Amendment status not verified — confirm the current text below against the official source.
(1) Every registered dealer, other than liability to pay tax on purchase. those enjoying composition under sub-section (3), sub-section (3A), or sub-section (3B), of section 16, or sub-section (4) of section 18, shall, in addition to the tax payable under any other provisions of this Act, be liable to pay tax on that part of his turnover of purchases which represents— (a) purchases of goods which are not meant for the purposes specified in clause (a) to clause (i), of sub-section (4) of section 22; or (5) 18 THE KOLKATA GAZETTE, EXTRAORDINARY, JULY 31, 2006 [PART III The West Bengal Finance Act, 2006. (Section 12.) (b) purchases of goods specified in the negative list appended to section 22 where no input tax credit or input tax rebate is allowed. (2) Every registered dealer enjoying composition under sub- section (3), sub-section (3A), or sub-section (3B), of section 16, or sub- section (4) of section 18, shall, in addition to the tax payable under any other provisions of this Act, be liable to pay tax on his turnover of purchases."; (6) in section 16,— (a) in sub-section (1), after clause (b), the following clause shall be inserted:— "(ba) sales of goods which are zero-rated as specified in Schedule AA;"; (b) after sub-section (3), the following sub-sections shall be inserted:— "(3A) Notwithstanding anything contained in sub-section (1) or sub-section (2), a registered dealer being a club having liability to pay tax under the Act, selling goods in West Bengal to its members or others, may, at its option, pay tax, in lieu of tax payable under sub-section (2), for each tax period of a year, at such compounded rate not exceeding eight per centum as the State Government may, by notification, specify, on the turnover of sales of such goods on which tax is payable, subject to such restrictions and conditions as may be prescribed: Provided that such dealer shall not be entitled to issue tax invoice referred to in clause (48) of section 2 of the Act. (3B) Notwithstanding anything contained in sub-section (1) or sub-section (2), a registered dealer having liability to pay tax under the Act, who makes sale by way of transferring the right to use any goods as mentioned in sub-clause (c) of clause (39) of section 2, may, at his option, pay tax, in lieu of tax payable under sub-section (2), for each tax period of a year, at such compounded rate not exceeding two per centum as the State Goverriment may, by notification, specify, on the turnover of sales of such goods on which tax is payable, subject to such restrictions and conditions as may be prescribed: Provided that such dealer shall not be entitled to issue tax invoice referred to in clause (48) of section 2 of the Act."; (c) in sub-section (4), for the words "tax at full rate on the maximum retail price of such goods in the manner as may be prescribed:", the words "tax at such rate on the maximum retail price of such goods as may be specified in that notification, and different rates may be fixed for different items of such goods:" shall be substituted; PART III] THE KOLKATA GAZETTE, EXTRAORDINARY, JULY 31, 2006 19 The West Bengal Finance Act, 2006. (Section 12.) (7) for section 17, the following section shall be substituted:— `Levy of tax on 17. (1) The tax payable by a dealer, who is turnover of purchases. liable to pay tax on his turnover of purchases under section 11 or section 12, shall be levied— (a) in the case of a dealer liable to pay tax under section 11, at the rate of two per centum on such part of the turnover of purchases of raw jute as referred to in sub-section (3) of section 11; and (b) in the case of a dealer liable to pay tax under section 12, at the rate of tax as applicable to a sale of such goods under sub-section (2) of section 16, on his taxable turnover of purchases. (2) The expression "taxable turnover of purchases" as stated in clause (b) of sub-section (1), shall mean, in the case of a registered dealer, that part of his turnover of purchases, which remains after deducting therefrom— (a) purchases of goods, sales of which are declared tax-free under section 21; (b) purchases of goods 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 74 of 1956. of goods into, or export of the goods out of the territory of India within the meaning of section 5 of that Act; (c) purchases of goods which are shown to the satisfaction of the Commissioner to have been made from a registered dealer in West Bengal; (d) such other purchases as may be prekribed. (3) The burden of proof shall lie on the dealer who claims any purchase not liable to be taxed under sub-section (1).'; (8) in section 17A, in the marginal note, for the words "Levy of tax on purchases by casual dealers at contractual transfer price", the words "Levy of tax on purchases by casual dealers" shall be substituted; (9) in section 22,— (a) in sub-section (2), for the words and brackets 'the dealer who has purchased taxable goods (hereinafter referred to as the "purchasing dealer") during the tax period', the words and brackets 'the registered dealer who has purchased taxable goods (hereinafter referred to as the "purchasing dealer") during a tax period for use by him in West Bengal' shall be substituted; (b) in sub-section (4),— (i) for the words "The input tax credit or input tax rebate shall be allowed", the words "Subject to the other provisions of this section, the input tax credit or input tax rebate shall be allowed" shall be substituted; 20 THE KOLKATA GAZETTE, EXTRAORDINARY, JULY 31, 2006 [PART III The West Bengal Finance Act, 2006. (Section 12.) (ii) after clause (c), the following clause shall be inserted:— "(ca) use as containers or materials for packing of goods intended for sale in the course of export out of India within the meaning of section 5 of the Central Sales Tax Act, 1956; 74 of 1956. or"; (c) after sub-section (8), the following sub-section shall be inserted:— "(8A) Notwithstanding anything contained elsewhere in this Act, a dealer as referred to in sub-section (8), in lieu of allowing his input tax credit or input tax rebate to be accumulated and carried forward until the expiry of his period of deferment, or tax holiday, or remission, as the case may be, may, at his option, and subject to such conditions and restrictions as may be prescribed, be entitled to refund of seventy- five per centum of the accumulated input tax credit or input tax rebate in respect of any quarter of a year in such manner as may be prescribed."; (d) in sub-section (12), in clause (a), for the words, figures and brackets "of section 16 or sub-section (4) of section 18", the words, figures, letters and brackets ", or sub-section (3A), or sub-section (3B), of section 16, or sub-section (4) of section 18" shall be substituted; (e) in sub-section (17),— (i) for the words "net tax credit shall be determined", the words "net tax credit for a tax period or a part thereof shall be determined" shall be substituted; (ii) for the words, figures and brackets "or proviso to sub-section (15)", the words, figures and brackets "or sub-section (15)" shall be substituted; (f) in sub-section (20), for the words "registered dealer", the words "registered purchasing dealer" shall be substituted; (g) in the negative list,— (i) for the entry in column (3) against serial No. 5 in column (1), the following entry in column (3) shall be substituted:— "When the registered dealer is a works contractor and uses such goods in the execution of works contract, or when the registered dealer is in the business of dealing in such goods."; (ii) after serial No. 11 in column (1) and the entries relating thereto in column (2) and column (3), the following serial Nos. in column (1) and the entries relating thereto in column (2) and column (3), respectively, shall be inserted:— "12. Coal, furnace oil, or any other fuel used for any purpose.