Vidhi Codex

section 3

Incidence Tax

The Meghalaya Value Added Tax Act, 2003
Tax2003117 sections12 chapters
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Chapter II INCIDENCE AND LEVY OF TAX

Statutory text
  1. (1) Liability:-Subject to other provisions of this Act, every dealer:- (a)Whose turnover during the year immediately preceding the commencement of this Act;
    • (i) Exceeded the taxable quantum; or who was
    • (ii) Liable to pay tax under any of the laws repealed by this Act or Central Sales Tax Act, 1956(b)To whom clause (a) does not apply and i) Whose turnover calculated from the commencement of any year first exceeds within such year the taxable quantum; or (ii)Who has become liable to pay tax under the Central Sales Tax Act, 1956; or
    • (iii) Who is registered as a dealer under the Central Sales Tax Act, 1956 or under this Act at any time after the commencement of this Act; shall be liable to pay tax in accordance with the provisions of this Act.
  2. (2) Date of liability:-The dealer shall be liable to pay tax on all sales effected by him and
    • (a) In case of clause (a) of sub-section (i) with effect from the date of commencement of this Act. (b)In case of sub-clause (i) of clause (b) of sub-section (1) with effect from the date immediately following the day on which he becomes so liable or date or resignation under this Act, whichever is earlier.
  3. (3) Continuation of liability:-Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until the expiry of three consecutive years during which his turnover has remained below the taxable quantum and on the expiry of such period his liability to pay tax shall cease. Provided that any dealer whose liability to pay tax under this Act, ceases, may apply for the cancellation of his certificate of registration, and on such cancellation, his liability shall cease.
  4. (4) Re-commencement of liability:-Every dealer whose liability to pay tax under this Act, has ceased under sub-section (3) or whose certificate or registration has been cancelled, shall, if his turnover calculated from the commencement of any year including the year, in which the registration has been cancelled, again exceeds the taxable quantum on any day within such year, be liable to pay such tax with effect from the date immediately following the day on which his turnover again exceeds the taxable quantum, on all sales effected by him after that day. (5)Taxable quantum:-For the purpose of this Act, Taxable Quantum means in relation to any dealer who:- (a)Manufacturers or imports for sale any goods into Meghalaya on his own behalf or on behalf of his principal:-Nil
    • (b) Is engaged in any other business other than clause (a) above. Rs. 1 (one) lakh. Explanation:-For the purpose of computation of tax quantum, the turnover of sales effected by a sale dealer shall be taken into account irrespective of whether such sales are taxable under this Act or not.
  5. (6) A dealer who deals exclusively in one or more classes of goods specified in the Schedule to be notified under this Act shall not liable to pay any tax under this Act. For their purpose of calculating the gross turnover to determine the liability to pay under the Act.
    • (a) Except as otherwise expressly provided, the turnover of all sales or as the case maybe, the turnover of all purchases shall be taken, whether such sales or purchases are taxable or not, and (b)The turnover shall include all sales purchases made by a dealer on his own account and also on behalf of principal whether disclosed or not.

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