section 4
Incidence of taxation
The Punjab General Sales Tax Act, 1948Tax194826 sections
Statutory text
- (1) Subject to the provisions of section 5 and 6, every dealer ¹[except one dealing exclusively in goods declared tax-free under section 6] whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum shall be liable to pay tax under this Act on all sales affected after the coming into force of this Act ²[and purchases made after the commencement of the East Punjab General Sales Tax (Amendment) Act, 1958]: Provided that the tax shall not be payable on sales involved in the execution of a contract which is shown to the satisfaction of the assessing authority to have been entered into before the commencement of this Act. ³[(2) Every dealer to whom sub-section
- (1) does not apply or who do s not deal exclusively in goods declared to be tax-free under section 6 shall be liable to pay tax under this Act on the expiry of 30 days after the date on which his gross turnover ⁴[during any year] first exceeds the taxable quantum: Provided that in the case of a dealer who imports any goods for sale or use in manufacturing or processing,or who manufactures or processes any goods for s le the liability to pay tax shall commence with effect from the date on which his gross turnover(during any year) first exceeds the taxable quantum. ⁵[(2-A) Notwithstanding anything contained in sub-sections
- (1) and (2), no tax on the sale of any goods shall be levied if a tax on their purchase is payable under this Act.]
- (3) 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 his gross turnover has failed to exceed the taxable quantum and such further period after the date of such expiry as may be prescribed, and on the expiry of this later period his liability to pay tax shall cease.
- (4) ⁶[Every dealer whose liability to pay tax has ceased under the provisions of sub-section
- (3) shall again be liable to pay tax under this Act ⁷[with effect from the date on which his gross turnover first exceeds the taxable quantum].
- (5) In this Act the expression "taxable quantum" means-
- (a) ¹[in relation to any dealer who imports for sale or use in manufacturing or processing any goods in Punjab, Nil] : ²[ Provided that the provisions of this clause shall not apply to a dealer who had placed orders for import of goods before the 8th August 1952, but received such goods on or after that date and his gross import for sale or use in manufacturing or processing any goods in Punjab did not exceed Rs. 5,000 during the year and he did not make any other import of goods after the said date.] ³[ * * * * * ]
- (b) in relation to any dealer, who himself manufactures or produces any goods for sale, 10,000 rupees; ⁴[(bb) in relation to any dealer who runs a Tandoor, Loh, Dhaba hotel ⁵[restaurant, halwai shop, bakery], or other similar establishment wherein Indian food preparations including tea are served, 25000 rupees] ³[(c)] in relation to any particular classes of dealers not falling within ⁶[clauses (a),
- (b) and (bb)], ⁷[ * * * ], such sum as may be prescribed : or ³[(d)] in relation to any other dealer, ⁸[40,000]rupees: provided that the registration of dealers already registered under this clause shall not be cancelled until their turnover in each of three consecutive years does not entitle them to concellation under clause
- (b) of sub-section
- (6) of section 7. 4-A. Liability of dealer registered under Parliament Act No. 74 of 1956 to pay tax ⁹[4-A. A dealer registered under the Central Sales Tax Act, 1956 (Parliament Act No. 74 of 1956) who is not liable to pay tax under section 4 shall nevertheless be liable to pay tax under this Act on any sale ¹⁰[or purchase] made by him inside the State of Punjab.] 1[ Provided that nothing herein shall apply to a dealer who deals exclusively in goods declared tax-free under section 6.
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