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[Cites 0, Cited by 10] [Entire Act]

State of Uttar Pradesh - Section

Section 3 in Uttar Pradesh Value Added Tax Act, 2008

3. Incidence an levy of tax.

(1)Subject to the other provisions contained in this Act, every dealer shall be liable to pay tax under this Act, for each assessment year, on his taxable turnover of sale or purchase or both, as the case may be, of taxable goods, at such rates and at such point of sale or purchase as provided under section 4 or section 5:Provided that tax shall be levied on and charged from every dealer on such sales and purchases as are made on or after the date on which the dealer becomes liable for payment of tax in accordance with provisions of sub-section (3) or sub-section (5), as the case may be.
(2)Where a dealer carries on business for part of any assessment year he shall, subject to the other provisions contained in this Act, be liable to pay tax on the taxable turnover of sale or purchase or both, as the case may be, of taxable goods, at such rates and at such point of sale or purchase as provided under section 4 or section 5, where such sales or purchases are affected during the period in which he is liable for payment of tax in accordance with the provisions of sub-section (3) or sub-section (5).
(3)Dealers, of the class mentioned in column 2 against the serial no. mentioned in column 1, shall be liable to pay tax on sales or purchases or both, as the case may be, where such sales or purchases of goods are made by them on or after the date mentioned in column 3 against the same serial no. of the table below:
Serial No. Class of dealers Date
(1) (2) (3)
1. (i) Dealers whose registration certificate, underthis Act, is effective on January 1, 2008 January 1, 2008
(ii) Dealers whose registration certificate, issuedunder the Central Sales Tax Act, 1956, is valid on January 1,2008
(iii) Dealers who hold any imported taxable goods inopening stock on January 1, 2008
(iv) Dealers who hold any taxable goods in openingstock on January 1, 2008 where such goods have been manufactured,processed or packed by using or consuming of any imported goods
(v) Dealers who hold any taxable goods in openingstock on January 1, 2008 where such goods have been manufactured,processed or packed by using or consuming any goods purchasedafter furnishing to the selling dealer any form of declaration orcertificate prescribed under the erstwhile Act or the rulesframed there under.
(vi) Dealers who hold any goods in opening stock onJanuary 1, 2008 where such goods have been purchased afterfurnishing to the selling dealer any form of declaration orcertificate prescribed under the erstwhile Act or the rulesframed there under
(vii) Dealers who, in the assessment year ofcommencement of this Act, have commenced exclusive business ofpurchase of any goods from within the State or sale of any goodswithin the State or both, as the case may be, on any date beforeJanuary 1, 2008 and-
  (a) whose aggregate,of the turnover of such purchase and turnover of such sale, ofall goods, as defined hereunder, during the Incidence and levy oftax assessment year of commencement of this Act, from first dayof the business during such assessment year, has, on or beforeJanuary 1, 2008, exceeded the taxable quantum as provided insub-section (4); and(b) who have not made any change in the natureof their business before their aggregate of turnovers as statedin clause (a) has exceeded the taxable quantum as provided insubsection (4)
(viii) Dealers who have been carrying on exclusivebusiness of purchase of any goods from within the State or saleof any goods within the State or both, as the case may be, of anygoods during the assessment year immediately preceding firstassessment year under this Act and whose aggregate, of theturnover of such purchase and turnover of such sale, of allgoods, as defined hereunder, during such preceding assessmentyear had exceeded the taxable quantum as provided in sub-section(4)
(ix) Dealers who, in theyear of commencement of this Act, have, before January 1, 2008,-(a) made aninter-state sale of any taxable goods; or(b) made a sale inthe course of the export of the goods out of the territory ofIndia; or(c) consigned anytaxable goods outside the State except by reason of a sale andsuch goods are delivered in the other State without a sale; or(d) brought or received any taxable goods fromany place outside the State;
2. Dealers, who with or without any other kind ofbusiness, import any taxable goods on or after January 1, 2008 Date on which a dealer receives taxable goodsfor the first time
3. Dealers who obtain registration certificateunder the Central Sales tax Act, 1956 on or after January 1, 2008 Date from which registration certificate iseffective
4. Dealers, who, with or without any other kind ofbusiness, make sale of any taxable goods in the course of inter-State trade or commerce on or after January 1, 2008 Date on which a dealer makes first sale of anytaxable goods in the course of inter- State trade or commerce
5. Dealers, who, with or without any other kind ofbusiness, on or after January 1, 2008, make a sale, in the courseof export of the goods out of the territory of India, of anytaxable goods or make such sale of any exempt goods where inmanufacture, processing or packing of such exempt goods anytaxable goods have been used, consumed or utilized Date on which a dealer makes first sale of thegoods in the course of export of the goods
6. Dealers, who, with or without any other kind ofbusiness, consign any taxable goods on or after January 1, 2008at any place outside the State except by reason of a sale andsuch goods are delivered in the other State without a sale Date on which a dealer for the first timeconsigns any taxable goods outside the State
7. Dealers who have beencarrying on exclusive business of purchase of any goods fromwithin the State or sale of any goods within the State or both,as the case may be, of any goods from a date prior to January 1,2008 or dealers who commence such business on or after January 1,2008 and-(i)whose aggregate,of the turnover of such purchase and turnover of such sale, ofall goods, as defined hereunder, in any assessment year includingassessment year of the commencement of this Act, from first dayof business during such assessment year, exceeds the taxablequantum as provided in sub-section (4) of this section on anydate after January 1, 2008; and(ii)who do not make any change in the nature oftheir business before their aggregate of the turnovers as statedin clause (a) exceeds the taxable quantum as provided insub-section (4) of this section Date on which aggregate of the turnovers ofpurchase from within the State and turnover of sale within theState or both, as the case may be, of all goods of a dealer, asdefined hereunder, for the first time in any assessment yearexceeds the taxable quantum
8 (i) [ A railwaycontainer contractor, an air cargo operator, a courier serviceprovider, who fails to disclose the name and complete address ofconsigner or consignee or if discloses such name or address ofconsigner or consignee is found bogus, forged or not verifiable;or the owner or person in-charge of a vehicle who obtainedauthorization for transit of goods from the officer incharge ofentry check post but failed to deliver the same to the officerin-charge of the exit check post or fails to carry such documentsas provided under section 52 and follow such procedure asprescribed.] [Substituted by The Uttar Pradesh Value Added Tax (Amendment) (Second) Ordinance, 2014 ( U. P. Ordinance No. 6 of 2014 ).](ii) an owner or person in-charge, of a go-downor cold storage or warehouse other than a transporter exceptthose covered under clause (i) who fails to disclose the name andaddress of the owner of any taxable goods stored in such godown,cold storage or warehouse other than transporter except thosecovered under clause (i) or if discloses such name and address ofowner of taxable goods is found bogus, forged or not verifiable,(w.e.f.01.01.2008) First date on which any taxable goods are foundin the possession or custody,
9. Dealers who do not fall in any of the classesmentioned against serial no. 1 to 8 above and who obtainregistration certificate voluntarily under section 18. Date from which registration certificate iseffective
Provided that a dealer who exclusively deals in purchase or sale, or both, as the case may be, of exempt goods, shall not be liable to pay tax under this Act.Explanation (1). - For the purposes of this sub-section and [sub-section (4)] [Substituted by The Uttar Pradesh Value Added Tax (Amendment) (Second) Ordinance, 2014 ( U. P. Ordinance No. 6 OF 2014 ).] the expression "aggregate of turnover of purchase from within the State and turnover of sale within the State or both, as the case may be, of all goods" shall mean the aggregate of the turnover of-
(a)purchase of all taxable goods where such purchases are made by the dealer from within the State from persons other than registered dealers; and
(b)sale of all goods except goods included in clause (a) where such sales are made by the dealer within the State
Explanation (2). - Where a dealer falls in more than one category, mentioned in column 2 of the table given above, then he shall be liable for payment of tax with effect from the earliest date of all dates mentioned in column 3 of the table referred to above.
(4)Taxable quantum referred to in sub-section (3) shall be five lakh rupees.Provided that where a dealer carries on business during part of an assessment year, taxable quantum shall be partial amount of five lakh rupees which shall be computed on pro rata basis and for this purpose part of the month shall be counted as a full month. (w.e.f.01.01.2008)
(5)Every dealer who has once become liable for payment of tax shall continue to be so liable till the date on which he discontinues his business:
(6)For the purposes of this Act, following shall be determined in the prescribed manner:-
(a)Turnover of sale of goods-
(i)involved in the execution of works contract in which property in goods is transferred; or
(ii)in cases of transfer of right to use any goods;
(b)Taxable turnover of sale; and
(c)Taxable turnover of purchase.
(7)Where in respect of transfer of property in goods involved in the execution of a works contact, the contractor does not maintain proper accounts or the accounts maintained by him are not found by the assessing authority to be worthy of credence and the amount actually incurred towards charges for labour and other services and profit relating to supply of labour and services are not ascertainable, for the purpose of determining turnover of sale of goods under sub-clause (i) of clause (a) of sub-section (6) such charges for labour and other services and such profits, may be determined on the basis of deduction of such percentage of the value of works contract as may be prescribed and different percentages may be prescribed for different types of works contract.
(8)Amount of tax, for which a dealer is liable for payment under any provision of this Act, shall be paid in the prescribed manner.
(9)Notwithstanding anything to the contrary in this Act, where any goods are sold or purchased together with any packing material, sale or purchase of packing material shall, notwithstanding the fact that contracts of sale or purchase of such goods and such packing material have been made separately or price of sale or purchase, as the case may be, of the goods and the packing material has been shown separately,-
(a)be liable to tax under this Act at the rate applicable to sale or purchase of the goods sold or purchased together with such packing material;
(b)not be liable to any tax under this Act if the sale or purchase of such goods is exempt from tax at the hands of the dealer.
(10)Where tax is payable, and has been so paid by a commission agent on any turnover of sale or turnover of purchase or both, as the case may be, of any goods on behalf of his principal, the principal shall not be liable to pay tax in respect of such turnover.Explanation. - For the purposes of this Act, the dissolution of a firm or association of persons or partition of a Hindu Undivided Family or transfer by a dealer of his business shall be deemed to be cessation or discontinuance of business.
(11)Subject to such conditions as may be prescribed, the State Government may permit any power project industrial unit engaged in generation, transmission and distribution of electrical energy, having aggregate capital investment of Rs.1000 crore or more to own the tax liabilities of a dealer of such sales as are made to that unit. (w.e.f.01.01.2008)