3. Incidence of tax. - (1) Every dealer whose turnover either of all sales or of all purchases, made during
(i)the year immediately preceding the year within which the appointed day falls,or(ii)the year commencing on the first day of the year within which the appointed day falls, has exceeded or exceeds the relevant limit specified in sub-section (4), shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act on his turnover of sales, and on his turnover of purchases, made on or after the appointed day:Provided that a dealer to whom sub-clause (i) does not apply but sub-clause (ii) applies and whose turnover either of all sales or of all purchases first exceeds the relevant limit specified in sub-section (4) after the appointed day shall not be liable to pay tax in respect of sales and purchases which take place upto the time when his turnover of sales, or his turnover of purchases as computed from the first day of the year in which the appointed day falls, first exceeds the relevant limit applicable to him under sub-section (4).(2)Every dealer whose turnover, either of all sales or of all purchases made during any year being a year subsequent to the year mentioned in sub-section (1), first exceeds the relevant limit specified in sub-section (4), shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act with effect on and from the first day that year:Provided that the dealer shall not be liable to pay tax in respect of such sales and purchases as take place during the period commencing on the first day of any such year, upto the time when his turnover of sales or, turnover of purchases as computed from the said first day first exceeds the relevant limit applicable to him under sub-section (4).(3)Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until his registration is duly cancelled; and upon such cancellation his liability to pay tax, other than tax already levied or leviable, shall, until his turnover of sales or turnover of purchases again first exceeds the relevant limit specified in sub-section (4), cease:Provided that where the dealer becomes liable to pay tax again in the same year in which he ceased to be liable as aforesaid, then, in respect of such sales and purchases as take place during the period commencing, on the date of the cessation of liability to tax upto the time when his turnover of sales or of purchases first exceeds the relevant limit applicable to him under sub-section (4), no tax shall be payable.(4)For the purposes of this section, the limits of turnover shall be as follows:-(i)Limit of turnover Rs. 20,000.(a)in the case of a dealer, who is an importer, and the value of taxable goods sold or purchased by him during the year exceeds Rs. 3,000 and the value of any taxable goods brought by him into the State or dispatched to hurt from outside the State during the year exceeds Rs. 3,000; or(b)in the case of a dealer (other than the one to whom item (a) of clause (ii) applies), who is a manufacturer or who gathers any goods other than agricultural produce as a dealer and the value of taxable goods sold or purchased by him during the year exceeds Rs. 3,000 and the value of any taxable goods manufactured by him or of any taxable goods other than agricultural produce gathered by him during the year exceeds Rs. 3,000.(ii)Limit of turnover Rs. 30,000.(a)in the case of a dealer of special category, as specified in sub-section (5), who is a manufacturer or who gathers any goods other than agricultural produce as a dealer and the value of taxable goods sold or purchased by him during the year exceeds Rs. 3,000 and the value of any taxable goods manufactured by him or of such goods other than agricultural produce gathered by him during the year exceeds Rs. 3,000; or(b)in case of a dealer to whom neither clause (i) nor item (a) of this clause applies and the value of taxable goods sold or purchased by him during the year exceeds Rs. 3,000.(5)For the purpose of sub-section (4) a dealer of special category means a deafer who belongs to any one or more of the following categories of dealers, namely: -(i)dealers who carry on business of conducting a printing press;(ii)dealers who manufacture footwear made by hand without using power at any stage;(iii)dealers who are engaged in the process of parching, roasting or salting (with or without adding turmeric) groundnut seeds or groundnut, cereals or pulses;(iv)dealers who carry on business of photography;(v)dealers who conduct an eating house, restaurant, hotel, refreshment room or boarding establishment or a shop or an establishment conducted primarily for the sale of farsan, sweetmeats bread, cakes, biscuits and pastries;(vi)such class of village artisans and craftsmen engaged in manufacture of products of village industries or handicrafts as the State Government may notify in the Official Gazette;(vii)any other class of small manufacturers or craftsmen or class of establishments which the State Government may notify in the Official Gazette,(6)For the purpose of calculating the limit of turnover for liability to tax:-(a)except as otherwise expressly provided, the turnover of all sales or, as the case may be, the turnover of all purchases, shall be taken whether such sales or purchases are taxable or not;(b)the turnover shall include all sales and purchases made by a dealer on his own account, and also on behalf of principals mentioned in his accounts; and(c)the value of packing material which is used in packing any goods specified in Schedule I and on which no tax is leviable under sub-section (1) of section 21 shall not be taken into account in computing the value of taxable goods under sub-section (4).
