Incidence of tax

(1) Tax shall be levied and charged in accordance with the provisions of this Act on every sale made within the State by a dealer or a person; (2) Every person who is registered or is liable to be registered under the provisions of this Act shall be a taxable person and liable to pay tax in the manner provided in the Act. (3) Subject to provisions of sub-section (4) or sub-section (5) as may be applicable, every dealer or a person shall pay from the date he becomes so liable, a tax for each assessment year on his turnover, to be determined in the prescribed manner, of all sales inside the State, made on or after the date he becomes liable to pay tax at such rates as provided by or under Section 4 of the Act; (4) Where a dealer-carries on the business of -- (a) sale of any taxable goods in the course of inter-State trade or commerce; or (b) sale of any taxable goods in the course of export out of the territory of India; or (c) consigns any taxable goods for delivery at a place outside the State; or (d) sale of any taxable goods purchased or received from outside the State; or (e) purchases of any taxable goods after furnishing any form of declaration or certificate prescribed either under Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002 or the Central Sales Tax Act,1956; or under this Act; or (f) sales or purchases of taxable goods if such dealer is already registered under the Uttarakhand (the Uttar Pradesh trade Tax Act,1948) Adaptation and Modification Order, 2002 or the Central' Sales Tax Act,1956; and desires to retain such registration after the commencement of this Act or applies for grant of registration Voluntarily under the provisions of this Act; and (i) if such dealer has been carrying on the business in the immediately preceding assessment year and continues it on the date of commencement of this Act, he shall be liable to pay tax from the date of commencement of this Act; and (ii) if such dealer commences business on or after the date of commencement of this Act, he shall be liable to pay tax from the date on which any of events from (a) to (f) above takes place for the first time in any assessment year; (5) Where any dealer carries on business of purchases and, or of sales of goods inside the State only and has neither furnished nor received any form of declaration or Certificate prescribed under this Act or the Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002 or the Central Sales Tax Act, 1956 or rules made or notifications issued thereunder in respect of any purchases or sales, and the business continues on the date of commencement of this Act, and (a) if such dealer has been carrying on business for whole or part of the immediately preceding assessment year, and continues it on the date of commencement of this Act and-- (i) the aggregate of his turnover as per the provisions of the Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002 in the preceding year exceeded the amount prescribed under sub-section (7) in case of whole year or the proportionate amount in case of part of the year, he shall be liable to pay tax from the date of commencement of this Act; or (ii) the aggregate of turnover as per the provisions of the Uttarakhand (the Uttar Pradesh Trade Tax Act,1948) Adaptation and Modification Order, 2002 for the period from the first day of the year of commencement upto the date of commencement of this Act, exceeds the amount prescribed under sub-section (7) proportionately, he shall be liable to pay tax from the date of commencement of this Act; or (iii) if such dealer is not liable to pay tax from the date of commencement, of the Act under clause (a) (i) and clause (ii) above, he shall be liable to pay tax from the date the aggregate of his turnover for the first time exceeds the taxable quantum in any assessment year; or (iv) if such dealer is already registered under the Uttarakhand (the Uttar Pradesh Trade Tax Act,1948) Adaptation and Modification Order, 2002 or the Central Sales Tax Act,1956 and desires to retain it voluntarily, he shall be liable to pay tax from the date of commencement of this Act; (b) if such dealer commences business in the year of commencement on the first day or any other subsequent date but before the date of commencement of this Act, and— (i) the aggregate of his turnover from commencement of business till the date of commencement of this Act exceeds the proportionate amount of taxable quantum, he shall be liable to pay tax from the date of commencement of this Act; (ii) if such dealer is not liable to pay tax from the date of commencement of this Act, under sub-clause (i) above, he shall be liable to pay tax from the date the aggregate of his turnover for the period starting from the date of commencement of business and ending on the last date of the assessment year, for the first time exceeds the proportionate amount of taxable quantum; (c) (i) if such dealer commences business on or after the date of commencement of this Act either in the year of commencement or in any subsequent assessment year, he shall be liable to pay tax in such first assessment year from the date when the aggregate of his turnover for the period starting from the date of commencement of his business and ending on the last date of that assessment year for the first time exceeds the proportionate amount of taxable quantum; and (ii) if such dealer is not liable to pay tax in the year of commencement of business as per sub-clause (i) above, he shall be liable to pay tax in the first assessment year in which the aggregate of his turnover exceeds taxable quantum and shall be liable from the date his turnover so exceeds for the first time; (6) Where by any order passed under this Act, it is found that any person registered as dealer ought not to have been so registered and the registration certificate is cancelled, then notwithstanding any thing contained in this Act, such person shall be liable to pay tax for the period commencing with the date of his registration and ending with the date of such order, as if he was a dealer; (7) Taxable Quantum-- (a) No dealer shall, except as otherwise provided under clause (e) of this sub-section, be liable to tax under sub-section (3), if, during the assessment year, the aggregate of his turnover of sales of all goods, whether such sale is made by the dealer directly or through his branch, depot or agent inside the State, or in the course of inter-State trade or commerce, or in the course of export out of the territory of India or by way of consignment outside the State, is less than the amount mentioned hereinafter -- (i) in the case of manufacturers or producers of any goods for sale - Rs. 5 lacs (ii) in case of execution of works contract - Rs. 5 lacs (iii) in case of transfer of right to use goods - Rs. 5 lacs (iii) in case of dealers engaged in any other business - Rs. 5 lacs Provided that the State Government may, by notification in the Gazette, fix a larger amount either in respect of all dealers in any goods or in respect of particular class of dealers; (b) Nothing in clause (a) shall apply in respect of- (i) the sale by a dealer of goods imported by him from outside Uttarakhand, the turnover whereof is liable to tax under this Act, (ii) the sale by a dealer of-- (a) goods imported by him from outside Uttarakhand after furnishing to selling dealer a declaration under sub-section (4) of Section (8) of the Central Sales Tax Act, 1956, (b) goods purchased or imported by furnishing any declaration or certificate prescribed under any provision of this Act, (c) goods manufactured by him by using the goods referred to ill sub-clause (i) or sub-clause (ii); (c) Where the amount specified in, or notified under clause (a) is altered during an assessment year, the tax payable by a dealer under this Section shall be computed as follows:-- (i) on the turnover relating to the period prior to such alteration, as though the amount specified in or notified under clause ( a) had not been altered, and (ii) on the remainder, as though the altered amount has been in force on all material dates; (d) Where tax is payable, and has been so paid, by a commission agent on any turnover on behalf of his principal, the principal shall not be liable to pay the tax in respect of the same turnover; (e) (i) Every dealer commencing business during the course of an assessment year shall be liable to pay tax in that year with