VAT Act updated - West Bengal

1 Disclaimer While every care has been taken to provide accurate copy of the west Bengal Value Added Tax Act, 2003 incorporating the subsequent amendments, the Directorate of Commercial Taxes, west Bengal will not be responsible for any typographical or any other error/inaccuracy in the above Act and for any clarification in the matter please contact the Public Relations Officer, Office of the Commissioner, Directorate of Commercial Taxes, 14 Beliaghata Road, Kolkata - 700015 (Phone: 2251-5786). 2 CHAPTER I Preliminary. 1. Short title, extent and commencement. 2. Definitions. CHAPTER II Taxing Authorities, Appellate and Revisional Board and Bureau. 3. Commissioner. 4. Special Commissioner. 5. Additional Commissioner.

2 6. Other persons appointed to assist the Commissioner. 7. Appellate and Revisional Board. 8. Bureau of investigation. 8A. Establishment of west Bengal Value Added Tax Settlement Commission. 8B. Filing of application to Settlement Commission. 8C. Proceedings before Settlement Commission. 8D. Bar on further proceedings in respect of case settled by Settlement Commission. 9. Persons appointed under the Act to be deemed to be public servants. CHAPTER III Incidence and levy of tax. 10. Incidence of tax 11. Incidence of tax on purchase of raw jute. 12. Contingent liability to pay tax on purchase. 13. Omitted. 14. Liability to pay tax on transfer of property in goods involved in the execution of works contract. 15. Liability of a casual dealer to pay tax. 16. Levy of tax on sales.

3 16A. Levy of tax on sales by casual dealer. 17. Levy of tax on turnover of purchases. 17A. Levy of tax on purchases by casual dealers at contracted transfer price. 18. Levy of tax on taxable contractual transfer price. 19. Power of the State Government to fix rates of tax on sale of goods specified in Schedule 'D'. 20. Power of the State Government to amend Schedules. 21. Tax-free sale of goods. 21A. Zero-rated sale. Input tax credit or input tax rebate by a registered dealer. 22A. Penalty for false claim of input tax credit or input tax rebate. 22B. penalty for issue of tax invoice without sale or without delivery of goods. CHAPTER IV Registration of a dealer, enrolment of a transporter, carrier or transporting agent, demand of security, amendment or cancellation of registration of a dealer or enrolment of a transporter, carrier or transporting agent, information to be furnished by a casual dealer, dealer in certain cases.

4 3 PART I Registration of a dealer, enrolment of a transporter, carrier or transporting agent, demand of security, amendment or cancellation of registration either suo motu or on the basis of information by a dealer and amendment or cancellation of enrolment of a transporter, carrier or transporting agent. 23. Bar to carry on business as a dealer without being registered. 24. Registration of a dealer. 24A. Special provision for registration. 25. Enrolment of transporters, carriers or transporting agents. 26. Security to be furnished by dealer, casual dealer or any other person including transporter, carrier or transporting agents. 27. Amendment of certificate of registration. 27A. Information to be furnished by a registered dealer regarding change of business.

5 27B. Transfer of business by a registered dealer. 27C. Partial transfer of business by a registered dealer. 27D. Declaration in respect of the manager or other officers of a registered dealer. 27E. Penalty for contravention of the provisions of sections 27A, 27B, 27C, or 27D. 28. Amendment of certificate of enrolment. 28A. Cancellation of certificate of enrolment. 29. Cancellation of certificate of registration. 30. Option for cancellation of registration under specified circumstances. PART II Other information to be furnished by a casual dealer, a dealer, etc. 30A. Statement to be furnished by persons, dealing in transporting, carrying, shipping, or clearing, forwarding or warehousing etc. 30B. Information to be furnished by dealers in respect of transfer of goods otherwise than by way of sale.

6 30C. Penalty for non-furnishing of information or furnishing of incorrect information under section 30B. 30D. Compounding of penalty that may be imposed under section 30C. 30E. Statements, accounts, audit reports or declarations to be furnished by registered dealers and penalty for non-furnishing the same. 30F. Statement to be furnished by casual dealers. CHAPTER V Payment of net tax or any other tax, interest, penalty, late fee, furnishing of Returns and deduction of amount at source towards payment of tax, etc. 31. Payment of net tax or any other tax, interest, penalty, late fee. 31A. Adjustment of reverse credit. 32. Furnishing of return by dealer. 33. Interest for non-payment or delayed payment of net tax payable or for non-reversal of input tax credit or input tax rebate.

7 34. Interest for non-payment or delayed payment of assessed tax. 4 34A. Interest for failure to make payment of tax as referred to in clause (a) of section 118. 35. Exemption from payment of interest. 36. Interest payable by Commissioner. 37. Rounding off of net tax or any other tax payable for calculation of interest. 38. Rounding off of amount of net tax or any other tax, or penalty. 39. Collection of tax only by dealers liable to pay tax. 40. Deduction at source from payment to a dealer against execution of works contract. CHAPTER VI Scrutiny and verification of returns and statements and the documents furnished by a dealer, casual dealer, and audit of accounts and other Documents maintained by a dealer. PART I Scrutiny and verification of returns furnished by, and audit of accounts and other documents maintained by a dealer.

8 41. Scrutiny of returns. 42. Verification of returns. 43. Audit of accounts and assessment in certain cases. 43A. Special Audit of dealers. 44. Credit and debit notes. PART II Scrutiny and verification of statements and the documents Furnished by a Casual dealer. 44A. Scrutiny and verification of statements and the documents furnished by a casual dealer. CHAPTER VII Provisional assessment and assessment upon hearing and determination of interest and late fee as referred to in sub-section (2) of section 32. 45. Provisional assessment. 46. Assessment after giving notice to the registered dealer. 47. Assessment as per return. 47A. Special provision for deemed assessment. 47AA. Summary assessment of returns. 48. Assessment of tax payable by dealers other than registered dealers. 49. Limitation for assessment.

9 50. Determination of interest. 51. Rectification of mistake in determination of interest. 52. Assessment without prejudice to prosecution for any offence. 53. Assessment after partition or disruption or dissolution of Hindu Undivided Family, firm, or other association of persons and net tax, penalty or interest payable by a sole Proprietor. 53A. Determination of late fee referred to in sub-section (2) of section 32. CHAPTER VIII Recovery of tax, penalty and interest and refund. 54. Certain transfers of immovable property by a dealer to be void. 55. Recovery of tax, penalty and interest, appointment of Tax Recovery Officer, etc 5 56. Tax Recovery Officer to whom certificates to be forwarded. 57. Amendment of certificates for tax recovery. 58. Validity of certificates for tax recovery. 59. Transmission of certificates for tax recovery to collector in certain cases.

10 60. Special mode of recovery of tax, penalty and interest by Commissioner. 60A. Recovery of admitted amount of net tax or any other tax, interest or penalty from a dealer. 61. Refund to certain class of persons. 62. Refund of tax etc. Paid in excess. CHAPTER IX Maintenance of accounts etc. by a dealer. 63. Maintenance of accounts, records, 64. Compulsory issue of tax invoice, invoice, casa memo or bill. 65. Imposition of penalty for non-issue or improper issue of tax invoice, invoice, cash Memo or bill. CHAPTER X Furnishing of information, production, inspection, search and seizure of accounts, registers and the documents of a dealer, casual dealer or any other person and sealing of any place, room and almirah, etc. 66. Furnishing of information, production, explanation and inspection of accounts, registers and documents.