Liability to Tax

(1) Subject to the provisions of this Act every dealer whose gross turnover from sales which have taken place either wholly in NAGALAND or both in and outside NAGALAND during the twelve months immediately preceding the date of such commencement exceeded Rs. 12,000 (hereinafter referred to as “the taxable quantum”) shall be liable to pay tax under this Act on sales which have taken place in Nagaland on and from the date of such commencement; (2) Every dealer to whom sub-section (1) does not apply shall be liable to pay tax under this Act with effect from the first of April of the year during which his gross turnover from sales which have taken place either wholly in NAGALAND OR BOTH IN AND OUTSIDE NAGALAND first amounts to or exceeds the taxable quantum “provided that such dealers shall not be liable to pay the tax under his Act during such year in respect of his gross turnover upto the taxable quantum” specified in sub-section (1); (3) Dealer registered under the Central Sales Tax Act, 1956 (Act No.74 of 1956) who is not liable to pay tax under sub-section (1) and (2) above, shall nevertheless be liable to pay tax on his sale of goods in respect of the purchases of which he has furnished a declaration under sub-section (4) of section 8 of the Central Sales Tax Act, 1956, or on the sale of any goods in the manufacture of which such goods have been used and every such dealer who is liable to pay tax shall be deemed to be a registered dealer; (4) Nothing in sub-section (1), (2) and (3) above shall be deemed to render any dealer liable to tax on the sale of goods where such sales take place: - (i) Outside the State of NAGALAND; (ii) In the course of the import of the goods into, or export of the goods out of, the territory of India; or (iii) In the course of inter-state trade or commerce; Explanation: - For the purpose of this sub-section, whether a sale takes place:- (i) Outside the State of NAGALAND; (ii) In the course of import of the goods into or export of the goods out of, the territory of India; or (iii) In the course of inter-State trade or commerce; be determined in accordance with the principles, specified in section 3, 4 and 5 of the Central Sales Tax Act, 1956, (No. 74 of 1956). (5) 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 each of which is gross turnover form sales which have taken place either wholly in Nagaland or both in and outside Nagaland has failed to amount to or exceed the “taxable quantum” and on the expiry of this period, his liability to pay tax under this Act shall cease; (6) Every dealer whose liability to pay tax under this Act has ceased under the provisions of sub-section (4) shall again be liable to pay tax with effect form the first of April of the year during which his gross turnover from sales which has taken place either wholly in Nagaland or both in and outside Nagaland again amounts to or exceeds the “taxable quantum”; (7) Where a dealer liable to pay tax under this Act starts a new business, partnership firm or concern, whether by changing the constitution, style or name of the previous business, partnership firm or concern shall notwithstanding anything contained in the proviso to sub-section (2) of this section, be liable to pay tax on sales which have taken place in Nagaland from the date of the commencement of the said business, partnership firm or concern as the case may be.