Rate of Tax

(1) The tax payable by a dealer under this Act shall be levied on his taxable turnover at such rates as may be prescribed in Schedules under sub-section (2), but not exceeding--- (a) the maximum rate for the time being specified in section 15 of Central Sales Tax Act, 1956 in respect of declared goods, and (b) fifty percent in respect of goods other than the goods referred to in clause (a) above: Provided that in case of transfer of the right to use any goods, the rate of tax shall not exceed twenty percent in respect of goods other than the goods referred to in clause (a) above. (2) (a) No tax under this Act shall be payable on the sale or purchase of-the goods specified in Schedule-I; (b) Subject to the provisions of section 3, a dealer shall be liable to pay tax on his taxable turnover-- (i) At every point of sale at the rate hereafter provided: (a) In respect of goods specified in Schedule II (A) - 1 percent (b) In respect of goods specified in Schedule II (B) - 4 percent (c) In respect of goods specified in Schedule II (C) - at the rate specified therein (d) In respect of goods other than those included in any of the Schedules --12.5 percent; (ii) At the point of sale by Manufacturer or sale by at the specified Importer in respect of Special Category Goods therein specified in Schedule III (c) Sale of goods to or by the dealer or persons specified in Schedule IV shall be exempt from whole or any part of tax, as may be specified therein; (d) A sale in the course of export of goods outside the territory of India as specified under sub-section (1) and sub-section(3) of section 5 of the Central Sales Tax Act,1956 shall be Zero -Rated which means that there shall be no tax on the sale turnover of such transaction and the exporter shall be entitled to refund of tax paid by him on purchase of goods which are so exported: Provided that units established in Special Economic Zones (SEZ), shall be entitled to claim refund of tax paid on purchase from units established in Domestic Tariff Area. (e) Any person or a dealer or an international organization listed in Schedule V shall be entitled to refund of tax paid by it on the purchase of taxable goods. (f) Where the State Government is satisfied that it is expedient in public interest so to do, it may, by notification and subject to such conditions and restrictions as may be specified therein, allow a rebate up to full amount of the tax payable on sale or purchase of any goods where tax on sale or purchase of such goods is leviable under any other State Act and if it is proved that the turnover of sales and/ or of purchases have been disclosed before the authority competent to levy tax under that Act; (g) In case of sale of used capital goods, purchased within one year prior to the date of the commencement of this Act, or, as the case may be, from the date of registration under this Act, and on the purchase of which no tax has been paid in the State under this Act or under the repealed Act at the time of purchase, the tax shall be payable at the rates as per the Schedules : Provided that in case tax has been paid in the State under this Act or the repealed Act at the time of purchase and no Input Tax Credit in respect thereof has been claimed, no tax shall be payable on such sale. (3) (a) When goods are sold or purchased in containers or packed in any packing material, the rate of tax applicable to such containers or packing material, as the case may be, shall, whether the price of container or packing material is charged separately or not, be the same as those applicable to the goods contained or packed and turnover in respect of container and packing material shall be included in the turnover of such goods. (b) Where the sale of goods contained in container or packed in packing materiel is exempt from tax, then the sale of such container or packing material shall also be exempted from tax; (c) the rate of tax on such parts, spares and accessories, which are not classified elsewhere in the Principal Act, shall be same as applicable to that commodity under said Act. (4) The State Government may, by notification in the Official Gazette, declare different rates in respect of different goods, or add or remove any schedule (s), or add to, amend or alter any Schedule of this Act, (5) Every dealer shall pay a tax on the net turnover, determined in the prescribed manner, in respect of- (a) transfer of the right to use any goods for any purpose (whether or not for a specified period) at the rate of five percent; and (b) transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract at such rates as are provided under sub-section (2) above: Provided that where any goods purchased are involved in execution of works contract and tax has been paid or is payable within the State in accordance with the provisions under Section 3 at the rate prescribed under sub-section (2) of Section 4, on any earlier sale or purchase of such goods, the purchase price of such goods shall be deducted from the total turnover under a works contract: