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INCIDENCE AND LEVY OF TAX
Incidence of tax
6. (1) Every person, except a casual trader and one dealing exclusively in goods declared tax free under section 16, whose gross turnover during the year immediately preceding the commencement of this Act or during any year subsequent thereto, exceeded the taxable quantum, as provided in clause (a) of sub-section (3), shall be liable to pay tax under this Act by way of VAT on the taxable turnover.
(2) Every person, except a casual trader and one dealing exclusively in goods declared tax free under section 16, whose gross turnover during the year immediately preceding the commencement of this Act or during any year subsequent thereto, exceeded the taxable quantum, as provided in clause (b) of sub-section (3), shall be liable to pay tax under this Act by way of TOT on the taxable turnover.
(3) For the purpose of this section, the expression ‘taxable quantum’ means-
(a) for registration as a taxable person for VAT -
(i) in relation to any person, who imports taxable goods for sale or use in manufacturing or processing any goods in the State, rupee one;
(ii) in relation to a person, who receives goods on consignment/branch transfer basis from within or outside the State on which no tax has been paid under this Act, rupee one;
(iii) in relation to a person, liable to pay purchase tax under section 19, rupee one;
(iv) in relation to a person, who is a manufacturer, rupees one lac;
(v) in relation to a person, who is running a hotel/restaurant, rupees five lac;
(vi) in relation to a person, who is running a bakery, rupees ten lac;
(vii) in relation to voluntary registration, rupees five lac; and
(viii) in relation to any other person, rupees fifty lac.
(b) for registration as a registered person for TOT –
in relation to a person other than those specified in clause (a) whose turnover during the preceding year is more than rupees five lac, but below rupees fifty lac.
(4) Every person, who has become liable to pay tax under this Act, either by way of VAT or TOT, shall continue to be so liable, until the expiry of three consecutive years during each of which his gross turnover does not exceed the taxable quantum and such further period after the date of such expiry, as may be specified by notification by the State Government and on the expiry of such specified period, his liability to pay tax, shall cease.
(5) Every person whose liability to pay tax has ceased under sub-section (4), shall again be liable to pay tax under this Act from the date on which his gross turnover again exceeds the taxable quantum.
(6) Every casual trader shall be liable to pay tax under this Act by way of VAT on the taxable turnover including sales through agent within the State.
(7) Notwithstanding anything contained in sub-section(1) to sub-section(6), the state government shall charge the tax in advance on the import of goods to be notified in such manner, as may be prescribed, and at such rates, as may be notified, but not excceding the rates applicable on such goods under the act:
Provided that such goods are meant for sale or use in manufacturing or processing of any goods for sale:
Provided further that such tax collected in advance, shall be counted towards final liability of the taxable person at the end of each tax period.
(8) The tax collected under the punjab tax on entry of goods into local areas Act, 2000 (punjab Act no.9 of 2000), shall be deemed to have been collected under the provisions of sub-section(7). |