this Act and Rules made thereunder for anything
which is in good faith done or intended to be done thereunder.
CHAPTER III
THE INCIDENCE, LEVY AND RATE OF TAX
8. Incidence of Tax —
(1) Every dealer –
(a) whose gross turnover of sales or purchases during the year immediately
preceding the commencement of this Act, -
(i) exceeded the specified quantum, or
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(ii) who is registered or liable to be registered under the adopted Bihar
Finance Act, 1981 or the Central Sales Tax Act, 1956, or
(b) to whom clause(a) does not apply, and
(i) whose gross turnover first exceeds the specified quantum during any
period of twelve consecutive months, or
(ii) who has become liable to pay tax under the Central Sales tax Act,
1956, or
(iii) who is registered as a dealer under the Central Sales tax Act, 1956 or
under this Act at any time after the commencement of this Act;
shall be liable to pay tax in accordance with the provisions of this Act.
(2) Every dealer is liable to pay tax under sub-Section (1) on purchases and sales
effected by him,
(a) in case of clause (a) of sub-Section (1), with effect from the date of
commencement of this Act;
(b) in case of sub-clause (i) of clause (b) of sub-Section (1), with effect from the
date immediately following the day on which his gross turnover first
exceeded the specified quantum during a period of any twelve consecutive
months.
(c) in case of sub-clauses (ii) and (iii) of clause (b) of sub-Section (1), with effect
from the date of registration or the date on which he becomes so liable
whichever is earlier.
(3) Every dealer who has 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 his gross
turnover has failed to exceed the specified quantum and his liability to pay tax under
this Act shall cease on the expiry of the period specified above.
(4) Every dealer who has ceased to be liable under sub-Section (3) shall be again liable
to pay tax under this Act with effect from the date immediately following a period not
exceeding twelve consecutive months during which his gross turnover again exceeds
the specified quantum.
(5) For the purpose of this Act, specified quantum means in relation to any dealer who:
(a) imports for sale any goods into the State of Jharkhand on his own behalf or
on behalf of his principal Nil
(b) manufactures or produces any goods for sale Rs. 50,000
(c) is engaged in any other business other than clause (a) and (b) Rs. 5 lakh
(d) involved in the execution of works contract and leasing Rs. 25 thousand
(e) is engaged in any other sales or purchases or class of sales or purchases:
other than (a), (b) and (c); the specified quantum shall be, as specified in
this behalf, from time-to-time.
Provided that the State Government may, by notification published in the Official Gazette and subject
to condition of one month’s previous notice, increase or reduce the amount of specified quantum.
(6) For the purpose of calculating the gross turnover to determine the liability to pay tax
under the Act-
(a) except as otherwise expressly provided, the turnover of all sales or as the
case may be, the turnover of all purchases shall be taken, whether such sales
or purchases are taxable or not, and
(b) the turnover shall include all sales or purchases made by a dealer on his own
account and also on behalf of principals whether disclosed or not.
(7) Where by any order passed under this Act, it is found that any person registered as a
dealer ought not to have been so registered, then, notwithstanding any thing
contained in this Act, such person shall be liable to pay tax for the period
commencing with the date of his registration and ending with the date of such order,
as if he were a dealer.
(8) A registered dealer: whose liability to pay tax has ceased under this Act, for any
reason other than the entire transfer of his business to other persons; shall pay tax
on the stock of goods remaining unsold at the termination of his liability, after
furnishing such declarations as prescribed
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(9) Every dealer whose liability to pay tax has ceased under sub-section (8) or otherwise:
shall again be liable to pay tax under this section, with effect from the day following
the date, on which his gross turnover during a period not exceeding twelve months
immediately preceding such date, again exceed the quantum as specified in this
section
(10) Notwithstanding anything contained in this section, where a dealer who is or was,
less than six months earlier, liable to pay tax, starts a new business, either singly or
jointly with other persons, or joins other business or partnership firm or concern or
undivided Hindu family tax: as aforesaid, shall be payable on sales and purchases
made from such business or partnership firm or such concern, on and from the date
the dealer starts or joins it, unless liability in respect of such business, partnership
firm or concern has arisen from an earlier date under the provisions of this section.
(11) Notwithstanding anything contained in this section, a dealer registered under the
Central Sales Tax Act, 1956 (LXXIV of 1956), shall irrespective of the quantum of his
gross turn-over be liable to pay tax on his sale, made inside Jharkhand of any goods,
which he purchased or acquired from outside the State after furnishing a declaration
under sub-section (4) of section 8 or under sub-section (1) of section 6A of the said
Act, or any goods in the manufacture or processing of which goods so purchased by
him have been used
Provided that tax shall not be payable if the dealer shows to the satisfaction of the
prescribed authority that the turnover is deductible from his gross turnover, under
sub-section (4) of Section 9 for the purpose of determining his taxable turnover.
(12) The provisions of the Central Sales Tax Act, 1956 (LXXIV of 1956) shall apply for
determining when a sale or purchase shall be deemed to have taken place inside
Jharkhand.
(13) Notwithstanding any contained in this Act, the tax payable under the Act, for each
year, may with the previous approval of the Commissioner or any authority
empowered in this behalf, be estimated and collected in advance during a year, in
such installments as may be fixed by the prescribed authority. For this purpose the
prescribed authority may require the dealer to furnish an advance estimate of his
taxable turnover for that year and may, provisionally determine the amount of tax
payable under this Act, by the dealer in respect of the year. Thereupon the dealer
shall pay the amount so determined, by such date as may be fixed by such authority.
9. Levy of Tax on Sale and Determination of Taxable Turnover —
(1) * Subject to the provisions as contained in Section 11 and sub-Section (2) of this
Section, the tax payable by a dealer liable to pay tax under Section 8, shall be levied
at every stage or stages of sales on sale price(s) of goods.
[Provided; in the circumstances a registered dealer making sales of taxable goods to
an unregistered dealer or to any other Person: the output tax payable shall be levied
on the Maximum Retail Price for such goods, at the stage of sale by the Registered
Dealer.]*
*(Proviso : deleted by the Jharkhand Act 21, 2006 w.e.f. 01/04/2006)
(2)* Notwithstanding anything contained in this Section, any registered dealer, who
imports into or manufactures Medicines and Drugs; as specified in the Sl. No. 85 of
the Part B of Schedule II, excluding Bulk Drugs [and Non Drugs (Prices Control)
Order 1995 Medicines, such as Ayurvedic]*, Siddha, Unani or Homeopathic
medicines, appended to the Act; in Jharkhand, may, at his option, pay, tax at the
full rate on the Maximum Retail Price of such goods, in lieu of tax payable by him
under Sub-section (1) of Section 9 of the Act.
(*Deleted by Jharkhand Act of 2007 w.e.f. 01.04.2006)
Provided that where a dealer has purchased such goods, —
(a) From an importer or a manufacturer upon payment of tax on the maximum
retail price of such goods; or
(b) From another registered dealer, where tax on the maximum retail price of
such goods was paid in Jharkhand at an earlier stage,
the purchasing dealer, while making resale of such goods in Jharkhand, shall,
notwithstanding anything contained elsewhere in the Act, be entitled to
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recover from the buyer, the amount of tax paid by him at the time of
purchase of such goods, under such conditions and restrictions, and in such
manner, as may be prescribed or notified in this behalf.
Provided further that the dealer making resale of such goods, shall not levy any tax
payable under the Act, on such goods.
Provided further that if dealers opt to pay tax on maximum retail price; no input tax
credit shall be admissible to the subsequent purchasing dealers.
(3) The tax payable by a dealer liable to pay tax under Section 8, on sales of such goods
as mentioned in Part-E of Schedule II of this Act, shall be levied on his taxable
turnover of sales, at the first stage of sale in the State or at that stage of sale in the
series of sales, with such restriction and conditions as may be specified by the State
Government by a Notification from time-to-time in this behalf. In the circumstances,
if the tax is levied at the first stage of sale in the state by a dealer, subsequent sales
of the same goods in the State shall not be levied to tax, if the dealer making
subsequent sales of such goods, produces before the Prescribed Authority such
evidence(s), as may be prescribed.
Provided, whereby a notification published under this sub-section, in respect of any
goods specified in Part-E of Schedule II, that the tax shall be levied at more than one
stage or on all the stages of sale, the amount of tax(s) paid at each of the preceding
stage of sale, shall be adjusted, against the amount of tax payable at each
subsequent stage of sale, in the manner as specified in the notification. #
(4) Taxable turnover of sales in relation to a dealer liable to pay tax on sale of goods
under sub-Section (1) of Section 8 shall be part of the gross turnover of sales during
any period which remains after deducting there from.
(a) sales of goods declared as exempt from tax in schedule ‘I’.
(b) sales of goods which are shown to the satisfaction of the prescribed authority
to have taken place –
(i) in the course of inter-State trade or commence, or
(ii) outside the State of Jharkhand, or
(iii) in the course of the import of the goods into or export of the goods out
of the territory of India.
Explanation -Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 shall apply for
determining whether or not a particular sale or purchase has taken place in the
manner indicated in sub-clause (i) sub-clause (ii) or sub-clause (iii).
(c) * in case of turnover of sales in relation to works contract, the charges towards
labour, services other like charges and subject to such conditions as may be
Excerpt shown. Open the full act in Lexace.