The West Bengal Finance Act, 2011

Registered No. WB/SC-247 	
No. WB(Part-III)/2011/SA R-11 
11Colltata Ctyttt 
Extraordinary 
Published by Authority 
BHADRA 8] 	
TUESDAY, AUGUST 30, 2011 	 [SAKA 1933 
PART HI—Act of the West Bengal Legislature. 
GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
NOTIFICATION 
No. 1017-L.-30th August, 2011.—The following Act of the West Bengal Legislature, having been assented to by 
the Governor, is hereby published for general information:— 
West Bengal Act VII of 2011 
THE WEST BENGAL FINANCE ACT, 2011. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Kolkata Gazette, 
Extraordinary, of the 30th August, 2011.] 
An Act to amend the Indian Stamp Act, 1899, in its application to West Bengal, the 
West Bengal Entertainments and Luxuries (Hotels and Restaurants) Tax Act, 1972, the 
West Bengal Sales Tax Act, 1994 and the West Bengal Value Added Tax Act, 2003. 
WHEREAS it is expedient to amend the Indian Stamp Act, 1899, in its 
application to West Bengal, the West Bengal Entertainments and Luxuries (Hotels 
and Restaurants) Tax Act, 1972, the West Bengal Sales Tax Act, 1994 and the 
West Bengal Value Added Tax Act, 2003, for the purposes and in the manner 
hereinafter appearing; 
It is hereby enacted in the Sixty-second Year of the Republic of India, by the 
Legislature of West Bengal, as follows:- 
Short title and 	 1. (1) This Act may be called the West Bengal Finance Act, 2011. commencement 
2 of 1899. 
West Ben. Act 
XXI of 1972. 
West Ben. Act 
XLIX of 1994. 
West Ben. Act 
XXXVII of 
2003. 
2 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 [PART III 
The West Bengal Finance Act, 2011. 
(Section 2.) 
Application and 
amendment of 
Act 2 of 1899. 
(2) Save as otherwise provided, it shall come into force on such date, or shall 
be deemed to have come into force on such date, as the State Government may, by 
notification in the Official Gazette, appoint, and different dates may be appointed for 
different provisions of this Act. 
2. (1) The Indian Stamp Act, 1899 (hereinafter referred to as the principal Act) 
shall, in its application to West Bengal, be amended for the purposes and in the manner 
hereinafter provided. 
(2) In Schedule IA to the principal Act,— 
(a) in article 23, in the column under the heading "Proper Stamp-duty",— 
(i) in clause (a), for the words "rupees twenty-five lakh", the words 
"rupees thirty lakh" shall be substituted; 
(ii) in clause (b), for the words "rupees twenty-five lakh", the words 
"rupees thirty lakh" shall be substituted; 
(iii) in clause (c), for the words "rupees twenty-five lakh", the words 
"rupees thirty lakh" shall be substituted; 
(b) after article 23 in the first column and the entry relating thereto in the 
second column, the following article in the first column and entries 
relating thereto in the second column shall be inserted:— 
`23A. Conveyance as 
defined in Explanation (i) 
to sub-section (10) of 
section 2 as amended by 
the Indian Stamp (West 
Bengal Amendment) Act, 
1990 (West Ben. Act XVII 
of 1990)— 
(a) when made between 
family members 
(b) in other cases 
Explanation.—For the 
purpose of this article, 
"Family" shall have the 
same meaning as explained 
under article 33.'; 
(c) against item (i) of article 33 in the first column, in the column under 
the heading "Proper Stamp-duty", for the words "one-half of one per 
centum", the words "two per centum" shall be substituted; 
(d) in article 35,— 
(i) in clause (a) in the first column,— 
(A) against item (ii), in the column under the heading "Proper 
Stamp-duty", for the words "value of the average annual rent 
reserved", the words "value of the average annual rent reserved 
or ten per centum of market value of the property which is 
the subject-matter of the lease, whichever is higher" shall be 
substituted; 
(B) against item (iii), in the column under the heading "Proper 
Stamp-duty", for the words "value of the average annual rent 
reserved", the words "value of the average annual rent reserved 
or twenty-five per centum of market value of the property 
which is the subject-matter of the lease, whichever is higher" 
shall be substituted; 
The same duty as a Gift [No. 33 (i)] on 
the market value of the property which 
is the subject-matter of the Conveyance. 
The same duty as a Conveyance (No. 
23) on the market value of the property 
which is the subject-matter of the 
Conveyance. 
PART III] 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 3 
The West Bengal Finance Act, 2011. 
(Section 2.) 
(C) against item (iv), in the column under the heading 
"Proper Stamp-duty", for the words "value of the average 
annual rent reserved", the words "value of the average annual 
rent reserved or fifty per centum of market value of the 
property which is the subject-matter of the lease, whichever 
is higher" shall be substituted; 
(D) against item (v), in the column under the heading 
"Proper Stamp-duty", for the words "value of the average 
annual rent reserved", the words "value of the average annual 
rent reserved or seventy-five per centum of market value of 
the property which is the subject-matter of the lease, whichever 
is higher" shall be substituted; 
(E) against item (vi), in the column under the heading 
"Proper Stamp-duty", for the words "value of the average 
annual rent reserved", the words "value of the average annual 
rent reserved or ninety-five per centum of market value of the 
property which is the subject-matter of the lease, whichever 
is higher" shall be substituted; 
(F) against item (vii), for the entry in the column under the 
heading "Proper Stamp-duty", the following entry shall be 
substituted:— 
"The same duty as a Conveyance (No. 23) for a consideration 
equal to four times the amount or value of the average annual 
rent reserved or ninety-five per centum of market value of the 
property which is the subject-matter of the lease, whichever 
is higher."; 
(G) against item (viii), for the entry in the column under the 
heading "Proper Stamp-duty", the following entry shall be 
substituted:— 
"The same duty as a Conveyance (No. 23) for a consideration 
equal to four times the amount or value of the average annual 
rent reserved or ninety-five per centum of market value of the 
property which is the subject-matter of the lease, whichever 
is higher."; 
(ii) for clause (b) in the first column and the entry relating thereto in 
the second column, the following clause in the first column and 
entries relating thereto in the second column shall be substituted:— 
"(b) where the lease is granted for a 
fine or premium, or for money 
advanced and no rent is 
reserved— 
(i) where the lease purports 
to be for a term of less 
than one year; 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease. 
4 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 [PART III 
The West Bengal Finance Act, 2011. 
(viii) where the lease purports 
to be for a term exceeding 
five years but not more 
than ten years; 
(ix) where the lease purports 
to be for a term exceeding 
ten years but not more 
than twenty years; 
(x) where the lease purports 
to be for a term exceeding 
twenty years but not more 
than thirty years; 
(xi) where the lease purports 
to be for a term exceeding 
thirty years but not more 
than hundred years; 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease or ten per centum of 
market value of the 
property which is the 
subject-matter of the 
lease, whichever is higher. 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease or twenty-five per 
centum of market value of 
the property which is the 
subject-matter of the 
lease, whichever is higher. 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease or fifty per centum 
of market value of the 
property which is the 
subject-matter of the 
lease, whichever is higher. 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease or seventy-five per 
centum of market value of 
the property which is the 
subject-matter of the 
lease, whichever is 
higher. 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease or ninety-five per 
centum of market value of 
the property which is the 
subject-matter of the 
lease, whichever is higher. 
(Section 2.) 
(ii) where the lease purports 
to be for a term of not 
less than one year but not 
more than five years; 
PART 11IJ 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30. 2011 	 5 
The West Bengal Finance Act, 2011. 
(iii) where the lease does not 
purport to be for any 
definite term; 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease or ninety-five per 
centum of market value of 
the property which is the 
subject-matter of the 
lease, whichever is higher. 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease or ninety-five per 
centutn of market value of 
the property which is 
the subject-matter of 
the lease, whichever is 
higher."; 
(Section 2.) 
(vii) where the lease purports 
to be for a term exceeding 
one hundred years or in 
perpetuity; 
(iii) for clause (c) in the first column and the entry relating thereto in 
the second column, the following clause in the first column and 
entries relating thereto in the second column shall be substituted:—
"(c) where the lease is granted for a 
fine or premium, or for money 
advanced in addition to rent 
reserved— 
(i) where the lease purports 
to be for a term of less 
than one year; 
(ii) where the lease purports 
to be for a term of not less 
than one year but not more 
than five years; 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease, in addition to the 
duty which would have 
been payable on such 
lease if no fine or 
premium or advance had 
been paid or delivered. 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease, in addition to the 
duty which would have 
been payable on such 
lease if no fine or 
premium or advance had 
been paid or delivered or 
the same duty as a 
Conveyance (No. 23) on 
ten per centum of the 
market value of the 
property which is the 
subject matter of the lease, 
whichever is higher. 
6 	 THE KOLKATA GAIhTTE, EXTRAORDINARY, AUGUST 30, 2011 	 [PART III 
The West Bengal Finance Act, 2011. 
(Section 2.) 
(iii) where the lease purports 
to be for a term exceeding 
five years but not 
exceeding ten years; 
(iv) where the lease purports 
to be for a term exceeding 
ten years but not exceeding 
twenty years; 
(v) where the lease purports 
to be for a term exceeding 
twenty years but not 
exceeding thirty years; 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease, in addition to the 
duty which would have 
been payable on such 
lease, if no fine or 
premium or advance had 
been paid or delivered or 
the same duty as a 
Conveyance (No. 23) on 
twenty-five per centum of 
the market value of the 
property which is the 
subject-matter of the 
lease, whichever is higher. 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease, in addition to the 
duty which would have 
been payable on such lease 
if no fine or premium or 
advance had been paid or 
delivered or the Same duty 
as a Conveyance (No. 23) 
on fifty per centum of the 
market value of the 
property which is the 
subject-matter of the 
lease, whichever is higher. 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease, in addition to the 
duty which would have 
been payable on such 
lease if no fine or 
premium or advance had 
been paid or delivered or 
the same duty as a 
Conveyance (No. 23) on 
seventy-five per cerium, 
of the market value of the 
property which is the 
subject-matter of the 
lease, whichever is higher. 
PART III] 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 7 
The West Bengal Finance Act, 2011. 
(Section 2.) 
(vi) where the lease purports 
to be for a term exceeding 
thirty years or in 
perpetuity or does not 
purport to be for any 
definite term; 
The same duty as a 
Conveyance (No. 23) for 
a consideration equal to 
the amount or value of 
such fine or premium, or 
advance as set forth in the 
lease, in addition to the 
duty which would have 
been payable on such 
lease if no fine or 
premium or advance had 
been paid or delivered or 
the same duty as a 
Conveyance (No. 23) on 
ninety-five per centunz of 
the market value of the 
property which is the 
subject-matter of the 
lease, whichever is higher: 
Provided that in any 
case when an agreement 
to lease is stamped with 
the ad valorem stamp 
required for a lease, and a 
lease in pursuance of such 
agreement is subsequently 
executed, the duty on such 
lease shall not exceed 
rupees ten."; 
(e) against article 45 in the first column, in the entry relating thereto 
in the second column, for the words "one-half of one per centum", 
the words "two per centum" shall be substituted; 
(f) for item A of article 58 in the first column and the entry relating 
thereto in the second column, the following item in the first column 
and entries relating thereto in the second column shall be 
substituted:— 
`A.—Instrument of (including a deed 
of dower)— 
(a) Settlement in favour of a 
member or members of a 
family; 
(b) Settlement in favour of 
persons other than family 
members; 
The same duty as a Gift 
[No. 33(i)] on the market 
value of the property for 
the settlement thereof for 
the purpose referred to in 
sub-clause (b) of clause 
(24) of section 2. 
The same duty as a 
Conveyance (No. 23) on 
the market value of the 
property for the settlement 
thereof for the purpose 
referred to in sub-clause 
(b) of clause (24) of 
section 2. 
8 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 [PART III 
The West Bengal Finance Act, 2011. 
(Section 2.) 
(c) Settlement for any The same duty as a 
other purpose 	 Bottomry Bond (No. 16) 
on the market value of the 
property which is the 
subject matter of the 
settlement for the purpose 
referred to in sub-clause 
(a), and sub-clause (c), of 
clause (24) of section 2: 
Provided that where an 
agreement to settle is 
stamped with the stamp 
required for an instrument 
of settlement and in 
pursuance of such 
agreement an instrument 
of 	 settlement 	 is 
subsequently executed, 
the duty on such 
instrument shall not 
exceed rupees ten. 
Exemption.—Deed of 
dower executed on the 
occasion of a marriage 
between Muhammedans. 
Explanation.—For the 
purpose of this item, "Family" 
shall have the same meaning 
as explained under article 33.'; 
(g) for article 63 in the first column and the entry relating thereto in 
the second column, the following article in the first column and 
the entries relating thereto in the second column shall be 
substituted:— 
'63. Transfer of lease by 
way of assignment, and not by 
way of under-lease— 
(i) when made to a 
member or mem-bers 
of a family without 
conside-ration 
(ii) in other cases 
Exemption.—Transfer of 
any lease exempt from duty. 
Explanation.—For the 
purpose of this item, "Family" 
shall have the same meaning 
as explained in item (i) of 
article 33.'. 
The same duty as a 
gift [No. 33(0) on the 
market value of the 
property which is the 
subject-matter of the 
transfer of lease. 
The same duty as a 
Lease (No. 35). 
PART III] 	 THE KOLKATA GAZETTE. EXTRAORDINARY, AUGUST 30, 2011 	 9 
Amendment of 
West Ben. Act 
XXI of 1972. 
Amendment of 
West Ben. Act 
XLIX of 1994. 
The West Bengal Finance Act, 2011. 
(Sections 3, 4.) 
3. In the West Bengal Entertainments and Luxuries (Hotels and Restaurants) 
Tax Act, 1972,— 
(1) after section 4A. the following section shall be inserted:— 
"Registration of 	 4AA. (1) Every proprietor of a hotel or restaurant who proprietor. 	 is liable to deposit the entertainment tax under section 3 
recoverable from, or the luxury tax under section 4 payable by him as 
referred to in section 4A shall get himself registered with the prescribed 
authority in the prescribed manner within ninety days from the end of 
the month in which he has become liable for the first time to deposit 
tax under the said section or within ninety days from the date of coming 
into force of this section, whichever is later. 
(2) If a proprietor fails to get himself registered within the time 
specified in sub-section (1), the prescribed authority may, after giving 
such proprietor a reasonable opportunity of being heard, impose a penalty 
of a sum not exceeding five thousand rupees for each month of default. 
(3) No penalty under sub-section (2) shall be imposed in respect of 
the same fact for which proceeding under sub-section (1) of section 6 
has been initiated and no such proceeding shall be initiated in respect 
of a fact for which a penalty under sub-section (2) of this section has 
been imposed."; 
(2) in section 4C, for the words "two per centum", the words "one per centum" shall be substituted; 
(3) in section 6.— 
(a) in sub-section (1),— 
(i) for the words "If any person fails to pay the entertainment 
tax or the luxury tax", the words "If any proprietor fails to 
get himself registered under this Act or fails to deposit the 
entertainment tax or the luxury tax" shall be substituted; 
(ii) for the words "five hundred rupees", the words "five thousand 
rupees" shall be substituted; 
(iii) for the words "five rupees", the words "five hundred rupees" 
shall be substituted; 
(b) in sub-section (2),— 
(i) for the word "person", the word "proprietor" shall be 
substituted; 
(ii) for the words "to pay the tax which was payable by him", 
the words "to deposit tax which was payable" shall be 
substituted. 
4. In the West Bengal Sales Tax Act, 1994,— 
(1) in section 56A, for sub-section (5). the following sub-section shall be 
substituted:— 
"(5) The amount payable by an applicant for settlement of the total 
amount recoverable in respect of a certificate as referred to in sub-
section (1), shall be determined— 
(a) at the rate of twenty-five per centum of the amount, subject to the 
provisions of sub-section (8). and sub-section (9), of section 52, 
specified in a certificate referred to in sub-section (2) of section 
52 or the actual amount paid in respect of the amount specified 
in such certificate, whichever is higher; and 
10 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 [PART III 
The West Bengal Finance Act, 2011. 
(Section 5.) 
(b) at the rate of five per centum of the amount specified in a certificate 
referred to in sub-section (2) of section 52 towards the amount 
of interest recoverable under clause (a) of rule 5 of the rules in 
Schedule X till the date of making application under sub-section 
(3), subject to a maximum of rupees one lakh, or the actual amount 
paid towards the interest recoverable, whichever is higher; and 
(c) at the rate of one hundred rupees as charges recoverable under 
clause (b) of rule 5 of the rules in Schedule X till the date of making 
the application under sub-section (3), or the actual amount paid 
towards charges recoverable, whichever is higher: 
Provided that where the applicant has already paid, before 
coming into force of this sub-section, the amount as specified in 
the certificate referred to in sub-section (2) of section 52 in excess 
of or equal to the total amount specified in clause (a), clause (b) 
and clause (c) above, or where the applicant makes good the deficit 
amount to make it equal to the total amount specified in clause (a), 
clause (b) and clause (c) above, the same shall be accepted as 
payment made in full of "the total amount recoverable" as referred 
to in sub-section (1): 
Provided further that the amount paid in excess of the total 
amount as referred to in the first proviso shall not be refundable 
to the applicant under any circumstances."; 
(2) in section 68, to sub-section (3), the following proviso shall be 
added:— 
"Provided that the Commissioner may from amongst the 
registered dealers select certain such dealers who may be allowed 
to import goods from outside the State on the basis of such 
documents, under such circumstances, and under such conditions 
and restrictions as may be prescribed."; 
(3) in Schedule VIII, in the entry in column (3) against serial No. 2 
in column (1), for the words "Thirty-seven", the word "Fifty" shall 
be substituted. 
Amendment of 
West Ben. Act 
XXXVII of 2003. 
5. In the West Bengal Value Added Tax Act, 2003.—
(1) in section 2,— 
(a) after clause (19). the following clause shall be inserted:— 
`(19A) "infra-State contractual transfer price" means contractual 
transfer price as referred to in section 14, in respect of 
works contract executed within West Bengal, but excluding 
sale price for sales of goods in the course of inter-State 
trade or commerce, or outside the State, or in the course 
of export out of the territory of India or import into the 
territory of India as referred to in section 3, section 4 or 
section 5 of the Central Sales Tax Act. 1956;"; 	 74 ol 1956 
PART III] 	
THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 11 
The West Bengal Finance Act, 2011. 
(Section 5.) 
(b) in clause (23), in sub-clause (c), for the words, figures. letter and 
brackets "or sub-section (3B).", the words, figures, letter and brackets 
"or sub-section (3B), or sub-section (6)," shall be substituted; 
(2) in section 12,— 
(a) in sub-section (1), for the words and figures "of section 16", the 
words "or sub-section (6), of section 16" shall be substituted; 
(b) in sub-section (2), for the words and figures "of section 16", the 
words, figures and brackets "or sub-section (6), of section 16" shall 
be substituted; 
(3) in section 18, for sub-section (2), the following sub-section shall be 
substituted:— 
`(2) The expression "taxable contractual transfer price" for a period 
as stated in sub-section (1), shall mean, in the case of a dealer who is 
liable to pay tax on transfer of property in goods involved in the execution 
of works contract under section 14 or sub-section (3) of section 24 or 
sub-section (3) of section 27C, that part of his intra-State contractual 
transfer price during that period which remains after deducting therefrom— 
(a) contractual transfer of goods, sales of which are declared tax-free 
under section 21; 
(b) charges towards labour, service and other like charges as may be 
prescribed; 
(c) amounts paid to a sub-contractor for execution of the works contract, 
whether fully or in part, where the dealer claiming such deduction 
produces proof to the satisfaction of the Commissioner that— 
(i) the sub-contractor is a registered dealer liable to pay tax under 
section 14; and 
(ii) an invoice has been raised by such sub-contractor to such 
dealer for the amount claimed as deduction; and 
(iiii) the amount of such transaction is included by such sub-
contractor in his return furnished under section 32; and 
(iv) there is no transfer of property in goods (whether as goods 
or in some other form) from such sub-contractor to the dealer 
in respect of such works contract; 
(d) such other amounts or contractual transfers as may be prescribed.'; 
(4) in section 22,— 
(a) in sub-section (4), in the first proviso, for the words "if purchases 
are used", the words "if purchased goods are used" shall be 
substituted; 
(b) in sub-section (12),— 
(i) in clause (a), for the words and figures "of section 16", the 
words. figures and brackets "or sub-section (6), of section 16" 
shall be substituted; 
(ii) after clause (d), the following clauses shall be inserted:—
"(da) made from a registered dealer who obtained registration 
on the basis of false or incorrect documents or 
false or incorrect representations and whose certificate 
of registration has been cancelled in accordance with 
the provisions of clause (c) of sub-section (1) of 
section 29; or 
(db) made from a registered dealer who is found upon 
enquiry not to have existed, at the time of sale of 
goods, at the address as disclosed in tax invoice 
produced or, as the case may be, at the address as 
disclosed at the time of registration, subject to the 
amendment made under section 27 or amendment 
application as moved under section 27A, if any; or"; 
12 	 THE KOLKATA GAZETTE, EXTRAORDINARY. AUGUST 30, 2011 	 [PART III 
(5) 
The West Bengal Finance Act, 2011. 
(Section 5.) 
after section 22, the following sections shall be inserted:— 
"Penalty for false 	 22A. (1) Where any registered dealer has claimed claim of input tax 
credit or input tax 	 input tax credit or input tax rebate for a period without rebate. entering into a valid transaction of purchase with 
another registered dealer in West Bengal resulting in claim of a higher 
amount of input tax credit or input tax rebate than is admissible to him, 
the Commissioner may, by way of a separate proceeding independent 
of any scrutiny, verification, audit, assessment, appeal, revision or review 
for such period and after giving in the prescribed manner, a reasonable 
opportunity of being heard to such dealer, impose, in addition to any tax 
levied or leviable or penalty imposed or imposable under this Act for 
such period, by an order in writing, a penalty of a sum calculated at such 
per centum, not less than twenty-five per centum and not exceeding one 
hundred fifty per centum, as specified in sub-section (2), of the amount 
of input tax credit or input tax rebate claimed in excess than is admissible 
to him: 
Provided that no penalty under this section shall be imposed if action 
has been taken under sub-section (3) of section 22, or penalty has been 
imposed under section 96, on such dealer, for the same facts and vice 
versa. 
(2) For the purposes of imposition of penalty under sub-section (1), 
the per centum shall be as follows:— 
(a) at the rate of twenty-five per centum where the dealer admits 
in writing the fact of such ineligible claim of input tax credit 
or input tax rebate and pays the full amount of tax involved 
in such ineligible claim along with interest thereon within one 
month of inspection or enquiry leading to detection of such 
ineligible claim, or within one month of initiation of the 
proceeding for such period for imposition of penalty under 
sub-section (1), or within one month of initiation of the 
proceeding for assessment or appeal or revision or review for 
such period, as the case may be, whichever is earlier: 
(b) at the rate of one hundred fifty per centum in all other cases: 
Provided that a dealer may make application within the 
period mentioned in clause (a) to the Commissioner, with 
proof of payment of thirty per centum of the full amount of 
tax involved in such ineligible claim of input tax credit or 
input tax rebate as admitted in writing, for granting of 
instalment for payment of the balance amount of such tax 
along with interest, and upon such application by the dealer 
the Commissioner may allow such dealer to make payment 
of the balance admitted amount of tax involved in such 
ineligible claim along with interest thereon in monthly 
instalments of not more than ten months and upon payment 
of the full admitted amount of tax involved in such ineligible 
claim along with interest thereon, penalty under the sub-
section ( 1) shall be imposed at the percentage specified in 
clause (a): 
PART 	 THE KOLKATA GA7FTTE, EXTRAORDINARY, AUGUST 30, 2011 	 13 
The West Bengal Finance Act, 2011. 
(Section 5.) 
Provided further that if the dealer fails to pay the full 
amount of tax as per the instalment granted under the first 
proviso, then the penalty under sub-section (1) shall be imposed 
at the rate of one hundred fifty per centtan of the amount of 
tax involved in such ineligible claim: 
Provided also that if it is found that the amount of tax 
involved in such ineligible claim of input tax credit or input 
tax rebate by a dealer is in excess of the amount admitted in 
writing by the dealer under clause (a), then penalty under sub-
section (1) shall be imposed at the rate of one hundred fifty 
per centum of that part of the amount of tax involved in such 
ineligible claim of input tax credit or input tax rebate which 
has not been admitted by the dealer in writing. 
(3) Nothing contained in the above-mentioned provisions 
shall be construed to affect liability of the dealer to pay 
interest under the Act by grant of instalment for payment of 
the admitted amount of tax by the dealer. 
"Penalty for issue 
of tax invoice 
without sale or 
without delivery 
of goods. 
22B. (1) Where any registered dealer has issued 
tax invoice to another registered dealer in any 
period— 
(a) without entering into a valid transaction of sale of goods, or 
(b) without effecting any consequent delivery of goods, 
the Commissioner may, by way of a separate proceeding independent 
of any scrutiny, verification, audit, assessment, appeal, revision or review 
for such period and after giving in the prescribed manner, a reasonable 
opportunity of being heard to such dealer, impose, in addition to any tax 
levied or leviable or penalty imposed or imposable under this Act for 
such period, by an order in writing, a penalty of a sum calculated at such 
percentages,not less than one hundred and twenty-five per centum and 
not exceeding two hundred fifty per centum, as specified in sub-section 
(2), of the amount of tax involved in the tax invoices issued by him in 
the situations referred to in clause (a) and clause (b): 
Provided that no penalty under this section shall be imposed if action 
has been taken against the dealer under sub-section (3) of section 22 for 
the same facts and vice versa. 
(2) For the purposes of imposition of penalty under sub-section (1) 
the percentages shall be as follows:— 
(a) at the rate of one hundred and twenty-five per centum where 
the dealer admits in writing the fact of such issue of tax 
invoice and pays within one month of inspection or enquiry 
leading to detection of such issue of tax invoice or within one 
month of initiation of proceedings for the purpose of imposition 
of penalty under sub-section (1), or within one month of 
initiation of the proceeding for assessment or appeal or revision 
or review for such period, as the case may be, whichever is 
earlier, an amount towards penalty equal to one hundred and 
twenty-five per centum of the full amount of tax shown in 
such tax invoices issued by him in the situations referred to 
in clause (a) and clause (b) of sub-section (1); 
14 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 [PART III 
The West Bengal Finance Act, 2011. 
(Section 5.) 
(b) at the rate of two hundred fifty per centum in all other 
cases: 
Provided that a dealer may make application within the 
period mentioned in clause (a) to the Commissioner, with 
proof of payment of thirty per centum of the penalty imposable 
under clause (a), for granting of instalment for payment of 
the balance amount towards penalty as so imposable, and 
upon such application, the Commissioner may allow such 
dealer to make payment in monthly instalments for not more 
than ten months the balance amount towards penalty so 
imposable, and upon payment of such full amount, penalty 
under the sub-section (1) shall be imposed at the percentage 
specified in clause (a): 
Provided further that if the dealer fails to pay the full 
amount of penalty imposable as per the instalment granted, 
if any, under the first proviso, then the penalty under sub-
section (1) shall be imposed at the rate of two hundred fifty 
per centum of the amount of tax shown in such tax invoices 
issued by him in the situations referred to in clause (a) and 
clause (b) of sub-section (1): 
Provided also that if it is found that the amount of tax 
involved in such issue of tax invoice by a dealer is in 
excess of the amount admitted in writing by the dealer under 
clause (a), then penalty under sub-section (1) shall be imposed 
at the rate of two hundred fifty per centum on that part of 
the amount of tax, involved in such tax invoices issued by 
him in the situations referred to in clause (a) and clause (b) 
of sub-section (1), which has not been admitted by the dealer 
in writing."; 
(6) in section 24, after sub-section (2A), the following sub-section shall be 
inserted:— 
"(2B) Where a dealer who has become liable to pay tax under section 
10 or under section 11 or under section 14 applies for registration under 
section 24 and it is found from the documents produced or otherwise that 
such dealer claims to carry on business from table-space in a room not 
owned by him or not directly let out to him by the landlord or from 
accommodation not owned or directly let out to him by the landlord, the 
registering authority shall grant him registration only when such dealer 
furnishes a security of amount not exceeding rupees one lakh each in 
such manner as may be prescribed. - : 
(7) in section 29,— 
(a) in sub-section (1), after clause (f), the following clause shall be 
inserted:— 
"(g) the dealer has received a tax invoice from another dealer 
without entering into a transaction of purchase."; 
PART IIIJ 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 15 
(8) 
The West Bengal Finance Act, 2011. 
(Section 5.) 
(b) for sub-section (3), the following sub-sections shall be substituted:— 
"(3) The cancellation of registration effected under clause (c) of 
sub-section (1), subject to such conditions and restrictions, as may 
be prescribed, shall be deemed to take effect from the date of 
validity of the certificate of registration as granted under sub-
section (2) of section 24. 
(3A) The cancellation of registration under any clause other 
than clause (c) of sub-section (1). subject to such conditions and 
restrictions, as may be prescribed, shall take effect from the date 
as specified by the appropriate authority in his order: 
Provided that the date of cancellation of the certificate of 
registration in case referred to in clause (e) or clause (0 of sub-
section (1) of section 29 shall not be a date prior to the date on 
which order of cancellation is passed."; 
(c) after sub-section (4), the following sub-section shall be inserted:— 
"(5) The appropriate authority as referred to in sub-section (1), 
sub-section (2), sub-section (3A), and sub-section (4), shall be the 
appropriate assessing authority of the dealer notwithstanding the 
fact that the certificate of registration to such dealer may have been 
granted by an authority higher in rank to such appropriate assessing 
authority."; 
in section 32,— 
(a) in sub-section (2), after the second proviso, the following proviso 
shall be inserted:— 
"Provided also that where a dealer, required to furnish return 
under sub-section (I), has furnished a return beyond the prescribed 
date without making full payment of the net tax, interest and late 
fee payable according to such return, such dealer shall, except for 
the return period or periods as the State Government may by 
notification specify, be deemed to have delayed in furnishing that 
return and shall pay late fee upto the date of full payment of such 
net tax and interest, or upto the date of assessment under section 
46 or section 48 in respect of such return period, whichever is 
earlier."; 
(b) in sub-section (3), for the words "discovers any omission or 
error in any return furnished by him", the words "discovers any 
omission or error which is apparent and honest in nature in 
a return furnished by him under sub-section (1)" shall be 
substituted; 
(c) to sub-section (3), the following proviso shall be inserted:— 
"Provided that a revised return under this sub-section shall be 
furnished once only."; 
(d) in sub-section (4), for the proviso, the following proviso shall be 
substituted:— 
"Provided that the dealer shall be eligible to claim the 
amount deducted under sub-section (1) of section 40 as 
payment of tax in the tax period during which the certificate 
of deduction under sub-section (3) of section 40 has been 
received."; 
16 	 THE KOLKATA GA7FTTE, EXTRAORDINARY. AUGUST 30. 2011 	 [PAR r III 
The West Bengal Finance Act, 2011. 
(Section 5.) 
(9) in section 40. for sub-section (1). the following sub-section shall be 
substituted:— 
`(1) Notwithstanding anything contained in section 32 or any rules 
made thereunder or any terms of a contract to the contrary, any person 
responsible for paying any sum to any dealer for execution of a works 
contract within West Bengal referred to in section 14. wholly or partly 
in pursuance of a contract between such dealer and— 
(a) Government, 
(b) a local authority. 
(c) a corporation or a body established by or under any law for the 
time being in force, 
(d) a company incorporated under the Companies Act, 1956, including 
a Government undertaking, 
(e) a co-operative society registered or deemed to be registered under 
the West Bengal Co-operative Societies Act, 2006, 
(f) an educational institution, 
(g) a promoter, 
(h) any bank, 
(i) any hospital or nursing home or diagnostic centre, 
(j) a partnership firm, 
(k) a joint-venture company, or 
(1) a limited liability partnership, 
shall, at the time of payment of such sum in cash or by issue of a cheque 
or draft or any other mode of payment, deduct, towards tax leviable on 
intra-State contractual transfer price, arising from transfer of property in 
taxable goods in the execution of such works contract by him, if any, 
an amount equal to such percentage not exceeding fifteen per centutn 
on such portion of payment as may be prescribed, depending upon the 
amount of charges towards labour, service and other charges as referred 
to in clause (b) of sub-section (2) of section 18, and the scope of claim 
of input tax credit, and different portions and different percentages may 
be prescribed for the purpose of such deduction: 
Provided that no deduction under this sub-section shall be made,— 
(i) where the payment is made as advance prior to the commencement 
of the execution of such works contract; or 
(ii) where no transfer of property in goods (whether as goods or in some 
other form) is involved in the execution of such works contract, 
and the payment is made by, or on behalf of, or to a dealer who 
has not claimed deductions under clause (c) of sub-section (2) of 
section 18 in respect of such works contract. 
Explanation.—For the purposes of this sub-section, "promoter" 
means a person who constructs, reconstructs. converts, renovates 
or extends or causes to be constructed, reconstructed, converted. 
renovated or extended, a building (including a flat or apartment or 
a block of flats or apartments or a resort) for the purposes of transfer 
of such building, either in full or in part, by sale or otherwise to 
any person or to any company, firm, co-operative society, association 
of persons or any artificial juridical person, and includes— 
(i) his assignee, if any, 
1 of 1956. 
West Ben. Act 
XL of 2006. 
PAT 	 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 	 17 
The West Bengal Finance Act, 2011. 
(Section 5.) 
(ii) the person who develops or reclaims the land, the person who 
constructs, reconstructs, converts, renovates or extends, and 
the person who transfers, such building. if such persons are 
different. 
(iii) a society registered under the West Bengal Societies 
Registration Act, 1961. 
(iv) any firm, board or other association of persons established by 
or under any law for the time being in force.': 
(10) in section 41.— 
(a) in sub-section (1),— 
(i) for the words "shall be scrutinized by the Commissioner to 
ascertain", the words "shall be scrutinized, either electronically 
or otherwise, by the Commissioner, in the manner as may be 
prescribed, to ascertain" shall be deemd to have been 
substituted with effect from the 1st day of April, 2010; 
in clause (a), for the words "correct and complete", the words 
"complete and self-consistent" shall be deemed to have been 
substituted with effect from the 1st day of April, 2005; 
(iii) in clause (b), for the words, figures and brackets "sub-section 
(3) of section 33", the words, figures and brackets "sub-
section (1), or sub-section (3), of section 33" shall be deemed 
to have been substituted with effect from the 1st day of April, 
2005; 
(b) in sub-section (2), for the words "correct and complete", the words 
"complete and self-consistent" shall be deemed to have been 
substituted with effect from the 1st day of April, 2005; 
(c) in sub-section (3), for the words "four months from the date on 
which", the words, "four months from the last date of the month 
in which" shall be substituted; 
(11) in section 43, in sub-section (5), after the first proviso, the following 
provisos shall be inserted:— 
"Provided further that no assessment under clause (ca) of sub-section 
(1) of section 46 shall be made, where the dealer has admitted, in writing, 
the observations made in the report referred to in sub-section (3) and has 
paid in full the amount of net tax paid in short, due to excess claim of 
input tax credit or input tax rebate or non-reversal of input tax credit, 
or for any other reason as mentioned in such report, with interest as 
payable under section 33: 
Provided also that the provisions of the second proviso shall not be 
applicable in respect of assessment required to be made under any of the 
clauses of sub-section (1) of section 46, other than clause (ca) of sub-
section (1) of section 46."; 
(12) after section 43, the following section shall be inserted:— 
"Special Audit of 	 43A. (1) The Commissioner may, on the basis of dealers 
information received or otherwise, select. subject to 
such conditions and Restrictions, as may be prescribed, certain dealers 
for the purpose of special audit of accounts, records and documents 
including physical verification of goods held in stock. 
West Ben. Act 
XXVI of 1961. 
18 	 THE KOLKATA GAZETTE. EXTRAORDINARY, AUGUST 30, 2011 	 [PAR r III 
The West Bengal Finance Act, 2011. 
(Section 5.) 
(2) The Special audit shall be conducted at the dealer's place of 
business with or without prior notice."; 
(13) in section 46, in sub-section (1).— 
(a) after clause (eb), the following clause shall be inserted:— 
"(ec) where a registered dealer is enjoying deferment, tax holiday, 
or remission as referred to in clause (a) or clause (b) or clause (c) 
of sub-section (1) of section 116;"; 
(b) in the fifth proviso, for the words, figures and brackets "where no 
scrutiny in accordance with the provision of sub-section (1) of 
section 41 of a return furnished by a registered dealer has been 
caused or where no notice, as referred to in sub-section (2) of 
section 41, has been issued", the words, figures and brackets "where 
no scrutiny in accordance with the provision of sub-section (1) of 
section 41 of a return for return period starting on or after the 1st 
day of April, 2010, furnished under sub-section (1) of section 32 
by a registered dealer has been caused" shall be deemed to have 
been substituted with effect from the 1st day of April, 2010; 
(c) after the sixth proviso, the following proviso shall be inserted:— 
"Provided also that no assessment proceedings by issue of notice 
under this sub-section shall be initiated for any period starting on 
or after the first day of April, 2008, by any authority including an 
authority as referred to in section 43— 
(a) where the amount paid in short on account of net tax or excess 
claim of input tax credit or input tax rebate or non-reversal 
of input tax credit, or for any other reason, or on account of 
short payment of interest or late fee, has been quantified in 
the audit report for such period under sub-section (3) of 
section 43; and 
(b) where the dealer upon receipt of such audit report for such 
period has admitted in writing the observations made therein 
and has paid in full the amount paid in short as ref

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