The Government of India has excogitated “Value Added Tax (VAT)” on the sale of goods to provide a set-off for the tax already paid through a mechanism of input tax credit. This input tax credit in relation to any period means setting off the input tax by a registered dealer against the amount of his output tax.

In conceptualization of the VAT system the Government aims at the tax is to be paid on value addition at each point of sales to the goods.

DEALER

The dealer is the person who is liable to pay the Tax under the system. Therefore, before delving into the topic of VAT it is necessary to know the term dealer. As defined in the Central Sales Tax Act, 1956 the term “Dealer” means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration.

The term dealer explicitly encompasses but not limited to the following having a variation from state to state:

·        an industrial, commercial or trading undertaking of the Government, the Central Government, a State Government, a statutory body, a local authority, company, a Hindu undivided family, a partnership firm, a society, a club or an association which carries on such business;

·        a casual trader, a person who has, whether as principal, agent or in any other capacity, carries on occasional transactions of a business nature involving the buying, selling, supply or distribution of goods in the State, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration;

·        a commission agent, a broker or del credere agent or an auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling , supplying or distributing goods on behalf of any principal;

·        a non-resident dealer or an agent of a non-resident dealer, a local branch of a firm or company or association situated outside the State ;

·        a person who sells goods produced by him by manufacture or otherwise;

·        a person engaged in the business of transfer otherwise than in pursuance of a contract of property in any goods for cash deferred payment or other valuable consideration.

·        a person engaged in the business of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

·        a person engaged in the business of delivery of goods on hire purchase or any system of payment by installments;

·        a person engaged in the business of 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.

GOODS COVERED UNDER VAT

All the goods including declared goods as mentioned in the Central Sales Tax Act, 1956 are covered under VAT and will get the benefit of input tax credit.

Only few goods which has been kept outside VAT is liquor, lottery tickets, petrol, diesel, aviation turbine fuel and other motor spirit since their prices are not fully market determined. These will continue to be taxed under the Sales Tax Act or any other State Act or even by making special provisions in the VAT Act itself, and with uniform floor rates decided by the Empowered Committee.

REGISTRATION UNDER VAT

PERSONS REQUIRE REGISTRATION UNDER THE VAT ACT

All dealer prior to commencement of the VAT Act in the States, having a Registration Certificate either under Local Sales Tax Act or under Central Sales Tax Act are deemed to be the Registered Dealer. A new dealer will be given a 30 days time from the date of applicability of the Act in the State.

As per the White Paper on Value Added Tax published by the Ministry of Finance, the registration of dealers with gross annual turnover above Rs. 5 lakh will be compulsory. However every States is flexible to fix the threshold limit within Rs. 5 lakh for the small dealers.

Every State shall make the provision for voluntary registration of dealers who are not otherwise liable to pay tax. However the voluntary registration process are same as applicable to other dealers who are liable to pay tax under VAT.

Dealers with annual gross turnover not exceeding Rs. 50 lakh who are otherwise liable to pay VAT, shall however have the option for a composition scheme with payment of tax at a small percentage of gross turnover. The dealers opting for this composition scheme will not be entitled to input tax credit.

REGISTRATION PROCESS

The form of application to register and manner of making application, and the fee payable is prescribed by the State VAT Act in each State.

A properly filled application may be filed with the Commercial Tax Officer or Assistant Commissioner of Commercial Taxes or any other authority prescribed by the State VAT Act, who is having a jurisdiction over the principal place of business of the Applicant. On receipt of an application to register the prescribed authority shall register any such dealer and grant him a certificate of registration, if he is satisfied that the applicant is a bona fide dealer and that he complies with the requirements of the Act.

The certificate of registration will be issued with effect from the first day of the month following the month in which such application is made or from such earlier date as may be mutually agreed.

The prescribed authority may refuse to grant a certificate of registration to the applicant for any good and sufficient reasons to be recorded in writing, after allowing the applicant to show cause in writing against such refusal.

The Act may contains provision relating to suo moto Registration of dealer. The competent authority may after conducting such survey, inspection or enquiry as may be prescribed, finds a dealer liable to be registered has failed to inform the competent authority of his liability to be registered, proceed to register such person under the Act.

SECURITY FOR REGISTRATION

The act may prescribe the authority for the proper payment of the tax, from time to time demand from a registered dealer or from a dealer who has applied for registration under this Act, reasonable security not exceeding an amount to be paid in a manner suggested in the Act.

The prescribed authority as per the state VAT Act may by order forfeit the whole or any portion of the security furnished by a dealer:

(a)   for collecting any amount of tax, interest or penalty that is payable by such dealer, or

(b)   if such dealer is found to have misused any prescribed certificate or declaration or has failed to keep or retain them in the prescribed manner. 

(3) No order shall be passed under sub-section (2), without giving the dealer an opportunity of showing cause in writing against such forfeiture.

VAT RATES AND THE COMMODITIES

The VAT covers about 550 goods and only two basic VAT rates of 4% and 12.5%, plus a specific category of tax-exempted goods and a special VAT rate of 1% only for gold and silver ornaments, etc. are applicable. 

The uniform VAT rate will abolish the multiplicity of rates in the existing structure. Under the exempted category, there will be about 46 commodities comprising of natural and unprocessed products in unorganised sector, items which are legally barred from taxation and items which have social implications. Included in this exempted category is a set of maximum of 10 commodities flexibly chosen by individual States from a list of goods (finalised by the Empowered Committee) which are of local social importance for the individual States without having any inter-state implication. The rest of the commodities in the list will be common for all the States.

A VAT rate of 4% is applicable to the largest number of goods(about 270 ), common for all the States, comprising of items of basic necessities such as medicines and drugs, all agricultural and industrial inputs, capital goods and declared goods.

The remaining commodities, common for all the States, will fall under the general VAT rate of 12.5%. In terms of decision of the Empowered Committee, items relating to sugar, textile and tobacco, because of initial organisational difficulties, will not be imposed for one year after the introduction of VAT, and till then the existing arrangement will continue.

RETURNS AND FILING

A simplified form of returns may be used and such form is to be notified by each State. Returns are to be filed monthly/quarterly as specified in the State Acts/Rules, and will be accompanied with payment challans.

Every return furnished by dealers will be scrutinised expeditiously within prescribed time limit from the date of filing the return. If any technical mistake is detected on scrutiny, the dealer will be required to pay the deficit appropriately.

Every return shall be signed and verified -

(a) In the case of an individual, by the individual himself, and where the individual is absent from India, either by the individual or by some person duly authorised by him in this behalf and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;

(b)  In the case of a Hindu Undivided Family, by a Karta and where the Karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family;

(c) In the case of a company or local authority, by the principal officer thereof;

(d) In the case of a firm, by any partner thereof, not being a minor;

(e) in the case of any other association, by any member of the association or persons;

(f) in the case of a trust, by the trustee or any trustee; and

(g) in the case of any other person, by some person competent to act on his behalf.

SELF-ASSESSMENT

The basic simplification in VAT is that VAT liability will be self-assessed by the dealers themselves in terms of submission of returns upon setting off the tax credit.

Return forms as well as other procedures will be simple in all States. There will no longer be compulsory assessment at the end of each year as is existing now. If no specific notice is issued proposing departmental audit of the books of accounts of the dealer within the time limit specified in the Act, the dealer will be deemed to have been self-assessed on the basis of returns submitted by him.

APPELLATE AUTHORITIES

An appeal from every original order under the VAT Act or the rules made thereunder shall lie,-

(a) if the order is made by a an Assistant Commissioner or Sales Tax Officer, or any other officer subordinate thereto, to the Deputy Commissioner;

(b) if the order is made by an Deputy Commissioner, to the Joint Commissioner;

(c) if the order is made by a Joint Commissioner, Additional Commissioner, or Commissioner, to the Tribunal.

(2) In the case of an order passed in appeal by an Deputy Commissioner or, as the case may be, by a Joint Commissioner, a second appeal shall lie to the Tribunal.

(5) The Commissioner on receipt of notice that an appeal against the order passed in appeal by the Deputy Commissioner or, as the case may be, by the Joint Commissioner has been preferred by the other party to the Tribunal may, within thirty days of receipt of the notice, file a memorandum of cross objection against any part of the order passed in appeal by the Deputy Commissioner or, as the case may be, by the Joint Commissioner and such memorandum shall be disposed of by the Tribunal as if it were an appeal.

A person/ Commissioner of Commercial Taxes not satisfied by the order of the Tribunal may approach the High court of the State either in appeal or revision within Ninety-days from the date of communication of the order, the decision of which will be final.

PENALTY & OTHER MEASURES

The penalties prescribed in the VAT Act are different in for different Offences and it still differs from state to State. Penalty prescribed for offenses under the VAT Act passed so far in the following state:

KARNATAKA , MAHARASHTRA,

REFUNDS

Where any amount is refundable to a dealer after having duly verified the fact of deposit of such amount,  the assessing authority shall in the prescribed manner refund to such dealer the amount to be refunded either by cash payment or by adjustment against the tax or other sum due in respect of any other period. Such refundable amount shall carry interest at the rate as may be notified by the State Government from time to time, with effect from the date of its deposit.

Where an amount or tax is collected at any check-post from any person who is not registered under the Act and such amount or tax is not found payable by him, or where an amount in lieu of tax for any work is deducted in any manner by an awarder from any bill of payment to a contractor, who is not liable to get registration under the Act, the amount so collected or deducted shall be refunded in the prescribed manner by the Assistant Commissioner or the Commercial Taxes Officer, as the case may be, in whose territorial jurisdiction such person or contractor ordinarily resides.

Any tax levied and collected under this Act, in respect of the sale or purchase inside the State of any declared goods which are subsequently sold in the course of inter-State trade or commerce and on which tax has been paid under the Central Sales Tax Act, 1956 (Central Act 74 of 1956), shall be refunded to the person making such sale or purchase in the course of inter-State trade or commerce.

A refund can be claimed only by the dealer or the person, who has actually suffered the incidence of tax; and the burden of proving the incidence of tax so suffered shall be on the dealer or the person claiming the refund.

ADVANTAGES OF VAT

·        Removes the cascading of taxes due to its inherent features of offering set-off of taxes paid already.

·        Encourages widening of tax base and reduction in rates of tax.

·        A properly designed system of VAT does not distort trade and production methods i.e. it does not induce shifting of production bases, vertical integration or disintegration, or changes in constitution of the entity.

·        Encourage better compliance due to the availability of set off of taxes paid, and thereby less evasion.

·        Improves economic efficiency with its neutrality with respect to forms of organisations, production facilities and location.

·        Particularly improves export competitiveness of local industries due to 'zero rating' of exports.

·        It creates an audit trail due to its inherent nature where the purchase invoice forms the basis for obtaining credit of tax. It also has a "self-policing effect" since it requires proper maintenance of purchase and sale documents to avail the credit.

·        The VAT has a self-enforcing effect in that buyers demand invoices from suppliers which would otherwise not be sought by most buyers.

·        VAT is usually accompanied by a lesser number of rates which makes administration much easier and record keeping less tedious for traders.

ONLINE FORM FOR REGISTRATION

WEST BENGAL

OFFENCES AND PENALTIES UNDER VAT ACT, 2002- MAHARASTRA

CHAPTER XII

Section:69

 (1) Whoever, not being a registered dealer under this Act, falsely represents that he is or was a registered dealer at the time when he sells or buys goods shall, on conviction, be punished with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine.

(2) Where a return is required to be furnished under any of the provisions of this Act, then whoever knowingly furnishes a false return shall on conviction, be punished-

(i) in case where the amount of tax, which could have been evaded if the false return had been accepted as true, exceeds Rs. 10,000, with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine;

(ii) in any other case, with rigorous imprisonment for a term, which. shall not be less than three months but which may extend to one year and with fine.

(3) Whoever, knowingly issues or produces before the Commissioner, false bill, cash-memorandum, voucher, declaration, certificate or other document for any of the purposes referred to in sub-section (4) of section 27, shall, on conviction, be punished-

(i) in case where the amount of tax which could have been evaded, if the documents referred to above had been accepted as true, exceeds Rs. 10,000 during the period of a year, with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine;

(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to one year and with fine.

(4) Whoever knowingly keeps false account of the value of the goods bought or sold by him in contravention of sub-section (1) of section 60, shall, on conviction, be punished with rigorous imprisonment for a term which shall not be less than three months but which may extend to one year and with fine.

(5) Whoever, knowingly produces false accounts, registers or documents or knowingly furnishes false information, shall, on conviction, be punished-

(i) in case where the amount of tax which could have been evaded, if the accounts, registers or documents or information referred to above had been accepted as true, exceeds Rs. 10,000 during the period of a year, with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine;

(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to one year and with fine.

(6) Whoever issues to any person any certificate or declaration under the Act, rules or notifications or a false bill, cash-memorandum, voucher, delivery challan, lorry receipt or other document which he knows or has reason to believe to be false, shall, on conviction, be punished with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine.

(7) Whoever –

(a) (i) willfully attempts, in any manner whatsoever, to evade any tax leviable under this Act, or

(ii) willfully attempts, in any manner whatsoever, to evade any payment of any tax, penalty or interest or all of them under this Act or

(iii) fails to comply with the requirements of any order issued under sub-section

(2) of section 36,

shall, on conviction be punished,

(1) in case where the amount involved exceeds Rs. 10,000 during the period of a year, with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine;

(2) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to one year and with fine.

(b) falsely represents that he is authorised under section 77 to appear before any authority in any proceedings shall on conviction be punished for a term which may run to three months and with fine.

(8) Whoever-

(a) is engaged in business as a dealer without being registered in willful contravention of section 16, or

(b) fails without sufficient cause to furnish any information required by section 17, or

(c) fails without sufficient cause to deduct tax at source or pay such tax deducted at source as required by section 29,

contravenes any of the provisions of section 56

(d) fails without sufficient cause to get his accounts audited or furnish the report of the audit as provided under section 57

(e) fails without sufficient cause, when directed so to under section 60 to keep any accounts or record, in accordance with the directions, or

(f) fails without sufficient cause, to comply with any requirements made of him under section 59, 61, 62 or 63, or

(g) voluntarily obstructs any officer conducting audit under section 59, making inspection or search or seizure under section 61 cross-checking under section 62 or survey under section 63,

(h) fails without sufficient cause to furnish any information required by section 65, or

(i) fails without sufficient cause to furnish any returns as required by section 65 by the date and in the manner prescribed, or willfully furnishes any information or return which he knows to be incorrect or false

(j) without reasonable cause, contravenes any of the provisions of section 60,

(k) without sufficient cause fails to issue a bill or cash memorandum as required under section 81,

shall, on conviction, be punished with imprisonment for a term which may extend to one year and with fine.

(9) Whoever aids or abets or induces any person in commission of any act specified in sub-sections (1) to (8) shall, on conviction, be punished with rigorous imprisonment which shall not be less than three months but which may extend to one year and with fine.

(10) Whoever fails, without sufficient cause, to furnish any return other than an annual return as required by section 19 by the date and in the mannerprescribed, shall, on conviction, be punished with simple imprisonment for a term which may extend to one year and with a fine, which shall not be less than,—

(i) rupees two thousand, if the tax due for the period covered by the return does not exceed rupees twenty thousand;

(ii) rupees five thousand, if the tax due for the period covered by the return exceeds rupees twenty thousand but does not exceed rupees one lakh;

(iii) rupees ten thousand, if the tax due for the period covered by the return exceeds rupees one lakh

(11) Whoever fails without sufficient cause to furnish the correct and complete annual return by the date and in the manner prescribed shall on conviction be punished with simple imprisonment for a term which shall not be less than one month and which may extend to one year and with fine.

(12) Whoever commits any of the acts specified in sub-sections (1) to (11) and the offence is a continuing one under any of the provisions of these sub-sections, shall, on conviction, be punished with daily fine not less than rupees one hundred during the period of the continuance of the offence, in addition to the punishments provided under this section.

(13) Notwithstanding anything contained in sub-sections (1)to (12), no person shall be proceeded against these sub-sections for the acts referred to therein if the total amount of tax evaded or attempted to be evaded is less than Rs. 200 during the period of a year.

(14) Where a dealer is accused of an offence specified in sub-sections (1), (2), (3), (4), (5), (6) or (7), or in clauses (a), (b), (c), (d), (e), (f) (g), (h), (i) and (j) of sub-section (9), or sub-section (11) the person deemed to be the manager of the business of such dealer under section 18 shall also be deemed to be guilty of such offence, unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission thereof.

(15)In any prosecution for an offence under this section, which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state, but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.

Explanation._ Culpable mental state includes intention, motive or knowledge of a fact or belief in, or reason to believe a fact and a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.

70. Offences by companies.

(1) Where an offence under this Act or the rules has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that, nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purpose of this section,—

(a) "company" means a body corporate, and includes a firm or other association of individuals; and

(b) "director" in relation to a firm means a partner in the firm.

(3) Where an offence under this Act has been committed by a Hindu Undivided Family, the Karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render the Karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence:

Provided further that, where an offence under this Act has been committed by a Hindu Undivided Family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any adult member of the Hindu Undivided Family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

71. Cognizance of offences.

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences punishable under this Act or rules made thereunder shall be cognizable and bailable.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, it shall be lawful for a Metropolitan Magistrate or Magistrate of the First Class to pass on any person convicted of an offence under section 66 or 69 a sentence of fine as provided in the relevant section, in excess of his powers under section 29 of the said Code.

(1) If any prosecution for an offence under this Act has been instituted in respect of the same facts on which a penalty has been imposed by the Commissioner under section 27 or 57, then if the offence is compounded under section 73 or, in any other case, on conviction as a result of the final proceedings, the Commissioner shall refund to the dealer the amount of penalty paid by him.

72. Investigation of offences.

(1) Subject to such conditions, if any, as may be prescribed, the Commissioner may authorise either generally or in respect of a particular case or class of cases any officer or person subordinate to him to investigate all or any of the offences punishable under this Act.

(2) Every officer so authorised shall, in the conduct of such investigation, exercise the powers conferred by the code of Criminal Procedure, 1973 upon an officer in charge of a police station for the investigation of a cognizable offence.

73. Compounding of offences.

(1) The Commissioner may, either before or after the institution of proceedings for any offence punishable under section 69 or under any rules made under this Act, after affording the person concerned on opportunity of being heard accept from any person charged with such offence by way of composition of the offence a sum not exceeding two thousand rupees or where the offence charged is under sub-sections (1), (2), (3), (4), (5), (6), (7) or clauses (a), (b), (d), (e), (f) or (h) of sub-section (8) or sub-section (10) of section 69 not exceeding double the amount of tax which would have been payable on the sale or purchase turnover to which the said offence relates, whichever is greater.

(2) On payment of such sum as may be determined by the Commissioner under sub-section (1), no further proceedings shall be taken against the accused person in respect of the same offence and any proceedings, if already taken, shall stand abated.

ARTICLE

OFFENCES & PENALTIES–KARNATAKA VAT ACT, 2002

Chapter VII

71.  Penalties relating to registration.- (1) A dealer who, without reasonable cause, fails to apply for registration within the time prescribed in sub-sections (1) or (2) or (3) of Section 22 shall be liable to a penalty of five thousand rupees in addition to the interest chargeable on the tax payable at the rate provided under Section 37.

(2) A dealer who fails to report to the prescribed authority a change in circumstances as required by Section 28 shall be liable to a penalty of five thousand rupees.

(3) The power to levy the penalties shall be vested in the registering authority as prescribed. 

72.  Penalties relating to returns.- (1) A dealer who fails to furnish a return or who fails to pay the tax due on any return furnished as required under Section 35 shall be liable to a penalty of two hundred rupees for each day of default in addition to a further penalty of a sum not less than ten per cent but not exceeding fifty per cent of the amount of tax due, together with any tax or interest due.          

(2) A dealer who for any prescribed tax period furnishes a return which understates his liability to tax or overstates his entitlement to a tax credit by more than five per cent of his actual liability to tax, shall after being given the opportunity of showing cause in writing against the imposition of a penalty, be liable to a penalty equal to twenty per cent of the amount of such tax under or overstated.

(3) A dealer who furnishes a return which is incomplete or incorrect in any material particular, shall be liable to a penalty of two hundred rupees for each day the return remains incomplete or incorrect.

(4) In any case where a dealer who has failed to furnish a return has been issued with an assessment showing less than his actual liability to tax and he pays such tax as assessed, such dealer, after being given the opportunity of showing cause in writing against the imposition of a penalty, shall be liable to a penalty equal to fifty per cent of the amount of the tax under-assessed.

(5) The power to levy the above penalties shall be vested in the prescribed authority to which returns are required to be furnished.

73. Penalties in relation to unauthorised collection of tax.- (1) If any dealer, not being registered under this Act, collects any amount by way of tax or purporting to be by way of tax under this Act, he shall be liable to remit to the prescribed authority such amount, whether or not that amount would be payable under the provisions of this Act, and also liable to a penalty of an amount equal to the amount so collected, after being given the opportunity of showing cause in writing against repayment of the tax and the imposition of such penalty.

(2) The power to levy the above penalty shall be vested in the assessing authority as prescribed.

74. Penalties relating to the keeping of records:- (1) Any dealer who fails to keep and maintain proper records, in accordance with Sections 31 or by order of the prescribed authority shall be liable to a penalty of five thousand rupees and, in addition, two hundred rupees per day for so long as the failure continues after being given an opportunity to show cause against such imposition of penalty.

(2) Any dealer who fails to retain records and accounts in accordance with Sections 32 and 33, after being given the opportunity of showing cause in writing against the imposition of a penalty, shall be liable to a penalty of ten thousand rupees.

(3) The power to levy the above penalty shall be vested in the officer authorised under Section 52.

75. Penalties relating to production of records and furnishing of information.-Any dealer or person who on demand by the prescribed authority fails to produce any records or furnish any information in accordance with the requirements of this Act, after being given the opportunity of showing cause in writing against the imposition of a penalty, shall be liable to a penalty of five thousand rupees and, in addition, two hundred rupees per day for so as long as the failure continues.

76. Penalties relating to tax invoices, credit notes and debit notes.- (1) A registered dealer who.-

(a) fails to provide a tax invoice as required by sub-section (1) of Section 29 or a credit or debit note as required by sub-section (1) or sub-section (2) of Section 30, or

(b) provides a tax invoice otherwise than in accordance with the provisions of Section 29 or a credit or a debit note as provided in Section 30,

shall be liable to a penalty of not less than five thousand rupees or an amount equivalent to the tax payable on the transaction, whichever is higher.

(2) The power to levy the above penalty shall be vested in the officer authorised under Section 52.

77. Penalties relating to seals and to unaccounted stocks.- (1)Any person who removes, or in any way tampers with, a seal attached under the provisions of clause (f) of sub-section (1) of Section 52, and sub-section (4) of Section 53,  shall be liable on conviction by a Court, not inferior to that of a Magistrate of the First Class, to a fine of not less than five thousand rupees but not exceeding fifty thousand rupees and imprisonment for a period not less than fifteen days but not exceeding one year.

(2) Any person or dealer who is found to be in possession of unaccounted stocks of any taxable goods under the provisions of clause (j) of sub-section (1) of Section 52, after being given the opportunity of showing cause in writing against the imposition of a penalty, shall be liable to a penalty of five thousand rupees.

(3) The power to levy the penalty under sub-section (2) shall be vested in the officer authorised under Section 52.

78. Offences against officers. -Any person who obstructs, hinders, molests or assaults an authorised officer or any other public servant assisting him in the performance of his duties under this Act, or does anything which is likely to prevent or obstruct any search or production of evidence, shall be liable on conviction by a Court, not inferior to that of a Magistrate of the First Class, to a fine of not less than five thousand rupees but not exceeding fifty thousand rupees and imprisonment for a period not less than fifteen days but not exceeding one year.

79. Fraudulent evasion of tax.- Without prejudice to the provisions of Sections 71 to 77, if any person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or any other person, he shall be liable to a fine of one lakh rupees or double the amount of the tax evaded, whichever is the greater or to imprisonment for a minimum term of six months but not exceeding five years, or to both.

80. Cognizance of offences.- (1) No Court shall take cognizance of any offence punishable under Sections 79 except with the previous sanction of the Joint Commissioner, and no Court inferior to that of a Magistrate of the First Class, shall try any such offence.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974], all offences punishable under Sections 79 shall be cognizable and bailable. TO ARTICLE

THE WEST BENGAL VALUE ADDED TAX RULES, 2003

FORM 2

Application for New Registration

[See sub-rule (1) of rule 5]

02. If it is an application for New Registration, state whether COMPULSORY / VOLUNTARY

03.If it is an application for amendment of the Certificate of Registration, state your Registration 

     number :                 

04. Name of the Applicant :