The Nagaland Sales Tax (6th Amendment) Act, 1989

THE NAGALAND SALES TAX (SIXTH AMENDMENT) ACT

(THE NAGALAND ACT NO. 7 OF 1989)

Received the assent of the Governor of Nagaland on 30th June’89 and published in the Nagaland Gazette extraordinary dated 30th June’89.

An

Act

further to amend the Nagaland Sales Tax Act, 1967. It is hereby in the Fortieth year of the Republic of India, as

follows

1. (1) This act may be called the Nagaland sales tax (sixth Amendment) Act, 1989.
2. (2) It shall extend to the whole of the State of Nagaland.
3. (3) It shall be deemed to have come into force on the 1st day of July, 1989. 2: In the Nagaland Sales Tax Act, 1967, (I) In section 2,
   • (a) for clause (2), the following shall he substituted namely
4. (2) “Works contract” means any agreement for carrying out or executing for cash, deferred payment or other valuable consideration.
   • (i) the construction, fitting out, improvement or repair of any building, road, wall, bridge, embankment, dam or other immovable property, or
   • (ii) the assembling, fabrication, installation, repair, fitting out, altering, ornamenting, blending, finishing, improving processing, treating or adapting any movable property or not and includes a sub-contract for carrying out or executing -the whole or any part of such work.
   • (b) after clause (2) as so substituted, the following shall he inserted as clauses (2a) an d(2h) namely “(2a) “contracted means any person for whom or for whose benefit a works contract is carried out or executed; (2b) “contractor” means the person carrying out or executing a works contract”.
   • (c) for clause (3) and the Explanation thereunder, the following shall be substituted namely
5. (3) “Dealer” means any person who carries on the business of buying, selling, supplying or distributing goods or delivering goods on hire purchase or on any system of payment buy installments or of carrying out or execution any works contracts or of transferring the right to use any goods for any purpose, whether for crash, deferre4 payment, commission, remuneration or other valuable consideration in the State and includes Government and any society, club or association which sells or supplies goods to its members, Explanation The manager or agent of a dealer who resides outsides the state and carries on business as a foresaid in the State shall in respect of such business be deemed to be a dealer for the purposes of this Act.
   • (d) for clause (11), the following shall be substituted, namely:
6. (1) “sale” with all its grammatical variations and cognate expressions means any transfer of property in goods for cash, deferred payment, commission, remuneration or other valuable consideration and includes.
   • (a) any delivery of goods on hire purchase or any system of payment of installments.
   • (b) any transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract specified in Schedule III
   • (c) any transfer of the right to use any goods specified in Schedule IV for any purpose (whether or not for a specified period);
   • (d) and shall be deemed always to have included any supply by way of or as part of any service or in any other manner what so ever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration, and such delivery, transfer or supply of any goods shall he deemed to he and. in a case falling under sub- clause (d) of this clause, shall always be deemed to have a sale of such goods by the person making the delivery transfer or supply and a purchase of such goods by the person to whom such delivery, transfer or supply is made; Explanation (1): Save as provided in this clause, “sale” does not include any transfer of goods by way of a mortgage, hypothecation, charge or pledge or the resumption of procession of the goods by the transfer or under an agreement of hire- purchase or any system of payment by instalment. Explanation (2): A sale falling under sub-clause (a) shall be deemed to have taken place in the State if the goods are within the State at the time of their delivery. Explanation (3) A sale falling under sub-clause (b) shall be deemed to have taken place within the State if the goods involved in the works contract are within the State at the time of their use, application or appropriation for the execution of the contract. Explanation (4) .A sale falling under sub-clause (c) shall be deemed to have taken place in the State if the goods had not been purchased inside the State by the person transferring the right to use the goods irrespective of the place or places where the contract for such transfer is made or the goods are delivered for use or are actually used or except where the goods are intended to be exclusively used in another State in which case the sale shall be deemed to have taken place in such other State. Explanation (5): Transfer of the right to use any goods means the transfer by the owner of the goods of the possession or control or use of the goods specified in Schedule IV to any other person for any purpose, whether or not for a specified period, for cash, deferred payment or other valuable consideration; (e) For clause (2), the following shall he substituted, namely :
7. (12) ‘sale price” shall mean and, in a case not falling under sub-clauses (a), (h) or (c) of clause) 11 of this section, shall be deemed always to have meant the amount payable to a dealer in valuable consideration for the sale or supply of any goods, less any sum allowed as cash discount according to ordinary trade practice, but including any sum charged for anything done by the dealer with or in respect of the goods at the time of, or before delivery thereof, other than the cost of freight or delivery or the cost of installation where such cost is separately charged and includes
   • (a) in respect of any sale falling under sub-clause (a) of clause
8. (11) of this section, the full value of the consideration payable had the goods been sold out-right on the day the goods were delivered on hire-purchase or any system of payment by instalments; -
   • (b) in respect of any sale falling under sub-clause (b) of clause
9. (11) of this section, the full value of the consideration received or receivable under the contract for the transfer of property in goods involved therein (whether as goods or in any other form) including—
   • (i) in a case where any goods have been supplied to the contractor by the contract or any other person for use in the works contract, whether for consideration or otherwise, the market value of the goods on the day they were so supplied; and
   • (ii) in a case where any part of the work is carried out or executed - by sub-contractor, the amount received or receivable by such sub-contractor;
   • (c) in respect of any sale falling under sub-clause (c) of clause (11) of this section, the full value of the consideration received or receivable for the transfer of the right to use any goods for any purpose. Explanation (I) Where there are several contracts relating the same work or which are incidental or ancillary to each other all such contracts shall, for all purpose of the aforesaid sub-clause (b), be deemed to constitute a single contract. Explanation (2): For the purpose of the aforesaid sub-clause (b) the transfer of property in the goods involved in a works contract (whether as goods or in some other form) shall he deemed to have taken place at the time and to the extent the whole or any part of the safe price or any advance towards the sale price under the contract is received or becomes receivable by the dealer;
     • (I) after clause (4) the following shall be inserted as clause (14 A) namely (14 A) “turnover of sales” means
   • (a) in relation to sales falling under sub-clause (b) of clause (ii) of this Section, the aggregate of the amounts of sale price received or receivable by the dealer during any period in respect of the carrying out or execution of a works contract whether executed fully or partly including any advance received or receivable by the dealer during that period towards the sale price hut excluding any amount refunded or refundable by the dealer or withheld from any payment made to him by way of discount, rebate, penalty, damages or otherwise in respect of such contract and reduced by (i) such percentage of the turnover towards labour and other charges as may he specified in Schedule Ill; and (ii) such other amounts as may be prescribed;
   • (b) in relation to sales falling under sub-clause (c) of clause (11) of this section, the aggregate of the amounts of sale price received or receivable during any period by the dealer in respect of the transfer of the right to use any goods for any purpose, including any advance received towards the sale price during that period.”
     • (iii) in section 4, after sub-section (7), the following shall be inserted as sub-section (8), (9), (10) and (II), namely-
10. (8) Nowwithstanding anything contained else where in this section or any other law for the time being in force every dealer shall he liable to pay tax under this Act in respect of every sale falling under sub clause (h) or (c) of clause (II) of section 2 if his turnover of sales in any year commencing on the 1st day of July, 1989 or thereafter exceeds the taxable quantum” specified in subsection (11) of this section and he shall he so liable to pay tax on the expiry of one month from the date on this section and he shall he so liable to pay tax on the expiry of one month from the date on which such turnover first exceeds the taxable quantum on all sales specified in this sub-section and effected after such expiry, and to that extent the provision of sub- section (1) to (7) of this section shall not apply to such dealer, (9) Every dealer who has become liable to pay tax under sub-section (8) of this section shall continue to be so liable until the expiry of three consecutive years during each of which his turnover of sales has failed to amount to or exceed the “taxable quantum” specified in sub-section (11) of this section and on expiry of this period, his liability to pay tax under the aforesaid sub-section shall cease.
11. (10) Every dealer whose liability to pay tax under sub-section
12. (8) of this section has ceased under sub-section (9), shall again be liable to pay tax under sub-section (8) of this section in occordance with that sub-section after his turnover of sales exceeds the “taxable quantum” specified in sub-section (11) again during any year.
13. (11) For the purpose of sub-section (8) of this section “taxable quantum” means
    • (a) in relation to sales falling under sub-clause, (b) of clause (II) of section 2, Rs. 50,000.
    • (b) in relation to sales falling under sub-clause (c) of clause (11) of section 2, Rs. 10.000
      • (iv) after section 4, the following shall be inserted as section 4A, namely Additional tax on turnover 4A(1) Notwithstanding anything contained elsewhere in this Act or in any other law for the time being in force.
    • (a) every dealer whose gross turnover during the last year ending on or before the 30th day of June, 1989 exceeds rupees five làkhs, shall, in addition to any other tax payable by him under this Act or any other law for the time being in force, he liable to pay from the lst-day of July, 1989 a turnover tax at the rate specified in sub-section (3) of this section on such part of his turnover as specified in sub-section (2),
    • (b) every other dealer whose gross turnover during any year ending after the 1st day of July, 1989, exceed rupees five lakhs shall, in addition to any other tax payable by him under this Act or any other law for the time being in force, be liable to pay from the first day of the year immediately following such year a turnover tax at the rate specified in sub-section(3) of this section on such part of his turnover as specified in sub-section (2);
    • (c) every dealer who has become liable to pay turnover tax under clause (a) or clause (b) of this sub-section shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover does not exceed rupees five lakhs and on the expiry of such period of three years his liability to pay turnover tax shall cease;
    • (d) every dealer whose liability to pay turnover tax has ceased under clause (c) of this sub-section, shall, if his gross turnover during any year again exceeds five lakhs, be liable to pay from the first day of the year immediately following such year turnover tax at the rate specified in sub-section (3) of this section on such part of his turnover as specified in sub- section (2)
14. (2) The turnover tax shall be levied at the rate specified in sub-section (3) of this section on that part of the gross turnover of the dealer during any period which remains after deducting therefrom his turnover during the period on-
    • (a) sales of goods specified in section 14 of the Central Sales Tax Act, 1956 (Central Act, 74 of 1956);
    • (b) sales of goods exempted by or under Section 7;
    • (c) sales of goods exempted under clause (b) and (c) of sub- section (1) of section (14);
    • (d) sales of goods in respect of which he is not required to pay tax under the Nagaland (Sales of Petroleum and Petroleum Products, including Motor Spirit and Lubricants) Taxation Act, 1967. (e) sales of goods taking place in the course of inter State trade or commerce or out-side the State or in the course of import or export as contemplated in sections 3, 4 and 5 of the Central Sales Tax Act, 1976 (Central Act 74 of 1956)
15. (3) The turnover tax shall be levied at the rates specified below if the gross turnover of the dealer liable to pay such tax during the period in respect of which or part of which turnover tax is levied fulfils the condition specified against each: Rate of Tax Turnover Limits
    • (a) One and one-half of one per centum If gross turnover exceeds rupees ten lakhs.
    • (b) One per centum If gross turnover exceeds rupees five lakhs but does not exceeds ten lakhs. Explanation; For the purpose of sub-sections (2) and (3) of this section period means the period prescribed under section 15.
16. (4) The tax payable by a dealer under sub-section (3) of this section in respect of any period shall not exceed
    • (a) in a case falling under clause (a) of sub-section (3) of this section, a sum equivalent to the aggregate of two thirds of the tax payable in accordance with the said clause (a) and fifteen per centum of the amount by which his gross turnover for the period exceeds rupees ten lakhs, and
    • (b) in a case falling under clause (h) of the said subsection (3), a sum equivalent to the aggregate of one half of the tax payable in accordance with the said clause (b), and ten per centum of the amount by which his gross turnover for the period exceeds rupees five lakhs.
17. (5) No dealer shall realise from his purchase the turnover tax payable by him under this section:
    • (v) in section 5.
    • (a) in sub-section (1), between the words “shall” and “be”, the following shall be inserted, namely : “Subject to subsection (3)”.
    • (b) after sub-section (2), the following shall be inserted as sub-section (3) namely: (3) The tax payable by a dealer under the Act, in respect of sales falling under sub-clauses (b) and (c) of clause (12) of section 2. Shall be at the rates specified in Schedules III and IV respectively”.
      • (vi) in Section 6. (a) after the word “dealer”, the following shall he inserted, namely “and in case of sales falling under clauses (h) and (c) of sub-clause (11) of section 2, on the turnover of sales of a dealer making such sales”.
      • (vii) in section (14) in sub-section (1), in clause (b), for sub-clause (i), the following shall be substituted, namely “(i) goods specified in the purchasing dealer’s certificate of registration as being intended by him for resale in the State”.
      • (viii) after Schedule lithe following shall be inserted as Schedules III and IV namely;

List of Works contracts for Charge of Tax on Transfer of Property in Goods Involved Therein. (See section 2 (11) (b) Si. Description of works contract. * Rate of -tax No. (1) (2) (3) (4) 1. Fabricatiou and installation of 10 4 paise in the lifts, rolling shutters collapsible rupees and other varieties of gates, grills, doors, windows and frames and overhead tanks. 2. Supply and fixing of tiles, slabs, 30 4 paise in the stone sheets, flooring, roofing, rupees sanitary and water fitting, drainage sewerage, construction of RCC buildings and bridges Percentage cf exclusion towards other charges.

List of Good for Charge Tax on Transferer of the Right to Use any Goods or any Purpose. See section 2 (11) (c) SI. Description of goods Rates of tax No. 1. Video Cassettes and 20 paisa in the rupee. audio cassette 2. Television sets, Video 20 paise in the rupee. cassettee recorders and players and Video games equipment. 3. Internal communication 20 paise in the rupee. and closed Circuit TV equipments –