Amendment status not verified — confirm the current text below against the official source.
(1) Where any registered dealer has issued tax invoice to another registered dealer in any period— (a) without entering into a valid transaction of sale of goods, or (b) without effecting any consequent delivery of goods, the Commissioner may, by way of a separate proceeding independent of any scrutiny, verification, audit, assessment, appeal, revision or review for such period and after giving in the prescribed manner, a reasonable opportunity of being heard to such dealer, impose, in addition to any tax levied or leviable or penalty imposed or imposable under this Act for such period, by an order in writing, a penalty of a sum calculated at such percentages,not less than one hundred and twenty-five per centum and not exceeding two hundred fifty per centum, as specified in sub-section (2), of the amount of tax involved in the tax invoices issued by him in the situations referred to in clause (a) and clause (b): Provided that no penalty under this section shall be imposed if action has been taken against the dealer under sub-section (3) of section 22 for the same facts and vice versa. (2) For the purposes of imposition of penalty under sub-section (1) the percentages shall be as follows:— (a) at the rate of one hundred and twenty-five per centum where the dealer admits in writing the fact of such issue of tax invoice and pays within one month of inspection or enquiry leading to detection of such issue of tax invoice or within one month of initiation of proceedings for the purpose of imposition of penalty under sub-section (1), or within one month of initiation of the proceeding for assessment or appeal or revision or review for such period, as the case may be, whichever is earlier, an amount towards penalty equal to one hundred and twenty-five per centum of the full amount of tax shown in such tax invoices issued by him in the situations referred to in clause (a) and clause (b) of sub-section (1); 14 THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 [PART III The West Bengal Finance Act, 2011. (Section 5.) (b) at the rate of two hundred fifty per centum in all other cases: Provided that a dealer may make application within the period mentioned in clause (a) to the Commissioner, with proof of payment of thirty per centum of the penalty imposable under clause (a), for granting of instalment for payment of the balance amount towards penalty as so imposable, and upon such application, the Commissioner may allow such dealer to make payment in monthly instalments for not more than ten months the balance amount towards penalty so imposable, and upon payment of such full amount, penalty under the sub-section (1) shall be imposed at the percentage specified in clause (a): Provided further that if the dealer fails to pay the full amount of penalty imposable as per the instalment granted, if any, under the first proviso, then the penalty under sub- section (1) shall be imposed at the rate of two hundred fifty per centum of the amount of tax shown in such tax invoices issued by him in the situations referred to in clause (a) and clause (b) of sub-section (1): Provided also that if it is found that the amount of tax involved in such issue of tax invoice by a dealer is in excess of the amount admitted in writing by the dealer under clause (a), then penalty under sub-section (1) shall be imposed at the rate of two hundred fifty per centum on that part of the amount of tax, involved in such tax invoices issued by him in the situations referred to in clause (a) and clause (b) of sub-section (1), which has not been admitted by the dealer in writing."; (6) in section 24, after sub-section (2A), the following sub-section shall be inserted:— "(2B) Where a dealer who has become liable to pay tax under section 10 or under section 11 or under section 14 applies for registration under section 24 and it is found from the documents produced or otherwise that such dealer claims to carry on business from table-space in a room not owned by him or not directly let out to him by the landlord or from accommodation not owned or directly let out to him by the landlord, the registering authority shall grant him registration only when such dealer furnishes a security of amount not exceeding rupees one lakh each in such manner as may be prescribed.-: (7) in section 29,— (a) in sub-section (1), after clause (f), the following clause shall be inserted:— "(g) the dealer has received a tax invoice from another dealer without entering into a transaction of purchase."; PART IIIJ THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 15 (8) The West Bengal Finance Act, 2011. (Section 5.) (b) for sub-section (3), the following sub-sections shall be substituted:— "(3) The cancellation of registration effected under clause (c) of sub-section (1), subject to such conditions and restrictions, as may be prescribed, shall be deemed to take effect from the date of validity of the certificate of registration as granted under sub- section (2) of section 24. (3A) The cancellation of registration under any clause other than clause (c) of sub-section (1). subject to such conditions and restrictions, as may be prescribed, shall take effect from the date as specified by the appropriate authority in his order: Provided that the date of cancellation of the certificate of registration in case referred to in clause (e) or clause (0 of sub- section (1) of section 29 shall not be a date prior to the date on which order of cancellation is passed."; (c) after sub-section (4), the following sub-section shall be inserted:— "(5) The appropriate authority as referred to in sub-section (1), sub-section (2), sub-section (3A), and sub-section (4), shall be the appropriate assessing authority of the dealer notwithstanding the fact that the certificate of registration to such dealer may have been granted by an authority higher in rank to such appropriate assessing authority."; in section 32,— (a) in sub-section (2), after the second proviso, the following proviso shall be inserted:— "Provided also that where a dealer, required to furnish return under sub-section (I), has furnished a return beyond the prescribed date without making full payment of the net tax, interest and late fee payable according to such return, such dealer shall, except for the return period or periods as the State Government may by notification specify, be deemed to have delayed in furnishing that return and shall pay late fee upto the date of full payment of such net tax and interest, or upto the date of assessment under section 46 or section 48 in respect of such return period, whichever is earlier."; (b) in sub-section (3), for the words "discovers any omission or error in any return furnished by him", the words "discovers any omission or error which is apparent and honest in nature in a return furnished by him under sub-section (1)" shall be substituted; (c) to sub-section (3), the following proviso shall be inserted:— "Provided that a revised return under this sub-section shall be furnished once only."; (d) in sub-section (4), for the proviso, the following proviso shall be substituted:— "Provided that the dealer shall be eligible to claim the amount deducted under sub-section (1) of section 40 as payment of tax in the tax period during which the certificate of deduction under sub-section (3) of section 40 has been received."; 16 THE KOLKATA GA7FTTE, EXTRAORDINARY. AUGUST 30. 2011 [PAR r III The West Bengal Finance Act, 2011. (Section 5.) (9) in section 40. for sub-section (1). the following sub-section shall be substituted:— `(1) Notwithstanding anything contained in section 32 or any rules made thereunder or any terms of a contract to the contrary, any person responsible for paying any sum to any dealer for execution of a works contract within West Bengal referred to in section 14. wholly or partly in pursuance of a contract between such dealer and— (a) Government, (b) a local authority. (c) a corporation or a body established by or under any law for the time being in force, (d) a company incorporated under the Companies Act, 1956, including a Government undertaking, (e) a co-operative society registered or deemed to be registered under the West Bengal Co-operative Societies Act, 2006, (f) an educational institution, (g) a promoter, (h) any bank, (i) any hospital or nursing home or diagnostic centre, (j) a partnership firm, (k) a joint-venture company, or (1) a limited liability partnership, shall, at the time of payment of such sum in cash or by issue of a cheque or draft or any other mode of payment, deduct, towards tax leviable on intra-State contractual transfer price, arising from transfer of property in taxable goods in the execution of such works contract by him, if any, an amount equal to such percentage not exceeding fifteen per centutn on such portion of payment as may be prescribed, depending upon the amount of charges towards labour, service and other charges as referred to in clause (b) of sub-section (2) of section 18, and the scope of claim of input tax credit, and different portions and different percentages may be prescribed for the purpose of such deduction: Provided that no deduction under this sub-section shall be made,— (i) where the payment is made as advance prior to the commencement of the execution of such works contract; or (ii) where no transfer of property in goods (whether as goods or in some other form) is involved in the execution of such works contract, and the payment is made by, or on behalf of, or to a dealer who has not claimed deductions under clause (c) of sub-section (2) of section 18 in respect of such works contract. Explanation.—For the purposes of this sub-section, "promoter" means a person who constructs, reconstructs. converts, renovates or extends or causes to be constructed, reconstructed, converted. renovated or extended, a building (including a flat or apartment or a block of flats or apartments or a resort) for the purposes of transfer of such building, either in full or in part, by sale or otherwise to any person or to any company, firm, co-operative society, association of persons or any artificial juridical person, and includes— (i) his assignee, if any, 1 of 1956. West Ben. Act XL of 2006. PAT THE KOLKATA GAZETTE, EXTRAORDINARY, AUGUST 30, 2011 17 The West Bengal Finance Act, 2011. (Section 5.) (ii) the person who develops or reclaims the land, the person who constructs, reconstructs, converts, renovates or extends, and the person who transfers, such building. if such persons are different. (iii) a society registered under the West Bengal Societies Registration Act, 1961. (iv) any firm, board or other association of persons established by or under any law for the time being in force.': (10) in section 41.— (a) in sub-section (1),— (i) for the words "shall be scrutinized by the Commissioner to ascertain", the words "shall be scrutinized, either electronically or otherwise, by the Commissioner, in the manner as may be prescribed, to ascertain" shall be deemd to have been substituted with effect from the 1st day of April, 2010; in clause (a), for the words "correct and complete", the words "complete and self-consistent" shall be deemed to have been substituted with effect from the 1st day of April, 2005; (iii) in clause (b), for the words, figures and brackets "sub-section (3) of section 33", the words, figures and brackets "sub- section (1), or sub-section (3), of section 33" shall be deemed to have been substituted with effect from the 1st day of April, 2005; (b) in sub-section (2), for the words "correct and complete", the words "complete and self-consistent" shall be deemed to have been substituted with effect from the 1st day of April, 2005; (c) in sub-section (3), for the words "four months from the date on which", the words, "four months from the last date of the month in which" shall be substituted; (11) in section 43, in sub-section (5), after the first proviso, the following provisos shall be inserted:— "Provided further that no assessment under clause (ca) of sub-section (1) of section 46 shall be made, where the dealer has admitted, in writing, the observations made in the report referred to in sub-section (3) and has paid in full the amount of net tax paid in short, due to excess claim of input tax credit or input tax rebate or non-reversal of input tax credit, or for any other reason as mentioned in such report, with interest as payable under section 33: Provided also that the provisions of the second proviso shall not be applicable in respect of assessment required to be made under any of the clauses of sub-section (1) of section 46, other than clause (ca) of sub- section (1) of section 46."; (12) after section 43, the following section shall be inserted:— "Special Audit of