Vidhi Codex

The Sikkim Value Added Tax Act, 2005

The Sikkim Value Added Tax Act, 2005

Tax2005106 sections

The Sikkim Value Added Tax Act, 2005 replaces the earlier sales tax framework in Sikkim with a value-added tax system. It regulates the levy, collection, and administration of tax on the sale and purchase of goods, including the execution of works contracts, within the state. The law applies to commercial businesses, manufacturers, importers, dealers, and contractors operating in Sikkim whose annual sales turnover exceeds specified statutory limits. By establishing clear rules for registration, tax invoices, input tax credits, returns, tax deduction at source, and enforcement, the law ensures efficient tax administration, prevents tax evasion, and creates a transparent revenue framework for the state government.

Start reading →Read full ActSections
  1. 1. Short title, extent and commencement
  2. 2. Definitions
  3. 3. Commercial Tax Authorities
  4. 4. Amendment of section 4
  5. 5. Addition of Schedule VI
  6. 6. Tax Authorities and Appellate Authority to be public servants
  7. 7. Indemnity
  8. 8. Incidence of tax
  9. 9. Levy of tax on sale
  10. 10. Levy of tax on purchases
  11. 11. Levy of tax on containers and packing material
  12. 12. Rates of tax on sale or purchase of goods
  13. 13. Levy of tax on transfer of property in goods involved in the execution of Works Contract
  14. 14. Out-put tax
  15. 15. Input tax
  16. 16. Compounding of tax liability in certain cases
  17. 17. Compounding of tax liability in case of Works Contract
  18. 18. Information of awarding of Works Contract
  19. 19. Deduction of tax at source from the payment to dealer
  20. 20. Tax payable
  21. 21. Input tax credit
  22. 22. Exports to be zero-rated
  23. 23. Burden of proof
  24. 24. Power of State Government to amend Schedules
  25. 25. Credit and Debit Notes
  26. 26. Registration of dealers
  27. 26A. Registration of certain classes of dealers
  28. 28. Security to be furnished in certain cases
  29. 29. Imposition of penalty for failure to get registered
  30. 30. Returns, payment of tax, interest and penalty
  31. 30A. Deferment of payment of tax in respect of certain industrial units
  32. 32. Payment of interest
  33. 33. Exemption from payment of interest
  34. 34. Interest payable by Commissioner
  35. 35. Rounding off of amount of tax, interest or penalty
  36. 36. Collection of tax only by dealers liable to pay tax
  37. 37. Scrutiny of returns
  38. 38. Assessment of tax payable by registered dealers
  39. 42. Period of limitation for assessment
  40. 43. Determination of interest
  41. 44. Rectification of mistake in determination of interest
  42. 45. Recovery of tax, penalty and interest
  43. 46. Tax Recovery Inspector whom certificates to be forwarded
  44. 47. Amendment of certificates for tax recovery
  45. 48. Validity of Certificate for Tax Recovery
  46. 49. Transmission of Certificates for Tax Recovery to Collector in certain cases
  47. 50. Special mode of recovery of tax, penalty and interest
  48. 51. Assessment without prejudice to prosecution for any offence
  49. 52. Assessment after partition of Hindu Undivided Family or dissolution of firm and tax payable by a deceased dealer
  50. 53. Refunds
  51. 54. Maintenance of accounts and records etc.
  52. 55. Tax invoice
  53. 57. Requirement to provide information
  54. 58. Audit of accounts
  55. 59. Dealer to declare the name of his business manager
  56. 60. Maintenance of accounts by transporter, carrier or transporting agent
  57. 60A. Enrolment of transporters, carriers or transporting agents
  58. 61. Imposition of penalty for failure to issue tax invoice, cash memo or bill
  59. 62. Production and inspection of accounts, registers and documents
  60. 63. Seizure of dealer's accounts
  61. 64. Entry and search of place of business or any other place
  62. 65. Establishment of check posts for inspection of goods in transport
  63. 66. Interception, detention and search of vehicles or carrier and search of warehouse, etc.
  64. 67. Stock of goods stored in undisclosed warehouses
  65. 68. Seizure of goods
  66. 69. Penalty for transporting goods into Sikkim in contravention of Section 60
  67. 70. Transporter liable to penalty for transport in contravention of the provisions of sub-section (4) of Section 68
  68. 71. Measures to prevent evasion of tax on sales
  69. 72. Penalty for concealment of sales and furnishing incorrect particulars of sales and purchases
  70. 73. Appeal against assessment
  71. 74. Suo motu revision by Commissioner
  72. 75. Revision by Commissioner upon application
  73. 76. Revision by Appellate Authority
  74. 77. Review of Order
  75. 78. Power of taking evidence on oath
  76. 79. Revision to High Court
  77. 80. Revision or Review by High Court
  78. 81. Offences and penalties
  79. 82. Special provision for liability to prosecution
  80. 83. Compounding of offences
  81. 9(b). Levy of tax
  82. (9). Cancellation of registration
  83. (10). Cancellation for non-payment
  84. (11). Restoration of registration
  85. 45(10). Recovery of tax, penalty or interest
  86. 56(1). Electronic record
  87. 84. Cancellation of registration under specified circumstances:. Cancellation of registration under specified circumstances
  88. 85. Returns etc. to be confidential:. Returns etc. to be confidential
  89. 86. Powers to call for information. Powers to call for information
  90. 87. Statement to be furnished by dealer, transporter, owner or lessee of warehouse, etc.:. Statement to be furnished by dealer, transporter, owner or lessee of warehouse, etc.
  91. 88. Information to be furnished by dealers regarding changes of business:. Information to be furnished by dealers regarding changes of business
  92. 89. Additional information to be furnished by dealers:. Additional information to be furnished by dealers
  93. 90. Supply of information by dealers in respect of transfer of goods otherwise than by way of sale:. Supply of information by dealers in respect of transfer of goods otherwise than by way of sale
  94. 91. Transfer of business by registered dealer:. Transfer of business by registered dealer
  95. 92. Partial transfer of business by registered dealer:. Partial transfer of business by registered dealer
  96. 93. Cancellation of registration and transfer of business:. Cancellation of registration and transfer of business
  97. 94. Bar to proceeding in Civil Court:. Bar to proceeding in Civil Court
  98. 95. Manner of payment of tax, penalty, interest, etc.:. Manner of payment of tax, penalty, interest, etc.
  99. 96. Power to prescribe rates of fees:. Power to prescribe rates of fees
  100. 97. Power to make rules:. Power to make rules
  101. 98. Saving in relation to sales outside Sikkim, Inter-State Sales, and Sales in Course of Import or Export:. Saving in relation to sales outside Sikkim, Inter-State Sales, and Sales in Course of Import or Export
  102. Schedule IV. Schedule of Goods/Services (Excerpt)
  103. Schedule V. Goods liable for VAT at 12.5 per cent
  104. 99. ...:. Miscellaneous Savings
  105. 100. Repeal and Saving:. Repeal and Saving
  106. 101. Power to remove difficulties:. Power to remove difficulties

PDF: pending for this language.