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10A. Levy of purchase tax on certain goods.

10A. Levy of purchase tax on certain goods.

(1)Notwithstanding anything to the contrary contained in this Act, every dealer who in

course of his business purchases goods as may be notified by the State

Government, shall be liable to pay tax at the rate of four percent on the purchase

price of the notified goods.

Provided that no tax under this section shall be payable on the purchases of such

goods, if the goods are consumed in the process of manufacture as may be

specified by the State Government, within the State.

(2) No tax under this section shall be levied in respect of the purchases made from a

registered dealer by whom tax under this section is payable and who has declared

by putting a statement on the sale bill that tax under this section is payable by him

on such goods.

(3) The tax under this section shall be levied in respect of a dealer from the date on

which aggregate of the purchase prices of goods notified exceeds rupees five crore

in the first instance, in a year.

Provided that the following purchase prices of notified goods shall not be included in

the aggregate of the purchase prices for determination of liability to pay tax under

this section, -

(i) purchase price of notified goods purchased from outside the state ;

(ii) purchase price of notified goods which have been sold against declaration

under sub-section (6) ;

(iii) purchase price of notified goods which have been purchased before the date

of notification under sub-section (1);

(iv) purchase price of notified goods which have been consumed after purchase, in

the process of manufacture as specified under proviso to sub-section (1).

(4) Every dealer who is liable to pay tax under sub-section (1) shall continue to be so

liable until the expiry of two consecutive years during which aggregate of purchase

prices of the notified goods has not exceeded the limits specified in sub-section (3)

and on the expiry of such period his liability to pay tax under this section shall cease.

(5) Every dealer who is engaged in the manufacture as specified under proviso to subsection

(1) shall obtain a certificate of recognition in the prescribed manner from the

prescribed authority.

(6) If a dealer, who is liable to pay tax under this section, sells the notified goods to a

dealer, who holds a certificate of recognition, against a declaration issued in the

manner and form as may be prescribed, the selling dealer shall be entitled to claim

deduction of the purchase price of the goods sold and such purchase price shall not

be included in the aggregate of purchase prices.

(7) If the dealer holding certificate of recognition purchases the notified goods and

instead of using such goods in the manufacture as specified in proviso to subsection

(1), sells or disposes off such goods in any other manner, he shall be liable

to pay tax at the rate of 4 percent on the purchase price of those goods.

(8) The State Government may, by notification, exempt whether prospectively or

retrospectively any transactions, as it may deem fit, from payment of tax under this

section for such period as may be specified in the notification. 23.

(with effect from 01.08.2009)

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