धारा 81 ·

Repeal of Ordinance. Schedule - I. Schedule - II. Schedule - III. Schedule - IV. [Act No. 5 of 2005] Schedule - V. Schedule - VI. IndiaCode THE TELANGANA VALUE ADDED TAX ACT, 2005.1 ACT No.5 OF 2005. CHAPTER - I PRELIMINARY 1. (1) This Act may be called the 2Telangana Value Added Short title, extent Tax Act, 2005. and commencement. (2) It extends to the whole of the state of 2Telangana. (3) (a) Sections 1, 2, 17, 18 and 78 shall be deemed to have come into force with effect from 31st January, 2005; and (b) the remaining provisions shall come into force on such date as the Government may, by notification, appoint. ay shala stunned 2. In this Act unless the context otherwise requires,- Definitions. (1) 'Additional Commissioner' means any person appointed to be an Additional Commissioner of Commercial Taxes under section 3-A; (2) 'Appellate Deputy Commissioner' means any person appointed under section 3-A to be an Appellate Deputy Commissioner or any other officer not below the 1. The Andhra Pradesh Value Added Tax Act, 2005 received the assent of the Governor on the 16th March, 2005. The said Act in force in the combined State, as on 02.06.2014, has been adapted to the State of Telangana, under section 101 of the Andhra Pradesh Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the Notification issued in G.O.Ms.No.32, Revenue (C.T.II) Department, dated 15.10.2014. 2. Substituted by G.O.Ms.No.32, Revenue (C.T.II) Department, dated 15.10.2014. rank of Deputy Commissioner authorized by the Commissioner to be an Appellate Deputy Commissioner; (3) 'Appellate Tribunal' means the Appellate Tribunal appointed under section 3; 3[(4) 'Assessing authority' means any officer of the Commercial Taxes Department, authorized by the Commissioner or as may be prescribed, to make any assessment in such area or areas or the whole of the State of 4Telangana;] (5) 'Assistant Commissioner' means any person appointed to be an Assistant Commissioner of Commercial Taxes under section 3-A; (6) 'Business' includes: (a) any trade, commerce or manufacture or 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 or undertaken with a motive to make gain or profit and whether or not any gain or profit accrues therefrom; (b) any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern; and (c) any transaction in connection with commencement or incidental or ancillary to the commencement or closure of such trade, commerce, manufacture, adventure or concern; 3. Substituted by Act No.21 of 2011. 4. Substituted by G.O.Ms.No.32, Revenue (C.T.II) Department, dated 15.10.2014. Explanation :- For the purpose of this clause- (i) the activities of raising of manmade forests or rearing of seedlings or plants shall be deemed to be business; (ii) any transaction of sale or purchase of capital goods pertaining to such trade, commerce, manufacture, adventure or concern shall be deemed to be business; (iii) a sale by a person whether by himself or through an agent of agricultural or horticultural produce grown by himself or grown on any land whether as owner or tenant in a form not different from the one in which it was produced, save mere cleaning, grading or sorting does not constitute business; odiao (7) 'Casual trader' means a person who, whether as principal, agent or in any other capacity, carries on occasional transactions of a business nature involving the buying, selling or distribution of goods in the State; whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration; (8) 'Commissioner' means any person appointed by the Government to be the Commissioner of Commercial Taxes under section 3-A; (9) 'Commercial Tax Officer' means any person appointed to be Commercial Tax Officer under section 3-A; (10) 'Dealer' means any person who carries on the business of buying, selling, supplying or distributing goods or delivering goods on hire purchase or on any system of payment by instalments, or carries on or executes any works contract involving supply or use of material directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration, and includes,- (a) a company, a Hindu undivided family or any society including a co-operative society, club, firm or association which carries on such business; (b) a society including a co-operative society, club, firm or association which buys goods from, or sells, supplies or distributes goods to its members; (c) a casual trader, as hereinbefore defined; (d) any person, who may, in the course of business of running a restaurant or an eating house or a hotel by whatever name called, sells or supplies 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; (e) any person, who may transfer the right to the use of any goods for any purpose whatsoever whether or not for a specified period in the course of business to any other person; (f) a commission agent, a broker, a delcredere agent, 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 5[or principals]; Explanation I: Every person who acts as an agent of a non-resident dealer' that is, as an agent on behalf of a dealer residing outside the State, and buys, sells, supplies 5. Added by Act No.28 of 2008. 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; or (ii) an agent for handling goods or documents of title relating to goods; or (iii) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment and every local branch of a firm or company situated outside the State; shall be deemed to be a dealer for the purpose of the Act; Co Explanation Il: Where a grower of agricultural or horticultural produce sells such produce grown by himself on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, in a form different from the one in which it was produced after subjecting it to any physical, chemical or any process other than mere cleaning, grading or sorting, he shall be deemed to be a dealer for the purpose of the Act; Explanation III: The Central Government or the State 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 be deemed to be a dealer for the purposes of the Act; Explanation IV: Each of the following persons and bodies, whether or not in the course of business, who sells or disposes of any goods including unclaimed or confiscated or unserviceable goods or scrap, surplus, old, obsolete, or discarded material or waste products whether by auction or otherwise, directly or through an agent for Central Act III of 1930. cash, or for deferred payment or for any other valuable consideration shall be deemed to be a dealer to the extent of such disposals or sales, namely,- (i) Port Trust; (ii) Municipal Corporations, Municipal Councils, and other local authorities; (iii) Railway authorities; (iv) Shipping, transport and construction companies; (v) Air transport companies and air-lines including National Airport Authority; Veins C and Action Central Act 59 of 1988. (vi) Transporters permits for transport vehicles granted under the Motor Vehicles Act, 1988 which are used or adopted to be used for hire; (vii) Telangana State Road Transport Corporation; Central Act 52 of 1962. (viii) Customs Department of the Government of India administering the Customs Act, 1962; Central Act 2 of 1934. (ix) Insurance and financial corporations or companies and Banks included in the Second Schedule to the Reserve Bank of India Act, 1934; (x) Advertising agencies; (xi) Any other Corporation, company, body or authority owned or set up by or subject to administrative control of the Central Government or any State Government; Explanation V :- Save as otherwise expressly provided for under the Act the word 'dealer' shall include a VAT dealer and a TOT dealer; (11) 'Deputy Commercial Tax Officer' means any person appointed to be a Deputy Commercial Tax Officer under section 3-A; (12) 'Deputy Commissioner' means any person appointed to be a Deputy Commissioner of Commercial Taxes under section 3-A; (13) 'Exempt sale' means a sale of goods on which no tax is chargeable, and consequently no credit for input tax related to that sale is allowable; Pans i credit, On (14) 'Exempted Turnover' means the aggregate of sale prices of all goods exempted under the Act and full or part of the actual value or fair market value of all transactions not taxable under the provisions of the Act, including transactions falling under section 6A of the "[Central Sales Tax Act, 1956]; (15) 'Fair market value' means the price that the goods would ordinarily fetch on sale in the open market on the date of sale or dispatch or transfer of such goods; (16) 'Goods' means all kinds of movable property other than newspapers, actionable claims, stocks, shares and securities, and includes all materials, articles and commodities including the goods as goods or in some other form, involved in the execution of a works contract or those goods used or to be used in the construction, fitting out, improvement or repair of movable or immovable property and also includes all growing crops, grass and things 6. Substituted by Act No.23 of 2005. Central Act 7 of 1956. attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; (17) 'Goods vehicle' means any motor vehicle constructed or adapted for the carriage of goods, or any other motor vehicle not so constructed or adapted when used for the carriage of goods solely or in addition to passengers and also includes every wheeled conveyance; (18) 'Government' means the State Government of 7Telangana; e (19) 'Input tax' means the tax paid or payable under the Act by a VAT dealer &[whether directly by himself or through his agent on his behalf] to another VAT dealer on the purchase of goods in the course of business; (20) 'Joint Commissioner' means any person appointed to be a Joint Commissioner of Commercial Taxes under section 3-A; (21) 'Notification' means a notification published in the "Telangana Gazette and the word 'notified' shall be construed accordingly; (22) 'Output tax' means the tax paid or payable by a VAT dealer &[whether by himself or through his agent] on the sale of goods to another VAT dealer or any other person; (23) 'Place of business' means any place where a dealer purchases or sells goods and includes,- 7. Substituted by G.O.Ms.No.32, Revenue (C.T.II) Department, dated 15.10.2014. 8. Inserted by Act No.28 of 2008. (a) any warehouses, godown or other place where goods are stored or processed or produced or manufactured; or (b) any place where a dealer keeps his books of accounts; or (c) any place where business is carried on through an agent by whatever name called, the place of business of such agent; (24) 'Prescribed' means prescribed by the Rules made under the Act; (25) 'Purchase Price' means the amount of valuable consideration paid or payable by a person for any purchase made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof; Explanation I :- Where the purchase is effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract, purchase price shall mean the total consideration for the works contract, and for the purpose of levy of tax purchase price shall be taken to mean the price as may be determined in accordance with the rules, by making such deductions from the total consideration for the works contract as may be prescribed; Explanation II: - The amount of duties levied or leviable on the goods under the Central Excise Act, 1944, or the Customs Act, 1962 shall be deemed to be part of the purchase price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person; Central Act 1 of 1944. Central Act 52 of 1962. Explanation III: - Purchase price shall not include tax paid or payable by a person in respect of such purchase; (26) 'Return' means any return required to be furnished under the Act or the Rules made thereunder; (27) 'Rules' means rules made under the Act; (28) 'Sale' with all its grammatical variations and cognate expressions means every transfer of the property in goods [whether as such goods or in any other form in pursuance of a contract or otherwise] by one person to another in the course of trade or business, for cash, or tor deferred payment, or for any other valuable consideration or in the supply or distribution of goods by a society (including a co-operative society), club, firm or association to its members, but does not include a mortgage, hypothecation or pledge of, or a charge on goods; Explanation I :- A delivery of goods on the hire purchase or any system of payment by instalments shall, notwithstanding the fact that the seller retains the title in the goods, as security for payment of the price, be deemed to be a sale; Explanation II :- (a) Notwithstanding anything contained in the Indian Sale of Goods Act, 1930 a sale or purchase of goods shall be deemed, for the purpose of the Act to have taken place in the State, wherever the contract of sale or purchase might have been made, if the goods are within the State,- (i) in the case of specific or ascertained goods, at the time the contract of sale or purchase is made; and (ii) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale or Central Act III of 1930. purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropriation; (b) Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of clause (a) shall apply as if there were separate contracts in respect of the goods at each of such places; Explanation III :- Notwithstanding anything contained in the Act or in the Indian Sale of Goods Act, 1930 two independent sales or purchases shall for the purposes of the Act, be deemed to have taken place,- (1) When the goods are transferred from a principal to his selling agent and from the selling agent to his purchaser, or transh dagentron Court, (2) When the goods are transferred from the seller to a buying agent and from the buying agent to his principal, if the agent is found in either of the cases aforesaid,- (i) to have sold the goods at one rate and to have passed on the sale proceeds to his principal at another rate; or (ii) to have purchased the goods at one rate and to have passed them on to his principal at another rate; or (iii) not to have accounted to his principal for the entire collections or deductions made by him, in the sales or purchases effected by him on behalf of his principal; or (iv) to have acted for a fictitious or non-existent principal; Central Act III of 1930. Explanation-IV :- A transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration shall be deemed to be a sale; Central Act III of 1930. Explanation-V :- Notwithstanding anything contained in the Act or in the Indian Sale of Goods Act, 1930 the sale of goods includes the supply, by way of or as part of any service or in any manner whatsoever, of goods, being food or 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 supply of any goods shall be deemed to be a sale of those goods by the person making the supply of those goods to the person to whom such supply is made; diane Explanation-VI :- Whenever any goods are supplied or used in the executing of a works contract, there shall be deemed to be a transfer of property in such goods, whether or not the value of the goods so supplied or used in the course of execution of such works contract is shown separately and whether or not the value of such goods or material can be separated from the contract for the service and the work done; Central Act III of 1930. Explanation-VII :- Notwithstanding anything contained in the Indian Sale of Goods Act, 1930, a sale or purchase of goods shall, for the purposes of the Act be deemed to have taken place where in the course of any scheme whether called as "Lucky Gift Scheme" or by any other name, any goods are transferred by the person who runs such scheme to any other person who is a subscriber to that scheme, provided that all the subscribers to the scheme have agreed to contribute a specific sum periodically or otherwise, towards the cost of any article agreed to be sold or given to the winner of the draw held by the holder of the scheme; and the turnover for the purpose of this Explanation shall be the amount which would have been payable by the subscriber had he not won the prize till the end of the series of draw; Explanation-VIII :- Every transfer of property in goods by the Central Government or the State Government for cash or for deferred payment or for any other valuable consideration, whether or not in the course of business shall be deemed to be a sale for the purpose of the Act; (29) 'Sale Price' means,- e (a) the total amount set out in the tax invoice or bill of sale; or laCinde (b) the total amount of consideration for the sale or purchase of goods as may be determined by the assessing authority, if the tax invoice or bill of sale does not set out correctly the amount for which the goods are sold; or (c) if there is no tax invoice or bill of sale, the total amount charged as the consideration for the sale or purchase of goods by a VAT dealer or TOT dealer either directly or through another, on his own account or on account of others, whether such consideration be cash, deferred payment or any other thing of value and shall include,- (i) the value of any goods as determined by the assessing authority,- (a) to have been used or supplied by the dealer in the course of execution of the works contract; or (b) to have been delivered by the dealer on hire purchase or any other system of payment by instalments; or (c) to have been supplied or distributed by a society including a Co-operative Society, Club, firm or association to its members, where the cost of such goods is not separately shown or indicated by the dealer and where the cost of such goods is separately shown or indicated by the dealer, the cost of such goods as shown or indicated; (ii) any other sum charged by the dealer for anything done in respect of goods sold at the time of, or before, the delivery of the goods; (iii) any other sum charged by the dealer, whatever be the description, name or object thereof; Explanation-I :- Subject to such conditions and restrictions, if any, as may be prescribed in this behalf, any cash or other discount on the price allowed in respect of any sale and any amount refunded in respect of articles returned by customers shall not be included in the sale price; Explanation-II:- For the purpose of determination of sale price and levy of Value Added Tax, the Value Added Tax charged or chargeable shall not form part of sale price; 9[Explanation-III :- For the purpose of determination of sale price of Foreign Liquor imported by the Telangana Beverages Corporation Limited and levy of Value Added Tax, the 'Customs Duty' charged or chargeable under the Customs Act, 1962 shall not form part of the sale price.] (30) 'Schedule' means a Schedule appended to the Act; 9. Added by Act No.9 of 2010. 1º[(30-A) 'SEZ' means Special Economic Zone as defined under the Special Economic Zones Act, 2005;] Central Act 28 of 2005. (31) 'Special Rate of Tax' means the rates of tax specified in Schedule-VI; (32) 'State' means the State of 11Telangana; (33) 'State Representative' means an officer of the Commercial Taxes Department not below the rank of Assistant Commissioner appointed by the State Government to receive on their behalf notices issued by the Appellate Tribunal and generally to appear, act and plead on their behalf in all proceedings before the Appellate Tribunal and includes an officer authorized to act on his behalf in his absence; dia (34) 'Tax' means a tax on the sale or purchase of goods payable under the Act and includes,- (a) a tax on the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; (b) a tax on the transfer of property in goods whether as goods or in some other form involved in the execution of a works contract; (c) a tax on the delivery of goods on hire purchase or any system of payment by instalments; (d) a tax on 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; 10. Inserted by Act No.28 of 2008. 11. Substituted by G.O.Ms.No.32, Revenue (C.T.II) Department, dated 15.10.2014. (e) a tax on the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; (f) a tax on 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; (35) 'Tax invoice' means a sale invoice containing such details as may be prescribed and issued by a VAT dealer to another VAT dealer; (36) 'Tax period' means a calendar month or any other period as may be prescribed; (37) 'Taxable Sale' means a sale of goods taxable under the Act and under the Central Sales Tax Act, 1956 and shall include sale of any goods exported outside the territory of India or sold in the course of export; (38) 'Taxable turnover' means the aggregate of sale prices of all taxable goods; Explanation-I :- For the purpose of a VAT dealer, it shall not include the amount of VAT paid or payable but shall include the sale price of zero-rated sales; Explanation-II :- The sale price relating to second and subsequent sale of goods specified in Schedule VI shall not, form part of taxable turn over; Central Act 74 of 1956. 12[Explanation-III :- The Sale price, relating to loose liquor, served to customer in a bar/restaurant which was derived from the goods enumerated in item 1 of the Schedule-VI, on which tax at special rates has been levied and paid in the State, shall not form part of the taxable turnover;] 13[(39) 'Total turnover' means the aggregate of sale prices of all goods, taxable and exempted, sold at all places of business of the dealer in the State, whether directly by himself or through his agent or agents, including the turnover of sales involved in the transactions falling under sections 3, 5, 6A and 8(6) of the Central Sales Tax Act, 1956 and shall also include the gross consideration received or receivable towards execution of works contract;] (40) 'Turnover tax' or 'TOT' means a tax on the taxable turnover of dealers registered or liable to be registered for TOT; Jeans Cont (41) 'Turnover Tax Dealer' or 'TOT' dealer means any dealer who is registered or liable to be registered for TOT; (42) 'VAT' means Value Added Tax on sales, levied under the provisions of the Act; (43) 'VAT dealer' means a dealer who is registered for VAT; (44) 'Vessel' includes any ship, barge, boat, raft, timber, bamboos or floating materials propelled in any manner; 12. Added by Act No.21 of 2011. 13. Substituted by Act No.28 of 2008. (45) 'Works Contract' includes any agreement for carrying out for cash or for deferred payment or for any other valuable consideration, the building construction, manufacture, processing, fabrication, erection, installation, laying, fitting out, improvement, modification, repair or commissioning of any movable or immovable property; (46) 'Year' means the twelve-month period ending on the thirty first day of March; (47) 'Zero Rated Sales' for the purpose of the Act, means a sale of goods in the course of inter-State trade or commerce, exports to outside the territory of India including sale in the course of export and sale of goods to any unit located in Special Economic Zone as may be notified. CHAPTER - II APPELLATE TRIBUNAL AND APPOINTMENT OF OFFICERS Appellate Tribunal. 3. (1) The Government shall appoint an Appellate Tribunal consisting of a Chairman and two other members to exercise the functions conferred on the Appellate Tribunal by or under the Act. The Chairman shall be a judicial officer not below the rank of a 14[District Judge Super Time Scale/District Judge Selection Grade] and of the other two members, one shall be an officer of the State Government not below the rank of a Joint Commissioner of Commercial Taxes and the other shall be an officer of the Indian Revenue Service not below the rank of an Additional Commissioner. (2) Any vacancy in the membership of the Appellate Tribunal shall be filled up by the Government. 14. Substituted by Act No.34 of 2006. (3) Notwithstanding anything contained in sub-section (1), the Government may at any time, by order, constitute an additional Bench of the Tribunal, consisting of a Chairman who shall be a 15[District Judge Super Time Scale/District Judge Selection Grade] and two members of whom one shall be an officer of the State Government not below the rank of a Joint Commissioner of Commercial Taxes and the other shall be an officer of the Indian Revenue Service not below the rank of an Additional Commissioner to function at such place and for such period as may be specified herein. (4) Where any orders passed by the Benches specified in sub-sections (1) and (3) are in conflict with each other on same issue the senior Chairman of the two Benches, on application or suo-motu shall constitute and preside over a full Bench of not less than five members in the manner specified in the regulations made under sub-section (5) and the decision of such Bench shall be final. (5) The Appellate Tribunal shall, with the previous sanction of the Government make regulations consistent with the provisions of the Act and rules made thereunder, for regulating its procedure and the disposal of its business. Such regulations shall be published in the 16Telangana Gazette. 17[(6) (a) The functions of the Appellate Tribunal may be exercised,- (i) by a Bench consisting of all the members of the Appellate Tribunal; or 15. Substituted by Act No.34 of 2006. 16. Substituted by G.O.Ms.No.32, Revenue (C.T.II) Department, dated 15.10.2014. 17. Added by Act No.34 of 2006. (ii) by a Bench consisting of two members constituted by the chairman; or (iii) by a Bench consisting of the Chairman and another member as constituted by the Chairman; or (iv) by a Bench consisting of the other two members in case the Chairman is absent or on leave or transfer or in case of the office of the Chairman is vacant otherwise; or (v) by a single member of the Appellate Tribunal constituted by the Chairman in cases where the turnover does not exceed rupees five lakhs; Explanation :- The single member referred to in item (v) above may be either the Chairman himself or any other member; (b) Where an appeal or application is heard by all the three members of the Appellate Tribunal, and the members are divided in opinion, on any point or points, such point or points shall be decided in accordance with the opinion of the majority; (c) Where an appeal or application is heard by a Bench consisting of two members whether it consists of the Chairman or not, and the members are divided in opinion, on any point or points, such point or points shall be referred to the Appellate Tribunal consisting of all the three members; (d) If any case which comes up before a single member (who is not the Chairman) or a Bench (of which the Chairman is not a member) involves a question of law, such single member or Bench may in his or its discretion, reserve such case for decision by a Bench of which the Chairman shall be a member.] 3-A. The State Government, may, appoint a Commissioner Appointment of of Commercial Taxes and as many Additional Officers. Commissioners of Commercial Taxes, Joint Commissioners of Commercial Taxes, Appellate Deputy Commissioners of Commercial Taxes, Deputy Commissioners of Commercial Taxes, Assistant Commissioners of Commercial Taxes, Commercial Tax Officers and Deputy Commercial Tax Officers as they think fit, for the purpose of performing the functions respectively conferred on them by or under the Act. Such officers shall perform the said functions within such area or areas or the whole of the State of 18Telangana as the Government or any authority or officer empowered by them in this behalf may assign to them. CHAPTERPRETO INCIDENCE, LEVY AND CALCULATION OF TAX. 4. (1) Save as otherwise provided in the Act, every dealer registered or liable to be registered as a Value Added Tax dealer shall be liable to pay tax on every sale of goods in the State at the rates specified in the Schedules. 19[(2) Every dealer Who has not opted for registration as a Value Added Tax dealer and who is registered or liable to be registered for Turnover Tax, shall pay tax at the rate of one percent (1%) on the taxable turnover in such manner as may be prescribed.] Charge to tax. 18. Substituted by G.O.Ms.No.32, Revenue (C.T.II) Department, dated 15.10.2014. 19. Substituted by Act No.4 of 2009. (3) Every Value Added Tax dealer shall pay tax on every sale of goods taxable under the Act on the sale price at the rates specified in the Schedules III, IV and V subject to the provisions of section 13. (4) Every Value Added Tax dealer, who in the course of his business purchases any taxable goods from a person or a dealer not registered as a Value Added Tax dealer or from a Value Added Tax dealer in circumstances in which no tax is payable by the selling Value Added Tax dealer, shall be liable to pay tax 2º[at the rate of five percent (5%)] on the purchase price of such goods, if after suci goods are,- od'u purchase, the (i) used as inputs for goods which are exempt from tax under the Act; or (ii) used as inputs for goods, which are disposed of otherwise than by way of sale in the State or dispatched outside the State otherwise than by way of sale in the course of inter-State trade and commerce or export out of the territory of India; or (iii) disposed of otherwise than by way of consumption or by way of sale either within the State or in the course of inter-State trade or commerce or export out of the territory of India: 21 [Provided that wherever a common input is used to produce goods, the turnover, taxable under this sub-section, shall be the value of the inputs, proportionate to the value of the goods, used or disposed of in the manner as prescribed under this section: 20. Substituted by Act No.12 of 2012. 21. Substituted by Act No.28 of 2008. Provided further that in respect of purchase of goods specified in Schedules III and VI, the VAT dealer shall be liable to pay tax at the rates specified for such goods in the respective Schedules.] (5) Every dealer shall pay tax on the sale price of goods specified in Schedule VI at the special rates and at the point of levy specified therein. (6) Every casual trader who sells goods within the State and any dealer covered under Explanation III and IV of clause (10) of section 2 shall pay tax on the sale price of such goods at the rates specified in the respective Schedules. (7) Notwithstanding anything conta (a) every dealer executing works contract shall pay tax on the value of goods at the time of incorporation of such goods in the works executed at the rates applicable to the goods under the Act: Provided that where accounts are not maintained to determine the correct value of goods at the time of incorporation such dealer shall pay tax at the rate 22[specified in Schedule-V] on the total consideration received or receivable subject to such deductions as may be prescribed; 23[(b) Every dealer executing works contract may in lieu of the amount of tax payable by him under clause (a) opt to pay by way of composition 24[at the rate of five percent (5%)] of the total amount received or receivable by himself towards execution of the works contract either by 22. Substituted by Act No.9 of 2010. 23. Substituted by Act No.21 of 2011. 24. Substituted by Act No.12 of 2012. himself or though sub-contractor subject to such conditions as may be prescribed: Provided that the sub-contractor, executing works contract on behalf of the contractor, who opts to pay tax under this clause, shall be exempted from levy of tax.] 25[(c) [XXX]] 26[(d) Every dealer engaged in construction and selling of residential apartments, houses, buildings or commercial complexes may, in lieu of the amount of tax payable by him under clause (a) opt to pay tax by way of composition 27[at the rate of five percent (5%)] on twenty five percent (25%) of the amount, received or receivable towards the composite value of both the land and building or the market value fixed therefor for the purpose of stamp duty, whichever is higher, subject to such conditions as may be prescribed: Provided that, no tax shall be payable by the sub-contractor of a works contractor, who opts to pay and paid tax under this clause on the turnover relating to the amount received as a sub-contractor from such main contractor towards the execution of works contract, whether wholly or partly, subject to the production of evidence to prove that such main contractor has exercised such option in respect of the specific work and subject to such other conditions as may be prescribed.] 28[(e) [XXX]] 25. Clause (c) omitted by Act No.21 of 2011. 26. Substituted by Act No.21 of 2011. 27. Substituted by Act No.12 of 2012. 28. Clause (e) omitted by Act No.21 of 2011. 29[(f)] 3º [any dealer registered or is liable to be registered] for Turnover Tax and executing any works contracts shall pay tax at the rate of 1% on total value of the goods at the time of incorporation of the goods used: Provided that where accounts are not maintained to determine the correct value of the goods at the time of incorporation, such dealers shall pay tax at the rate of 1% the total consideration received or receivable subject to such deductions as may be prescribed;] 31 [XXX] de 32[(g) notwithstanding anything contained in clauses (a) to (f) above, no tax shall be leviable on the turnover of transfer of property in goods whether as goods or in some other form involved in the execution of works contract, if such transfer from the contractor to the contractee constituted a sale in the course of inter-State trade or commerce under section 3 or a sale outside the State under section 4, or a sale in the course of import or export under section 5 of the Central Sales Tax Act, 1956; (h) no tax shall be payable under 33 [clause (a)] of this sub-section on the turnover relating to amounts paid to a sub-contractor as consideration for the execution of works contract whether wholly or partly subject to the production of proof that such sub-contractor is registered as a Value Added Tax dealer under the Act and the turnover of such amount is included in the return prescribed filed by such sub-contractor.] 29. Existing clause (e) renumbered as (f) and second proviso is added by Act No.23 of 2005. 30. Substituted by Act No.21 of 2011. 31. Second proviso omitted by Act No.5 of 2007. 32. Clauses (g) and (h) added by Act No.5 of 2007. 33. Inserted by Act No 39 of 2007 and substituted by Act No. 21 of 2011. 34[(i) [XXX]] (8) Every Value Added Tax dealer who transfers the right to use goods taxable under the Act for any purpose whatsoever, whether or not for a specified period, to any lessee or licensee for cash, deferred payment or other valuable consideration, in the course of his business shall, on the total amount realized or realizable by him by way of payment in cash or otherwise on such transfer of right to use such goods from the lessee or licensee pay a tax for such goods at the rates specified in the Schedules. 35[(8A) Notwithstanding anything contained in sub-section (8), a producer of a feature film, who transfers the right to use the film to the distributors or the exhibitors for the purpose of exhibiting such films in the theatres, may opt to pay tax by way of composition as may be prescribed. Explanation :- wherever tax is paid under sub-section (8A) by any producer in respect of any film, the subsequent transfer of right to use such film for exhibition in the theatre shall not be liable to tax under sub-sections (8) and (8A).] 36[(8B) Any dealer other than the producer of a feature film may, in lieu of the tax payable by him under sub-section (8), opt to pay by way of composition an amount of tax 37[at the rate of five percent (5%)] of the total amount, received or receivable by him towards transfer of right to use any goods subject to the conditions, as may be prescribed: Provided that, wherever the tax is paid under this sub-section, the subsequent transfer of right to use such goods shall not be liable to tax under sub-section (8).] 34. Clause (i) omitted by Act No.21 of 2011. 35. Inserted by Act No.4 of 2009. 36. Added by Act No.21 of 2011. 37. Substituted by Act No.12 of 2012. 38[(9) Notwithstanding anything contained in this Act,- (a) every dealer, being a star Hotel, having a status of three star and above, as recognized by competent authority prescribed by the Government of India, shall pay tax at the rate 39 [specified in Schedule-V] of the taxable turnover of the sale or supply of goods, being food or any other article for human consumption or drink, served in restaurants, attached to such hotels or anywhere whether indoor or outdoor; (b) every dealer, being a Hotel other than those mentioned in clause (a), shall pay tax 4º[at the rate of five percent (5%)] of the taxable turnover of the sale or supply of goods, being food or any other article for human consumption or drink, served in restaurants attached to such hotels or anywhere whether indoor or outdoor; (c) every dealer, other than those mentioned in clause (a) and clause (b) and whose annual total turnover is rupees one crore and fifty lakhs (1.5 Crores) and above shall pay tax at the rate 39[specified in Schedule-V] of the taxable turnover of the sale of supply of goods, being food or any other article for human consumption or drink, served in restaurants, sweet-stalls, clubs, any other eating houses or anywhere whether indoor or outdoor or by caterers; (d) every dealer, other than those mentioned in clause (a) and clause (b) and whose annual total turnover is more than 41[rupees seven lakhs and fifty thousand] and less than rupees one crore and fifty lakhs (1.5 Crore) shall pay tax 40[at the rate of five percent (5%)] of the taxable turnover of the sale or supply of goods being food or any 38. Substituted by Act No.4 of 2009. 39. Substituted by Act No.9 of 2010. 40. Substituted by Act No. 12 of 2012. 41. Substituted by Act No. 13 of 2012. other article for human consumption or drink served in restaurants, sweet-stalls, clubs, any other eating houses or anywhere whether indoor or outdoor or by caterers. Explanation :- For the purposes of the computing the total turnover under this sub-section, the sales turnover of all business units in common premises sharing the common kitchen or common employees shall be added to the sales turnover of the business unit having higher turnover:] 42 [Provided that tax at the rate mentioned in the Schedules against those goods shall be paid, where the eating establishments mentioned above, sell packaged items with Maximum Retail Price across the counter: Provided further that no tax is payable by the hostels whether attached to educational institutions or run by charitable organizations, where such institutions and organizations charge less than Rs.1000/- (Rupees one thousand only) per student per month towards mess charges.] 43[(10) (a) Notwithstanding anything contained in the Act or any other law for the time being in force, every person who, for an agreed commission brokerage, buys or sells on behalf of any principal who is a resident of the State shall be liable to tax under this Act at the rate or rates leviable thereunder in respect of such purchase or sale, notwithstanding that such principal is not a dealer or that the turnover of purchase or sale relating to such principal is less than the minimum specified in sub-sections (2), (3) and (4) of section 17: 42. Added by Act No.5 of 2007. 43. Added by Act No.28 of 2008. 44 [Provided that the agent selling agricultural produce on behalf of the agriculturist principal, shall be exempted from payment of tax subject to such conditions as may be prescribed;] (b) The principal shall not be liable to tax on his turnover in respect of which the agent is liable to tax under clause (a) and the burden of proving that the turnover has been subjected to tax at the hands of his agent under the said clause shall be on such principal.] 44[(11) Every dealer, who is engaged in the integrated activity of printing and supplying the printed materials may, in lieu of the amount of tax payable under the Act, opt to pay by way of composition an amount of tax 45[at the rate of five percent (5%)] on sixty percent (60%) of the total value of such supplies received or receivable, irrespective of the fact whether such supplies involve sale or works contract or job work subject to such conditions as may be prescribed.] 5. Nothing contained in the Act shall be deemed to impose or authorise the imposition of a tax on the sale or purchase of any goods, where such sale or purchase takes place,- Act not to apply to sales or purchases outside the State, in the course of import or export, etc., (a) outside the State; or (b) in the course of the import of the goods into, or export of the goods out of the territory of India; or (c) in the course of inter-State trade or commerce. Explanation:- The provisions of Chapter II of the Central Sales Tax Act, 1956, shall apply for the purpose of Central Act 74 of 1956. 44. Added by Act No.21 of 2011. 45. Substituted by Act No. 12 of 2012. determining when a sale or purchase takes place in the course of inter-State trade or commerce or outside a State or in the course of import or export. Tax on packing material. 6. Where goods sold or purchased are contained in containers or are packed in any packing material liable to tax under the Act, the rate of tax applicable to such containers or packing material shall, whether the price of the containers or packing material is charged for separately or not, be the same as the rate of tax applicable to such goods so contained or packed, and where such goods sold or purchased are exempt from tax under the Act, the containers or packing material shall also be exempted. Exemptions. 7. The goods listed in Schedule I to the Act shall be exempt from tax under the Act. Exemption of Tax on sale of goods for certain purposes to an unit located in any Special Economic Zone. 46[7-A. Notwithstanding anything contained in this Act, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer to a registered dealer for the purpose of setting up operation, maintenance, manufacture, trading, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as packing material or packing accessories in an unit located in any Special Economic Zone or for development, operation and maintenance of Special Economic Zone by the developer of the Special Economic Zone, if such registered dealer has been authorized to establish such unit or to develop, operate and maintain such Special Economic Zone by the authority specified by the Central Government in this behalf.] Zero-rated sales. 8. Subject to the conditions in sections 9 and 13 of the Act, the following shall be zero-rated sales for the purpose of the Act and shall be eligible for input tax credit,- 46. Inserted with marginal heading by Act No.28 of 2008. (a) sale of taxable goods in the course of inter-State trade and commerce falling within the scope of section 3 of the Central Sales Tax Act, 1956; (b) sale of goods falling within the scope of sub-sections (1) and (3) of section 5 of the Central Sales Tax Act, 1956; 47[(c) [XXX]] 48[(d) the sale transactions of Soya Bean Deoiled Cake.] de 9. Every dealer, who is liable to pay tax on the sale of Input tax credit for goods specified in Schedule VI, shall be eligible for input tax dealers for goods in Schedule VI. credit subject to the conditions in secti in den 13 of the Act and in the manner prescribed. 10. (1) Any dealer who is not registered or does not, opt to Turnover Tax. be registered as VAT dealer shall not be entitled to claim input tax credit for any purchase, and shall not be eligible to issue a tax invoice. (2) Any dealer who is registered as a VAT dealer shall not be liable to Turnover Tax from the effective date of such registration. 11. (1) Subject to sub-section (2), the VAT payable on a Calculation of Tax sale liable to VAT shall be calculated by applying the rate of payable. tax specified in the Schedules, on the sale price of goods. (2) Where the sale price of goods is inclusive of VAT, the amount of VAT shall be determined in accordance with the formula prescribed. 47. Omitted by Act No.28 of 2008. 48. Added by G.O.Ms.No.32, Revenue (C.T.II) Department, dated 15.10.2014. (3) Where a dealer is liable to pay turnover tax under sub section (2) of section 4, the tax shall be calculated by applying the rate of Turn over Tax specified therein on the taxable turnover. VAT payable. 12. The VAT payable by a VAT dealer or VAT credit or refund due to a VAT dealer for a tax period shall be calculated in accordance with the formula prescribed. Credit for input tax. 13. 49[(1) Subject to the conditions, prescribed if any, an input tax credit shall be allowed to the TVAT dealer for the tax charged and paid by the seller in respect of all purchases of taxable goods, made by the purchaser VAT dealer during the tax period, if such goods are purchased within the State from a registered VAT dealer for the purpose of,- dičla, (i) Resale by him within the State; or use as input in the manufacturing or processing of goods in the State; or (ii) Use as containers, labels and other materials for packing of goods in the State; or (iii) Use as capital goods in the manufacture of taxable goods; or Central Act 74 of 1956. (iv) Sale in the course of inter-State trade or commerce falling under sub-section (1) of the Central Sales Tax Act, 1956: Provided that no input tax credit shall be allowed in respect of the tax paid on the purchase of goods specified in Schedule - VI and input tax credit, if already allowed, shall be reversed in the manner, as may be prescribed. 49. Substituted by Act No.4 of 2015. (1-A) Notwithstanding anything contained in this section, where any registered dealer has sold goods at a price lesser than the price of the goods purchased by him, the amount of the input tax credit shall be restricted to the amount of output tax.] (2) (a) A dealer registered as a VAT dealer on the date of commencement of the Act, shall be entitled to claim for the sales tax paid under Telangana General Sales Tax Act, 1957 5º[on the stock held in any form in the State] on the date of commencement of the Act subject to the conditions and in the manner as may be prescribed: de' Provided that such goods should have been purchased from 01-04-2004 to 31-03-2005 and are goods eligible for input tax credit. dia (b) Subject to the conditions if any, prescribed, input tax credit shall be allowed to a VAT dealer on registering as VAT dealer if any input tax is paid or payable in respect of all purchases of taxable goods, where such goods are for use in the business as VAT dealer, provided the goods are in stock on the effective date of registration and such purchase occurred not more than three months prior to such date of registration. (3) A VAT dealer shall be entitled to claim- (a) input tax credit under sub-section (1), on the date the goods are received by him, provided he is in possession of a tax invoice; (b) input tax credit or sales tax credit under sub-section (2) on the date of registration, provided he is in possession of documentary evidence therefor. 50. Substituted by Act No.34 of 2006. Act VI of 1957. (4) A VAT dealer shall not be entitled for input tax credit or sales tax credit in respect of the purchases of such taxable goods as may be prescribed. (5) No input tax credit shall be allowed on the following,- (a) works contracts where the VAT dealer pays tax under the provisions of clauses (b) 51[XXX] and (d) of sub-section (7) of section 4; (b) transfer of a business as a whole; Indiatocept (c) sale of exempted goods except when such goods are sold in the course of export territory of India; (d) exempt sale; (e) transfer of exempted goods on consignment basis or to branches of the VAT dealer outside the State otherwise than by way of sale; 52[(f) the purchase of any goods by an agent for supply of such goods to his resident principal;] 53[(g) the transactions on which VAT dealer pays tax under sub-section (8A) 54[or sub-section (8B)] of section 4 of the Act; (h) the supply or sale of goods, on which a VAT dealer pays tax under clause (b) and (d) of sub-section (9) of section 4 of the Act.] 51. Omitted by Act No.21 of 2011. 52. Added by Act No.28 of 2008. 53. Added by Act No.4 of 2009. 54. Inserted by Act No.21 of 2011. 55[(i) transactions on which tax is paid or payable under sub-section (11) of section 4.] 56[(5-A) Notwithstanding anything contained in sub-section (5), the resident principal, who receives the goods purchased on his behalf by his agent, is eligible to claim input tax credit on such goods subject to the possession of a declaration in the Form, as may be prescribed.] (6) The input tax credit for transfer of taxable goods outside the State by any VAT dealer otherwise than by way of sale shall be allowed for the amount of tax 57 five percent (5%).] an excess Of (7) Where any VAT dealer pays tax under clause (a) of sub-section (7) of section 4, the input tax credit shall be limited to 58[75%] of the related input tax. sed 4 (8) Where goods purchased by a VAT dealer are partly for his business use and partly for other than his business use the amount of the input tax credit shall be limited to the extent of input tax that relates to the goods used in his business. (9) A Turnover Tax dealer or a casual trader shall not be entitled to claim input tax credit. (10) Any dealer covered by Explanations III & IV of clause (10) of section 2 shall not be eligible for input tax credit against or relatable to sale of un-serviceable goods or scrap, surplus, old, obsolete or discarded material or waste products whether by auction or otherwise. 55. Added by Act No.21 of 2011. 56. Inserted by Act No.28 of 2008. 57. Substituted by Act No. 12 of 2012. 58. Substituted by Act No.21 of 2011. (11) Any VAT dealer who purchases any taxable goods from a dealer covered under sub-section (10) above, shall be eligible for input tax credit on production of documentary evidence that tax has been charged. Tax invoices. 14. A VAT dealer making a sale liable to tax to another VAT dealer shall issue at the time of sale, a tax invoice in such form as may be prescribed. Power of State Government to grant refund of tax. 15. (1) The Government may, if it is necessary so to do in the public interest and subject to such conditions as it may impose, by a notification provide for grant of refund of tax paid to any person, on the purchases effected by him and specified in the said notification. (2) Any notification under sub-section (1) may be issued so as to be retrospective to any day not earlier than the appointed day and such Notification shall take effect from the date of its publication in the Gazette or such other earlier or later date as may be mentioned therein. (3) An application for refunds shall be made in duplicate to the Commissioner within a period of six months from the date of purchase or as the Government may prescribe in the notification and it shall be accompanied by the purchase invoice in original. Burden of proof. 16. (1) The burden of proving that any sale or purchase effected by a dealer is not liable to any tax or is liable to be taxed at a reduced rate or eligible for input tax credit shall lie on the dealer. (2) Where a dealer issues or produces a false bill, voucher, declaration, certificate or other document with a view to support or make any claim that a transaction of sale or purchase effected by him or any other dealer, is not liable to tax or liable to be taxed at a reduced rate, or eligible for input tax credit is guilty of an offence under section 55 of the Act. CHAPTER - IV REGISTRATION 17. (1) Every dealer other than a casual trader shall be Registration of liable to be registered in accordance with the provisions of Dealers. the Act. (2) Every dealer commencing business and whose estimated taxable turnover for twelve consecutive months is more than 59[Rs.50,00,000 (rupees fifty lakhs only)] shall be liable to be registered as a VAT dealer before the commencement of business. 60[(3) Every dealer whose taxable turnover in the twelve preceding months exceeds 59 [Rs.50,00,000 (rupees fifty lakhs only)] shall be registered as a VAT dealer]. (4) Every dealer whose taxable turn over during the period from 1st January 2004 to 31st December 2004 is more than Rs.40,00,000 (rupees forty lakhs only) shall be liable to be registered as a VAT dealer. (5) Notwithstanding anything contained in sub-sections (2), (3) and (4), the following classes of dealers shall be liable to be registered as VAT dealers irrespective of their taxable turnover namely,- (a) every dealer importing goods in the course of business from outside the territory of India; 59. Substituted by Act No.13 of 2012. 60. Substituted by Act No.4 of 2009. Central Act 74 of 1956. (b) every dealer registered or liable to be registered under the Central Sales Tax Act, 1956, or any dealer making purchases or sales in the course of inter-state trade or commerce or dispatches any goods to a place outside the State otherwise than by way of sale; (c) every dealer residing outside the State but carrying on business within the State and not having any permanent place of business; (d) every dealer liable to pay tax on goods listed in Schedule VI; de (e) every commission agent, broker, delcredere agent, auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling, supplying or distributing goods 61[on behalf of any principal or principals] 62[except the agent, selling agricultural produce on behalf of agriculturist principals;] (f) every dealer availing sales tax deferment or sales tax holiday; (g) every dealer executing any works contract exceeding 63[Rs.7,50,000 (Rupees seven lakhs and fifty thousand only)] for the Government or local authority or every dealer opting to pay tax by way of composition on works contract; 64[(h) every dealer liable to pay tax under sub-section (9) of section 4 of the Act.] 61. Substituted by Act No.28 of 2008. 62. Added by Act No.21 of 2011. 63. Substituted by Act No.13 of 2012. 64. Added by Act No.10 of 2006. 65[(i) every dealer opting to pay tax under sub-section (8A) of section 4.] (6) (a) any dealer effecting sale of goods liable to tax under the Act and who is not otherwise liable to register may also opt for registration as a VAT dealer and such registration shall be subject to such conditions as may be prescribed; (b) any dealer intending to effect sale of goods liable to tax under the Act, and who is not otherwise liable to register, may also opt for registration as a VAT dealer and such registration shall be subject to such conditions as may be prescribed. (7) Every dealer not registered or not liable for registration as VAT dealer and who sells any goods and has a taxable turnover exceeding 66[Rs.7,50,000 (Rupees seven lakhs and fifty thousand only)] in a period of twelve consecutive months or has reason to believe that his taxable turnover in a period of twelve consecutive months will exceed 66[Rs.7,50,000 (Rupees seven lakhs and fifty thousand only)] shall apply for registration as TOT dealer in the manner prescribed. (8) Subject to the provisions contained in sub-section (5), every dealer who held a registration certificate under the Andhra Pradesh General Sales Tax Act, 1957 shall be deemed to be registered as TOT dealer under the Act provided the dealer had a taxable turnover exceeding Rs.5,00,000 (Rupees five lakhs only) but below Rs.40,00,000 (Rupees forty lakhs only) during the period from 1st January 2004 to 31st December 2004 and had not discontinued his 65. Added by Act No.4 of 2009. 66. Substituted by Act No.13 of 2012. business or his registration certificate had not been cancelled during that period. (9) Where a registered dealer dies or transfers or otherwise disposes of his business in whole, the successor or the transferee, unless already in possession of registration shall be liable to be registered under the Act. (10) An application for registration shall be made to the authority prescribed in such manner and within such time as may be prescribed. (11) If the authority to whom an application is made under sub-section (10) is satisfied that the application is bonafide and is in order and in conformity with the provisions of the Act and the rules made thereunder, he shall register the applicant and grant him a certificate of registration in the prescribed form. Tax payer Identification Number and General Registration Number. 18. (1) The authority prescribed shall issue a registration identification number known as: (a) Taxpayer Identification Number (TIN) to a dealer registered as VAT dealer; (b) General Registration Number (GRN) to a dealer registered as TOT dealer. (2) Every VAT dealer or TOT dealer who is allotted a Taxpayer Identification Number (TIN) or General Registration Number (GRN) shall indicate such number on all returns, forms, tax invoices or any other documents used for the purposes of the Act. 19. (1) Any VAT dealer or TOT dealer registered under section 17 of the Act shall apply for cancellation or amendment of registration, in such circumstances as may be prescribed. Cancellation and Amendment of Registration. (2) The authority prescribed may, for good and sufficient reasons cancel, modify or amend any certificate of registration issued by him: Provided that no order shall be passed under this sub-section without giving the dealer a reasonable opportunity of being heard. CHAPTER - V PROCEDURE AND ADMINISTRATION OF TAX redu Cismo, alot Ode Returns and Assessments 20. (1) Every dealer registered under section 17 of the Act shall submit such return or returns, along with 67[the Annexures as may be prescribed and the] proof of payment of tax in such manner, within such time, and to such authority as may be prescribed. (2) If a return has been filed within the prescribed time and the return so filed is found to be in order, it shall be accepted as self-assessment subject to adjustment of any arithmetical error apparent on the face of the said return. (3) (a) Without prejudice to the powers of the authority prescribed under sub-section (3) of section 21, every return shall be subject to scrutiny to verify the correctness of calculation, application of correct rate of tax and input tax credit claimed therein and full payment of tax payable for such tax period; 67. Inserted by Act No.4 of 2015. Returns and Self assessments. (b) if any mistake is detected as a result of such scrutiny made as specified in clause (a), the authority prescribed shall issue a notice of demand in the prescribed form for any short payment of tax or for recovery of any excess input tax credit claimed. (4) Every dealer shall be deemed to have been assessed to tax based on the return filed by him, if no assessment is made within a period of 68[six years] from the date of filing of the return. Assessments. 21. (1) Where a VAT dealer or TOT dealer fails to file a return in respect of any tax period within the prescribed time, the authority prescribed shall assess the dealer for the said period for such default in the manner prescribed. Central Act 38 of 1949. 69 [(1-A) (a) Every VAT dealer shall within such time as may be prescribed, furnish certificates of 'Annual Consolidated Statement of Turnovers', along with other statements as may be prescribed, duly certified by a Charted Accountant within the meaning of the Charted Accountants Act, 1949 or Sales Tax Practitioner, enrolled with the Commercial Taxes Department: Provided that the VAT dealer, whose turnover is less than Rs. 50 lakhs per annum, may opt to submit the statements as may be prescribed, by self certification, or certified by the Sales Tax Practitioner, enrolled with the Commercial Taxes Department; (b) Any VAT dealer, who fails to furnish the certificates along with other statements under clause (a) on or before the prescribed date in the manner prescribed shall be liable to pay penalty as may be prescribed;] 68. Substituted by Act No.26 of 2017. 69. Inserted by Act No.26 of 2017. (2) If a VAT dealer or TOT dealer submits a return along with evidence for full payment of tax, subsequent to the prescribed time the assessment made under sub-section (1) shall be withdrawn without prejudice to any interest or penalty leviable. (3) Where the authority prescribed is not satisfied with a return filed by the VAT dealer or TOT dealer or the return appears to be incorrect or incomplete, he shall assess to the best of his judgment within 7º[six years] of due date of the return or within 7º[six years] of the date of filing of the return whichever is later. de (4) The authority prescribed may, based on any information available or on any other basis, conduct a detailed scrutiny of the accounts of any VAT dealer or TOT dealer and where any assessment as a result of such scrutiny becomes necessary, such assessment shall be made within a period of 7º[six years] from the end of the period for which the assessment is to be made. (5) Where any willful evasion of tax has been committed by a dealer, an assessment shall be made to the best of his judgment by the authority prescribed within a period of six years of date of filling of the return or the first return relating to such offence. (6) The authority prescribed may reassess, where an assessment was already made under sub-sections (1) to (5) and such assessment understates the correct tax liability of the dealer, within a period of 7º[six years] from the date of such assessment. 70. Substituted by Act No.26 of 2017. 1[(7) Where an assessment has been deferred by the Commissioner under sub-section (5) of section 32 or as the case may be, by the Appellate Tribunal under the proviso to sub-section (4) of section 33 on account of any stay granted by the Appellate Tribunal, or as the case may be the Andhra Pradesh High Court or Supreme Court respectively, or where an appeal or other proceedings is pending before the Appellate Tribunal or the High Court or Supreme Court involving a question of law having a direct bearing on the assessment in question, the period during which the stay order was in force or such appeal or proceedings was pending shall be excluded in computing the period of 72[six years] for the purpose of making the assessment.] (8) Where an assessment made has been set aside by 71 [any Court or as the case may be the Appellate Tribunal] the period between the date of such assessment and the date on which it has been set aside shall be excluded in computing the period of 72[six years] for making any fresh assessment. Payment and Recovery of Tax Due date for Payment of Tax. 22. (1) The tax payable in respect of a tax period along with a return and the tax assessed under the Act shall be payable in such manner and within such time as may be prescribed. (2) If any dealer fails to pay the tax due on the basis of return submitted by him or fails to pay any tax assessed or penalty levied or any other amount due under the Act, within the time prescribed or specified therefor, he shall pay, in addition to the amount of such tax or penalty or any other amount, 71[interest calculated at the rate of one and quarter 71. Substituted by Act No.21 of 2011. 72. Substituted by Act No.26 of 2017. (1.25%) percent per month] for the period of delay from such prescribed or specified date for its payment. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days. 73[(3) The Central Government or the State Government or an industrial, commercial or trading undertaking of the Central Government or of the State Government or a local authority or a statutory body or a company registered under the Companies Act, 1956 or any other person notified by the Commissioner, shall deduct from out of the amounts payable by them to a dealer in respect of works contract executed for them, an amount calculated at such rate as may be prescribed and such contractee deducting tax at source shall remit such amount in the manner prescribed: VIEL TOUS Provided that no deduction shall be made from any amounts paid as consideration to any sub-contractor if tax was already deducted by the contractee. 74[(3-A) Notwithstanding anything contained in sub-section (3), in the case of a dealer, executing works contract for Government or Local Authority, wherever tax 75[at the rate of five percent (5%)] is added separately to the estimated value of the contract, such tax shall be collected by the contractee and remitted in the manner as may be prescribed.] 76[(3-B) Every Film Processing Laboratory by whatever name it is called shall collect tax at source at the rates as may be prescribed for this purpose, from the film producers opting for payment of tax under sub-section (8A) of section 73. Sub-sections (3) & (4) substituted by Act No.5 of 2007. 74. Inserted by Act No.28 of 2008. 75. Substituted by Act No.12 of 2012. 76. Inserted by Act No.4 of 2009. 4 and remit the tax so collected on the immediate next working day from the date of such collection in the manner as may be prescribed.] 77[(3-C) The Food Corporation of India and the Civil Supplies Corporation, Telangana Unit, shall deduct tax at source on the sale of rice effected by the rice millers to them at the rates prescribed under the relevant Schedule under the Act and remit the tax so collected to the State Government within twenty (20) days from the date of deduction in the manner as may be prescribed.] 78[(3-D) The Distilleries and Breweries, shall collect tax at source on the sale of old empty bottles effected by the dealers to them at the rates prescribed under the relevant Schedule under the Act and remit the tax so collected to the State Government on the immediate next working day from the date of collection in the manner as may be prescribed.] 79[(3-E) In every lease transaction, that is liable to tax under sub-section (8) and sub-section (8-B) of section 4 of the Act, the person who is a transferee or lessee and who is responsible for making payment towards lease amount to a person, who is a transferor or lessor in pursuance of lease contract shall deduct tax on the lease consideration due thereon at the rate specified in sub-section (8) or as the case may be, sub-section (8-B) of section 4 of the Act and shall remit the tax so collected to the State Government on the immediate next working day from the date of collection in the manner as may be prescribed.] 8º[(3-F) Any person or authority, notified by the Commissioner, shall deduct from out of the amounts 77. Substituted by Act No.11 of 2016. 78. Inserted by Act No.4 of 2015. 79. Inserted by Act No.10 of 2016. 80. Inserted by Act No.9 of 2017. payable by him to a dealer in respect of purchase of any goods from such dealer, an amount at the rate specified in such notification. The notified person or authority, deducting such tax at source, shall remit it in the manner as may be prescribed.] (4) Any authority or person deducting any sum in accordance with 81 [sub-section (3) or sub-section (3-A) or sub-section (3-B)] 82[or sub-section (3-C) or sub-section (3-D)] 83[or sub-section (3-E)] 84[or sub-section (3-F)] shall pay within the prescribed time, the sum so deducted to the credit of the State Government. If the authority or the person does not deduct or after deducting fails to pay tax as required by this section, he shall be deemed to have not paid the tax within the time under the provisions of the Act. In such case all the provisions of the Act including the provisions relating to interest shall apply mutatis mutandis to such unpaid tax.] (5) Where a VAT dealer paid entry tax on any goods under 85[Telangana Entry Tax on Entry of Motor Vehicles into Local Areas Act, 1996] and 85[Telangana Tax on Entry of Goods into Local Areas Act, 2001] such amount shall be adjusted against VAT payable provided the credit for input tax is not restricted under 86[XXX] section 13 of the Act. (6) (a) The Deputy Commissioner, on an application, made by a VAT dealer or any other dealer, permit the payment of any tax, penalty or other amount due under the Act in such instalments within such intervals and subject to