Adjustment of input tax credit 18

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(e) involved in purchase of goods as mentioned in the schedule VIII - Nil 1 4. Tax on deemed sales - (1) Notwithstanding anything contained elsewhere in this Act, any transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract shall be deemed to be a sale of those goods by the person making the transfer and shall liable to be taxed at the rate specified in the Schedule: Provided that in respect of any such transfer, only so much value of the goods involved in the works contract which has actually been paid to the dealer during the period, shall be taken into account for determining the turnover for the period. Explanation :- For the purpose of this section, “Property in goods” shall mean the aggregate of the goods for which amounts have been received or receivable by a dealer during such period as valuable consideration, whether or not such amount has been separately shown in the works contract. The amount as received or receivable shall include the value of such goods purchased, manufactured, processed, or procured otherwise by the dealer, and the cost of freight or delivery as may be incurred by such dealer for carrying such goods to the place where these are used in execution of such works contract, but shall not include such portion of the aforesaid amounts as may be prescribed. (2) Tax on transfer of the right to use any goods- Notwithstanding anything contained elsewhere in this Act, any transfer of the right to use any goods for any purpose (whether or not for a specified period) shall be taxable at the rate as specified in the Schedule. (3) Deduction of tax at the time of payment- Every person responsible for paying ) any sum to any person on account of works contract and right to use any goods for any purpose, shall at the time of credit of such sum to account of the person or at the time of payment thereof in cash or by issue of a cheque or draft or any other mode, deduct such amount towards sales tax (not being more than the total tax payable by the dealer) as may be prescribed.

1 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007) 13

5. Levy of tax on sale - (1) The tax payable by a dealer under section 3 shall be levied on his taxable turnover of sales. (2) Taxable turnover of sales in relation to a dealer liable to pay tax under sub-section (1) of section 3 shall be calculated from the gross turnover of sales during any period which remains after deducting there from - (a) sales of goods declared as exempt from tax in schedule „III‟; (b) sales of goods which are shown to the satisfaction of the Commissioner to have taken place - (i) in the course of inter-State trade or commerce, or (ii) outside Tripura. (iii) in the course of the import of the goods into or export of the goods out of the territory of India. Explanation - Section 3,4 and 5 of the Central Sales Tax Act, 1956 shall apply for determining whether or not a particular sale or purchase has taken place in the manner indicated in sub-clause (i), sub-clause (ii) orsub-clause (iii). (c) in case of turnover of sales in relation to works contract, the charges towards labour, services and other like charges and subject to such conditions as may be prescribed; Provided that in cases where the amount of charges towards labour, services and other like charges in such contract are not ascertainable from the terms and conditions of the contract, the amount of such charges shall be calculated at the prescribed percentage. (d) such other sales on such conditions and restrictions as may be prescribed. 5A. Levy of Tax on purchase - (1) The tax payable by a dealer under Section 3(1) (a) (iii) shall be levied on his gross taxable purchase. (2) The tax under sub-section (1) shall be levied at the gross taxable purchase of goods as mentioned in schedule VIII. 1

legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007) 14

6.

Levy of tax on containers and packing material. -Where any goods packed in any container or packing material are sold or purchased1 in which such goods containers and packing materials are packed shall be deemed to have been sold or purchased2 along with the goods and the Tax under Section 5 or 5A3 shall be levied on the sale or purchase4 of such container or packing material at the rate of tax, if any, applicable to the sale, of the goods itself; Provided that no tax under section 5 shall be levied where the container or packing material is sold along with the goods declared as exempted from tax under this Act. 7.

Rate of tax – The value added tax payable by a dealer under this Act shall be levied on his taxable turnover at such rate as specified in the Schedule II(a), II(b), II(c), VI, VII & VIII.5 8. Exemptions :- (1) Sale of certain goods as specified in the Schedule III of this Act shall be exempt from tax under this Act subject to conditions and exceptions set out therein. (2) Sales of certain goods of local importance with little implication on interstate trade as specified in Schedule IV shall be taxable at the rate zero. (3) Export of Export Oriented Units and Special Economic Zone would be exempt from tax under this Act. (4) Supplies between Special Economic Zone and Export Oriented Units would be exempt from tax under this Act. 9. Tax payable :- (1) The net tax payable by a registered dealer for a tax period shall be difference between the output tax and the input tax, which can be determined from the following formula: Net tax payable = O – I Where „O‟ denotes the output tax payable for any tax period on the taxable turnover at the rates specified in the Schedule and subject to such conditions as may be prescribed from time to time and „I‟ denotes the input tax paid or payable under this Act for the said tax period by such

1, 2, 3, 4 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007) 5 Substituted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent

legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)