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Shoft title, extert and commencement: (l) l his Act may be called Thc Sikkim value Added Tax Act.2005' tr, .e.'cr (i. olltc t'n'c.'\ik(rm. (i) Itshallcorncinto lorce on such date as lhe Statc (iovernment may, by notificetion in the Otllcial Ga7-etle, aPPoirll. 2, Definitions: In this Act. unless the context otherwise requires, - (i) "Act" mcans lhe Sikkirn Value Added Tax Act, 2005 i (ii) "Appellate Authority" mcans the Sikkim CommercialTaxes Appellale Authoi ity constituted u.dcrsub seclio (l) olscction 4l (iii) 'appointed day' Ineans lhe datc on which lhis Act comes jnto forcc; (iv) "assessee" rneans any pe$on by whom tax orany othelsum ofmoney is payable Lrnderthis Acl and includes cvery person in rcspect olwhon any proceedings ullder tiis Act have been taken for Ihe aslessmellt ollax payahle by himl (V)..i1sscssir]gautho]ity,'mcansanvofl.]celnotl]clowthelankofAssistantConnnjssionelauthorizcd: hi/ thc Govenlment or by any aLlll'lol ity empowered by the Covernnent to make any assessrnen! i llllder this AcL; (vi)'Busincss'inclLrdes- (a) any traale. commelcc' manulacturc, ol'any adventure or concern in th' n'trrte of h ede' commcrce. rlanufacture' whelher or not su ch trade' commctce' manufacture' adventure {jrconcefil is canied on with the motiveto nrakc gaill orprofiland whelher or not any profltaccurcs liomsuch tr'ade. coft]nelce, manltfacture, adventLLre or concer n il'r-cspcctivc 01 fie lolume.l'rcqucncy, continuity orreg[]rity ol'such lrade, cornmctce. manulactrue. advenlure ucollcern. (b ) any tfan saction ol sale or p urchase ir con ncction []ilh or anc illrtr] oi illcider lal to s lLc h trade. commerce, manulactLrre, adve nture of concern rettrrcd to in sub cl ause ( a) : (c) ary lransacLion invol\,lng goods, whcther original o| secondhand, u nscN iccable, obsole te or discarded goods, mcre scrap or lvasle materjal; and (d) any transaction involving goods obuined rs wxste products or by-producls ir the course olmanLrlactulc ol processing olother goods or mining or genelalion or disIibution oi clectical enel8y or any othel ibnn ofpower; (vii) "capital goods" rneans planL, fiaclinery, dyes, tools, and cqu\rnent uscd in the process ol' rnanufacturing, excluding civil slructul es and such goods as mlly bij notifl ed lllnr l L nc r, rirn(i (vu) Cornmissioner" means fieCor nissioner olcorxnercialTil\cs and ircludes, Lrnless the contexl rcquires otllerwise, theSpecial, Addilional, Joint.Deputy and Assistarlt Commissirllrer of ComnercialTaxes appointed under sectior 3; (ix) "Ccnhal Aci' means the Centnl Sales 'Iax Ac!. 1956 (Act 74 ol 1956); (x) "Conractee" means any peNon for w hom or lirr whose benellt a lvorks contracl is executed i (xi) "Conlractor" means any person who executes, eithcr himself or through a su Il cor rtractor, a works conlract: (xii) "dealer" means any person who, lvhether regu larly or othe.w ise, in the course o I b usiness buys, sells, supplies, dist iblrtcs or does mythlrg incidenlal to such buyi rg, sell ing, stLpplying or di stri blrtinEl ol goods, direcdy or indirectly, whethr:r tbr crsh or 1br deitred paymcnl ol lbr conxnission, rcmuneration o. olher valLratrle consideaation iuld incltLdcsl (a) a casual b'ader; (b) a conmission agent, a broker or r dclcredere agent or an auctioleer or any other lercantile agent, by whatevername called, (c) a non-resident dealel or'an agent ofa non-resident dcaler or a local brunch l]1'a f itr or compan y or association or body ol person s \vhcthc r incorporalcLl d Dot. sjlurted oulside rhe Stare: (d) a person who. whether in the coulse ofbusiness or Dol, (i) sells goods produccdby hjm by manulactxle. agrjculture, hortjculhn-e orothe]8ise:or (ii) tmnsfers ary goods, whetlter rn pursuancc ofa contmcl ol.ltot. lor cash or iordelerred payment or lorothcr veluable considemtion: (iii) supplies.by!vayol, oras pan ofany sewice or in any other rnanncr whatsoevcr. goods being food oranvothcl arliclcs forhuman consumption ol anydril* (whcthcr or not intoxicaling), u4reresuch supply orscrvice is lorcash. dclcrrcd payment or oLlrel' ..1-r:rl'le -Jr.i,rcr-rlior: Ilxplanation I - Every pcrson who acts as an agent on behallola dealcr residing outside the State and huys, sel1s. sUpplies oI distrlbutes goods ir the.State or acts on bchall of such dealer es - (a) acommissioD agcnt. blokcr, factor-. a delcredele agcnt. an &uctioneer orotlter meirantilc agent, by \\,I]atever narne called; or (b) an agenl lor handl iDg good s or docu menis ol title to goods; or (c) an agenl lor the colleclion or lhe paylnent olthe sale price ol'goods or'as guar'anloI for sLlch colleclion or payment and cvcrJ local branch ofa fimr or-corrpany situated outside the Slatei shall be dee led to be a.lealerlorthepuqroseolthis AcL. Explaration II- The Centralor'lhe State Govcrnment or an,v oftheirdepa ments orolfices \r,hjch, \\'lrelher or not in thc coulsc of business. blry. sell or-supply lor commission. rclnuneration or llor othe[ viluable consideration. shall he deemed to be a dealer lor dte puryose ofthis Act. Explanation III - Any cornmercial or financial eslabllshment inclftlirg a hank. an insurance cornpany. a lransport company an(1 thc likc whloh whelhcr or noL in lhc course olbusiness buys. sclls. supplies or- disrributcs goods dircclly or olherl|isc,Ior cash or for delencd payment. commission, rcmuneration or for other valuable consrderation. shall be deemed Io be a dealer-for Lhe pueose of this Act; (xiii) "goods" means all kinds ofmovable propcny (othcr thxn ncwspapcrs,.ctionable clairns, electicil)r, stocks and shares and sccul'ities) and includes livc stock. all nutefials, connnodities and articles and every kind olprope(y (whedleras goods or in some otherfbrm) involved in the execution ola worts contmct. and allgrowing crops, grass or lhings atlached lo or lonning pa ol'thc land \vhich are agreed to be severcd before sale or under the co.tract ofsale; (xi,,,) "Govemrneri' means lhe Govemmenlof Sikkim: (x\, "gross tulnover". means- (a) in respect ofsale ofgoods' aggregate ofthe sale prices received or recejvable by a dealer onsalesaSdefinedunderctause(xrix)andincludessaleofgoodsmadeoutsidetheState olinthecourseofinter-statetade0ICommerce0Iexp0rtbutdoesnotinclr'tdesalepdce ofgoods which have bome the incidence ofpurchasetax under this Act; (b) for the puryose oflevy of purchase tax' aggregate ofpurchase prices paid or payable by adealerduring any given period io respect ofpurchase of goods or class or descdption ol goods which are liable to lax underthis Acl; ExplaDation : The amount received by a dealer on account of price variation or price escalation in respecl of sale ot supply of goods shall be deemed to form pan of gross tumover of the tinancial yeal during which it is actually received; (xvi) "input" means goods purchased in the course ofbusiness - (a) tbr use in manufacture of goods including packing matedals but excluding purchases of Petfol, diesel and natural8as' and (b) lor use as capiLal goodsi (xvii) "input tax " means ihe rax paid or payable under lhis Act by a registercd dealer to another rcgislered dealer on the purchase ofgoods in the course ofbusiness tbr rcsale or lbi the manul.actureoftil,(ablegoodsolforuseascontamersorpackingmaroialori.ortheexecution of works conftrci; (xviii) "manutacturc", with its gununatical variadons ancl cognute expressions means prcducing' making, extracting any goods or altedng' omarnenting' iinishing' assembling or otherwise processing, fteating or adapting oI any goods' bLrtdoes notinclude any process or mode ol manufacure as may be notilied from dme to time; (xix) "notjfication" means nodfication published in the Offlcial Gazettei (xx) "otltpr.lt tax" means the tax charged or chargeable in respecr oi sale or supply of goods made bY a registeied dealer; (xxi) "Pe6on" includes:- (a) an lndividual; (b) ajointfairily; (c) a company; qfim; an association of pemons or a body of individual, whetl'le[ in corporated o] notl the Central Cov3rnmenLor tl'le Govemment ofSikkim i,r the Covemment ofany other Staie orUnionTeritory in hrdia; alocalautlrcdtyl (xxii) "place ofbusiiess" means any place where adealelsells any goods or keeps accounts relating to sales or purchase ofgoods and includes any walehouse ofsuch dealer, any place where a dealerproduces or manufactures goods. any place wheL'eir thegoods aie stored orused fol transpolling the goods; (xxiii) "prescribed" means prcscdbed by rules framed under this Aat; (xxiv) "purcha,se" means aly tmnsfer of piopelty in goods to fie pelson making the purchase for cash or defered paymenlor othervaluable consideration Lrtrt does not include a tmnsfer by way of moftgage, hypothecation. charge orpledge; (xxv) "purchase price"rneans theamountpaid orpayableby adealeras valuable consider"tioo in respect ofpurchase ofgoods and includes - (a) any sum char ged for anything done by d1e vendol in.espect ofthe goods at the time of or' beforc the delivery thereof: (b) tmnsport costs or freight. ifany; (c) tlade commissicn, ifany, by whatevernamecalledl (d) clearing, foMarding and handling charges, if ary; (e) insumnce charges, ifany: (0 cost ofpacking, ifanyland (g) any othercharges orcosts otherthan those specified al,oveifsuch chal-ges oI costs are incuredorpaid in rcspectofgoods so purcha-sed and includes any amount payable by a purchaser for anythjng doneby the seller in respect ofgoods at the time of or beforc delivery thereofto the buyer ifary of the costs, charges. taxes or duties as aforcsaid alc incurcd in rclation to Lhe trans l'er ofpropclty in goods; (d) (e) (0 G) Explanation I- Purch$e price shall not include litx pad or payable undel this Ac! by a detler in respecl oI any such purchase. Explanation II - For the puryose olthis clause' purchase price shali not include the alnount paid or payable by lhe plLrchaserby way ofnol1-letunddble deposit whelher by way olasepar'ate agreemenlol not in connection with or incidental to or ancillery to the said pllrchasc olgoods' ().wi) 'Repealed Act" means suchplovisio s .)1'sikkim Sales Tax Act' 1983inrespectof corxnodities/prodLicis as wi11be dealt with under the provisions of lhe Sikkim ValLre AcLrled 'l'ax Act,2005 repealed u der section 100: (xrvli) "Ru1es" meansther[lcs made underthis Acl: (xxviii) "Sale" means arly tmnsfer ofpropefiy in goods lbrcdsh' delened puyment or othel valuable considention and includes:- (a) any tansler, otherwise than ir pursuance ol a contracl oI propefiy in any goods Iorcash' defened payment or other valuable consideration; (b) any delivery olgoo.ls on hie-purchase or any system ofp?ryment by instalmen!; (c) any supply by way ofor as part ol any service or in any other manner whalsoevet ol goods. being Iood or any other rrticle tbr human consumpiion o' Jrry drlnk (whether or rot intoxicating), whcre slLchsupply orseivice is tbrcash' dcferrcd paylnenl or oiher valuable consideration; (d) any supply ofgoodsby any unincorpomtecl as sociation or- body oipe$ons to a member thereol for cash, delerred payment or other-valuable considelation' and such u ansfer' dclivery or supply of any goods shall be deemed to be a sale olthose goods by the person or u nincolporated associdtjon or bocly ofpersons making thc renster' delivery or suppl)' adapurchaseolthoses,orlbylhope$ontowhomsuchtlansfil,deliveryorsupply is madebutdoes not inclucle a mortgage' hypoihecation' chiugeorpledge' Explanation - A saleofgoods shallbe deeme'lto t4ke place inside the Sikkim- (a) ifthe goods are within thc State of Sikkim' (i) in the case oispeciflc or asceltalned goods et the time lhe contract ofsale rnadei and (ii) in rhe c ase ot' unasceflaincd or lilture goods atthe time oftheir appropriadon to ihe contlactofsalebylhese]]er,whcLheltheasscntolthebuyertosuchuppropn.rtionis priol or s ubsequeni t' the appropriation; (iii) where there is a single conlract ofsale in respect ofgoods situated at more Lhan one place, then the sale shall be deemed to have Laken place as ifthere is a separate oontract in rcspect ofgoods al each such places; (xxix) "Saie pnce" mearls lheamountofvaluable considemtion received orreceivable by adealer for the sale ofany goods less any sum allowcd as cash discount, according lo the practice Dolmally prevailing in the adebulinclusive olany sum cl]arged for anything done by fiedealerin respect of the goods ol sel.vices at thc time ol or befole delivery thereof' excise du ty' special exciseduty orany other duly orlaxcs except the lax imposed underthis Act; (xxx) "schedule" means theschedulcappended lo this Acl and the description ofany goods spccified thercin shallbe subjectto the exceptions' resl ctioos and condilions. if ary' and the application ofthe provisions ofthis Act, relerring to the Schedule shallbe subject to the circumstances if any, mentiored therein gener-a11y oragaiost such goods: (xxxi) 'section " means seclion of llle Act; (xxxii)"Staie Cc\,emrrenf'rneans the Govem ent ofSikkim; (xxxiii) "tax" means tax levied and payableunder this Act; (xxxiv) "taxablegoods" means all goods except lhose specified in Schedulel; (xxxv) "Tax Recovery Inspector" means aTax Recovery Inspector aPpojnted by lhe State Govemment under the provisions of the Sikkim (Collection olTaxes and Prevention of Evasion ofPayrnent olTaxes) Act, 1987(ActNo 7 of 1987); (xxxvi),.taxab]etumover,'meansthetumovelonwhichadealerisliab]etopaytaxasdefennined after making such clcdLlctions frcm hjs tota]tumover and in slrch lr:ranner as may be Pr-escribed; (xxx;ii) "Value Adde.l Tax or VAT" means a tax on sales orpurchases lcvied under'lhis Acl; (xxxviii) "works contract" includcs any agrcement lor caflJing out lorcash or delcned Paymenlor olhelvaluableconsiderdtion,theassemb]ing,co]lshxction,building,altering'manufac&lring, processing, fabrication, jrstallarion, fiiling ou!' improvernent rcp'tir or ! o mrnissioni ng of anv movable or imn'lovable ProPel1Y; ()lx,{ix) 'Year" means lhe lln anc ial yeal beginrlingliorn l'' AprlLandendingo Sl"M'rrclr' CITAPTER II COMMEI{CIAI, lAX AU'I'HORI'I'IES AND APPELLA LE AUTHORITlI]S