Himachal Pradesh Value Added Tax Act, 2005
No: 12 Dated: Mar, 31 2005
THE HIMACHAL PRADESH VALUE ADDED TAX ACT, 2005
Act No. 12 of 2005
A Act to re-enact the law to provide for the levy of a value added tax on the sales or purchases of goods in the State of Himachal Pradesh and for certain other matters connected therewith.
BE it enacted by the Legislative Assembly of Himachal Pradesh in the Fifty-sixth Year of the Republic of India, as follows: -
CHAPTER-I
Preliminary
1. Short title and commencement. - (1) This Act may be called the Himachal Pradesh Value Added Tax Act, 2005.
(2) It shall come into force from such date as the Government may, by notification, appoint.
2. Definitions. - In this Act, unless there is anything repugnant in the subject or context, --
(a) "Act" means the Himachal Pradesh Value Added Tax Act, 2005.
(b) "Assessing Authority" means any person appointed by
(c) "business" includes, -
(i) any trade, commerce, manufacture, any adventure or concern, in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make profit and whether or not any profit accrues therefrom; and
(ii) any transaction in connection with or ancillary to such trade, commerce, manufacture, adventure or concern;
(d) "capital goods" means plant, machinery or equipment [including hydraulic mobile pick and cranes] used in the process of manufacturing, processing and packing of goods for sale excluding civil structures as may be prescribed;
(e) "casual dealer" means any person who carries on occasional transactions of business of buying, selling, supplying or distributing goods whether for cash, deferred payment, commission, remuneration or other valuable consideration;
(f) "Commissioner" means the Excise and Taxation Commissioner appointed under sub-section (1) of section 3;
(g) "dealer" means any person who carries on (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods, directly or indirectly, for cash, or for deferred payment, or for commission, remuneration or other valuable consideration, and includes,-
(i) a local authority, a body corporate, a company, a co-operative society or other society, club, firm, Hindu Undivided Family or other association of persons which carries on such business;
(ii) a factor, broker, commission agent, a dealer's agent or any other mercantile agent, by whatever name called;
(iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not, and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal;
(iv) every person engaged in the business of,--
(a) transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;
(b) transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(c) delivery of goods on hire-purchase or any system of payment by instalments;
(d) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
(e) supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; and
(f) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service, is for cash, deferred payment or other valuable consideration;
Explanation (I). - Every person who acts as an agent, in Himachal Pradesh, of a dealer residing outside this State and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as.
(i) a mercantile agent as defined in the Sale of Goods Act, 1930 (3 of 1930); or
(ii) an agent for handling of goods or documents of title relating to goods; or
(iii) an agent for the collection of the payment of the sale price of goods or as a guarantor for such collection or payment;
and every local branch or office in Himachal Pradesh of a firm registered outside this State or a company or other body corporate, the principal office or headquarters whereof is outside this State, shall be deemed to be a dealer for the purpose of this Act.
Explanation (II). - Every department, or its subordinate offices, of a Government which whether or not in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, for cash or for deferred payment or for commission, remuneration or other valuable consideration, shall, except in relation to any sale, supply or distribution of surplus, unserviceable or old stores or materials or waste products or obsolete or discarded machinery or parts or accessories thereof, be deemed to be a dealer for the purpose of this Act.
Explanation (III). - For the purpose of this clause "Government. shall include the Central Government or the Government of any other State or Union Territory.
(h) "declared goods" shall have the meaning assigned to that expression in clause (c) of section 2 of the Central Sales Tax Act, 1956 (74 of 1956);
(i) "Deputy Excise and Taxation Commissioner" means the Deputy Excise and Taxation Commissioner, appointed under sub-section (1) of section 3 of this Act, to assist the Commissioner and shall also include the Joint/Additional Excise and Taxation Commissioner;
(j) "document" includes title deeds, writing or inscription, statement of account and data stored electronically in whatever form and the like that furnishes evidence;
(k) "goods" means every kind of movable property (other than news-papers, actionable claims, stocks and shares and securities) and includes live stock, all materials, commodities and articles and every kind of property (whether as goods or in some other form) involved in the execution of a works contract, and all growing crops, grass, trees or things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;
(l) "import" means the bringing of goods into Himachal Pradesh from any place outside its territorial jurisdiction;
(m) "input tax" means the amount paid or payable by way of tax under this Act, by a purchasing registered dealer to a selling registered dealer on the purchase of goods in the course of business for re-sale, or for use in the manufacture of taxable goods or for use as containers or packing material or for the execution of works contract;
(n) "invoice" means a document listing goods with price, quantity, tax involved and other particulars as may be prescribed and includes a bill, cash memorandum, slip, receipt or similar record, regardless of its form;
(o) "motor spirit" means any inflammable hydrocarbon including any mixture of hydrocarbons or any liquid containing hydrocarbon, which is ordinarily used for providing reasonably efficient motive power for any form of motor vehicle;
(p) "notification" means notification published in the Rajpatra, Himachal Pradesh;
(q) "output tax" output tax in relation to any registered dealer means the tax payable under this Act in respect of any taxable sale or purchase of goods made by that dealer in the course of his business;
(r) "prescribed" means prescribed by rules made under this Act;
(s) "purchase" with all its grammatical or cognate expressions, means the acquisition of goods for cash or deferred payment or other valuable consideration otherwise than under a mortgage, hypothecation, charge or pledge and includes.
(i) the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;
(ii) the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(iii) the delivery of goods on hire-purchase or any system of payment by instalments;
(iv) the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
(v) the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;
(vi) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration;
and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made;
(t) "registered" means registered under this Act;
(u) "reverse input tax" means that amount of input tax credit in relation to any goods for which input tax credit has been availed of, but which shall stand reversed in the circumstances specified in sub-sections (9) and (10) of section 11;
(v) "sale" means any transfer of property in goods for cash or for deferred payment or for any other valuable consideration other than a mortgage, hypothecation, charge or pledge, and includes.
(i) the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;
(ii) the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(iii) the delivery of goods on hire-purchase or any system of payment by instalments;
(iv) the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
(v) the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;
(vi) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration;
and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made;
(w) "Schedule" means a Schedule to this Act;
(x) "section" means the section of this Act;
(y) "State Government" or "Government" means the Government of Himachal Pradesh;
(z) "tax" or "value added tax" means the tax on the sale or purchase of goods, levied under section 6 or 7;
(za) "tax period" means the period prescribed for filing a return;
(zb) "timber" includes trees when they have fallen, or have been felled or agreed to be felled and all wood whether cut up or fashioned or hollowed out for any purpose or not;
(zc) "Tribunal" means the Tribunal established under section 44;
(zd) "turnover" means the aggregate amount of sales, purchases and parts of sales and purchases made by any dealer during the given period and includes any sum charged, on account of freight, storage, demurrage, insurance and for anything done by the dealer in respect of the goods at the time of or before delivery thereof;
Explanation (I). - The proceeds of any sale made outside Himachal Pradesh by a dealer, who carries on business both inside and outside Himachal Pradesh, shall not be included in the turnover.
Explanation (II). - The turnover of any dealer in respect of transactions of forward contracts, in which goods are actually not delivered, shall not be included in the turnover.
Explanation (III). - The proceeds of sale of any goods on the purchase of which tax is leviable under this Act, or the purchase value of any goods on the sale of which tax is leviable under this Act, shall not be included in the turnover.
Explanation (IV). - The sum allowed as cash discount according to ordinary trade practice shall not be included in the turnover.
Explanation (V). - The amount to be included in the turnover in respect of delivery of goods on hire purchase or any system of payment by instalments shall be the total sum payable by the hirer under the hire-purchase agreement in respect of the goods so delivered, or the amount actually paid in instalments.
Explanation (VI). - The amount to be included in the turnover in respect of transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract shall be its sale price.
(ze) "vehicle" includes any carriage or conveyance used on land, water or air; and
(zf) "year" means the financial year.