Amendment status not verified — confirm the current text below against the official source.
(1) Notwithstanding anything contained tax on transfer of property in goods elsewhere in this Act, any transfer of property in goods involved in execution of (whether as goods or in some other form) involved in the works contract. execution of a works contract in West Bengal shall be deemed to be a sale of those goods by the person making the transfer and a purchase of those goods by the person to whom such transfer is made. (2) Every dealer, who is liable on the day immediately before the appointed day to pay tax under section 15 of the West Bengal Sales Tax Act, 1994, and who would have continued to be so liable under the said Act on such appointed day had this Act not come into force, shall, in addition to the tax, if any, payable by him under any other provisions of this Act, be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1), from such appointed day, at the rate specified in section 18. West Bern. Act XL1X of 1994. 14 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 [PART III The West Bengal Finance Act, 2005. (Section 9.) (3) Every dealer to whom the provisions of sub-section (2) do not apply and whose contractual transfer price calculated from the commencement of the year ending on the day immediately before the appointed day exceeds the amount prescribed under section 15 of the West Bengal Sales Tax Act, 1994, on the last day of such year shall, in addition to the tax, if any, payable by him under any other provisions of this Act, be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1), from such appointed day, at the rate specified in section 18. (4) Every dealer to whom the provisions of sub-section (2) or sub- section (3) do not apply, shall, if his contractual transfer price calculated from the commencement of any year, exceeds five lakh rupees at any time within such year, be liable, in addition to the tax, if any, payable by him under any other provisions of this Act, to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the day immediately following the day on which such contractual transfer price first exceeds five lakh rupees. (5) Every dealer who has been registered under sub-section (2) of section 24 for his application under clause (b) of sub-section (1) of that section, on any date prior to the date on which his contractual transfer price exceeds five lakh rupees, shall be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the date of such registration. (6) Every dealer who incurs liability to pay tax under sub-section (3) of section 27C, shall, notwithstanding that his contractual transfer price does not exceed five lakh rupees, also be liable, in addition to the tax, if any, payable by him under any other provisions of this Act, to pay tax on transfer by him of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the date of transfer of business. (7) Every dealer who incurs liability to pay tax under section 10 or section 11, shall, notwithstanding that his contractual transfer price does not exceed five lakh rupees, also be liable, in addition to the tax payable by him under any other provisions of this Act, to pay tax on transfer by him of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the day he incurs liability to pay tax under that section. (8) Every dealer who has become liable to pay tax under this section, shall continue to be so liable until the expiry of three consecutive years commencing on or after the appointed day, during each of which his contractual transfer price does not exceed five lakh rupees and such further period after the date of such expiry as may be prescribed, and on the expiry of such three years or further period, his liability to pay such tax shall cease: Provided that where a dealer has become liable to pay tax under sub-section (7) and has not incurred liability to pay tax under sub- section (4), he shall continue to be so liable until his liability ceases under section 10 or section 11. West Ben. Act XLIX of 1994. PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 15 The West Bengal Finance Act, 2005. (Section 9.) (9) The provisions of sub-section (4), or sub-section (5), or sub- section (6), as the case may be, shall apply to every dealer whose liability to pay tax ceases under sub-section (8) as if such dealer had not ever become liable to pay tax under this section. (10) The Commissioner, after making such enquiry as he may think necessary and after giving the dealer an opportunity of being heard, shall fix the date on and from which such dealer shall become liable to pay tax under this section."; (8) in section 15, for clause (b), the following clause shall be substituted:— "(b) on his every purchase of goods in West Bengal, after deducting therefrom— (i) purchases of goods, sales of which are declared tax-free under section 21; (ii) purchases which are shown to the satisfaction of the Commissioner to have taken place in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956, or in the course of import of 74 of 1956. goods into, or export of the goods out of the territory of India within the meaning of section 5 of that Act; (iii) purchases of goods which are shown to the satisfaction of the Commissioner to have been made from a registered dealer in West Bengal: Provided that the burden of proving that any purchase effected by a casual dealer is not liable to tax shall be on such casual dealer."; (9) in section 16,— (a) for sub-section (1), the following sub-section shall be substituted:— "(1) Subject to the provisions of sub-section (2), the tax payable by a dealer, who is liable to pay tax under section 10, or sub-section (3) of section 24, or sub-section (3) of section 27C on his turnover of sales, shall be levied on such part of his turnover of sales as remains after deducting therefrom— (a) sales of goods declared tax-free under section 21; (b) sales of goods which are shown to the satisfaction of the Commissioner not to have taken place within West Bengal, or to have taken place in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956, or in the course of import of the goods into, or export of the goods out of, the territory of India within the meaning of section 5 of that Act; (c) such other sales on such conditions and restrictions as may be prescribed."; (b) in sub-section (2), after clause (b), the following clause shall be inserted:— "(ba) at the rate of twelve decimal five zero per centuin of such part of his turnover of sales as represents sales of any goods specified in Schedule CA;"; 16 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 (PART III The West Bengal Finance Act, 2005. (Section 9.) (c) after sub-section (2), the following sub-sections shall be inserted:— "(2A) When taxable goods are sold together with containers or packing materials, notwithstanding anything contained in sub- section (2), the rate of tax applicable to such containers or packing materials, as the case may be, shall be the same as that applicable to the goods contained, or packed, and the sale price of the containers or packing materials, whether shown separately or not, shall be included in the sale price of the goods. (2B) Where the sale of any goods, which is exempt from tax, is packed in any container or in any packing material, then, notwithstanding anything contained in sub-section (2), the sale of such container or packing material shall also be exempt from tax."; (d) for sub-section (3), the following sub-section shall be substituted:— "(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), any registered dealer having liability to pay tax under this Act, may, at his option,— (a) if his gross sales in the year ending on the day preceding the appointed day does not exceed fifty lakh rupees; or (b) if his turnover of sales in the preceding year commencing on or after the appointed day does not exceed fifty lakh rupees, pay tax at such compounded rate not exceeding one per centum of the total turnover of sales of such dealer in the year for which such option is required to be exercised, and subject to such conditions and restrictions as may be prescribed, for each tax period of the year in lieu of tax payable under sub-section (2), on all his sales: Provided that the registered dealer having liability to pay tax under this Act as stated in this sub-section shall not include— (a) an importer; or (b) a manufacturer; or (c) a dealer engaged in execution of works contract; or (d) a dealer who transfers goods otherwise than by way of sale within or outside the State; or (e) a dealer who sales goods within the meaning of section 3 of the Central Sales Tax Act, 1956; or (f) a dealer who sales goods in the course of import of the goods into, or export of the goods out of, the territory of India within the meaning of section 5 of the Central Sales Tax Act, 1956: Provided further that such dealer shall not be entitled to issue tax invoice referred to in clause (48) of section 2 of the Act: Provided also that a registered dealer who, in addition to the purchase of goods in course of his business in a year, have also received goods from the supplier within or outside West Bengal, on branch transfer or on consignment basis, for which no price has been paid, shall not be entitled to opt for payment of tax under such compounded rate: 74 of 1956. PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2005 17 The West Bengal Finance Act, 2005. (Section 9.) Provided also that if during the period of enjoyment of payment of tax at compounded rate, turnover of sales of a dealer exceeds fifty lakh rupees, he shall become ineligible to pay tax under this sub-section from the commencement of the month immediately following the month during which his turnover of sales exceeded such sum."; (e) for sub-section (4), the following sub-section shall be substituted:— "(4) Notwithstanding anything contained in sub-section (2) and sub-section (2A), any registered dealer, who imports into or manufactures such goods in West Bengal as may be notified by the State Government, may, at his option, pay, in lieu of the tax payable by him on sale price of such goods under this section, tax at full rate on the maximum retail price of such goods in the manner as may be prescribed: Provided that where a dealer has purchased any goods,— (a) from an importer or a manufacturer upon payment of tax on the maximum retail price of such goods; or (b) from another registered dealer where tax on the maximum retail price of such goods was paid in West Bengal in an earlier occasion, the purchasing dealer, irrespective of whether he is registered or not, while making resale of such goods in West Bengal, shall, notwithstanding anything contained elsewhere in the Act, be entitled to recover from the buyer the amount of tax paid by him at the time of purchase of such goods under such conditions and restrictions, and in such manner, as may be prescribed."; (f) for sub-section (5), the following sub-section shall be substituted:— "(5) Any registered dealer, who intends to opt for payment under sub-section (3) of this section, shall exercise his option for a year, by making an application to the Commissioner in such manner, and within such time, as may be prescribed."; (10) after 'section 16, the following section shall be inserted:— "Levy of tax on sales by casual dealer. from-