Vidhi Codex

The Bihar Value Added Tax Act, 2005

The Bihar Value Added Tax Act, 2005

Tax2005100 sections15 chapters

The Bihar Value Added Tax Act, 2005 regulates the levy and collection of value added tax on the sale and purchase of goods within the state of Bihar. It applies to business entities, manufacturers, importers, and casual traders operating in Bihar whose gross turnover exceeds specified thresholds or who meet certain statutory criteria. This legislation matters because it establishes a structured tax collection system, defines different tax rates, and introduces input tax credits to prevent double taxation. Ultimately, it provides the state with essential revenue to fund public services while setting up clear legal procedures for trade registration, audits, and dispute resolution.

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Chapter I PRELIMINARY →

  1. 1Short title, extent and commencement.
  2. 2Definitions.

Chapter II INCIDENCE OF TAX →

  1. 3Charge of tax.
  2. 4Levy of purchase tax.
  3. 5Liability to pay purchase tax on certain purchases.
  4. 6Non-levy of tax in certain cases.
  5. 7Exemptions.
  6. 8Burden of proof.

Chapter III TRIBUNAL AND TAXING AUTHORITIES →

  1. 9Tribunal.
  2. 10Taxing Authorities and Inspectors.
  3. 11Protection of action taken in good faith.
  4. 12Power to issue summons and examine on oath.

Chapter IV RATE OF TAX AND POINT OF LEVY →

  1. 13Point or points in series of sales at which sales tax shall be levied.
  2. 14Rate of tax.
  3. 15Compounding of tax liability in certain cases.
  4. 16Input tax credit.
  5. 17Exports to be zero-rated.
  6. 18Rate of tax on packing materials and containers.

Chapter V REGISTRATION →

  1. 19Registration.
  2. 20Amendment and cancellation of certificate of registration.
  3. 21Security.
  4. 22Declared manager.
  5. 23Furnishing of information by dealers.

Chapter VI RETURNS, ASSESSMENT, RE-ASSESSMENT AND PAYMENT OF TAX →

  1. 24Returns, payment of tax, interest and penalty.
  2. 25Scrutiny of returns.
  3. 26Self-Assessment of tax.
  4. 27Assessment of dealer not filing returns.
  5. 28Assessment of tax of dealers evading registration.
  6. 29Assessment of tax on disputed question.
  7. 30Assessment of tax of non-resident dealer doing business temporarily by way of fair, mela, etc.
  8. 31Assessment or re-assessment of tax of escaped turnover.
  9. 32Escaped turnover detected before or at the time of assessment of tax.
  10. 33Assessment of tax based on audit objections.
  11. 34Assessment of tax proceedings, etc., not to be invalid on certain grounds.
  12. 35Taxable turnover.
  13. 36Tax payable by a dealer.
  14. 37Time limit for completion of proceeding of assessment of tax.
  15. 38Exclusion of time in assessment tax proceedings.
  16. 39Payment and recovery of tax.
  17. 40Advance recovery of tax on sales and supplies to Governments and other persons.
  18. 41Advance recovery of tax from works contractors.
  19. 42Production of tax clearance certificate.
  20. 43Restriction on collection of tax by dealers.
  21. 44Forfeiture of tax collected in violation of this Act.
  22. 45Rounding off of tax liability.
  23. 46Recovery of tax as arrears of land revenue.
  24. 47Special mode of recovery of tax and other liabilities under this Act.
  25. 48Liability of surety.
  26. 49Transfers to defraud revenue void.
  27. 50Period of limitation for recovery of tax.
  28. 51Tax to be first charge on property.

Chapter VII BOOKS OF ACCOUNT AND FURNISHING OF INFORMATION →

  1. 52Maintenance of accounts.
  2. 53Issue of tax invoice and debit and credit notes.
  3. 54Accounts to be audited in certain cases.
  4. 55Furnishing of information by Government departments, banks, financial institutions clearing and forwarding agents and owners of warehouses, godowns and others.

Chapter VIII INSPECTIONS, SEARCH AND SEIZURE →

  1. 56Production of books of account, inspection, search and seizure.
  2. 57Cross checking or verification of transactions.
  3. 58Survey.
  4. 59Control on clearing, forwarding or booking agent and any person transporting goods.

Chapter IX CHECK-POSTS AND RESTRICTIONS ON MOVEMENT →

  1. 60Establishment of check-posts.
  2. 61Restriction on movement of goods.
  3. 62Transportation of goods through State of Bihar.

Chapter X LIABILITIES OF REPRESENTATIVE CHARACTER →

  1. 63Liability to pay tax in case of transfer of business.
  2. 64Tax payable by deceased dealer shall be paid by his representative.
  3. 65Tax-liability of guardian and trustee, etc.
  4. 66Tax-liability of court of wards.
  5. 67Liability in case of dissolution of firm, etc.

Chapter XI REFUNDS AND ADJUSTMENTS →

  1. 68Refunds.
  2. 69Provisional refunds.
  3. 70Interest on delayed refund.
  4. 71Power to withhold refund in certain cases.

Chapter XII APPEAL, REVISION AND REVIEW →

  1. 72Appeal to Deputy Commissioner and Joint Commissioner.
  2. 73Appeal to Tribunal.
  3. 74Revisionary powers of Commissioner.
  4. 75Additional evidence in appeal or revision.
  5. 76Review.
  6. 77Determination of disputed questions.
  7. 78Power to transfer proceedings.
  8. 79Appeal before High Court.
  9. 80Case before High Court to be heard by not less than two Judges.

Chapter XIII OFFENCES AND PENALTIES →

  1. 81Offences and penalties.
  2. 82Cognizance of offences.
  3. 83Investigation of offences.
  4. 84Offences by companies and others.
  5. 85Compounding of offences.

Chapter XIV BUREAU OF INVESTIGATION →

  1. 86Bureau of Investigation.

Chapter XV MISCELLANEOUS →

  1. 87Appearance before taxing authorities.
  2. 88Change of an incumbent of an office.
  3. 89Bar to certain proceedings.
  4. 90Disclosure of information by public servant.
  5. 91Agreements to defeat intention and application of this Act to be void.
  6. 92Write off of dues.
  7. 93Power to make rules.
  8. 94Repeal and savings.
  9. 95Declaration of stock of goods held on 1st April, 2005.
  10. 96Transitory provisions.
  11. 97Construction of references in any repealed law to officers, authorities, etc.
  12. 98Removal of difficulty.
  13. 99Laying of notifications on the table of the State Legislature.
  14. 100Validation of Bihar Value Added Tax Ordinance, 2005.

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