LexThe West Bengal Finance Act, 2005
West Bengal · state statute
Open in Lexace · Ask the AI about this act. lir .4: • No. WB(Part-IV)/2005/SAR-7 Frye aptte Registered No. WB/SC-24 Roiltata +10441 \IQ Extraordinary Published by Authority CAITRA 10] THURSDAY, MARCH 31, 2005 [SAKA 1927 PART III—Acts of the West Bengal Legislature. GOVERNMENT OF WEST BENGAL LAW DEPARTMENT Legislative NOTIFICATION No. 480-L.-31st March, 2005.—The following Act of the West Bengal Legislature, having been assented to by the Governor, is hereby published for general information:—. West Bengal Act IV of 2005 THE WEST BENGAL FINANCE ACT, 2005. [Passed by the West Bengal Legislature.] [Assent of the Governor was first published in the Kolkata Gazette, Extraordinary, of the 31st March, 2005.] An Act to amend the Bengal Electricity Duty Act, 1935, the West Bengal Primary Education Act, 1973, the West Bengal Rural Employment and Production Act, 1976, the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, the West Bengal Taxation Tribunal Act, 1987, the West Bengal Sales Tax Act, 1994, the West Bengal State Tax on Consumption or Use of Goods Act, 2001 and the West Bengal Value Added Tax Act, 2003. WHEREAS it is expedient to amend the Bengal Electricity Duty Act, 1935, the West Bengal Primary Education Act, 1973, the West Bengal Rural Employment and Production Act, 1976, the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, the West Bengal Taxation Tribunal Act, 1987, the West Bengal Sales Tax Act, 1994, the West Bengal State Tax on Consumption or Use of Goods Act, 2001 and the West Bengal Value Added Tax Act, 2003, for the purposes and in the manner hereinafter appearing; Ben. Act X of 1935. West Ben. Act XLIII of 1973. West Ben. Act XIV of 1976. West Ben. Act VI of 1979. West Ben. Act VIII of 1987. West Ben. Act XLIX of 1994. West Ben. Act XV of 2001. West Ben. Act XXXVII of 2003. • ' • • .t, 2 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 [PART III The West Bengal Finance Act, 2005. (Sections 1-5.) It is hereby enacted in the Fifty-sixth Year of the Republic of India, by the Legislature of West Bengal, as follows:- 1. (1) This Act may be called the West Bengal Finance Act, 2005. (2) It shall come into force on the 1st day of April, 2005. 2. In the Bengal Electricity Duty Act, 1935, in the First Schedule, in Part A, for the figures and word "40 paise", the figures and word "20 paise" shall be substituted. Amendment of 3. In the West Bengal Primary Education Act, 1973, in section 78B,— West Ben. Act XLIII of 1973. (a) in clause (ha), for the words "two per centum", wherever they occur, the words "one per centum" shall be substituted; (b) in clause (hb), for the words "two per coition", the words "one per centime' shall be substituted; (c) in clause (hc), for the words "two per centum", the words "one per centum" shall be substituted; (d) in clause (he), for the words "two per centum", the words "one per centum" shall be substituted. 4. In the West Bengal Rural Employment and Production Act, 1976, in section 4, in sub-section (3),— (a) in clause (gl), for the words "two per centum", wherever they occur, the words "one per centum" shall be substituted; (b) in clause (g2), for the words "two per centum", the words "one per centum" shall be substituted; (c) in clause (g3), for the words "two per centum", the words "one per centum" shall be substituted; (d) in clause (g5), for the words "two per centum", the words "one per centum" shall be substituted. 5. In the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979,— (1) in section 9,— (a) after sub-section (3), the following sub-section shall be inserted:— "(3a) Where a person, other than a person referred to in sub- section (2) or sub-section (3), fails to obtain a certificate of enrolment and pay tax under the Act by the prescribed date, such person shall be liable to pay simple interest at the rate of one per centum of the amount of tax payable by him for any year or part thereof for each month or part thereof for the period for which the tax remains unpaid."; (b) in sub-section (4), after the words, figure and brackets "or sub-section (3)", the words, figure, letter and brackets "or sub-section (3a)" shall be inserted; (2) in the Schedule, in the entries in item (a) in column (2) against serial No. 9 in column (1),— (a) for the words, figures and brackets "or the Central Sales Tax Act, 1956 (74 of 1956):—", the words, figures, letters and brackets "or the Central Sales Tax Act, 1956 (74 of 1956) or the West Bengal Value Added Tax Act, 2003 (West Ben. Act )(XXVII of 2003)" shall • be substituted; Short title and commencement. Amendment of Ben. Act X of 1935. Amendment of West Ben. Act XIV of 1976. Amendment of West Ben. Act VI of 1979. PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 3 The West Bengal Finance Act, 2005. (Sections 6-9.) (b) in the Explanation to sub-item (i), after the words, figures, letters and brackets "the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994)", the words, figures, letters and brackets "or the West Bengal Value Added Tax Act, 2003 (West Ben. Act XXXVII of 2003)" shall be inserted; (c) in sub-item (ii), after the words, figures, letters and brackets "the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994)", the words, figures, letters and brackets ", or the West Bengal Value Added Tax Act, 2003 (West Ben. Act XXXVII of 2003)" shall be inserted. Amendment of West Ben. Act VIII of 1987. Amendment of West Ben. Act XLIX of 1994. Amendment of West Ben. Act XV of 2001. Amendment of West Ben. Act XXXVII of 2003. 6. In the West Bengal Taxation Tribunal Act, 1987, in the Schedule, after the entry "2001 XV The West Bengal State Tax on Consumption or Use of Goods Act, 2001.", the following entry shall be added:— "2003 XXXVII The West Bengal Value Added Tax Act, 2003.". 7. In the West Bengal Sales Tax Act, 1994, in section 79, in the first proviso to sub-section (2), for the words "before expiry of two years", the words, figures and letters "before the 31st day of December following the expiry of two years" shall be substituted. 8. In the West Bengal State Tax on Consumption or Use of Goods Act, 2001, in section 4, after the words, figures, letters and brackets "of the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994)", the words, letters, figures and brackets "or at the rates prescribed in clause (b) and clause (c) of sub-section (2) of section 16 of the West Bengal Value Added Tax Act, 2003 (West Ben. Act XXXVII of 2003)" shall be added. 9. In the West Bengal Value Added Tax Act, 2003,— (1) in section 2,— (a) after clause (3), the following clause shall be inserted:— `(3A) "appropriate Government Treasury" means— (a) in the case of a dealer in Kolkata,— (i) the Kolkata Branch of the Reserve Bank of India for payments under the Act exceeding five hundred rupees, and (ii) such head office, main office, branch or branches of any hank in Kolkata as may be authorised in this behalf by the State Government for the purpose of accepting deposits for payments under the Act, and ' (b) in other cases, the treasury or sub-treasury of the sub- division where the dealer's place of business is situated or, in the event of a dealer having more than one place of business, where the chief branch or head office of the business is situated;'; (b) for clause (6), the following clause shall be substituted:— `(6) "Capital goods" means such goods meant for use in the manufacture or for execution of works contract, and such other goods required by a reseller to keep the goods in saleable condition or to effect the sale properly, as may be notified by the State Government in the Official Gazette;'; West Ben. Act XV of 2001. West Ben. Act XXXVII of 2003. 4 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 [PART III The West Bengal Finance Act, 2005. (Section 9.) (c) for clause (7), the following clause shall be substituted:— `(7) "casual dealer" means a person, other than a dealer who, whether as principal, agent or in any other capacity, has occasional transaction involving buying, selling, supplying or distributing goods in West Bengal, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration and includes, whether he has fixed place of business in West Bengal or not,— (a) a transporter, carrier or transporting agent, as defined in clause (52) who, while carrying any goods in his goods vehicle as defined in clause (16), fails to disclose the name and address of the consignor or consignee in West Bengal or fails to furnish a copy of the invoice, challan, transport receipt or consignment note or document of like nature in respect of such goods, or (b) an owner or lessee or occupier of a warehouse who fails to disclose the name and address of the owner of any goods stored at his warehouse or fails to satisfy the Commissioner that such goods are for his personal use or consumption, and such transporter, carrier or transporting agent, or owner or lessee or occupier of a warehouse, shall be deemed to have purchased such goods on his own account;'; (d) for clause (10), the following clause shall be substituted:— '(10) "contractual transfer price" in relation to any period, means the aggregate of the amount received or receivable by a dealer in respect of transfer of property in goods (whether as goods or in some other form) in execution of any works contract, as defined in clause (57), whether executed fully or partly during such period. Explanation.—For the purpose of this clause, the expression "partly during such period" means the year or part of the year for which assessment is made whether or not any tax invoice, invoice or bill has been raised in respect of such contract;'; (e) in clause (11),— (i) after sub-clause (b), the following sub-clause shall be inserted:— "(ba) a person who has set up a business of selling or purchasing goods in West Bengal,"; (ii) for sub-clause (c), the following sub-clause shall be substituted:— "(c) a society including a co-operative society, club or any association which sells goods to its members or others for cash, or for deferred payment, or for commission, or for remuneration, or for other valuable consideration,"; in clause (13), for the words "postition of director", the words "position of director" shall be substituted; for clause (14), the following clause shall be substituted:— '(14) "electronic record" means data, record or data generated, image or sound stored, received or sent in an electronic form as defined in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000, and includes micro film 21 of 2000. or computer generated micro film;'; (f) (g) PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 5 (I) The West Bengal Finance Act, 2005. (Section 9.) (h) for clause (15), the following clause shall be substituted:— `(15) "goods" includes all kinds of movable property other than— (a) newspaper, actionable claims, stocks, shares or securities, (b) country liquor, (c) foreign liquor, whether made in India or not, including brandy, whisky, vodka, gin, rum, liqueur, cordials, bitters and wines or a mixture thereof beer, ale, porter, cider, perry, and other similar potable fermented liquors, (d) lottery tickets, and (e) motor spirit of any kind;'; (i) after clause (17), the following clause shall be inserted:— `(17A) "import" means bringing goods in West Bengal from any place outside West Bengal or from any other country;'; (j) for clause (18), the following clause shall be substituted:— `(18) "input tax", in relation to a tax period on or after coming into force of this Act, means the amount of tax,— (a) paid or payable under the Act, other than under section 11, by a registered dealer, other than those enjoying composition under sub-section (3) of section 16 or sub-section (4) of section 18, to a registered dealer, or a dealer who has made an application under sub-section (1) of section 24 within thirty days from the date of incurring liability to pay tax under the Act, at the time of purchasing taxable goods, other than such taxable goods as may be prescribed, during that period, (b) payable under section 11 by a registered dealer on his turnover of purchases, referred to in sub-clause (a) of clause (54) of section 2, of raw jute during that period, and (c) payable under section 12 by a registered dealer, other than those enjoying composition under sub-section (3) of section 16 or sub-section (4) of section 18, on his turnover of purchases referred to in sub-clause (c) of clause (54) of section 2, where such purchases made during that period, other than purchases of such taxable goods as may be prescribed;'; (k) after clause (20), the following clauses shall be inserted:— `(20A) "interest payable" means the amount of interest payable under section 33 or section 34 or section 34A; (20B) "jute" means the plant known botanically as belonging to the genus corchorous, and includes all the species of that genus, whether known commonly as pat, kosta, nalia, or by any other name, and also means the plant known botanically as hibiscus cannabinus or commonly known as mesta;'; for clause (22), the following clause shall be substituted:— `(22) "manufacture", with all its grammatical variations and cognate expressions, means producing, making, extracting or processing any goods and includes printing, rearing of seedlings or plants, and raising of man-made forest or other natural resources like minerals, coal etc. for sale;'; 6 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 [PART III The West Bengal Finance Act, 2005. (Section 9.) (m) after clause (22), the following clauses shall be inserted:— '(22A) "maximum retail price", in respect of goods taxable under the 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; (22B) "motor spirit" means any liquid or admixture of liquids which is ordinarily used directly or indirectly as fuel for a motor vehicle or stationary internal combustion engine. Explanation.—For the purpose of this clause, the expression "motor vehicle" shall include any means of carriage, conveyance or transport by land, air or water;'; (n) for clause (23), the following clause shall be substituted:— '(23) "net tax", in relation to any period, means— (a) in case of a registered dealer, other than those referred to in sub-clause (c) and sub-clause (d), the amount of output tax in excess of the net tax credit, as referred to in sub-section (17) of section 22, claimed by such registered dealer in accordance with ,the provisions of this Act and the rules made thereunder, (b) in case of any dealer other than a registered dealer, the amount of output tax, (c) in case of a registered dealer who has been allowed to pay tax at a compounded rate under sub-section (3) of section 16 or sub-section (4) of section 18, the amount of output tax, (d) in case of a registered dealer, other than those referred to in sub-clause (a) and sub-clause (c), enjoying deferment of payment of tax, or tax holiday, or remission of tax under clause (a), clause (b), or clause (c) respectively of section 118, the amount of output tax;'; (o) for clause (26), the following clause shall be substituted:— '(26) "output tax", in relation to any period, means the aggregate amount of tax payable by a dealer liable to pay tax under section 10, section 11, section 12, section 14, sub-section (3) of section 24, and section 27C, and includes tax payable at the compounded rate under sub-section (3) of section 16 or sub-section (4) of section 18, in respect of any sale, or purchase, of goods, or execution of works contract, made by him in West Bengal;'; for clause (28), the following clause shall be substituted:— '(28) "penalty due" means the penalty found to be unpaid after the expiry of the date specified in the notice of demand issued in this behalf under this Act or rules made thereunder;'; for clause (29), the following clause shall be substituted:— '(29) "place of business" means any place where a dealer has set up a business of selling or purchasing goods or a place from where a dealer sells any goods or where he keeps accounts, (q) PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 7 The West Bengal Finance Act, 2005. (Section 9.) registers or documents, including those in the form of electronic records relating to sales or purchases of goods or execution of works contract and digital signature certificate granted under sub-section (4) of section 35 of the Information Technology Act, 2000, relating to his business, and includes any place where the dealer processes, produces or manufactures goods or executes works contract and any warehouse of such dealer;'; for clause (31), the following clause shall be substituted:— `(31) "principal officer", in relation to a company, means the director or managing director of such company, or the secretary authorised to act as principal officer by the Board of Directors of such company;'; (s) after clause (31), the following clause shall be inserted:— `(31A) "principal place of business" means any place of business where a dealer keeps all accounts, registers, documents, including those in the form of electronic records, and digital signature certificate granted under sub-section (4) of section 35 of the Information Technology Act, 2000, relating to his business and, includes the chief branch or head office within West Bengal;'; (t) clause (32) shall be omitted; (u) clause (33) shall be omitted; (v) for clause (35), the following clause shall be substituted:— `(35) "purchase price" means the amount of valuable consideration paid or payable by a person for the purchase of any goods, less any sum allowed as cash discount, commission or commercial rebates granted at the time of delivery, or before delivery, of such goods but including cost of freight or delivery or distribution or installation or insurance, or any sum charged for anything done by the seller in respect of the goods at the time of delivery of such goods or before delivery thereof, other than interest if separately charged;'; after clause (36), the following clauses shall be inserted:— `(36A) "resale" means sale of any goods purchased within West Bengal in the same form in which such goods are purchased or without using such goods in such manner which amounts to or results in manufacture; (36B) "return period" means a period, as may be prescribed, for which a return is due under the Act; (36C) "reverse credit" means reversal or returning by a dealer, by way of deduction from the amount of input tax credit or input tax rebate for a period, the amount of input tax credit or input tax rebate availed by him during any period which he was not entitled to or became disentitled subsequent to the enjoyment of such input tax credit or input tax rebate;'; (x) in clause (39), in the proviso to Explanation I, for the words "provisions, of this Explanation", the words "provisions of this Explanation" shall be substituted; (r) (w) 2 I of 2000. 8 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 [PART III The West Bengal Finance Act, 2005. (Section 9.) (y) for clause (41), the following clause shall be substituted:— `(41) "sale price" means the amount payable to a dealer or casual dealer as valuable consideration for the sale, other than the sale referred to in section 14, of any goods and includes— (a) any sum charged for anything done by the dealer or casual dealer in respect of such goods at the time of delivery, or before delivery, of such goods, (b) any sum charged for freight, delivery, distribution, installation or insurance, by such dealer at the time of delivery, or before delivery, of such goods, (c) any tax, duty or charges levied or leviable (other than the tax charged separately under this Act, subject to the provision as mentioned in the Explanation and cess levied under the West Bengal Transport West Ben. 00 Act XXI of 2 Infrastructure Development Fund Act, 2002), in respect of such goods, but does not include any sum allowed as cash discount, commission or other commercial rebate on the value of such goods at the time of delivery, or before delivery of such goods and interest if separately charged. Explanation.—For the purpose of this clause, the expression "sale price" of a dealer, enjoying payment of tax at a compounded rate under sub-section (3) of section 16 or sub-section (4) of section 18, or selling to any person other than a dealer of goods upon which maximum retail price as referred to in clause (22A) is applicable and where such maximum retail price is inclusive of sales tax, shall include any tax payable under this Act, including the tax referred to in section 10, or section 12;'; (z) for clause (45), the following clause shall be substituted:— `(45) "tax" means the tax due as defined in clause (46) or tax payable as defined in clause (49) under this Act;'; (za) for clause (48), the following clause shall be substituted:— `(48) "tax invoice" means an invoice containing such particulars as may be prescribed;'; (zb) for clause (49), the following clause shall be substituted:— `(49) "tax payable" means the tax payable under this Act on sales or purchases effected or for execution of works contract by a dealer or casual dealer but does not include tax due as defined in clause (46);'; (zc) for clause (50), the following clause shall be substituted:— `(50) "tax period" means such period, as may be prescribed, for which tax is payable under the Act;'; (zd) in clause (52), for the Explanation, the following Explanation shall be substituted:— `Explanation.—For the purposes of this Act, the expression "transporting agent" shall also include a clearing, forwarding, shipping and handling agent;'; PART THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 9 The West Bengal Finance Act, 2005. (Section 9.) (ze) for clause (54), the following clause shall be substituted:— `(54) "turnover of purchases", in relation to any period, means,— (a) in case of an occupier of a jute-mill liable to pay tax under section 11, the aggregate of the purchase prices or parts of purchase prices payable by such occupier for the quantities of raw jute purchased by him during such period after deducting the amounts, if any, refunded to him by the seller during such period in respect of any quantity of raw jute returned to the seller within ninety days from the date of its purchase and such other amounts as may be prescribed, (b) in case of a shipper of jute liable to pay tax under section 11, the aggregate of the purchase prices or parts of purchase prices payable by such shipper of jute in respect of the quantities of raw jute purchased by him in West Bengal and despatched by him during such period to any place outside West Bengal by any means of transit, (c) in case of any dealer liable to pay tax under section 12, the aggregate of the purchase prices or parts of purchase prices payable by such dealer in respect of the goods purchased by him during such period for use of such goods in West Bengal, after deducting the amounts, if any, refunded to the seller during such period in respect of any such goods purchased but returned to the seller within six months of such purchase;'; (zf) for clause (55), the following clause shall be substituted:— `(55) "turnover of sales", in relation to any period, means the aggregate of the sale-prices or parts of sale-prices received or receivable by a dealer in respect of sales as defined in clause (39) of the Act and in clause (g) of section 2 of the Central 74 of 1956. Sales Tax Act, 1956, of goods made during such period after deducting therefrom— (a) the sale-prices or the parts of sale-prices, if any, in respect of sales of goods during such period, which are shown to the satisfaction of the Commissioner to have been purchased by the dealer in West Bengal, upon payment of tax on the maximum retail price of such goods or, where tax on maximum retail price of such goods were paid in West Bengal in an earlier occasion, and (b) the amounts, if any, refunded by the dealer in respect of any such goods returned or rejected by the purchaser within six months from the date of such sales;'; (zg) for clause (56), the following clause shall be substituted:— `(56) "warehouse" means any enclosure, building or place where a dealer, casual dealer or any other person keeps stocks of goods, and includes a vessel, vehicle or godown;'; (zh) in clause (57),— (a) in sub -clause (c), for item (i), the following item shall be substituted:— `(i) any motor vehicle,'; (b) in sub-clause (d), for the words "treating or adapting", the words "treating, adapting or printing on," shall be substituted; 10 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 [PART III The West Bengal Finance Act, 2005. (Section 9.) (zi) in clause (58), for the words "the last day of March.", the words "the last day of March;" shall be substituted; (zj) after clause (58), the following clause shall be inserted:— `(59) "zero-rated sale" means a sale of any goods on which no tax is chargeable but credit for the input tax related to that sale is admissible.'; (2) in section 8,— (a) in sub-section (5), for the words "any accounts, register or documents", the words "any accounts, register or documents including those in the form of electronic records" shall be substituted; (b) in sub-section (6), for the words "any accounts, register or documents", the words "any accounts, register or documents including those in the form of electronic records" shall be substituted; (c) in sub-section (7), for the words "assess or re-assess tax", the words "assess or re-assess net tax or any other tax" shall be substituted; (d) in sub-section (10), for the words "by an Additional Commissioner,", the words "by a Special Commissioner or an Additional Commissioner, as the case may be," shall be substituted; for section 10, the following section shall be substituted:— "Incidence of tax. 10. (1) Every dealer, who is liable to pay tax immediately before the appointed day under any provision, other than section 15 of the West Bengal Sales Tax Act, 1994, and who would have continued to be so liable under the said Act on such appointed day had this Act not come into force, shall, in addition to the tax, if any, payable by him under any other provisions of this Act, be liable to pay tax under this Act on all his sales, other than those referred to in section 14, effected on and from such appointed day. (2) Every dealer to whom the provisions of sub-section (1) do not apply and whose gross turnover of sales calculated from the commencement of the year ending on the day immediately before the appointed day, exceeds the taxable quantum, as applicable to him under the West Bengal Sales Tax Act, 1994, on the last day of such year shall, in addition to the tax, if any, payable by him under any other provisions of this Act, be liable to pay tax under this Act on all his sales, other than those referred to in section 14, effected on and from such appointed day. (3) Every dealer to whom the provisions of sub-section (1) or sub- section (2) do not apply, shall, in addition to his liability to pay tax, if any, under any other provisions of this Act, be liable to pay tax under this Act,— (a) on all his sales, other than those referred to in section 14, of goods which have been imported by him from any place outside West Bengal with effect from the day on which he effects first sale of such goods; or (b) on all his sales, other than those referred to in section 14, of goods effected on or after the date immediately following the date on which his turnover of sales calculated from the commencement of any year exceeds, at any time within such year, such taxable quantum as may be prescribed, and different taxable quantum may be prescribed for different classes of dealers: Provided that the taxable quantum as may be prescribed under this clause shall not exceed five lakh rupees. (3) West Ben. Act XLIX of 1994. PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 1 I The West Bengal Finance Act, 2005. (Section 9.) (4) Every dealer who has been registered under sub-section (2) of section 24 for his application under clause (b) of sub-section (1) of that section, on any date prior to the date on which his turnover of sales exceeds the taxable quantum referred to in clause (b) of sub-section (3), he shall be liable to pay tax on all his sales from the date of such registration. (5) Every dealer who incurs liability to pay tax under sub-section (3) of section 27C. shall, notwithstanding that his turnover of sales does not exceed the taxable quantum referred to in clause (b) of sub-section (3), also be liable, in addition to the tax, if any, payable by him under any other provisions of this Act, to pay tax on sales by him of goods from the date of transfer of business. (6) Every dealer who incurs liability to pay tax under sub-section (2) or sub-section (3) or sub-section (4) of section 14, shall, notwithstanding that his turnover of sales does not exceed the taxable quantum referred to in clause (b) of sub-section (3), also be liable, in addition to the tax payable by him under section 14, to pay tax on sales of goods effected by him under this section on and from the day he incurs liability to pay tax under that section. (7) Any dealer who is liable to pay tax under the Central Sales Tax 74 of 1956. Act, 1956, shall, notwithstanding that his turnover of sales under the Act does not exceed taxable quantum referred to in clause (b) of sub- section (3), also be liable to pay tax under this Act on all sales of goods effected by him on and from the date on which he becomes liable to pay tax under that Act. (8) Every dealer who has become liable to pay tax under this section, shall continue to be so liable until the expiry of three consecutive years commencing on and from the appointed day and such further period after the date of such expiry as may be prescribed, during each of which,— (a) he has not effected any sale of goods imported by him from outside into West Bengal; or (b) his turnover of sales has failed to exceed the taxable quantum referred to in clause (b) of sub-section (3), and on expiry of such three years or such further period, his liability to pay such tax shall cease: Provided that where a dealer has become liable to pay tax under sub- section (6) or sub-section (7) and has not separately incurred liability to pay tax under sub-section (3), he shall continue to be so liable until his liability ceases under section 14 or under the Central Sales Tax Act, 1956, as the case may be. (9) The provisions of sub-section (3), or sub-section (4), or sub- section (5), or sub-section (6), or sub-section (7), as the case may be, shall apply to every dealer whose liability to pay tax ceases under sub- section (8) as if such dealer has not ever become liable to pay tax under this section. (10) The Commissioner shall, after making such enquiry as he may think necessary and after giving the dealer an opportunity of being heard, fix the date on and from which such dealer has become liable to pay tax under this section."; 12 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 [PART III The West Bengal Finance Act, 2005. (Section 9.) (4) for section 11, the following section shall be substituted:— onncinof tax purchase of 11. (1) Every dealer who, as an occupier of a jute raw jute. mill or a shipper of jute, has been liable immediately before the appointed day to pay tax under section 12 of the West Bengal West Ben. Act Sales Tax Act, 1994 and who would have continued to be so liable on XLIX of 1994. such appointed day under that Act had this Act not come into force, shall, in addition to his liability to pay tax, if any, under any other provisions of this Act and subject to the provisions of sub-section (3), be liable to pay tax on all his purchases of raw jute in West Bengal with effect from the appointed day. (2) Every dealer, being an occupier of a jute mill or a shipper of jute, to whom the provisions of sub-section (1) do not apply, shall, in addition to his liability to pay tax, if any, under any other provisions of this Act and subject to the provisions of sub-section (3), be liable to pay tax on all his purchases of raw jute in West Bengal from the date of first purchase effected on or after the appointed day. (3) The dealer referred to in sub-section (1) or sub-section (2), as the case may be, shall be liable to pay tax on all his purchases of raw jute in West Bengal after deducting therefrom such purchases which are shown to the satisfaction of the Commissioner to have taken place in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956 or in the course of import of goods into, or export of the goods out of, the territory of India within the meaning of section 5 of that Act. (4) Every dealer who incurs liability to pay tax under this section, shall continue to be so liable until the expiry of three consecutive years commencing on or after the appointed day and such further period after the date of such expiry as may be prescribed, during each of which, he has not effected any purchase of raw jute in West Bengal. (5) The provisions of sub-section (2) shall apply to every dealer whose liability to pay tax ceases under sub-section (4) as if such dealer had not ever become liable to pay tax under this section."; for section 12, the following section shall be substituted:— "Contingent liability to pay tax 12. (1) Every dealer liable to pay tax under on purchase. section 10 or section 14 or sub-section (3) of section 27C, and registered under section 24 shall, in addition to the tax payable under any other provisions of this Act, be liable to pay on all his purchases in West Bengal from any person, whether a dealer or not, after deducting therefrom— (a) purchases of goods, sales of which are declared tax-free under section 21; (b) purchases which are shown to the satisfaction of the Commissioner to have taken place in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956 74 of 1956. (5) PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 13 The West Bengal Finance Act, 2005. (Section 9.) or in the course of import of goods into, or export of the goods out of the territory of India within the meaning of section 5 of that Act; (c) purchases of goods which are shown to the satisfaction of the Commissioner to have been made from a registered dealer in West Bengal; (d) purchases of goods which are shown to the satisfaction of the Commissioner to have been made from a dealer in West Bengal who has applied for registration within thirty days of his incurring liability to pay tax under sub-section (2) of section 23 and who has issued a tax invoice: Provided that where the application for registration of the dealer has been rejected, no deduction shall be allowed on such purchases, from the date of order of rejection of the application; (e) such other purchases as may be prescribed. (2) The burden of proving that any purchase effected by a dealer is not liable to tax under sub-section (1) shall lie on such dealer."; (6) section 13 shall be omitted; (7) for section 14, the following section shall be substituted:— "Liability to pay 14. (1) Notwithstanding anything contained tax on transfer of property in goods elsewhere in this Act, any transfer of property in goods involved in execution of (whether as goods or in some other form) involved in the works contract. execution of a works contract in West Bengal shall be deemed to be a sale of those goods by the person making the transfer and a purchase of those goods by the person to whom such transfer is made. (2) Every dealer, who is liable on the day immediately before the appointed day to pay tax under section 15 of the West Bengal Sales Tax Act, 1994, and who would have continued to be so liable under the said Act on such appointed day had this Act not come into force, shall, in addition to the tax, if any, payable by him under any other provisions of this Act, be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1), from such appointed day, at the rate specified in section 18. West Bern. Act XL1X of 1994. 14 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 [PART III The West Bengal Finance Act, 2005. (Section 9.) (3) Every dealer to whom the provisions of sub-section (2) do not apply and whose contractual transfer price calculated from the commencement of the year ending on the day immediately before the appointed day exceeds the amount prescribed under section 15 of the West Bengal Sales Tax Act, 1994, on the last day of such year shall, in addition to the tax, if any, payable by him under any other provisions of this Act, be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1), from such appointed day, at the rate specified in section 18. (4) Every dealer to whom the provisions of sub-section (2) or sub- section (3) do not apply, shall, if his contractual transfer price calculated from the commencement of any year, exceeds five lakh rupees at any time within such year, be liable, in addition to the tax, if any, payable by him under any other provisions of this Act, to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the day immediately following the day on which such contractual transfer price first exceeds five lakh rupees. (5) Every dealer who has been registered under sub-section (2) of section 24 for his application under clause (b) of sub-section (1) of that section, on any date prior to the date on which his contractual transfer price exceeds five lakh rupees, shall be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the date of such registration. (6) Every dealer who incurs liability to pay tax under sub-section (3) of section 27C, shall, notwithstanding that his contractual transfer price does not exceed five lakh rupees, also be liable, in addition to the tax, if any, payable by him under any other provisions of this Act, to pay tax on transfer by him of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the date of transfer of business. (7) Every dealer who incurs liability to pay tax under section 10 or section 11, shall, notwithstanding that his contractual transfer price does not exceed five lakh rupees, also be liable, in addition to the tax payable by him under any other provisions of this Act, to pay tax on transfer by him of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the day he incurs liability to pay tax under that section. (8) Every dealer who has become liable to pay tax under this section, shall continue to be so liable until the expiry of three consecutive years commencing on or after the appointed day, during each of which his contractual transfer price does not exceed five lakh rupees and such further period after the date of such expiry as may be prescribed, and on the expiry of such three years or further period, his liability to pay such tax shall cease: Provided that where a dealer has become liable to pay tax under sub-section (7) and has not incurred liability to pay tax under sub- section (4), he shall continue to be so liable until his liability ceases under section 10 or section 11. West Ben. Act XLIX of 1994. PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 15 The West Bengal Finance Act, 2005. (Section 9.) (9) The provisions of sub-section (4), or sub-section (5), or sub- section (6), as the case may be, shall apply to every dealer whose liability to pay tax ceases under sub-section (8) as if such dealer had not ever become liable to pay tax under this section. (10) The Commissioner, after making such enquiry as he may think necessary and after giving the dealer an opportunity of being heard, shall fix the date on and from which such dealer shall become liable to pay tax under this section."; (8) in section 15, for clause (b), the following clause shall be substituted:— "(b) on his every purchase of goods in West Bengal, after deducting therefrom— (i) purchases of goods, sales of which are declared tax-free under section 21; (ii) purchases which are shown to the satisfaction of the Commissioner to have taken place in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956, or in the course of import of 74 of 1956. goods into, or export of the goods out of the territory of India within the meaning of section 5 of that Act; (iii) purchases of goods which are shown to the satisfaction of the Commissioner to have been made from a registered dealer in West Bengal: Provided that the burden of proving that any purchase effected by a casual dealer is not liable to tax shall be on such casual dealer."; (9) in section 16,— (a) for sub-section (1), the following sub-section shall be substituted:— "(1) Subject to the provisions of sub-section (2), the tax payable by a dealer, who is liable to pay tax under section 10, or sub-section (3) of section 24, or sub-section (3) of section 27C on his turnover of sales, shall be levied on such part of his turnover of sales as remains after deducting therefrom— (a) sales of goods declared tax-free under section 21; (b) sales of goods which are shown to the satisfaction of the Commissioner not to have taken place within West Bengal, or to have taken place in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956, or in the course of import of the goods into, or export of the goods out of, the territory of India within the meaning of section 5 of that Act; (c) such other sales on such conditions and restrictions as may be prescribed."; (b) in sub-section (2), after clause (b), the following clause shall be inserted:— "(ba) at the rate of twelve decimal five zero per centuin of such part of his turnover of sales as represents sales of any goods specified in Schedule CA;"; 16 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 (PART III The West Bengal Finance Act, 2005. (Section 9.) (c) after sub-section (2), the following sub-sections shall be inserted:— "(2A) When taxable goods are sold together with containers or packing materials, notwithstanding anything contained in sub- section (2), the rate of tax applicable to such containers or packing materials, as the case may be, shall be the same as that applicable to the goods contained, or packed, and the sale price of the containers or packing materials, whether shown separately or not, shall be included in the sale price of the goods. (2B) Where the sale of any goods, which is exempt from tax, is packed in any container or in any packing material, then, notwithstanding anything contained in sub-section (2), the sale of such container or packing material shall also be exempt from tax."; (d) for sub-section (3), the following sub-section shall be substituted:— "(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), any registered dealer having liability to pay tax under this Act, may, at his option,— (a) if his gross sales in the year ending on the day preceding the appointed day does not exceed fifty lakh rupees; or (b) if his turnover of sales in the preceding year commencing on or after the appointed day does not exceed fifty lakh rupees, pay tax at such compounded r
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