Section 10 in The M.P. Vanijyik Kar Adhiniyam, 1994
10. Levy of Purchase Tax.
(1)Every dealer who in the course of his business purchases any goods specified in Schedule II-(i)from a registered dealer in the circumstances in which no tax under Section 9 is payable by that registered dealer on the sale price of such goods; or(ii)from any other person;shall be liable to pay tax on the purchase price of such goods, if after such purchase the goods are not sold within the State or in the course of inter-State Trade or Commerce or in the course of export out of the territory of India, but are-(a)sold or disposed of otherwise; or(b)used or consumed in the manufacture or processing of other goods or used or consumed otherwise;such tax shall be levied at the same rate at which tax under sub-section (1) of Section 9 would have been levied on the sales of such goods within the State on the date of such purchase.(2)Notwithstanding anything contained in sub-section (1) but subject to such restrictions and conditions as may be prescribed, the tax under sub-section (1) payable by a registered dealer on the goods, other than the goods specified in Schedule III purchased by him for consumption or use by his as raw material, or incidental goods in the manufacture or in the mining of goods for sale by him in the State of Madhya Pradesh or in the course of inter-State Trade or Commerce or in the course of export out of the territory of India or in the generation or distribution of electrical energy or any other form of power, shall be levied at the concessional rate of four per cent:Provided that when the tax on the purchase of such raw material or incidental goods is payable under sub-section (1) at a rate lower than four per cent, the tax payable under this sub-section shall be calculated at such lower rate or at such other lower rate as may be notified by the State Government.(3)No tax under this Section shall be levied is respect of any year on-(a)a dealer whose turnover in a year does not exceed the limit specified in sub-section (5) of Section 5;(b)a dealer holding a licence under Section 18 in respect of raw material and incidental goods used in that year in the manufacture of goods in respect of which he holds such licence;(c)a dealer in respect of the purchase price of unginned cotton as specified in Part I of Schedule II and such other goods in the said part as the State Government may from time to time by notification specify, who has consumed or used them as raw material for the manufacture of other goods and the goods so manufactured are sold by him in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India;(d)any other dealer who has no turnover, if his aggregate of purchase prices of all the goods does not exceed fifty thousand rupees.(4)Every dealer who has no turnover and is liable to pay tax under sub-section (1) shall, for the purpose of Sections 26, 27, 28,32, 33 and 42 be deemed to be a registered dealer.
