Incidence of Tax

Incidence and Levy of Tax

Incidence of Tax.—(1) Every dealer whose turnover of sales during the year immediately preceding the commencement of this Act exceeds the taxable quantum, shall be liable to pay tax under this Act on his taxable turnover of sales effected by him on or after such commencement.

1. (2) Every dealer to whom sub-section
2. (1) does not apply, shall, with effect from the date immediately following the day on which his turnover of all sales calculated from the commencement of any year first exceeds, within such year, the taxable quantum, be liable to pay tax under this Act on all sales effected by him after that date.
3. (3) Every dealer who becomes liable to pay tax under this Act, shall continue to be so liable until his registration certificate is duly cancelled, and upon such cancellation his liability to pay tax, other than tax already levied or leviable, shall, until his turnover of all sales again first exceeds the limit specified in sub-section (1), cease: Provided that where any dealer has become liable to pay tax under this Act, and up to the time when his turnover of all sales does not exceed such limit, no tax shall be payable.
4. (4) For the purpose of this Act "taxable quantum" means five lakh rupees.