Section 16 in West Bengal Value Added Tax Act, 2003
16. Levy of tax on sales.
(1)Subject to the provisions of sub-section (2), the tax payable by a dealer, who is liable to pay tax under section 10, or sub-section (3) of section 24 or 21 sub-section (3) of section 27C on his turnover of sales, shall be levied on such part of his turnover of sales as the remains after deducting therefrom -(a)sales of goods dated tax-free under section 21;(b)sales of goods which are shown to the satisfaction of the Commissioner not to have taken place within West Bengal, or 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 of the goods into, or export of the goods out of, the territory of India within the meaning of section 5 of that Act;(ba)[ sales of goods which are zero-rated as specified in Schedule AA;] [Inserted w.e.f. 01.04.2006 by S. 12(6) (a) of WB Act XVIII of 2006.](c)such other sales on such conditions and restrictions as many prescribed.(2)The tax payable by a dealer on the turnover of sales as referred to in subsection (1) , shall be levied -(a)at the rate of one per centum of such part of his turnover of sales as represents sales of any goods specified in Schedule B;(b)[ at the rate of four per centum of such part of his turnover of sales as represents sales of - [Substituted by S.6(4) (a) of WB Act XIII of 2005 w.e.f. 01.4.2005.](i)such capital goods, as the State Government may, by notification specify; and(ii)any goods specified in Schedule C;](ba)at the rate of twelve decimal five zero per centum of such part of his turnover of sales as represents sales of any goods specified in Schedule CA;(c)at such rate as may be fixed by the State Government under section 19, on such part of his turnover of sales as represents sales of any goods specified in Schedule D.Explanation. - For the purpose of this sub-section, it is hereby declared that the export of the goods out of the territory of India shall be zero rated i.e. the tax paid under this Act shall be refunded or adjusted, as the case may be, against the output tax payable, if any, by a dealer.(2A)When taxable goods are sold together with containers or packing materials, notwithstanding anything contained in sub-section (2) , the rate of tax applicable to such containers or packing materials, as the case may be, shall be the same as that applicable to the goods contained, or packed, and the sale price of the containers or packing materials, whether shown separately or not, shall be included in the sale price of the goods.(2B)Where the sale of any goods, which is exempt from tax, is packed in any container or in any packing material, then notwithstanding anything contained in sub-section (2) , the sale of such container or packing material shall also be exempt from tax.(3)Notwithstanding anything contained in sub-section (1) or sub-section (2) , any registered dealer having liability to pay tax under this Act, many, at his option,-(a)if his gross sales in the year ending on the day preceding the appointed day does not exceed fifty lakh rupees ; or(b)if his turnover of sales in the preceding year commencing on or after the appointed day 3[does not exceed fifty lakh rupees, or](c)[ if his turnover of sales during the period from the commencement of the year in which he gets himself registered to the date of his registration, does not exceed fifty lakh rupees,] [Inserted by S.6(4) (b) (ii) of WB Act XIII of 2005 w.e.f. 01.4.2005.] pay tax at such compounded rate not exceeding one per centum of the total turnover of sales of such dealer in the year for which such option is required to be exercised, and subject to such conditions and restrictions as many prescribed, for each tax period of the year in view of tax payable under subsection (2) on all his sales:Provided that the registered dealer having liability to pay tax under this Act as stated in this sub-section shall not include-(a)an importer; or(b)a manufacturer; or(c)a dealer engaged in execution of works contracts; or(ca)[ a dealer who has purchased tea sold under the auspices of any tea auction centre in West Bengal duly authorised by the Indian Tea Board; or] [Inserted by S.6(4) (b) (iii) of WB Act XIII of 2005 w.e.f. 01.4.2005.](d)a dealer who transfers goods otherwise than by way of sale within or outside the State; or(e)a dealer who sells goods within the meaning of section 3 of the Central Sales Tax Act, 1956; or(f)a dealer who sells goods in the course of import of the goods into, or export of the goods out of, the territory of India within the meaning of section 5 of the Central Sales Tax Act, 1956:Provided further that such dealer shall not be entitled to issue tax invoice referred to in clause (48) of section 2 of the Act:Provided also that a registered dealer who, in addition to the purchase of goods in course of his business in a year, have also received goods from the supplier within or outside West Bengal, on branch transfer or on consignment basis, for which no price has been paid, shall not be entitled to opt for payment of tax under such compounded rate:Provided also that if during the period of enjoyment of payment of tax at compounded rate, turnover of sales of a dealer exceeds fifty lakh rupees, he shall become ineligible to pay tax under this sub-section from the commencement of the month immediately following the month during which his turnover of sales exceeded such sum.(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 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.] [Inserted w.e.f. 01.08.2006 by S. 12(6) (b) of WB Act XVIII of 2006.](4)Notwithstanding anything contained in sub-section (2) and sub-section (2A) , any registered dealer, who imports into or manufactures such goods in West Bengal as may be notified by the State Government, may, at his option, pay, in lieu of the [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:] [Substituted w.e.f. 01.08.2006 by S. 12(6) (c) of WB Act XVIII of 2006 for 'tax payable by him on sale price of such goods under this section, tax at full rate on the maximum retail price of such goods in the manner as may be prescribed:']Provided that where a dealer has purchased any goods,-(a)from an importer or a manufacturer upon payment of tax on the maximum retail price of such goods; or(b)from another registered dealer where tax on the maximum retail price of such goods was paid in West Bengal in an earlier occasion, the purchasing dealer, irrespective of whether he is registered or not, while making resale of such goods in West Bengal, shall, notwithstanding anything contained elsewhere in the Act, be entitled to recover from the buyer the amount of tax paid by him at the time of purchase of such goods under such conditions and restrictions, and in such manner, as may be prescribed.(5)Any registered dealer, who intends to opt for payment under sub-section(3)of this section, shall exercised his [option for a year, or a part of the year in which he gets himself registered,] [Substituted by S.6(4) (c) of WB Act XIII of 2005 w.e.f. 01.4.2005 for 'option for a year'.] by making an application to the Commissioner in such manner, and within such time, as may be prescribed.
