Maharashtra Value Added Tax Act (2005) : Chapter VII : Payment Of Tax And Recovery
CHAPTER VII PAYMENT OF TAX AND RECOVERY
31. (1) (a) Subject to the provisions contained in clause (b), the Commissioner may, by a notification in the Official Gazette, subject to such conditions and restrictions as may be specified in the notification, require any dealer or person or class of dealers or persons (hereinafter in this section referred to as “the employer") to deduct the tax or such amount of tax as may be specified in the notification, payable on the purchases other than the purchases to which section 8 applies, effected by them in the period or periods specified in the said notification.
Explanation. —For the purposes of this section, the tax payable on purchases shall mean the sum collected separately from the said employer by way of sales tax by the supplier on the corresponding supplies effected by him in the said period or periods and the deduction is to be made from the sums payable to the supplier on account of the said supply.
(b) (i) The Commissioner may by a like notification require any class of employers to deduct tax or such amount of tax as may be specified from and out of the amount payable (excluding the amount of tax, if any, separately charged by the contractor) by such employer to a dealer to whom a works contract has been awarded, towards execution of the said works contract:
Provided that, the quantum of such deduction shall not exceed the quantum of tax payable towards such works contract:
Provided further that, no deduction shall be made from any payment made to any sub-contractor by a principal contractor where the principal contractor has assigned the execution of any works contract, in whole or in part, to the said sub-contractor:
Provided also that, no deduction as provided under this clause shall be made in respect of any sale or purchase to which section 8 applies.
Explanation. —Where any payment in the nature of an advance payment towards the execution of a works contract is made by an employer to a dealer and such amount is adjustable against the total contract value payable to the said dealer, then, for the purposes of this clause, the advance payment shall be deemed to be the amount paid towards the execution of the works contract only as and when such advance payment is adjusted, in part or otherwise, against the total amount payable towards the works contract.
(ii) Where on an application being made by any contractor in this behalf, the Commissioner is satisfied that the contract under reference is separable and involves both a works contract and labour or is not a works contract and therefore justifies deduction of tax only as a part of the sum payable in respect of any works contract or. as the case may be, justifies no deduction at all, he shall grant him such certificate as may be appropriate:
Provided that, the Commissioner may reject such application, or on his own motion, cancel or modify such certificate, after giving the contractor a reasonable opportunity of being heard:
Provided further that, nothing in the said certificate shall affect the tax liability of the contractor.
(iii) Where such certificate is produced by the contractor, before the employer, the employer shall, unless the certificate is cancelled or modified by the Commissioner, make deduction of tax in accordance with the said certificate. In the event of such certificate being cancelled or modified as provided, the employer shall make the deductions accordingly.
(2) For the purpose of this section, where any amount of tax referred to in
sub-section (1) is credited to any account whether called the “suspense
account” or by any other name, in the hooks of accounts of the employer,
such crediting shall be deemed to be credit of such tax to the account of
the employer and the provisions of this Act shall apply accordingly.
(3) Any registered dealer who is not covered as an employer under the said
notification may apply to the Commissioner for making the provisions
relating to the employers applicable to him and subject to such conditions
and restrictions as may be prescribed, the Commissioner may, by order in writing, accept the request.
(4) Any amount or any sum deducted in accordance with the provisions of
this section and paid to the State Government shall he treated as a
payment of tax on behalf of the person making the said supply and credit
shall be given to the said person in respect of the relevant period for the
amount so deducted and paid on the production of the certificate furnished
under this section.
(5) Any employer deducting any sum in accordance with this section, shall
pay within the prescribed time, the sum so deducted to the credit of the
State Government. If the employer does not deduct or after deducting fails
to pay the tax as required by this section, he shall he deemed not to have
paid the tax within the time he is required by or under the provisions of
this Act to pay it and all the provisions of this Act including the provisions
relating to interest shall apply mutatis mutandis to such unpaid tax.
(6) The power to recover tax by deduction at source shall he without
prejudice to any other mode of recovery.
(7) Every person deducting tax in accordance with the provisions of this
section shall within such periods as may be prescribed, furnish to the
person to whose account the credit of the tax is to he given under this
section, a certificate in the prescribed form.
(8) Every employer shall, as prescribed in the rules, and in the prescribed
time, apply to the Commissioner for allotment of a sales lax deduction
account number. The number shall be quoted in such documents.
Statements and returns as may be prescribed.
(9) Where tax is deductible at source by any employer, the person
making the said supply shall not be called upon to pay tax himself to the
extent to which the tax has been deducted in respect of the said supply.
(10) The employer shall within the prescribed time after the end of each
year, file a return in such form and to such authority as may be prescribed.
Any return filed on a floppy diskette, magnetic cartridge tape, CD-ROM or
any other computer—readable media as may he prescribed, shall be
deemed to be a return for the purposes of this section. While receiving the
return on computer—readable media, the Commissioner shall carry out
appropriate checks by scanning the documents filed on computer—
readable media and the said media shall be duly authenticated by the
Commissioner.
32. (1) Tax shall be paid in the manner herein provided, and at such intervals as may he prescribed.
(2) A registered dealer furnishing returns as required by section 20 shall
pay into the Government treasury, in such manner and at such intervals as may be prescribed, the amount of tax due from him for the period covered by a return which he is required to file along with the amount of interest and any other sum payable by him.
(3) A registered dealer furnishing a revised return in accordance with sub¬
section (4) of section 20, when the revised return shows that a larger
amount of tax than, the tax already paid, is payable, shall first pay into the
Government treasury the extra amount of tax.
(4) (a) (i) The amount of tax due where the return or revised return has
been furnished without full payment thereof shall be paid forthwith.
(ii) The amount of tax which it becomes necessary to pay on account of the reduction in set-off because of any contingency specified in the rules, shall he paid at the time prescribed for making payment of tax for the period in which such contingency occurs.
(b) (i) The amount of tax due as per any order passed under any provision of this Act, for any period, less any sum already paid in respect of the said period; and
(ii) the amount of interest or penalty or both, if any, levied under any provision of this Act; and
(iii) the sum, if any, forfeited and the amount of fine, if any, imposed under the Act or rules; and
(iv) the amount of tax, penalty and interest demanded in the context of excess availment of incentives or availment of incentives not due ; and
(v) any other amount due under this Act,
shall be paid by the person or dealer or the person liable therefor into the Government treasury within thirty days from the date of service of the notice issued by the Commissioner in respect thereof:
Provided that, the Commissioner may, in respect of any particular dealer or person, and for reasons to be recorded in writing, allow him to pay the tax, penalty, interest or the sum forfeited, by instalments but the grant of instalment to pay tax shall be without prejudice to the other provisions of this Act including levy of penalty, or interest, or both.
(5) Any tax, penalty, interest, fine or sum forfeited, which remains unpaid
after the service of notice under sub-section (4) or any installment not duly
paid or any amount due or payable under this Act, shall be recoverable as
an arrears of land revenue.
(6) Notwithstanding anything contained in this Act or in any other law
for the time being in force or in any contract, where any sum collected by a
person by way of tax in contravention of section 60, is forfeited under
section 29 and is recovered from him, such payment or recovery shall discharge him of the liability to refund the sum to the person from whom it was so collected. A refund of such sum or any part thereof can he claimed from the Commissioner by the person from whom it was realised by way of tax, provided such person has not resold the goods within a period of two years from the date of purchase and an application in writing in the prescribed form is made to the Commissioner, within two years from the date of the order of forfeiture. For this purpose, the Commissioner may send an intimation in the prescribed form to such of the said purchasers whose names and addresses are available in the records of the person who has collected any sum in contravention of section 60. On receipt of such application, the Commissioner shall hold such inquiry as he deems fit, and if the applicant proves to the satisfaction of the Commissioner that the goods are not resold by him as aforesaid and if the Commissioner is satisfied that the claim is valid and admissible and that the amount so claimed as refund was actually paid in Government treasury or recovered and no set-off or refund in respect of that amount was granted, he shall refund the sum or any part thereof, which is found due to the person concerned.
(7) (i) There shall be established a Fund to be called “the Maharashtra
Consumer Protection and Guidance Fund ” (hereinafter, in this section,
referred to as ” the Fund “). From the amounts forfeited and recovered
except for the amounts refunded as aforesaid to the purchasers and except
for the amounts in respect of which a set—-off or refund is granted, the
remaining amount shall, after deducting the expenses of collection and
recovery as determined by the Slate Government, under appropriation duly
made by law in this behalf, he entered into, and transferred to, that Fund.
(ii) No sum from the Fund shall be paid or applied for any purpose other than the one specified in clause (iii).
(iii) The Fund shall be administered in the prescribed manner; and the amount in the Fund shall be utilised for meeting the expenses of any activities related to consumer protection and guidance as the State Government may direct, and for giving grant in the prescribed manner to any voluntary consumer organisation, society, association, body or institution engaged in providing for the better protection of the interests of die consumers and having such qualifications as may be prescribed.
(8) (a) Any dealer or person may apply to the Commissioner in the
prescribed form for a clearance certificate and thereupon the Commissioner
may, on the basis of the record, issue a certificate in the prescribed form w
within a period of fifteen days from the date of receipt of the application, in
so far as he may, stating therein, the periods for which the returns have
been filed or, as the case may be, have not been filed, assessments have
been made, the status of pending proceedings, if any, and the amounts payable by the applicants, if any.
(b) The Commissioner may, every year on the basis of the record, issue
to every registered dealer a certificate regarding the amounts payable by
him, as on the 1st April of that year, stating therein the periods for which
returns have not been fi1ed, the periodwise outstanding amounts of tax,
penalty, interest and sum forfeited payable by the dealer including the
amounts for which the due date of payment is not yet over, the amounts,
the recovery of which has been stayed and the amounts under installment.
The certificate shall in so far as it may, he issued immediately after the 1st
of April every year.
© Nothing in the certificates issued under this sub-section shall be a
bar on the Commissioner to initiate or continue any proceedings including
recovery proceedings. if it is subsequently found that the certificates were
issued on the basis of incomplete or erroneous information.
33. (1) Notwithstanding anything contained in any law or contract to the contrary, the Commissioner, on noticing that there is an outstanding liability of tax, interest or penalty against a dealer or person on whom a notice under sub-section (4) of section 32 has already been served ,may at any time, by notice in writing, require,—
(a) any person from whom any amount of money is due, or may
become due, to the said dealer or person, or
(b) any person who holds or may subsequently hold money for or
on account of such dealer or person,
to pay to the Commissioner, either forthwith upon the money becoming due or being held or within the time specified in the notice (but not before the money becomes due or is held as aforesaid), an amount equal to the amount due and outstanding from such dealer as aforesaid:
Provided that, no action under this sub-section shall be taken till the date prescribed for filing of appeal, if the dealer makes an application in the prescribed form to the Commissioner before the said date stating therein that he is proposing to file an appeal against the order in pursuance of which the said notice under sub-section (4) of section 32 has been served on him.
Explanation. —For the purposes of this section, the amount of money due to a dealer from, or money held for or on account of a dealer, by any person, shall be calculated after deducting therefrom such claims (if any) lawfully subsisting, as may have fallen due for payment by such dealer to such person.
(2) The Commissioner may, at any time, amend or revoke any such notice,
or extend the time for making any payment in pursuance of the notice.
(3) Any person making any payment in compliance with a notice under this
section shall be deemed to have made the payment under the authority of
the dealer or a person, and the receipt of the Commissioner shall constitute
a good and sufficient discharge of the liability of such person, to the extent
of the amount referred to in the receipt.
(4) Any person discharging any liability to the dealer or person after receipt
of the notice referred to in this section, shall be personally liable to the
Commissioner to the extent of the liability discharged. or the extent of the
liability of the dealer or a person for tax, penalty, interest and sum
forfeited, whichever is less.
(5) Where a person to whom a notice under this section is sent proves to
the satisfaction of the Commissioner that the sum demanded or any part
thereof is not due to the dealer or a person, or that he does not hold any
money for or on account of the dealer or a person, then, nothing contained
in this section shall be deemed to require such person to pay any such sum
or part thereof, as the case may be, to the Commissioner.
(6) Subject to the provisions of sub-section (5), any amount of money which
a person is liable to pay to the Commissioner, shall, under sub-section (1)
read with sub-section (4), if it remains unpaid, he recoverable as if it is a
sum demanded under section 32 and accordingly any notice served under
this section shall he deemed for the purposes of this Act to be a notice
served under section 32 and the unpaid amounts shall be recoverable as
arrears of land revenue.
34. (1) For the purpose of effecting recovery of the amount of tax, penalty, interest, amount forfeited or any other sum, due and recoverable from any dealer or other person by or under the provisions of this Act, as arrears of land revenue.—
(i) the Commissioner of Sales Tax shall have and exercise all the powers and perform all the duties of the Commissioner under the Maharashtra Land Revenue Code 1966;
(ii) the Additional Commissioner of Sales Tax shall have and exercise all the powers and perform all the duties of the Additional Commissioner under the said Code;
(iii) the Joint Commissioner of Sales Tax shall have and exercise all the powers and perform all the duties of the Collector under the said Code ;
(iv) the Senior Deputy Commissioner and the Deputy Commissioner of Sales Tax shall have and exercise all the powers (except the powers of confirmation of sale and arrest and confinement of a defaulter in a civil jail) and perform, all the duties of the Assistant or Deputy Collector under the
said Code;
(v) the Assistant Commissioner and the Sales Tax Officer shall have and exercise all the powers (except the powers of confirmation of sale and arrest and confinement of a defaulter in a civil jail) and perform all the duties of the Tahsildar under the said Code.
(2) Every notice issued or order passed in exercise of the powers conferred by sub-section (1) shall, for the purposes of sections 24. 25. 26, 27 and 85 be deemed to be a notice issued or an order passed under the said Act.
35. (1) If during the course of inquiry in any proceedings including proceedings related to recovery of any amount due, in respect of any person or dealer or during any inspection or search in relation to the business of any person or dealer under this Act, the Commissioner is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, then he may. notwithstanding anything contained in any law for the time being in force or any contract to the contrary, attach provisionally by order in writing any money due or which may become due to such person or dealer from any other person or any money which any other person holds or may subsequently hold for or on account of such person or dealer:
Provided that, the Commissioner shall specify in his order the amount of money to which the order applies:
Provided further that, the Commissioner may, by an order, revoke such order, if the dealer furnishes, to the Commissioner, a bank guarantee, in such time, for such period, as may be specified, in the said order.
(2) Every such provisional attachment shall cease to have effect after the
expiry of a period of one year from the date of service of the order issued
under sub-section (1)
Provided that, the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he may think fit, so, however that the total period of extension shall not in any case exceed two years.
(3) The powers under this section shall be exercised by the Commissioner
himself or the Additional Commissioner having jurisdiction over the entire
State or, as the case may be, by any Joint Commissioner to whom the
Commissioner has delegated such powers by a notification published in the
Official Gazette.
(4) Where an order under sub-section (1) is served upon any person,
provisionally attaching any money, then, such person shall be personally
liable, so long as the attachment order is not revoked or has not ceased to
have effect, to pay to the Commissioner, the amount of money so attached.
(5) If the said person or the dealer makes an application in the prescribed
form to the Commissioner within fifteen days of the date of service of the
order specified in sub-section (1), or as the case may be, within fifteen days
of the date of service of the order extending the period under sub-section
(2), then the Commissioner, after affording such person or dealer a
reasonable opportunity of being heard, and, having regard to the
circumstances of the case, may confirm, modify or cancel the order.
(6) An appeal against any order passed under sub-section (5) shall lie with
the Tribunal and all other provisions of section 26 shall apply accordingly.
36. (1) Where any notice of demand in respect of any tax, penalty, sum forfeited or interest (hereinafter in this section, referred to as “Government dues") is served upon a dealer or the person liable therefor and any appeal or other proceedings is filed or taken in respect of such Government dues, then,—
(a) where such Government dues are enhanced in such appeal or
proceeding, the Commissioner shall serve upon the dealer or person, as the
case may be, another notice only in respect of the amount by which such
Government dues are enhanced and any recovery proceedings in relation to
such Government dues as are covered by the notice or notices of demand
served upon him before the disposal of such appeal or proceeding may,
without the service of any fresh notice, be continued from the stage at
which such proceedings stood immediately before such disposal;
(b) where such Government dues are reduced in such appeal or
proceedings,—
(i) it shall not be necessary for the Commissioner to serve upon the dealer or person a fresh notice;
(ii) the Commissioner shall give intimation of the fact of such reduction to the dealer or person;
(iii) any recovery proceedings initiated on the basis of the notice or notices of demand served upon him before the disposal of such appeal or proceeding may he continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal;
© no recovery proceedings in relation to such Government dues shall
be invalid by reason only that no fresh notice of demand was served upon
the dealer or person after the disposal of such appeal or proceeding or that
such Government dues have been enhanced or reduced in such appeal or
proceeding:
Provided that, where any Government dues are reduced in such appeal or proceeding and the dealer or person is entitled to any refund thereto, such refund shall be made in accordance with the provisions of this Act.
(2) For the removal of doubts, it is hereby declared that no fresh notice of
demand shall he necessary in any case where the amount of Government
dues is not varied as a result of any order passed in appeal or the
proceeding under this Act.
(3) The provisions of this section shall apply in relation to every notice of
demand served by the Commissioner upon a dealer or any other person
liable for any Government dues.
37. Notwithstanding anything contained in any contract to the contrary,
but subject to any provision regarding creation of first charge in any
Central Act for the time being in force, any amount of tax, penalty, interest,
sum forfeited, fine or any other sum, payable by a dealer or any other
person under this Act, shall he the first charge on the property of the
dealer or, as the case may be, person.
38. (1) Where, during the pendency of any proceedings under this Act or
after the completion thereof, the Commissioner has reason to believe that
the liability of the dealer to pay tax or any other sum payable under this
Act, is likely to be in excess of rupees twenty five thousand and the dealer
creates a charge on, or parts with the possession by any mode of transfer
whatsoever, including sale, mortgage, gift or exchange of any of the assets
of his business valued at rupees ten thousand or more in favour of any
other person with intent to defraud revenue, then, notwithstanding
anything contained in any Act or contract to the contrary such charge or
transfer shall be void as against any claim in respect of any tax or other
sum payable by the dealer as a result of the completion of such
proceedings or otherwise:
Provided that, such charge or transfer shall not be void if made for adequate consideration and without notice of the pendency of the proceeding or of the liability to pay any sum on completion of any proceedings.
(2) Where any person liable to pay tax or other sum payable under this Act
has, during the pendency of any proceeding under this Act or after
completion thereof, created a charge on or parted with possession by any
mode of transfer including sale, mortgage, gift or exchange of any of his
assets in favour of any other person and the Commissioner is of the
opinion that such charge or transfer becomes void under sub-section (1),
then the Commissioner shall issue a notice and hold enquiry and decide
whether the charge or transfer became void under sub-section (1).
(3) If, after holding such enquiry the Commissioner is satisfied that the
charge or transfer is void, he shall make an order declaring such charge or
transfer to be void for the purposes of this Act.
Explanation. —In this section, “assets” includes land, building, machinery, plant, shares, securities and fixed deposits in banks, to the extent to which any of the assets aforesaid does not form part of the stock-in-trade of the business of the assessee.
39. The amount of tax, penalty, interest, composition money, fine or any
other sum payable, and the amount of set off or refund due under the
provisions of this Act shall be rounded off to the nearest rupee and for this
purpose, where such amount contains a part of a rupee consisting of paise,
then, if such part is fifty paise or more, it shall be increased to one rupee,
and if such part is less than fifty paise, it shall be ignored:
Provided that, nothing in this section shall apply for the purposes of collection by a dealer of any amount by way of tax under this Act.
40. Any payment made by a dealer or person in respect of any period
towards any amount due as per the order passed under this Act shall first
be adjusted except in so far as the recovery of the said amount or part
thereof is stayed under sub-section (6) of section 26, against the interest
payable by him on the date of payment in respect of the said period and
thereafter towards the amounts due as a penalty, sum forfeited and fine.
Any amount remaining unadjusted shall then be adjusted towards the tax
payable in respect of that period.
41. (1) The State Government, if satisfied that it is necessary in the
public interest to grant refund of any tax levied and collected from any
class or classes of dealers or persons or, as the case may be, charged on
the purchases or sales made by any class or classes of dealers or persons,
it may, by notification in the Official Gazette and subject to such terms and
conditions as may be specified in the notification, provide for grant of
refund of such tax, for such period and to such class of dealers or persons
as specified in the said notification; on such tax payers applying to the
Commissioner in the prescribed form for such refund:
Provided that, such notification may be issued so as to have retrospective effect so however that the effective date is not earlier than the appointed day.
(4) Subject to such conditions as it may impose, the State Government may, by notification in the Official Gazette, provide for exemption from the payment of full or part of the tax payable on the purchases and sales of motor spirits and crude oil to any class or classes of dealers and for the purposes of this sub-section ” motor spirit” means such products as the State Government may notify, from time to time, in the official Gazette.
42. (1) (a) The State Government may, by a notification in the Official
Gazette, provide for a scheme of composition, subject to such of tax,
conditions and restrictions as may be provided therein, of tax payable by
the dealers who are engaged in the business, as prescribed, of reselling at
retail, any goods or merchandise and different types of schemes may be
notified for different classes of retailers.
(b) For the purpose of this section, a dealer shall be considered to be
engaged in the business of selling at retail if 9/10th of his turnover of sales
consists of sales made to persons who are not dealers and if any question
arises as to whether any particular dealer is a retailer, then the question
shall be referred to the Joint Commissioner, who shall after hearing the
dealer, if necessary, decide the question. The order made by the Joint
Commissioner shall be final.
© Nothing in this sub-section shall apply to a dealer who is a
manufacturer or who is an importer or who purchases any goods from a
registered dealer whose sales of the said goods are not liable to tax by
virtue of the provisions contained in sub-section (1) of section 8 or who
sells at retail liquor including liquor imported from out of India, Indian
Made Foreign Liquor or Country Liquor.
(2) The State Government may, by a notification in the Official Gazette,
provide for a scheme of composition, subject to such conditions and
restrictions as may be provided therein, of tax payable by dealers who are
running any eating house, restaurant, hotel, refreshment room or boarding
establishment (…) and the tax payable by dealers who are caterers and
serve food and non-alcoholic drinks or tax payable by dealer running
bakeries or dealers of second-hand motor vehicles whose principal
business is buying or selling motor vehicles.
(3) Where a dealer is liable to pay tax on sales effected by way of transfer of
property in goods (whether as goods or in some other form) involved in the
execution of a works contract, he may subject to such restrictions and
conditions as may be prescribed, in lieu of the amount of tax payable by
him under this Act, whether in respect of the entire turnover of sales
effected by way of works contract or in respect of any portion of the
turnover corresponding to individual works contract, pay lump sum tax by
way of composition equal to eight per cent. of the total contract value of the
works contract after deducting from the total contract value the amounts
payable towards sub-contracts to sub-contractors.
43. Where in respect of any tax (including any penalty, interest and
amount forfeited) due from a dealer or person under this Act or under any
earlier law, any other person is liable for the payment thereof under section
44. all the relevant provisions of this Act or, as the case may be, of the
earlier law, shall in respect of such liability apply to such person also, as if he were the dealer himself.
44. (1) Where a dealer, liable to pay tax under this Act, dies then.—
(a) if the business in which the dealer was engaged is continued after his
death by his legal representative or any other person, such legal
representative or other person shall be liable to pay the tax including any
penalty, sum forfeited and interest due from such dealer under this Act or
under any earlier law, in the like manner and to the same extent as the
deceased dealer, and
(b) if the business in which the dealer was engaged is discontinued
whether before or after his death, his legal representative shall be liable to
pay out of the estate of the deceased, in the like manner and to the same
extent as the deceased dealer would have been liable to pay if he had not
died, the tax including any penalty, sum forfeited and interest due from
such dealer under this Act, or under any earlier law. whether such tax
including any penalty, sum forfeited and interest has been assessed before
his death but has remained unpaid, or is assessed after his death.
(2) Where a dealer, liable to pay tax under this Act, is a Hindu Undivided
Family and there is a partial partition or partition of the joint family
property amongst the various members or group of members, then each
member or group of members shall be jointly and severally liable to pay the
tax including any penalty, sum forfeited and interest due from the dealer
under this Act or under any earlier law, up to the time of the partial
partition or partition, whether such tax including any penalty, sum
forfeited and interest has been assessed before the partial partition or
partition but has remained unpaid, or is assessed after such event.
(3) Where a dealer, liable to pay tax under this Act, is a firm, and the firm is
dissolved, then every person who was a partner shall he jointly and
severally liable to pay to the extent to which he is liable under section 46,
the tax, including any penalty, sum forfeited and interest due from the firm
under this Act or under any earlier law, up to the time of dissolution,
whether such tax including any penalty, sum forfeited and interest has
been assessed before such dissolution but has remained unpaid, or is
assessed after dissolution.
(4) Where a dealer, liable to pay tax under this Act, transfers or
otherwise disposes of his business in whole or in part, or effects any
change in the ownership thereof, in consequence of which he is succeeded
in the business or part thereof by any other person, the dealer and the
person succeeding shall jointly and severally be liable to pay the tax
including any penalty, sum forfeited and interest due from the dealer under
this Act or under any earlier law, up to the time of such transfer, disposal
or change, whether such tax including any penalty, sum forfeited and interest has been assessed before such transfer, disposal or change but has remained unpaid, or is assessed thereafter.
(5) Where the dealer liable to pay tax under this Act,—
(a) is the guardian of a ward on whose behalf the business is carried on
by the guardian, or
(b) are trustees who carry on the business under a trust for a
beneficiary, then,
if the guardianship or trust is terminated, the ward or, as the case may be, the beneficiary shall be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer up to the time of the termination of the guardianship or trust, whether such tax including any penalty, sum forfeited and interest has been assessed before the termination of the guardianship or trust, hut has remained unpaid, or is assessed thereafter.
45. (1) Where any person specified in sub-clause (a), (b) or © of clause (8) of section 2, sells (…)any taxable goods on behalf of his principal, the person as well as the principal shall both he jointly and severally liable to pay the taxes on the turnover of such sales (…).
(2) If the principal, on whose behalf the said person has sold (…) any goods,
shows to the satisfaction of the Commissioner that, the tax has been paid
by the said person on such goods under sub-section (I), the principal shall
not be liable to pay the tax again in respect of the same transaction and
where the person shows to the satisfaction of the Commissioner that the
principal has paid such tax, the person shall not be liable to pay the tax
again in respect of the same transaction.
(3) Where an agent of a non-resident dealer, sells (…) any goods on behalf
of the non-resident dealer in the State, then the nonresident dealer and the
agent residing in the State, shall he jointly and severally liable to pay tax
on the turnover of such sales (…) :
Provided that, if the non-resident dealer shows to the satisfaction of the Commissioner that the tax payable in respect of such sale (…)has been paid by the agent residing in the State, then the non-resident dealer shall not be liable to pay tax again in respect of the same transaction and where the agent shows to the satisfaction of the Commissioner that the non¬resident dealer has paid such tax, the agent shall not he liable to pay the tax again in respect of the same transaction.
(4) Where any sale has been effected by way of transfer of property in goods
(whether as goods or in some other form) involved in the execution of a
works contract and the contractor has executed the works contract
awarded to him, through a sub-contractor, directly or otherwise, then
notwithstanding anything contained in any law or agreement to the contrary, the relationship between the contractor and the person who has actually executed the works contract or part of it as a sub-contractor shall be deemed to be that of the principal and agent and accordingly,—
(a) where such principal assigns the whole or part of the execution of
the works contract to different such agents resulting into the distribution of
the turnover of the said sales amongst the principal and the agents or
wholly amongst the agents whereby the principal escapes the liability to
pay tax on the whole or part of the turnover of sales, then, having regard to
the total turnover of sales, including the total turnover of sales in respect of
execution of such contract, of the principal in the year of assessment being
such that the principal would have been liable to pay tax under this Act ii
such works contract had been executed by himself alone the liability to pay
tax on such total turnover of sales shall he that of the principal;
(b) where such agent executes such works contract on behalf of the
principal and each or either of them is liable to pay tax, then
notwithstanding anything contained in any other law or any contract to the
contrary, the principal and the agent shall be jointly and severally liable to
pay tax in respect of the transfer of property in goods involved in the
execution of such works contract;
© if the principal shows to the satisfaction of the Commissioner that
tax has actually been paid by the agent on the turnover of sales, the
principal shall not be liable to pay tax again in respect of the same turnover
of sales on which the agent has paid tax;
(d) if the agent shows to the satisfaction of the Commissioner that the
tax has been actually paid by his principal on the turnover of sales on
which he is liable to pay tax under this Act, then the agent shall not be
liable to pay tax again on the same turnover of sales on which the principal
has paid tax;
(e) no deduction from payment of tax under the preceding clauses shall
be given to the principal or to the agent, unless a duly signed certificate in
the prescribed form is produced;
(f) a contractor assigning execution of a works contract (either in whole
or in part) to a sub-contractor registered under this Act. may deduct from
his total contract value or, as the case may be, the turnover of sales, the
value or the turnover of sales in respect of works contract executed through
the said sub-contractor provided a declaration in the prescribed form
signed by such sub-contractor is produced;
(g) a sub-contractor who has been assigned execution of works contract
(either in whole or in part) by a contractor may deduct from his total
contract value or, as the case may be, the turnover of sales, the value or the turnover of sales in respect of such works contract executed by him provided a declaration in the prescribed form signed by such contractor is produced.
46. (1) Notwithstanding any contract to the contrary, where any firm is
liable to pay tax under this Act, the firm and each of the partners of the
firm shall be jointly and severally liable for such payment.
(2) Any notice or order under this Act may be served on any person who
was a partner during the relevant time, whether or not the firm has been
dissolved and all the provisions of this Act shall apply accordingly.
(3) Where any partner retires from the firm, he shall he liable to pay the
tax, penalty, sum forfeited and interest, if any, remaining unpaid at the
time of his retirement and any such amount due up to the date of
retirement, though un-assessed at that date and where at the time of death
of the said partner, the legal representative is not a partner in the said
firm, he shall be liable to pay such amounts only out of the estate of the
deceased, in the like manner and to the same extent as the deceased
partner would have been liable to pay if he had not died.
47. (1) When two or more companies are to be amalgamated by the order
of Court or of the Central Government and passed after the appointed day
and is to take effect from a date earlier to the date of the order and any two
or more of such companies have sold or purchased any goods to or from
each other in the period commencing on the date from which the order is to
take effect and ending on the date of the order, then such transactions of
sale and purchase shall be included in the turnovers of sale or purchase of
the respective companies and shall be assessed to tax accordingly.
Notwithstanding anything contained in the said order, for all of the purposes of this Act, the said two or more companies shall be treated as distinct companies for all the periods upto the date of the said order and the registration certificates of the said companies shall he cancelled. where necessary, with effect from the date of the said order.
(2A) (a) When any company is to be demerged by the order of the court or of the Central Government passed after the appointed day, and is to take effect from a date earlier to the date of the order, then for all of the purposes of this Act, it shall be presumed that the two or more companies brought into existence by the operation of the said order have not sold or purchased any goods to each other from the date of effect of the order to the date of the order.
(b) Notwithstanding anything contained in the said order, for all the purposes of this Act, the said two or more companies shall be treated as a
single company for all the periods upto the date of the said order and the registration certificate of the company to be demerged shall be cancelled with effect from the date of the said order and the said two or more companies shall, subject to rules, be granted registration certificates from the date of the said order.
(3) Words and expressions used in this section but not defined shall have the respective meanings assigned to them in the Companies Act, 1956.