Chapter I PRELIMINARY

Short title, extent and commencement.

1. (1) This Act may be called the Karnataka Tax on Entry of Goods Act, 1979.
2. (2) It extends to the whole of the State of Karnataka.
3. (3) It shall come into force on the first day of October, 1980.

Definitions.-

1. (A) In this Act, unless the context otherwise requires,-

1. (1) agricultural produce or horticultural produce shall not include tea, beedi leaves, coffee, rubber, cashew, cardamom, pepper and cotton ; and such produce as has been subjected to any physical, chemical or other process for being made fit for consumption, save mere cleaning, grading sorting or drying; (1a) “Appellate Tribunal” means the Appellate Tribunal constituted under the Karnataka Appellate Tribunal Act, 1976 (Karnataka Act 10 of 1976); (1b) “assessee” means a person by whom tax is payable;
2. (2) “Assessing Authority” means any officer empowered to make an assessment under the Karnataka Sales Tax Act 1957 or this Act by the Government or the Commissioner (2a) Deputy Commissioner and the Deputy Commissioner of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) (2b) business includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern and any transaction in connection with or incidental or ancillary to such trade, commerce, manufacture, adventure or concern.
3. (3) “Commissioner” means the person appointed to be the Commissioner of Commercial Taxes in the State; (3a) “Joint Commissioner” means the Joint Commissioner of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) ;
4. (4) ‘dealer’ means any person who in the course of business, whether on his own account or on account of a principal or any other person, brings, or causes to be brought into a local area any goods or takes delivery or is entitled to take delivery of goods on its entry into a local area and includes an occasional dealer. Explanation I.- An industrial, commercial or trading undertaking of the Government of Karnataka, the Central Governement or any other State Government, a local authority, a company, a Hindu undivided family, an Aliyasanthana family, a firm, a society, a club or an association which carries on such business shall be deemed to be a dealer for purposes of this Act. Explanation II.- A society (including a co-operative society) club or firm or an association which, whether or not in the course of business, buys, sells, supplies or distributes goods from or to its members for cash, or for deferred payment or for commission, remuneration or other valuable consideration, shall be deemed to be a dealer for the purposes of this Act. Explanation III.- The Central Government or a State Government other than the Government of Karnataka which whether or not, in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, for cash or deferred payment or for commission, remuneration or other valuable consideration shall be deemed to be a dealer for the purposes of this Act. Explanation IV.- When a consignee does not take delivery of goods upon its entry into a local area and such goods are sold under the provisions of any law, the buyer who takes delivery of such goods upon the goods being sold shall be deemed to be the dealer thereof. Explanation V.- A person undertaking the execution of works contract involving the use or consumption of goods entering into a local area shall be deemed to be the dealer thereof. Explanation VI.- Any person who brings or causes to be brought any goods into a local area but resides out side the State of Karnataka (hereinafter referred to as a non-resident dealer) including his agent or manager shall be deemed to be the dealer thereof. Exception.- Any agriculturist who brings exclusively agricultural produce grown on land cultivated by him personally shall not be deemed to be a dealer within the meaning of this clause. (4a) goods means all kinds of moveable property (other than newspapers, actionable claims, stocks and shares and securities) and includes livestock; (4b) ‘goods vehicle’ means any kind of vehicle used for carriage of goods either solely or in addition to passengers (other than aeroplanes and rail coaches) and includes push cart, animal drawn cart, tractor-trailer and the like. (4c) “Additional Commissioner” means the Additional Commissioner of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957 (Karnataka Act of 1957);
5. (5) ‘local area’ means an area within the limits of the city under the Karnataka Municipal Corporations Act, 1976 (Karnataka Act 14 of 1977), a Municipality under the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964), a Notified Area Committee, a Town Board, a Sanitary Board or a Contonment Board constituted or continued under any law for the time being in force and a Mandal under the Karnataka Zilla Parishads Taluk Panchayat Samithis, Mandal Panchayats and Nyaya Panchayats Act, 1983 (Karnataka Act 20 of 1985) and panchayat area under the Karnataka Panchayat Raj Act, 1993 (Karnataka Act 14 of 1993). (5a) ‘occasional dealer’ means any person who, in the course of occasional transactions of business nature whether on his own account or an account of a principal, or any other person bring or causes to be brought into a local area any goods or takes delivery or is entitled to take delivery of goods on its entry into local area. (5b) ‘place of business’ means any place where a dealer is doing business and includes,-
   • (i) any warehouse, godown, or other place where the dealer stores or processes his goods ;
   • (ii) any place where the dealer produces or manufactures goods;
   • (iii) any place where the dealer keeps his books of accounts ;
   • (iv) any place where the dealer carries on business through an agent (by whatever name called), the place of business of such agent;
6. (6) “registered dealer” means a dealer registered under this Act;
7. (7) “Schedule” means a schedule appended to this Act;
8. (8) “tax” means tax leviable under this Act; (8a) 'Value of the goods' shall mean the purchase value of such goods, that is to say, the purchase price at which a dealer has purchased the goods inclusive of charges borne by him as cost of transportation, packing, forwarding and handling charges, commission, insurance, taxes, duties and the like , or if such goods have not been purchased by him, the prevailing market price of such goods in the local area. (8b) "works contract" means any agreement for carrying out for cash, deferred payment or other valuable consideration, the construction, fitting out, improvement or repair of any building, road, bridge or any other immovable property, or manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair, conversion or commissioning of any movable property.
9. (9) 'year' means the year commencing on the first day of April
   • (B) Words and expressions used in this Act, but not defined, shall have the meaning assigned to them in the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957.)