1) Input tax in respect of any goods purchased by a VAT dealer shalt ~~ Determination

be the amount of tax paid to the State on the sale of such goods to him and shall, in ~~ °f input tax. case of a dealer who is liable to pay tax under sub -section (1) of section 3 or, as the case may be. makes an application for registration in time under sub -section (2) of section II include the tax paid under this Act and the Act of 1973 in respect of goods (except capital goods) held in stock by him on the day he becomes liable to pay tax but shall not include tax paid in respect of goods specified in Schedule E used or disposed of in the circumstances mentioned against such goods ;

Provided that where the goods purchased in the State are used or disposed of partly in the circumstances mentioned in Schedule E and partly otherwise, the input tax in respect of such goods shall be computed pro rata :

Provided further that if input tax in respect of any goods purchased in the State has been availed of but such goods are subsequently used or disposed of in the circumstances mentioned in Schedule E, the input tax in respect of such goods shall be reversed.

1. (2) Atax invoice issued to a VAT dealer showing the tax charged to him on the sale of invoiced goods shall, subject to the provisions of sub -section (3), be sufficient proof of the tax paid on such goods for the purpose of sub -section (1). 84 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 (CHTR. 7, 1925 SAKA)
2. (3) Where any claim of input tax in respect of any goods sold to a dealer is called into question in any proceeding under this Act, the authority conducting such proceeding may require such dealer to produce before it in addition to the tax invoice issued to him by the selling dealer in respect of the sale of the goods, a certificate furnished to him in the prescribed form and manner by the selling dealer; and such authority shall allow the claim only if it is satisfied after making such inquiry as it may deem necessary that the particulars contained in the certificate produced before it are true and correct.
3. (4) The State Government may, from time to time, frame rules consistent with the provisions of this Act for computation of input tax and when such rules are framed, no input tax shall be computed except in accordance with such rules. Payment of 9. (1) The State Government may, in the public interest and subject to Lump sum inlien such conditions as it may deem fit, accept from any class of dealers, in lieu of tax ; payable under this Act, for any period, by way of composition, a lump sum linked with production capacity or some other suitable measure of extent of business, or calculated at a fiat rate of gross receipts of business or gross turnover of purchase or of sale or similar other measure, with or without any deduction therefrom, to be determined by the State Government, a*nd such lump sum shall be paid at such intervals and in such manner, as may be prescribed, and the State Government may, for the purpose of this Act in respect of such class of dealers, prescribe simplified system of registration, maintenance of accounts and filing of returns which shall remain in force during the period of such composition.
4. (2) No dealer in whose case composition under sub -section (1) is in force, shall issue a tax invoice for sale of goods by him and no dealer to whom goods are sold by such dealer shall be entitled to any claim of input tax in respect of the sale of the goods to him.
5. (3) A dealer in whose case composition under sub -section (1) is made and is in force may, subject to such restrictions and conditions, as may be prescribed, opt out of such composition by making an application containing the prescribed particulars in the prescribed manner to the assessing authority, and in case the application is in order, such composition shall cease to have effect on the expiry of such period after making the application as may be prescribed. Rounding off 10. (1) The amount of tax, penalty or interest payable and the amount of tax. - refund due, under the provisions of this Act, shall be rounded off to the nearest rupee and for this purpose fifty paise or more shall be increased to one rupee and less than fifty paise shall be ignored.
6. (2) Ifafter rounding off, as provided in sub -section (1), the sum payable by an assessee or refundable to him, as the case may be, is less than ten rupees, the same shall be ignored.
7. (3) Nothing in this section shall apply for the purpose of collection by a dealer of any amount by way of tax in respect of any purchase or sale of goods by him. HARYANA GOVT. GAZ. (EXTRA.). MARCH 28, 2003 85 (CHTR. 7, 1925 SAKA) Chapter-II1 Registration of dealers ~ 11. (1) Every dealer liable to pay tax under sub-section (1) of section 3, Registration. who either held registration certificate under the Act of 1973 or whose application for registration under the said Act was pending till the appointed day, shall inform the assessing authority of such particulars of his business in such form and manner 3 within such period as may be prescribed and such authority after receipt of such information, if it is satisfied about the correctness of the same by making such inquiry as it may consider necessary, shall issue to him a registration certificate under this Act which shall be valid from the appointed day, otherwise, it shall, after giving the affected person a reasonable opportunity of being heard, pass an order declining registration : | Provided that during the period prescribed for furnishing the information and till such time final decision is taken on the same, the registration certificate issued under the Act of 1973 shall be deemed to have been issued under this Act except when registration is declined.
8. (2) Every dealer liable to pay tax, on whom sub-section (1) does not apply, shall, and any dealer, who does not deal exclusively in exempted goods, may, notwithstanding that he is not liable to pay tax under section 3, make an application for registration to the assessing authority within such time, in such y form and manner, on payment of such fees not-more than five hundred rupees, as may be prescribed.
9. (3) Ifthe prescribed authority is satisfied that the applicant is a bonafide dealer and the application for registration made by him is in order, he shall, subject to the provisions of section 12, grant him a certificate of registration in the prescribed form and such certificate of registration shall be valid from such date, as may be prescribed.
10. (4) Any dealer to whom a registration certificate has been granted shall, from the date specified in the registration certificate which shall not be later than the date of grant of the registration certificate to him, be liable to tax and shall continue to be liable to tax so long as the registration certificate held by him is not cancelled notwithstanding that his liability to pay has ceased under sub-section (6) of section 3.
11. (5) The assessing authority may, on information furnished to him under . section 13 from time to time, by order, amend any certificate of registration and may cancel the same if the business is closed and such amendment in, or cancellation of, the certificate shall take effect from such date as may be prescribed.
12. (6) When —
    • (a) any business, in respect of which certificate has been granted, rs has been discontinued; or I-1Ait ANA C.IOVT. GAL (EXTR MARCH 28, 2003 (CHTR. J 25 SAKA)
    • (b) the liability to pay tur, oi any dealer ceases in terms of sub -section io) ut seLn in the assessing autnority snail, after giving a reasonaole opportunity or being heard to me affected prison, %.:aiit.el the certilicaie of registration and the eal.cellation shall come into force after the expiry of such period. as may be piescrtbed.
13. (7) A taxing authority not below the rank ir Deputy I- xci, ¢ and "taxation Commissioner incharge of a district may In the prescribed manner, caned, subject to such restrictions and conditions. as may be prescribed, the certificate of registration issued to a dealer -
    • (a) for being held guilty of avoidance of tax under this Act or the Central Act;
    • (b) for misusing the certificate of registration; or
    • (c) for any other sufficient cause : Provided that no order affecting any dealer adversely shall be made under this sub -section without affording him a reasonable opportunity of being heard. Security from 12. (1) Where it appears to the authority to whom an application is made ceitti nchss of ; ers under section 11 to be necessary so to do for the proper realisation of the tax payable or for the proper custody and use of any forms referred to in this Act or the rules made thereunder which are printed under the authority of the State Government or are required to oe authenticated by any authority under this Act before use, he may, by an (Kier in writing and for reasons to be recorded therein, impose as a condition for the issue of a certificate of registration. a requirement that the dealer shall furnish in the prescribed manner and within such time as may be specified in the order such security as may be xo specified, for all or any of the purposes of this Act.
14. (2) Where it appears to the assessing authority to be necessary so to ao for the proper reatisation of tax payable under this Act or for the proper custody and use of the forms reieirecl to in sub -section (1), he may, at any time while such certificate is in force. ny an order in writing anu for reasons to be recorded therein, require the dealer, To whom the certificate aas been eranted, to furnish within such time as may be specified in tne owe’ ;mu in me prescribed manner such security or, if the dealer has already furaisned any ..:.curity lit irucsuatwe an order under this sub -section or sun -section (Ii, tap:ii additional security as may be specified in the order, for all of any of me aforesaid put poses.
15. (3) No dealer stall oe required to furnish a seeui ity under sup -section (1) or sub -section (2) by tne uenori ty referred to Mei en). unless he has been given a reasonable opportunity of being fici.nd and me amount of security that flay beretdalreu LO oe furiiisned by any dealer under either of the afbresaid sup -sections oi aggvegate of me amount of such security and the amount of additional ce.tnity ula may be required to be furnished by any dealer under sub -section (2), shall in no case exceeli the tax payable, in accordance with the 86 HARYANA GOVT. GAZ. (EXTRA... MARCH 28, 2003 (CHTR. 7, 1925 SAKA)
    • (b) the liability to pay tax of any dealer ceases in terms of sub-section (6) of section 3, the assessing authority shall, afier giving a reasonable opportunity of being heard to the affected person, cancel the certificate of registration and the cancellation shall come inio force after the expiry of such period, as may be prescribed. » 8 § (7) Ataxing authority not below the rank of Deputy Excise and Taxation Commissioner incharge of a district may, in the prescribed manner, cancel, subject to such restrictions and conditions, as may be prescribed, the certificate of registration issued to a dealer - A +
    • (a) for being held guilty of avoidance of tax under this Act or the Central Act;
    • (b) for misusing the certificate of registration; or
    • (c) for any other sufficient cause : Provided that no order affecting any dealer adversely shall be made under this sub-section without affording him a reasonable opportunity of being heard. g Security from 12. (1) Where it appears to the authority to whom an application is made Fs fed EX under section 11 to be necessary so to do for the proper realisation of the tax payable or for the proper custody and use of any forms referred to in this Act or the rules made thereunder which are printed under the authority of the State Government or are required to be authenticated by any authority under this Act before use, he may, ¥ by an order in writing and for reasons to be recorded therein, impose as a condition for the issue of a certificate of registration, a requirement that the dealer shall furnish in the prescribed manner and within such time as may be specified in the order such security as may be so specified, for all or any of the purposes of this Act.
16. (2) Where it appears to the assessing authority to be necessary so to h do for the proper realisation of tax payable under this Act or for the proper custody and use of the forms referred to in sub-section (1), he may, at any time while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the dealer, to whom the certificate has been granted, to furnish within such time as may be specified in the order and in the prescribed manner such security or, if the dealer has already furnished any security in pursuance of an order under this sub-section or sub-section (1), such additional security, as may be specified in the order, for all or any of the aforesaid purposes.
17. (3) No dealer shall be required to furnish a security under «< sub-section (1) or sub-section (2) by the authority referred to therein, unless he has been given a reasonable opportunity of being heard and the amount of security that may be required to be furnished by any dealer under either of the aforesaid sub-sections or the aggregate of the amount of such security and the amount of additional security that may be required to be furnished by any dealer under sub-section (2), shall in no case exceed the tax payable, in accordance with the HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 87 (CHTR. 7, 1925 SAKA) . estimate of such authority. by the dealer for the year in which such security or, as the case may be, additional security is required to be furnished.
18. (4) Where the security furnished by a dealer under sub-section (1) or sub-section (2) is in the form of a surety bond and the surety becomes insolvent or gs otherwise incapacitated or dies or withdraws, the dealer shall, within thirty days of the occurrence of any of the aforesaid events, inform the authority granting the certificate of registration and shall within ninety days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount g 4 of the bond.
19. (5) The assessing authority may. by order and for good and sufficient cause, forfeit the whole or any part of the security furnished by a dealer —
    • (a) for realising any amount payable by the dealer under this Act; or
    • (b) if the dealer is found to have misused any of the forms referred to in sub-section (1) or to have failed to keep them in proper custody or to have failed to furnish information in respect of their use or surrender them as prescribed : Provided that no order shall be passed under this sub-section without giving the dealer a reasonable opportunity of being heard. -
20. (6) Where by reason of an order under sub-section (5), the security © furnished by any dealer is rendered insufficient, he shall make up the deficiency in such manner and within such time, as may be prescribed.
21. (7) If a dealer fails to comply, with an order under sub-section (1) or s sub-section (2), or with the provisions of sub-section (4) or sub-section (6), the prescribed authority, may; after affording the.dealer a reasonable opportunity of being heard, order —
    • (a) that no form referred to in sub-section (1) shall be issued to him 0 or authenticated until the dealer has complied with such orders or such provisions, as the case may be; or
    • (b) the rejection of the application for registration, or if the dealer is already registered under this Act, cancellation of his registration certificate, as the case may be, and in the event of rejection of application for registration, the dealer shall be deemed to have failed to apply for registration for the purposes of section 16. 3 | > 13. If any dealer to whom the provisions of sub-section (2) of section 14 information to be | apply, — furnished regarding change | (a) sells, transfers or otherwise disposes of or discontinues his of business etc. business;
    • (b) sells, transfers or otherwise disposes of or discontinues his place(s) J of business or opens new place(s) of business; 3 88 HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 (CHTR. 7, 1925 SAKA)
    • (c) changes the name, constitution or nature of his business including change in the goods traded or manufactured or used in business or manufacture; or
    • (d) appoints an authorised agent, he shall within the prescribed time, inform the assessing authority. 5 accordingly, and if any dealer dies, his legal representative shall in like manner inform the said authority : Provided that if a dealer or his legal representative, as the case may be, fails to inform of the change as required under the foregoing + provision having the effect of transferring the liability to pay tax on h another person, then, notwithstanding the change, any tax which such person has become liable to pay after the change has taken place, may be recovered as if no change has taken place : Provided further that nothing in the foregoing proviso shall discharge the transferee or the succeeding dealer as a result of change, of his liability to tax. Chapter-IV Filing of returns, assessment and collection of tax, refund ¥ Submission of 14. (1) Tax payable under this Act shall be paid in the manner and at such y ger! intervals as hereinafter provided. payment of tax
22. (2) The following dealers or class or classes of dealers, whether or not 2 liable to pay tax, namely: —
    • (a) such class or classes of dealers as may be prescribed;
    • (b) such dealer as may be required so to do by the assessing authority by notice in the prescribed form served in the prescribed manner;
    • (c) a dealer who has applied for the grant of registration certificate A but no final decision on his application has been taken; and
    • (d) every registered dealer, shall furnish such returns including for statistical purposes at such intervals, verified by such persons, by such dates and to such authority, as may be prescribed and different returns may be prescribed for different class or classes of dealers, and if < the tax due according to such returns is more than the tax paid under sub-section (3) or sub-section (4), as the case may be, he shall, in the manner prescribed, pay the balance with interest at the rate specified in sub-section (6) before furnishing the returns and attach therewith the proof thereof.
23. (3) Every dealer whose aggregate liability to pay tax under this Act, Act of 1973 and the Central Act for the last year or part thereof according to the Em \ HARYANA GOVT. GAZ. (EXTRA.), MARCH 28, 2003 89 y (CHTR. 7, 1925 SAKA) filed'by him is equal to or more than one lakh rupees or such other sum, as may be prescribed, shall, in the manner prescribed, pay on or before the fifteenth day of each month the full amount of tax payable by him for the previous month, computed by him in accordance with the provisions of this Act and the rules made thereunder: ps : Provided that if he is not able to quantify his tax liability accurately by that time, he shall pay an amount equal to monthly average of his tax liability in the last year (or such shorter period for which he has been liable to pay tax in that year) as tax provisionally, and he shall pay the ; balance, if any, on or before the twenty-fifth day of the month, and the excess, if any, he may adjust with his future tax liability.
24. (4) Every dealer on whom sub-section (3) does not apply, shall, in the prescribed manner, pay in the month immediately following each quarter, the full amount of tax payable by him for the quarter, computed by him in accordance with the provisions of this Act and the rules made thereunder.
25. (5) If a dealer discovers in any return furnished by him, any omission or other error, which he could not have rectified after the exercise of due diligence before furnishing the return, he may at any time before the date prescribed for furnishing of return for the next period by him, furnish a revised return, and if the revised return shows a greater amount of tax to be due than was shown in the original return, it shall be accompanied by a receipt showing payment of the extra amount along with simple interest thereon calculated at the rate of one-and-a-half per cent per month for the period the amount remained unpaid due to the omission X or error, in the State Government treasury in the manner prescribed.
26. (6) If any dealer fails to make payment of tax as required by sub-sections (3), (4) and (5), he shall be liable to pay in addition to the tax payable by him, simple interest at one-and-a-half per cent per month if the payment is made 5 within ninety days from the last date specified for the payment of tax, but if the default continues thereafter, he shall be liable to pay simple interest at three per cent per month for the whole of the period from the last date specified for the payment of tax to the date he makes the payment.