Amendment status not verified — confirm the current text below against the official source.
Rates of tax on Sales in the course of inter-state trade or commerce 2[[1] Every dealer, who in the course of inter-State trade of commerce,- 2.Substituted by Act 31 of 1958 w.e.f. 1.10.1958 (a) Sells to the government any goods; or (b) Sells to a registered dealer other than the Government goods of the description to in sub-section(3); 1[2] [shall be liable to pay tax under this Act, with effect from such date as may be notified by the Central Government in the Official Gazette for this purpose, which shall be two per cent, of his turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate state under the Sales tax law of that State, or, as the case may be, under any enactment of that state imposing value added tax, whichever is lower. 1 Substituted for certain words vide Act No. 32 of 2003, dated 14.5.03 Provided that the rate of tax payable under this sub-section by a dealer shall continue to be four cent of his turnover, until the rate of two per cent, takes effect under this sub-section.] (2) The tax payable by any dealer on his turnover insofar as the turnover or any part thereof relates to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1) – (a) In the case of declared goods, shall be calculated 2[at twice the rate] applicable to the sale or purchase of such goods inside the appropriate State; 3[and] 2.Substituted by Act 25 of 1975 for words “at the rate” w.e.f. 1.7.1975 3 Word “and” omitted by Act No. 20 of 2002, w.e.f. 11.5.02 (b) In the case of goods other than declared goods, shall be calculated at the rate of ten per cent or at the rate applicable to the sale or purchase of such goods inside the appropriate State, which ever is higher 2[;and] 4[c] In the case of goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate state, exempt from tax generally shall be nil. and for the purpose of making any such calculation under clause (a) or clause (b), any such dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate state, not withstanding that he, in fact, may not be so liable under that law..