Omittedby theSikkimSalesTax(Amendment)ActNo.4 of1986w,e.f.l/4/86

After section 4 of the principal Act, the following sections shall be inserted, namely :- "4A. Levy of tax on transfer of property in goods involved in the execution of works contracts. (1) Notwithstanding anything contained in section 4, but subject to other provisions of this Act, every dealer shall pay for each year, a tax under this Act on his taxable turnover for transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract, determined at the rates and in the manner specified by or under section 5. (2) If a contractor proves to the satisfaction of the Commissioner that tax on the turnover or goods supplied in the course of execution of works contract has been paid by his sub-contractor, the contractor shall not be liable to pay tax again on the turnover of such goods. (3) If a sub-contractor proves to the satisfaction of the Commissioner that the tax has actually been paid by his principal contractor on the turnover of goods supplied in the course of execution of works contract, the sub-contractor shall not be liable to pay tax again on the turnover of such goods. Explanation 1.- For the purposes of this Act, the transfer of property in goods involved in the execution of a works contract shall be deemed to have taken place in Sikkim, if the goods so transferred are within that State at the time of their use, application or appropriation for the execution of the works contract, irrespective of the place where the agreement for the works contract is made and whether the consent of the other party, prior or subsequent to such use, application or appropriation has been obtained or not. Explanation 2.- The levy of tax under this section shall be made whether the works contract is executed fully or partly during a year, or abandoned or terminated before completion. 4B. Levy of tax on the transfer of right to use any goods. Notwithstanding anything contained in section 4, but subject to the other provisions of this Act, every dealer shall pay for each year, a tax under this Act on his taxable turnover in respect of the right to use any goods (whether or not for a specified period) at the rates specified by or under section 5 applicable to the sales of the same goods, had they been sold otherwise than by the transfer of the right to use them: Provided that if the transfer of the right to use any goods is made by a dealer on more than one occasion in a year to the same or different party, the tax shall be leviable on each such occasion. Explanation.- For the purposes of this Act, the transfer of the right to use any goods for any purpose (whether or not for a specified period) shall be deemed to have taken place in Sikkim, if such goods so transferred are in the State at the time of such transfer irrespective of the place where the agreement for the transfer of right to use the goods is made."