(1)Subject to the provisions of Sections 5 and 6, every dealer except one dealing exclusively in goods declared tax-free under section 6 whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum shall be liable to pay tax under this Act on all sales effected after the coming into force of this Act and purchases made after the commencement of the East Punjab General Sales Tax (Amendment) Act, 1958 :Provided that the tax shall not payable on sales involved in the execution of a contract which is shown to the satisfaction of the assessing authority to have been entered into before the commencement of this Act.(2)Every dealer to whom sub-section (1) does not apply or who does not deal exclusively in goods declared to be tax free under section 6 shall be liable to pay tax under this Act on the expiry of 30 days after the date on which his gross turnover during any year first exceeds the taxable quantum :Provided that in the case of a dealer who imports any goods for sale or use in manufacturing or processing, or who manufactures or processes any goods for sale, the liability to pay tax shall commence with effect from the date on which gross turnover during any year first exceeds the taxable quantum.(2-A) Notwithstanding anything contained in sub-sections (1) and (2) no tax on the sale of any goods shall be levied if a tax on their purchase is payable under this Act.(3)Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed the taxable quantum and such further period after the date of such expiry as may be prescribed, and on the expiry of this later period his liability to pay tax shall cease.(4)Every dealer whose liability to pay tax has ceased under the provisions of sub-section (3) shall again be liable to pay tax under this Act with effect from the date on which his gross turnover first exceeds the taxable quantum.(5)In this Act expression "taxable quantum" means :-(a)In relation to any dealer who imports for sale or use in manufacturing or processing any goods in Punjab, Nil :Provided that the provisions of this clause shall not apply to a dealer who had placed orders for import of goods before the 8th August, 1952, but received such goods on or after that date and his gross import for sale or use in manufacturing or processing any goods in Punjab did not exceed Rs. 5,000 during the year and he did not make any other import of goods after the said date :(b)in relation to any dealer, who himself manufactures or produces any goods for sale, [1,00,000] [Substituted for '40,000/-' by Punjab Act 15 of 1993 w.e.f. 3.5.1993. Earlier Rs. 40,000/- was substituted for Rs. 10,000/- by Punjab Act 32 of 1976 w.e.f. 20.7.1976.] rupees :(bb)in relation to any dealer, who runs a tandoor, loh, dhaba, hotel restaurant, halwai shop, bakery or other similar establishment wherein Indian food preparations, including tea, are served, [1,00,000] [Substituted for Rs. '40,000/-' by Punjab Act 15 of 1993 w.e.f. 3.5.1993. Earlier Rs. 40,000/- was substituted for Rs. 10,000/- by Punjab Act 32 of 1976 w.e.f. 20.7.1976.] rupees :(c)in relation to any particular classes of dealers not falling within clauses (a), (b) and (bb) such sum as may be prescribed; or(d)in relation to any other dealer [5,00,000] [Substituted for Rs. 3,00,000/- by Punjab Act 3 of 1996.] rupees :Provided that the registration of dealers already registered under this clause shall not be cancelled until their turnover in each of three consecutive years does not entitle them to cancellation under clause (b) of sub-section (6) of section 7.
