Assessments to tax or taxes in certain cases.-

1[(1)] Notwithstanding anything contained in

2[section 40]

or in any enactment repealed by that section, any person assessed or assessable to tax or taxes under any of the said enactments during the assessment year prior to the commencement of this Act, shall be liable to tax or taxes on his total turnover or turnovers during the period of the assessment year ending on the date of commencement of this Act, at the rate or rates specified in the said enactments whatever his total turnover or turnovers for the whole of the assessment year may be.

² Substituted by Act 31 of 1958 w.e.f. 1.1.1959.

1957: KAR. ACT 25] Sales Tax 1. Re-numbered by Act 12 of 1961 w.e.f. 1.10.1957.

¹ Inserted by Act 12 of 1961 w.e.f. 1.10.1957.

1[(2) Notwithstanding anything contained in this Act any person assessable to tax or taxes under this Act during the period commencing on the date of the commencement of this Act and ending on the date of commencement of the next assessment year in respect of such person, shall be liable to tax or taxes on his total turnover or turnovers during the said period at the rate or rates specified in this Act, whatever the total turnover or turnovers of such person for the whole of the assessment year may be.]

1[(3) Notwithstanding anything contained in this Act, where in respect of the sale or purchase of any goods, the rate of tax (hereinafter referred to as the original rate) is revised, or no tax is payable, from any date during any year, the turnover of a dealer or other person during the period upto that date in that year shall be liable to tax at the original rate, and his turnover during the period from that date till the end of that year shall be liable to tax at the revised rate, or shall not be liable to tax, as the case may be.]

¹ Inserted by Act 30 of 1962 w.e.f. 1.10.1957.

¹ Inserted by Act 16 of 1967 w.e.f. 1.1.1968.

1[(4) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1966, is more than seven thousand and five hundred rupees but is less than ten thousand rupees shall be regulated as follows, namely:—

1. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the first April, 1966 and shall not be liable to pay monthly instalments for the remaining months thereafter;
2. (b) in the case of any other dealer, the turnover, during the period from the commencement of the year upto the first April, 1966, shall be liable to tax and also licence fee, if any, and his turnover during the remaining period from the first April, 1966, shall not be liable to tax and licence fee.] 1[(5) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the first day of April, 1970, is more than ten thousand rupees but is less than twenty- five thousand rupees, shall be regulated as follows, namely:—
3. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the first April, 1970 and shall not be liable to pay monthly instalments for the remaining months thereafter; and
4. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the first day of April, 1970, shall be liable to

¹ Inserted by Act 9 of 1970 w.e.f. 1.4.1970.

Sales Tax [1957: KAR. ACT 25 tax and licence fee, if any, and his turnover during the remaining period from the first April, 1970, shall not be liable to tax.]

¹ Inserted by Act 13 of 1982 w.e.f. 29.3.1981.

3[(6) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1981 is more than twenty-five thousand rupees but is less than thirty-five thousand rupees, shall be regulated as follows, namely:—

1. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the First day of April, 1981, and shall not be liable to pay monthly instalments for the remaining months thereafter; and
2. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the First day of April, 1981, shall be liable to tax and his turnover during the remaining period from the First day of April, 1981, shall not be liable to tax.] 1[(7) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1982 is less than thirty-five thousand rupees but is more than twenty-five thousand rupees, shall be regulated as follows, namely:—
3. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall not be liable to pay monthly instalments for the months immediately prior to the First day of April, 1982, and shall pay the amount due in monthly instalments for the remaining months thereafter; and
4. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the First day of April, 1982, shall not be liable to tax and his turnover during the remaining period from the First day of April, 1982, shall be liable to tax.] 1[(8) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1983, is more than twenty-five thousand rupees but is less than forty thousand rupees, shall be regulated as follows, namely:—
5. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the First day of April, 1983, and shall not be liable to pay monthly instalments for the remaining months thereafter; and
6. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the First day of April, 1983, shall be liable to tax and his turnover during the remaining period from the First day of April, 1983, shall not be liable to tax.] 1957: KAR. ACT 25] Sales Tax 1[(8-A) Notwithstanding anything contained in this Act, the provisions of section 17(4) as amended by the Karnataka Sales Tax (Second Amendment) Act, 1983, shall not apply to the composition of tax payable in respect of any year commencing prior to the commencement of the said Act, but the provision of the said sub-section as they stood prior to such commencement shall apply to such composition.] 1[(9) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1984, is more than forty thousand rupees but is less than one lakh rupees, shall be regulated as follows, namely:—
7. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the First day of April, 1984, and shall not be liable to pay monthly instalments for the remaining months thereafter; and
8. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the First day of April, 1984, shall be liable to tax and his turnover during the remaining period from the First day of April, 1984, shall not be liable to tax.] 1[(9-A) Notwithstanding anything contained in this Act, the provisions of section 17(4) as amended by the Karnataka Sales Tax (Amendment) Act, 1984, shall not apply to the composition of tax payable in respect of any year commencing prior to the commencement of the said Act but the provisions of the said sub-section as they stood prior to such commencement shall apply to such composition.

¹ Inserted by Act 13 of 1982 w.e.f. 1.4.1982.

¹ Inserted by Act 10 of 1983 w.e.f. 1.4.1983.

¹ Inserted by Act 27 of 1985 w.e.f. 18.11.1983.

¹ Inserted by Act 8 of 1984 w.e.f. 1.4.1984.

¹ Inserted by Act 27 of 1985 w.e.f. 1.4.1984.

1. (10) Notwithstanding anything contained in this Act, the provisions of section 17(1) as amended by the Karnataka Sales Tax (Amendment) Act, 1985, shall not apply to the composition of tax payable in respect of any year commencing prior to the commencement of the said Act but the provisions of the said sub-section as they stood prior to such commencement shall apply to such composition.] 1[(11) (i) Notwithstanding anything contained in this Act, a dealer whose assessment year 2[commences] on a date after the 1st day of April, 2[1988] shall complete his accounts and close them on the 31st day of March, 2[1989] and submit his returns as if his assessment year ended on the 31st day of March, 2[1989] .
   • (ii) Where the turnover for the period specified in clause (i) (hereinafter referred to in this sub-section as returned turnover) is not less than the turnover specified under sub-section (5) of section 5 or section 6B, as amended by the Karnataka Sales Tax (Amendment) 1[Act, 1987 (Karnataka Act 14 of 1987)] , it shall be assessed to tax in accordance with the

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

² Substituted by Act 15 of 1988 w.e.f. 1.4.1987.

Sales Tax [1957: KAR. ACT 25

¹ Substituted by Act 15 of 1988 w.e.f. 1.4.1987.

provisions of this Act. Where the returned turnover is less than the turnover specified under the said sections, then, notwithstanding anything contained in this Act, such returned turnover shall be assessed to tax under this Act, if the turnover of the dealer for the year immediately preceding the assessment year referred to in clause (i) was not less than the turnovers specified under the said sections. (iii)(a) Notwithstanding anything contained in this Act, in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due for the period ending 31st day of March,

¹ Substituted by Act 15 of 1988 w.e.f. 1.4.1987.

1[1989] at the rates permitted in form 8-A and his assessment shall be completed as specified in clause (b).

1. (b) Where the assessing authority is satisfied that the returned turnover is correct and complete or where the returned turnover appears to the assessing authority to be incorrect and incomplete, after determining the turnover to the best of his judgment, recording reasons for such determination, the assessing authority shall determine the total turnover for the purpose of ascertaining the rate of tax by applying the following formula:— Total turnover = returned/determined turnover x 12 (months) Number of months for which the turnover returned or determined relates After arriving at the total turnover as above,—
   • (i) the dealer shall not be assessed to tax, if his total turnover is less than the turnover specified in sub-section (5) of section 5 of this Act; or
   • (ii) the dealer shall be assessed to tax on his returned turnover or, as the case may be the determined turnover at such rates applicable under section 17 of this Act depending upon the total turnover arrived at above, if the said total turnover is not less than the turnover specified in sub-section (5) of section 5. Explanation.—For the purpose of this clause any period equal to or in excess of 15 days shall be reckoned as one month and any such period less than 15 days shall be ignored.] 1[(12) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year ending on the 31st day of March, 1992, is one lakh rupees or more but is less than two lakh rupees, shall be regulated as follows, namely:—
2. (a) in the case of a dealer permitted to pay any amount by way of composition under sub-section (1) or (4) of section 17, such dealer shall pay the amount due in monthly instalments for the months prior to the first day of October, 1991, and shall not be liable to pay monthly instalments for the remaining months thereafter; and 1957: KAR. ACT 25] Sales Tax
3. (b) in case of any other dealer, the turnover during the period prior to the first day of October, 1991, shall be liable to tax and his turnover thereafter shall not be liable to tax.]

¹ Inserted by Act 4 of 1992 w.e.f. 1.4.1992.

Sales Tax [1957: KAR. ACT 25

SCHEDULES

¹ Omitted by Act 31 of 1958 w.e.f. 1.1.1959

1[First Schedule x x x]