HIMACHAL PRADESH. 1. Structure. Sales Tax Systems in India: A Profile. Point o f Levy: The system of sales taxation in Himachal

Similar documents
RAJASTHAN. a. The Rajasthan Entertainment and Advertisement Tax Act b. The Rajasthan Electricity Duty Act.

RAJASTHAN. Other enactments administered are: a. The Rajasthan Entertainment and Advertisement Tax Act b. The Rajasthan Electricity Duty Act.

TAMILNADD A. TAMIL NADU GENERAL SALES TAX ACT, Structure. Point o f Levy: Initially, sales tax in Tamil Nadu was a

WEST BENGAL. A.The Bengal Finance (Sales Tax) Act, B.The West Bengal Sales Tax Act, C.The West Bengal Motor Spirit Sales Tax Act, 1974.

JAMMU & KASHMIR. 1. Structure

Sales Tax Systems In India : A F m flle MIZORAM

Sales Tax Systems in India: A P ro file UTTAR PRADESH I

1. Structure. Tax is payable by lottery ticket sellers/importers/manufacturers/resellers/ general dealers in the following turnover limits:

Sales Tax Systems In India: A P rofile ANDHRA PRADESH

GOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES, 14, BELIAGHATA ROAD, KOLKATA TRADE CIRCULAR. No. 02/2008 Date:

ANDHRA PRADESH. 1. Structure

SERVICE TAX. 2.1 It has been proposed in the Finance Bill to extend the levy of service tax to following new services,-

MEGHALAYA ACT NO. 5 OF 2005.

ENTRY TAX ACT

HARYANA GOVT. GAZ. (EXTRA.), SEPT. 28, 2018 (ASVN. 6, 1940 SAKA) 267 PART - I HARYANA GOVERNMENT LAW AND LEGISLATIVE DEPARTMENT Notification The 28th

GOODS AND SERVICES TAX (COMPENSATION TO THE STATES FOR LOSS OF REVENUE) BILL, 2016

THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) BILL, 2018

CENTRAL SALES TAX ACT, 1956

Short title, extent and commencement. Definitions.

CENTRAL EXCISE, RULES,

Total turnover/ Gross receipts 30% 30% of FY > Rs 50 Cr No change in rate of Surcharge

VAT Procedures. 5.1 Registration

THE TAMIL NADU TAX ON ENTRY OF MOTOR VEHICLES TO LOCAL AREAS ACT, 1990

FINANCE BILL 2017-DIRECT TAX PROPOSALS AT GLANCE

Chapter IV Assessments, Payment, Recovery and Collection of Tax 24. Submission of return

INDIRECT TAX LAWS & PRACTICE. Paper-18. Syllabus Set-1. Answer of Postal test Paper. Set-1.

7 VAT Procedures. 1. Registration. Learning objectives

1

SyNoPSIS of the FINaNce BILL, 2017

CS Professional Programme Solution June Paper - 6 Module-III Advanced Tax Laws and Practice Part-A

CHAPTER II And CHAPTER III INCIDENCE, LEVY AND RATE OF TAX, REGISTRATION

MVAT & CST 2011 Budget Highlights

Union Budget 2015 Tax proposals February 28, 2015

INDIA BUDGET 2016 SUMMARY OF IMPORTANT PROPOSED AMENDMENTS.

UPDATE ON AMENDMENTS TO CGST ACT, 2017

Learning Objectives Understand

Refunds. Chapter IX. FAQ s. Refund of tax (Section 54)

The Rajasthan Tax on Entry of Goods into Local Areas Act, 1999

EY Ford Rhodes. Chartered Accountants

TCS Provision at a Glance for FY

Important MCQ of GST

KDF3A INDIRECT TAXATION UNIT I -V

GOVERNMENT OF JHARKHAND COMMERCIAL TAXES DEPARTMENT NOTICE OF HEARING UNDER JHARKHAND VAT ACT 05

Composition Levy Under GST- A Boon or Bane

THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENT ACT, 1976

Inspection, Search, Seizure and Arrest

THE GUJARAT VALUE ADDED TAX (AMENDMENT) BILL, GUJARAT BILL NO. 7 OF A BILL. further to amend the Gujarat Value Added Tax Act, 2003.

APPLICABILITY OF SERVICE TAX:

M/s PRANJAL JOSHI & CO

The Black Money (Undisclosed Foreign Income and Assets) and Imposition Tax Act, 2015

FB.COM/SUPERWHIZZ4U Income Tax Amendment for the Assessment

CHAPTER II : SALES TAX

Proposed amendments to the Finance Bill, 2016

CERTIFICATE COURSE ON INDIRECT TAXES

ORDER FINANCE DEPARTMENT Sachivalaya, Gandhinagar. Dated the 23rd July, 2008.

Most Expected Questions of GST CS EXECUTIVE (JUNE, 2018 STUDENTS) By

Levy and Collection of Tax

Union Budget 2014 Analysis of Major Direct tax proposals

Chapter- REFUND. 1. Application for refund of tax, interest, penalty, fees or any other amount

Central Goods and Services Tax (CGST) Rules, 2017

The. Extraordinary Published by Authority. PART III Acts of the West Bengal Legislature. GOVERNMENT OF WEST BENGAL. LAW DEPARTMENT Legislative

Service tax. (d) substitute the word "client" with the words "any person" in the specified taxable services;

The Rajasthan Tax on Entry of Goods into Local Areas Rules, 1999

BUDGET 2016 SONALEE GODBOLE

Government of Gujarat Finance Department, Sachivalaya, Gandhinagar Dated the 1 st, 2006

vlk/kkj.k EXTRAORDINARY Hkkx II [k.m 1 PART II Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY

Advanced Tax Laws and Practice 376

UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017

SURENDER KR. SINGHAL & CO

PRIVATE CIRCULAR MAHARASHTRA STATE BUDGET MVAT 2017

THE KARNATAKA ELECTRICITY (TAXATION ON CONSUMPTION 2 [OR SALE] 2 ) ACT, 1959.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE

New Reward Policy Approved vide Govt. Letter No. 19/118/2010-ET2(6)13762 Dated REWARD SCHEME

IMPACT OF GST ON INDIAN ECONOMY

1. (1) In this Act, save where the context otherwise requires

Amendments brought in by Finance Act, 2016

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

other dealer. It is levied on the tax base inclusive of customs and UED. if any. Inputs are accorded concessional treatment in all states.

HIMACHAL PRADESH MOTOR VEHICLE TAXATION RULES, 1974

AMENDMENTS IN INDIRECT TAXES FOR MAY 2012 IDT. Prepared & Compiled by : Adarsh Agrawal

FA Fakhri Associates. Room No. 528, Price center 5 th floor, Preedy Street, Karachi &

REPORT ON THE WORKING OF THE MATERNITY BENEFIT ACT, 1961 FOR THE YEAR 2010

Basics of GST. Ganesh Pathuri

CENTRAL BOARD OF EXCISE & CUSTOMS

Transferring efficiency Advancing new options. Indirect Tax Seminar Issues and Prospects June 22, 2013 Anjlika Chopra

Summary of Notifications, Circulars from 16 th September, 2016 to 15 th October, 2016

CENTRAL EXCISE RULES,

Themes of the Budget

Advanced Tax Laws and Practice

VAT CONCEPT AND ITS APPLICATION IN GST

The Payment of Wages Act The Minimum Wages Act The Payment of Bonus Act The Equal Remuneration Act

THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENT ACT, 1976

CHATTISGARH COMMERCIAL TAX RULES

CHAPTER IV: STATE EXCISE

Simple Handbook on GST

ANALYSIS OF SERVICE TAX RULES, 1994

GST Concept and Design

BUDGET 2014 HIGHLIGHTS

Nadeem Butt (FCA) Chartered Accountant

GST: FREQUENTLY ASKED QUESTIONS [FAQS] FOR COMPOSITION SCHEME

Transcription:

Sales Tax Systems in India: A Profile HIMACHAL PRADESH The Central Sales Tax Act came into force in Himachal Pradesh in 1956 but there was no State sales tax until 1958 when the Punjab General Sales Tax Act was enforced and tax was imposed on some luxury goods. After the reorganisation of States in 1966, some areas of Punjab were merged with Himachal Pradesh. Only these areas remained under the ambit of the Sales Tax Act till 1968, when the Himachal Pradesh General Sales Tax Act was enacted and enforced in the whole of the State. In addition, the Motor Spirit (Taxation on Sale) Act, 1948, provides for the levy of sales tax on motor spirit. 1. Structure Dealers whose annual turnover exceeds Rs.1 lakh are liable to pay sales tax. For manufacturers, liability to pay tax arises if the turnover is Rs.40,000 or more. There is no turnover limit for importers and they become liable to pay tax with the first sale of imported goods in the State. In the case of cooperative societies, the turnover limit is Rs.5 lakh. Point o f Levy: The system of sales taxation in Himachal Pradesh is based on single-point levy either at the first or last stage of sale. 84

Sales Tax Systems in India: A P ro file R a t e S t r u c t u r e : Rates of tax vary from 0.5 per cent, to 10 per cent. Foreign and Indian made foreign liquor is taxed at the rate of 25 per cent. Bullion and specie are taxed at 0.5 per cent. The rate of 1 per cent is applicable to tractors and all types of yarn. Groundnut and readymade garments made of handloom or millmade cloth are taxed at 2 per cent. Foodgrains attract 3 per cent tax and chassis of buses and trucks suffer tax at 3.5 per cent. Other rates are 4 per cent (applicable to declared goods), 5, 8 and 10 per cent. Schedule A goods such as refrigerators, cigarette cases and cameras are taxed at 10 per cent. Non-specified (unexempted) goods are taxed at the general rate, which is at present 7 per cent. Surcharge: In addition to the tax, every dealer is liable to pay surcharge at the rate of 10 per cent of the tax payable. No surcharge is however payable in respect of sale of declared goods. Exemptions: Schedule B of the Act has a list of goods which are exempted from tax. In all, there are 65 categories of such goods. These include items of mass consumption, such as, vegetables, milk, eggs, fresh fruits, common salt, books, etc., and also a large number of agricultural implements. Some other items have been exempted in order to encourage local cottage and small industries and include straw covers, fruit packing cases and solar energy equipment. Conditional exemption has been accorded to articles of han d i c r a f t s sold by T i b e t a n Refugee Handicrafts-cum-Production Centre, Dalhousie, other handicrafts sold through Government emporia, goods sold by 85

Sales Tax Systems in India : A P ro file Dhauladhar Farm Forestry Projects, Palampur, and foodgrains supplied free of cost by the Government of India under the Food for Work Programme. Incentives to Industries: In order to encourage small-scale industries in the State, tax holiday was provided for a certain period to new industrial units by a notification issued in 1974. A fresh notification was issued in 1978 prescribing concessional rates of tax on the sale of goods manufactured by newly set up small-scale units. Goods which are subject to the rate of 7 per cent are taxed at 2 per cent for the first five years and at 4 per cent for the next five years. Goods which are normally taxed at a rate higher than 7 per cent are accorded a concessional rate of 3 per cent for the first five years and 5 per cent for the next five years. 2. Registration Every dealer liable to pay tax has a statutory obligation to get himself registered. The law also provides for voluntary registration by dealers whose turnover is below the taxable limit. Any person intending to establish a business in Himachal Pradesh for the purpose of manufacturing goods of a value exceeding R s. 10,000 a year, may also obtain provisional registration. 3. Assessment Returns may be filed monthly or quarterly by all registered dealers. 8 6

Sales Tax Systems in India: A P ro file If the assessing authority is satisfied that the return is correct and complete in all respects, he may assess the tax payable on the basis of such return. In other cases, the assessing authority is empowered to call for books of account and other evidence. If a dealer fails to file a return or produce books of account, etc., in response to a notice issued in this regard, the assessing authority may complete the assessment on the basis of best judgement. Where it is found that any turnover has escaped assessment, the assessing authority may take up the assessment/reassessment at any time within five years from the expiry of the year to which the tax relates. 4. Penalty and Prosecution Any dealer who contravenes provisions of the Act or rules is liable to penalty which may go up to Rs.2,000. In the event of continuing default, a penalty, not exceeding Rs.50 a day during the period of default, can also be imposed. The law requires that such penalties may be imposed after giving proper show-cause opportunity to the defaulter. Any person who is not authorised to collect tax or a registered dealer who collects tax which is more than the amount due, is also liable to pay penalty upto Rs.5,000 or double the amount wrongly collected, whichever is greater. Failure to file return or to pay due tax is also punishable with penalty which may be equal to but does not exceed one-and-half times of the amount of tax assessed. 87

Sales Tax Systems in India : A P ro file 5. Administrative Organisation The Department is headed by Excise and Taxation Commissioner who belongs to the IAS cadre. He is assisted at H e a d q u a r t e r s by a D e p u t y Excise and T a xation C o m m i s s i o n e r (HQ), a D e p u t y Excise and Taxation Commissioner (Inspection), three Assistant Excise and Taxation Commissioners out of whom one is in charge of legal matters. The State's twelve districts have been demarcated into two zones for administrative convenience. Each zone is headed by a Joint Deputy Excise and Taxation Commissioner who is also the appellate authority under all the taxation enactments administered by the Department. In addition there is a flying squad in each zone functioning under a Deputy Excise and Taxation Commissioner. An Excise and Taxation Officer is in charge at the district level, except in the case of Kinnanur District which is headed by Excise and Taxation Officer. In addition, a number of Excise and Taxation Officers are posted in the districts, according to the workload and pendency position of assessments in sales tax. Each district is further divided into smaller circles, placed under Excise and Taxation Inspectors with clearly demarcated jurisdiction. 6. Appeals Any dealer aggrieved by any notice issued or any order passed by the Assessing Authority may appeal to Appellate Authority within 60 days from the date of order. 88

Sales Tax Systems In India: A P ro file 7. Checkposts The Department has set up checkposts/barriers at strategic points on various roads in the State to curb tax evasion. Important checkposts/barriers are manned by ETOs while others are placed under the charge of Excise and Taxation Inspectors. The person in charge of a transport vehicle is under a statutory obligation to make a declaration in the prescribed form regarding the goods being transported through the checkpost. Note: The Government of Himachal Pradesh has proposed major changes in the existing Sales Tax Act during January 1991 according to which the entire Sales Tax Act would be recast. The bill is yet to be given assent. 89