Sikkim Sales Tax Act, 1983

No: 4 Dated: Mar, 03 1983

Sikkim Sales Tax Act, 1983

(Act No.4 of 1983)

    An Act to consolidate and amend the law relating to the levy of tax on the goods in the State of Sikkim.

    Be it enacted by the Legislature of Sikkim in the Thirty-fourth year of the Republic of India as follows:

CHAPTER I

Preliminary

1. Short title, extent and commencement. - (1) This Act may be called the Sikkim Sales Tax Act, 1983.

(2) It extends to the whole of Sikkim.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

2. Definitions. - In this Act unless there is anything repugnant in the subject or context,

(a) "business" includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture carried on with or without a motive for profit whether or not any profit accrues from such activities and any transaction ancillary or incidental to or in connection with such trade, commerce or manufacture or adventure or concern;

(b) "commissioner" means the Commissioner of Commercial Taxes appointed under sub-section (I) of Section 3 ;

(c) "dealer" means any person who carries on business of buying and selling of goods for commission, remuneration or otherwise and includes any firm, Hindu Undivided Family, company, corporation, a department of Government society, club or association, the incorporation of such society, club or association .

Explanation 1. - A factor, broker, commission-agent, del-credere agent, auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying or selling of goods and who has, in the course of his business, authority to sell goods belonging to their owners, shall be deemed to be a dealer for the purposes of this Act;

Explanation 2. - The manager or agent of a dealer residing outside the State, and who sells or purchases goods in the State, shall in respect to such business, be deemed to be a dealer for the purpose of this Act;

(d) "declared goods" means the goods declared by section 14 of the Central Sales Tax Act, 1956 (74 of 1956) to be of special importance in inter-State trade or commerce;

(e) "goods" means all kinds of movable property in solid, liquid or gaseous form, and includes all materials, commodities, articles and also electricity but does not include newspapers, actionable claims, stocks, shares and securities;

Explanation. - Materials, commodities and articles attached to or forming part of immovable property which are agreed to be severed under the contract of sale, shall be deemed to be goods within the meaning of this clause;

(f) "manufacture" with all its grammatical variations and cognate expressions, means producing, making, extracting, altering, ornamenting, finishing or otherwise processing or adopting, any goods but does not include such manufacture or manufacturing process as may be prescribed;

(g) "notification" means a notification published in the Official Gazette;

(h) "place of business" includes

(1) in the case of any dealer who carries on business through an agent (by whatever name called), the place of business of such agent;

(2) a warehouse, godown or other place where a dealer stores his goods; and

(3) a place, where a dealer keeps his books of accounts;

(i) "prescribed" means prescribed by rules this made under Act;

(j) "prescribed authority" means such authority as may be prescribed;

(k) "registered dealer" means a dealer registered section under 10;

(l) "rules" means the rules made under this Act;

(m) "sale" with its grammatical variations and cognate expressions means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration and includes the "'transfer, delivery or supply of goods by one person to an other person in any of the following ways, namely:

(a) the transfer, otherwise than in pursuance of a contract, of property in any goods' for cash, deferred payment or other valuable consideration;

(b) the transfer for property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(c) the delivery of goods on hire-purchase or any system of payment by instalments;

(d) the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(e) the supply of goods by any unincorporated association, or body of persons to a member thereof for cash, deferred payment or other valuable consideration;

(f) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or ether valuable consideration, does not include a mortgage or hypothecation of or a pledge on goods.]

[Explanation 1. - Transfer of goods on hire-purchase or other system of payment by instalments shall be deemed to be a sale if and when there is a transfer of property or goods from the seller to the buyer;]

[Explanation 1. - A barter that is, sale by exchange of goods shall be deemed to be a sale only when the exchange is based or worked out in terms of the value of the goods, exchanged.]

[Explanation 2. - A sale of goods shall be deemed to have taken place in the State if it fulfils the requirements of the sub-section (2) of section 4 of the Central Sales Tax Act, 1956; (74 of 1956).]

(n) "sale price" means the amount payable to a dealer as consideration for the sale of goods, less any sum allowed as cash discount but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged;

Explanation 1. - The term cash discount shall refer only to the discount allowed by the seller to the buyer for the prompt or prior or early payment of sale price according to the practice prevailing in the trade;

Explanation 2. - The tax levied under this Act on the transaction of sale shall not form part of the sale price for the purpose of this Act, only if it is actually leviable under this Act on the seller and is recovered by the seller from the buyer by showing it separately as such in the cash memos, invoices or other sale memoranda;

[Explanation 3. - In respect of goods delivered on hire purchase or any system of payment by instalments, the sale price on the date of such delivery shall, for the purposes of this Act, be determined in such manner as may be prescribed.]

[Explanation 4. - The sale price shall include the excise duty, fee or any other levies on the goods, under any Central or State law for the time being in force, made at the time of or before the delivery of the goods to the buyer whether such duty, fee or other levy is paid by the purchaser of the goods to the seller along with the consideration for the sale or directly to the Government.]

(o) "Sikkim" means the territory comprised in the State of Sikkim;

(p) "State Government" means the Government of Sikkim;

(q) "Tax" means tax payable under this Act;

(r) "turnover" used in relation to any period means the aggregate of sale price or part of sale price receivable or if a dealer so elects, actually received by the dealer during such period after deducting the amounts if any, refunded by the dealer in respect of any goods returned by the purchaser within such period as may be prescribed:

Provided that an election as aforesaid once made shall not be altered except with the permission of the Commissioner and on such terms and conditions as he may think fit to impose

Explanation. - The turnover of sales shall include amounts realized by a dealer by sale of surplus, unserviceable and discarded goods, fixed or other assets of the business, bye-products and subsidiary products of manufacture or processing but shall not include sales in a canteen owned and run by the dealer for the benefit of his workman or laborers;

(s) "year" means the financial year commencing on the first day of April and ending on the 31st day of March next following.