Section 4 in Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007
4. Levy of tax.
(1)For the purpose of development of trade, commerce and industry in the State, there shall be levied and collected a tax on entry of goods specified in the Schedule into a local area for consumption, use or sale therein, from any place outside that local area, at such rate not exceeding five percent of the value of the goods as may be specified by the State Government by notification and different rates may be specified in respect of different goods or different classes of goods;Provided that the State Government may by notification amend the Schedule and upon issue of any such notification, the Schedule shall, subject to the provisions of sub-section (10), be deemed to be amended accordingly.(2)The Tax under sub-section (1) shall be continued to be levied till such time as is required to improve infra-structure within the State such as power, road, market condition etc., with a view to facilitate better market conditions for trade, commerce and industry.(3)The tax levied under sub-section (1) shall be payable by a dealer who brings or causes to be brought into the local area such goods, whether on his account or on the account of his principal or takes delivery or is entitled to take delivery of such goods on its entry into a local area.Provided that the State Government, may by notification, permit any Power Project Industrial Unit engaged in generation, transmission and distribution, having aggregate capital investment of Rs. One thousand crore or more to own the liability of payment of tax of other dealers on the entry of such goods into a local area from any place out side that local area as are used and consumed by the said unit subject to such conditions as may be specified in the notification.Explanation - Where the goods are taken delivery of on its entry into a local area or brought into a local area by a person other than a dealer, the dealer who takes delivery of the goods from such person shall be deemed to have brought or caused to have brought the goods into the local area.(3A)[ Notwithstanding anything to the contrary contained in subsection (1) or sub-section (3), no tax shall be levied on or collected from a dealer or subsequent dealer who brings or cause to be brought into a local area any goods in respect of which tax has been paid in any other local area under any of the said sub-sections and such dealer furnishes before the concerned Assessing Authority the prescribed declaration in regard thereto within such time as may be prescribed:Provided that the amount of tax deposited under this Section shall be deemed to have been deposited for and on behalf of such dealer or any subsequent dealer to whom above prescribed declaration has been issued.] [Inserted by U.P. Tax on Entry of Goods into Local Areas (Amendment) Act, 2009 (Act No. 8 of 2009) w.e.f. 1.11.1999.](4)The State Government may by notification remit the amount of tax to the extent necessary to ensure that effective rates of tax on entry of goods into a local area, from any place out side the local area for consumption or use in a Power Project Industrial Unit, do not exceed the respective rates applicable as on the date of commencement of State Energy Policy subject to the conditions as may be notified in such notifications.(5)No dealer who brings or causes to be brought any goods into a local area shall be liable to tax, if during the assessment year [the aggregate value of such goods is less than five lakh rupees] [Substituted by 'the aggregate value of such goods is less than two lakh rupees in the case of manufacturers and three lakh rupees in case of other dealers' U.P. Tax on Entry of Goods into Local Areas (Amendment) Act, 2008 (Act No. 7 of 2008), w.e.f. 1.1.2008.] such larger amount as the State Government may by notification, specify in that behalf either in respect of all dealers in any goods or in respect of a particular class of such dealers:Provided that the provisions of this sub-section shall not apply in respect of value of the goods brought into a local area from outside Uttar Pradesh.[( 6) Notwithstanding anything to the contrary contained in subsection (1) or sub-section (3), no tax shall be levied on or collected from a dealer, who brings or causes to be brought into a local area any goods which are,-(i)consigned without using them in the local area to any place outside the State; or(ii)sold or re-sold either in the course of inter-State trade or commerce or in the course of export out of the territory of India;Explanation. - Section 3, Section 5 and Section 6-A of the Central Sales Tax Act, 1956 shall apply for the purpose of determining whether or not any goods has been sold by a dealer in the course of inter-State trade or commerce or in the course of export out of the territory of India:Provided that where at the time of entry of goods into a local area, the quantity or value of goods to be sold within such local area for the purpose of being taken outside the State without consumption, use or sale in such local area, is not ascertainable, the dealer shall pay the amount of tax on the value of total quantity of goods and after the goods are consigned or sold outside the State or in the course of export, the dealer may claim refund or adjustment of the amount so paid as tax in the month in which such goods are transferred outside the State or sold in the course of inter-State trade or commerce or the course of export, in respect of such goods.] [Substituted by U.P. Tax on Entry of Goods into Local Areas (Amendment) Act, 2009 (Act No. 8 of 2009), w.e.f. 1.11.1999.][( 7) *** (Deleted)] [Deleted by U.P. Tax on Entry of Goods into Local Areas (Amendment) Act, 2009 (Act No. 8 of 2009), w.e.f. 1.11.1999.](8)Where tax, in respect of entry of any goods into a local area, is payable and has been so paid by the agent, the principal shall not be liable for payment of tax and likewise where tax, in respect of entry of any goods into a local area, is payable and has been so paid by the principal, the agent shall not be liable for payment of tax.Provided further that the burden of proving the fact that any goods after entry into a local area were sold for the purpose of being taken outside the local area for consumption, use or sale outside such area and were actually taken outside such local area shall lie on the dealer selling the goods.(9)Where in respect of any-(i)Purchased scheduled goods,-(a)value of such goods is not ascertainable or value of such goods, as declared by the dealer or the person in-charge of the goods, as the case may be, is not verifiable on account of non-availability or non production of any document; or(b)any document produced in support of purchase price or transport charges and other charges, is not worthy of credence; or(ii)scheduled goods, acquired or obtained otherwise than by way of purchase, value of such goods disclosed by the person in-charge of the goods or the dealer, as the case may be, does not appear to be reasonable and worthy of credence then the whole-sale price, in the open market in a local area in which such goods are being brought, reasonably determined by the Assessing Authority, after affording reasonable opportunity of being heard to the person in-charge of the goods or the dealer, as the case may be, shall be deemed to be, the value of goods, and for this purpose in reference to Clause (i), the Assessing Authority shall assume that goods has been acquired or obtained otherwise than by way of purchase.(10)Every notification made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature, while it is in session; for a total period of not less than fourteen days, extending in its one session or more than one successive sessions and shall unless some later date is appointed take effect from the date of its publication in Gazette subject to such modifications or annulments as the two Houses of the Legislature may during the said period agree to make, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done thereunder except that any imposition, assessment, levy or collection of tax or penalty shall be subject to the said modification or annulment.
