Jharkhand Value Added Tax Act, 2005
No: 5 Dated: Feb, 15 2006
JHARKHAND VALUE ADDED TAX ACT 2005
Act No. 5 of 2006
An Act to provide for and consolidate the law relating to levy of Value Added Tax on sales or purchases of goods and on Entry of Goods into a local Area in the State of Jharkhand to collect fund for the purpose of Development of Trade, Commerce and Industries of the State.
BE it enacted in the fifty-sixth Year of Republic of India as follows:
CHAPT I
PRELIMINARY
1. Short title, extent and commencement — (1) This Act may be called the Jharkhand Value Added Tax Act, 2005.
(2) It extends to the whole of the State of Jharkhand
(3) It shall come into force on such date as the Government may, by Notification in the Official Gazette, appoint and different dates may be appointed for different provisions of the Act.
(4) Any Notification, Order, Declaration or Rule and any Appointment to an office may be issued or made under the Act at any time after passing thereof; but such Notification, Order, Declaration, Rule or Appointment issued or made, shall not take effect until the date appointed under sub-Section (3) for bringing into force the respective provision under which it is issued or made.
2. Definitions — In this Act unless the context otherwise requires:
(i) “Accountant” for the purpose of this Act means —
(a) A Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949);
(b) A person, who by virtue of the provisions of sub-section (2) of Section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered; or
(c) A Cost Accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959); or
(d) A person referred to in Section 619 of the Companies Act, 1956 (1 of 1956);
(e) A person, who has passed the final examination of Institute of Companies Secretaries of India, New Delhi;
(f) A person, who has passed any other examination in this behalf, notified by the Government.
(ii) "Act" means the Jharkhand Value Added Tax Act, 2005;
(iii) “Appointed day”, in relation to any provision of this Act, means the date on which such provision comes into force;
(iv) "Assessee" means any person by whom tax or any other sum of money is payable under this Act and includes every person in respect of whom any proceeding under this Act have been taken for the assessment of tax payable by him;
(v) "Assessing Authority" means any person not below the rank of a Commercial Taxes Officer authorized by the Government to make any assessment under this Act;
(vi) "Assistant Commissioner” means any person appointed to be an Assistant Commissioner of Commercial Taxes under this Act;
(vii) “Branded” means any goods sold under a name or Trade Mark registered or pending registration of transfer under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958) or the Trade Marks Act 1999 (Central Act 47 of 1999).
(viii) "Business" includes -
(a) The provisions of any services, but excluding the services provided by an employee;
(b) Any trade, commerce, e-commerce, e-commerce portal, manufacture or any adventure or concern in the nature of trade, commerce, e-commerce, e-commerce portal, manufacture, whether or not such trade, commerce, e-commerce, e-commerce portal, manufacture, adventure, concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, e-commerce, e-commerce portal, manufacture, adventure, concern; and
(c) Any transaction in connection with, or incidental or ancillary to such trade or services, commerce, e-commerce, e-commerce portal, manufacture, adventure or concern; referred to in clause (a) and includes any transaction involving goods whether or not in their original form or in the form of second hand goods, unserviceable goods, obsolete or discarded goods, scrap or waste material goods, which are obtained as waste-product, by-product in course of manufacture or processing of other goods or mining or generation and distribution of electricity.
(ix) "Commissioner" means the Commissioner of Commercial Taxes or Additional Commissioner of Commercial Taxes appointed by the Government under this Act and includes any other officer upon whom the State Government may by notification, confer all or any of the powers and duties of the Commissioner under this Act.
(x) "Capital goods" means plant, machinery, equipment, apparatus, tools, appliances or electrical installation, Pollution/Quality Control Equipments, used in the process of manufacturing, processing of goods for sale or in the mining, provided such purchases are capitalized for their purposes excluding goods mentioned in negative list as in Appendix - I;
(xi) "Commercial Taxes Officer" means any person appointed to be a Commercial Taxes Officer under this Act;
(xii) "Casual Trader" means a person who whether as principal, agent or in any other capacity, has occasional transactions involving buying, selling, supplying or distributing goods or conducting any exhibition cum Sale in the state, whether for cash or for deferred payment, or for commission, remuneration, or other valuable consideration;
(xiii) "Dealer" means any person who carries on the business of buying, selling, supplying or distributing goods, executing works contract, delivering any goods on hirepurchase or any system of payment by installments; transferring the right to use any goods or supplying by way of or as part of any service, any goods directly or through any system of Electronic commerce or otherwise* otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration and includes;
(a) a casual trader;
(b) a commission agent, a broker or a del credere agent or an auctioneer or any other mercantile agent, by whatever name called,
(c) a non-resident dealer or an agent of a non-resident dealer, or a local : branch of a firm or company or association or body of persons whether incorporated or not, situated outside the State;
(d) a person who, in the course of business, -
(i) sells goods produced by him by manufacture, agriculture, horticulture or otherwise; or
(ii) transfers any goods, including controlled goods whether in pursuance of a contract or not, for cash or for deferred payment or for other valuable consideration;
(iii) supplies, by way of or as part of any service or in any other manner whatsoever, goods, being food or any other articles for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration;
(xiv) "Declared goods" means goods declared to be of special importance in inter-State trade or commerce under Section 14 of the Central Sales tax Act, 1956 (Central Act 74 of 1956);
(xv) "Deputy Commissioner" means any person appointed to be a Deputy Commissioner of Commercial Taxes under this Act’.
(xvi) “Documents” includes written or printed records of any sort, title deeds and data stored electronically in whatever forms or any other record or form as defined in the Information Technology Act 2000.
(xvii) “Documents of Title” means, any document which confers a title to goods and includes a bill of lading, dock warrant, warehouse-keeper’s certificate, and warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorizing of purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or to receive goods thereby represented;
(xviii) “Electronic Record” means, a data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche or in a computer disk or in a computer floppy or computer software/media;
(xix) “Entry of goods” – “Entry of goods” with all its grammatical variations and cognate expressions means entry of goods mentioned in schedule III into a local Area from any place out side the state
(xx) “EOU” – (Export Oriented Unit) means any industrial unit, which undertakes to export their entire production of goods and is approved as such by the Development Commissioner of the concerned Export Processing Zone or any other competent authority duly authorized for the purpose by the Ministry of Industry, Government of India.
(xxi) “EHTP”- (Electronic Hardware Technology Park), is a unit set up under the EHTP, which undertakes to export their entries production of goods outside the territory of India and is approved by the Development Commissioner of the Export Processing Zone or any other competent authority duly authorized by the Ministry of Industry, Government of India for the purpose.
(xxii) ‘Goods’’ means the goods included in Entry54 of List II of the seventh schedule to the constitution;
(xxiii) “Goods carrier” shall include motor vehicle, Vessel, boat, animal or any other means of conveyance but will exclude railway wagon, coach or vehicle or any road transport when plying in collaboration with rail transport and under the control of the Railway;
(xxiv) "Government" means Government of Jharkhand.
(xxv) “Gross Turnover” means-
(i) for the purposes of levy of sales tax, in respect of sale of goods, aggregate of sale prices received and receivable by a dealer, including the gross amount received or receivable for execution of works contract or for the transfer of right to use any goods for any purposes ( whether or not for a specified period) during any given period ( and also including the sale of goods made outside the State, in the course of inter-State trade or commerce or export), but does not include sale prices of goods which have borne the incidence of purchase tax under Section 10.
(ii) for the purposes of levy of purchase tax, aggregate of purchase prices paid or payable by a dealer during any given period in respect of purchase of goods or class or description of goods which have borne the incidence of purchase tax under Section 10.
(iii) for the purposes of Section 9, the aggregate of the amounts under subclauses (i) and (ii);
(xxvi) “Importer” means a dealer who brings any goods into the State, or to whom any goods are dispatched from any place outside the State;
(xxvii) "Import Price" means the amount payable by a dealer or any person, as valuable consideration in respect of the sale or supply of goods making entry into the State or into the local area, but shall not include the tax paid or payable under Central Sales Tax Act or under any other State Taxes Act(s), in respect of such sales or purchases.
(xxviii) "Input" means, goods purchased in course of business - (a) for resale in the same form; or (b) for use in manufacturing or processing of taxable goods for sale; or (c) for directly use in mining or use as containers or packing materials for taxable goods; or (d) for the execution of works contract, but excluding purchases of Petrol, Diesel, Furnace Oil and steam and Natural Gas and for use as Capital Goods as specified in Appendix-I of this Act. (Added by Jharkhand VAT Ordinance, 2011 w.e.f. 07.05.2011)
(xxix) "Input Tax" means the tax paid or payable under this Act, by a registered dealer to another registered dealer on the purchase of goods, viz purchases debited to profit and loss account * in the course of business for resale or for use in manufacturing or processing of taxable goods for sale, or for directly use in mining or use as containers or packing materials for taxable goods or for the execution of works contract; Provided that input tax shall also include tax paid on the entry of goods into the local area as specified in Schedule-III. Provided further that input tax shall also include tax paid on the capital goods for Registered Start-up-business and shall qualify for Input Tax Credit as prescribed. Provided further, that tax charged at Maximum Retail Price; shall not be treated as Input Tax, for the purpose of resellers, when reselling medicines or drugs, specified in the Drugs (Prices Control) Order 1995.
(xxx) "Joint Commissioner" means any person appointed to be a Joint Commissioner of Commercial Taxes under this Act;