ANDHRA PRADESH RURAL DEVELOPMENT CESS ACT, 1996
11 of 1996
26th August, 1996
An Act to provide for the levy and collection of cess for the rural development in the state and to provide for the matters connected therewith or incidental thereto. Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the forty-seventh of the Republic of India as follows
Section 1 Short title, extent and commencement
(1) This Act may be called the Andhra Pradesh Rural Development Cess Act, 1996.
(2) It extends to the whole of the State of Andhra Pradesh.
(3) It shall be deemed to have come into force with effect on and from the 30th December, 1995.
Section 2 Definitions
(1) In this Act, unless the context otherwise requires,
(a) "Board" means the Andhra Pradesh Rural Development Board established under Section 3;
(b) "Cess" means cess levied and collected under Section 7;
(c)"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, and includes,
(i) a miller,
(ii) a commission agent, a broker, a delcredere agent, an auctioner or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing of goods specified in the Schedule on behalf of any principle or principles.
(d) "Fund" means the Andhra Pradesh Development Fund constituted under Section 8;
(e) "Government" means the Government of Andhra Pradesh;
(f) "Goods" means the goods specified in the schedule;
(g) "Miller" means a person who engages himself in milling operations in any rice mill, oil mill, dall mill, saw mill, ginning mill or a decorticating mill and includes a person who, or the authority which has the ultimate control over the affairs of such mill, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;
(h) "Notification" means a notification published in the Andhra Pradesh Gazette and the word "notified" shall be construed accordingly;
(i) "Prescribed" means prescribed by rules made under this Act;
(j) "Processing" means giving treatment or a series of treatment to the goods to make them fit for use or consumption and includes manufacturing out of such goods;
(k) "Regulations" means regulations made under this Act;
(l) "Rural area" means area other than the
(i) local area included in a municipality;
(ii) local area constituted to be a city;
(iii) area declared as an urban area; and
(iv) place declared to be a cantonment under the Cantonments Act, 1994(Central Act 2 of 1994.)
(m) "Schedule" means a Schedule appended to this Act.
Section 3 Establishment of Board, its constitution, powers and duties
(1) The Government may, by notification for exercising powers conferred on and performing the functions and duties assigned to the Board by or under this Act establish the Andhra Pradesh Rural Development Board.
(2) The Board established under sub section (1) shall consists of a Chairman and the following members namely:-
(a) Chief Secretary to the Government shall be the Chairman;
(b) Principal Secretary to Government, Revenue Department, Member.
(c) Secretary to Government, Food and Civil Supplies Department, Member
(d) Secretary to Government, Finance and Planning Department, Member.
(e) Secretary to Government, Panchayat Raj and Rural Development Department, Member.
(f) Secretary to Government, Transport, Roads and Buildings Department, Member.
(g) Commissioner, Commercial Taxes, Member, and
(h) Director, Civil Supplies, Ex-Officio Member, Convenor.
(3) The Board constituted under sub section (2), shall be a body corporate having perpetual succession and a common seal with powers, subject to the provisions of this Act, to acquire and hold property and shall by the said name sue and be sued.
Section 4 Superintendence of the Board
The Government shall exercise superintendence and control over the Board.
Section 5 Power to make regulations
Subject to the rules made under this Act, the Board may make regulations for transacting business at its meeting and for such other matters as may be prescribed.
Section 6 Annual statement of accounts
(1) The Board shall submit to the Government an annual statement of accounts showing the income and expenditure of the Board for the ensuing year duly passed by it for approval of the Government in such form and in such manner as may be prescribed.
(2) The Government shall approve such statement of accounts and return to the Board within such period as may be prescribed.
Section 7 Levy and collection of cess
(1) There shall be levied and collected by the Government a cess at the rate of five percent on the advalorem on the quantum of purchase of goods.
(2) The cess levied under sub section (1) shall be collected in such manner as may be prescribed.
(3) If any dealer fails to pay the amount of the cess levied under sub section (1), he shall in addition to the amount of cess be liable to pay interest on the amount of cess due from him at the rate of one rupee and fifty paise for every one hundred rupees or part thereof; for each month or part thereof, from the date of default.
(4) The cess levied under sub section (1) or interest payable under sub section (2) shall be collected by the Commercial Taxes Department and shall be credit to the Fund constituted under Section 8 of this Act.
(5) If the cess is levied and collected this section at first point of purchase of the goods no cess shall be levied at subsequent points of sale or purchases.
Section 7A Collection of cess by deduction from the amounts payable to dealers
(1) Notwithstanding anything contained in this Act, a Department of the Central Government or the State Government or an Industrial Commercial or trading undertaking of the Central Government or the State Government, or a local authority or a statutory body, or a company registered under the Companies Act, 1956 or any other person which, the Government may notify from time to time shall deduct from out of the amounts payable by them to a dealer in respect of goods purchased by them, an amount as per the calculation prescribed:
Provided that in the case of Food Corporation of India and Andhra Pradesh Civil Supplies Corporation, whenever rice is purchased from the dealers, the Rural Development Cess component on the corresponding paddy shall be the amount deductable under this sub-section.
(2) The cess deducted under sub-section (1) shall be remitted to Government in such manner and within such time as may be prescribed.
(3) The authority or person making deduction under sub-section (1) shall furnish to the dealer from whom such deduction is made, a certificate, containing such particulars as may be prescribed.
(4) If any such authority or person defaults to deduct the cess specified under sub-section (1) or defaults to remit the amount so deducted or any portion thereof as required under sub-section (2), it shall be liable to pay, in addition to the amount deductable, interest at the rates specified in sub-section (3) of Section 7 of the Act on the amount with respect to which the default has taken place from the date of default to the date on which such amount is remitted.
(5) The mode of deduction under sub-section (2) shall be without prejudice to any other mode of recovery of cess due under this Act from the dealer liable to pay Rural Development Cess.
Section 8 Constitution of Fund
(1) There shall be constituted a Fund to be called "The Andhra Pradesh Rural Development Fund" which shall vest in the Board.
(2) The audit of the Fund shall be done by the Director appointed under the provisions of the Andhra Pradesh State Audit Act, 1989.
Section 9 Purpose for which the Fund may be applied
The Fund shall be applied for the purposes herein specified
(i) to provide and accelerate comprehensive rural development including the construction of rural roads and bridges;
(ii) to augment storage facilities for storing agricultural produce; and
(iii) for maintaining and strengthening of Public Distribution System.
Section 10 Punishments
Any dealer who contravenes the provisions of this Act or the rules made thereunder shall be punishable with a fine which shall not be less than five hundred rupees but which may extend to two thousand rupees.
Section 11 Board of jurisdiction
No suit, prosecution or other legal proceeding shall lie against the Government or any officer of the Government or Board in respect of anything which is in good faith done or intended to be done in pursuance of this Act or rules made thereunder or any order issued thereunder.
Section 12 Power to make rules
(1) The Government may by notification make rules to carry out the purposes of this Act.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for:
(a) the preparation and submission for sanction of an estimate of annual income and expenditure;
(b) period within which the amount is to be credited to the Fund under Section 8; and
(c) any other matter which has to be or may be prescribed.
(3) Every rule made under this Act shall be laid before the House of the State Legislature, if it is in session and if it is not in session, in the session immediately following for a total period of fourteen days which may be comprised in one session or in two successive sessions and if, before the expiry of the session in which it is so laid or the successive session aforesaid, the House agrees in making any modification in the rule or in the annulment of the rule, the rule shall, from the date on which the modification or annulment is notified have effect only in such modified form or shall stand annulled as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done under that rule.
Section 13 Power to amend Schedule
(1) The Government may, by notification alter, add to or cancel any of the schedule.
(2) Where a notification has been issued under sub section (1), there shall, unless the notification is in the meantime rescind, be introduced in the Legislative Assembly, as soon as may be, but in any case during the next session of the Legislative Assembly following the date of the issue of the notification, a Bill on behalf of the Government, to give effect in the alteration, addition, or cancellation, as the case may be, of the schedule specified in the notification, and the notification shall cease to have effect when such Bill becomes law, whether with or without modification, but without prejudice to the validity of any thing previously done thereunder:
Provided that if the notification under sub section (1) is issued when the Legislative Assembly is in session, such a Bill shall be introduced in the Legislative Assembly during that Session:
Provided further that where for any reason a Bill as aforesaid does not become law within six months from the date of this introduction in the Legislative Assembly, the notification shall cease to have effect on the expiration of the said period of six months.
(3) All references made in this Act, to any of the items in the schedule shall be construed as relating to the items in the schedule as for the time being amended in exercise of the powers conferred by this section.
Section 14 Power to Assess, re assess, collect and enforce payment of cess
(1) Subject to the other provisions of this Act and the rules made thereunder the authorities for the time being empowered to assess, re-assess, collect and enforce payment of any tax under the Andhra Pradesh General Sales Tax Act, 1957 shall, assess, re-assess, collect and enforce payment of cess including any interest payable by a dealer under this Act, and for this purpose they may exercise all or any of the powers they have under the Andhra Pradesh General Sales Tax, 1957, and the provisions of such law, including provisions relating to returns, provisional assessments, advance payment of imposition of the tax liability of a person carrying on business on the transferee of, successor to, such business, transfer of liability of any firm or Hindu undivided family to pay tax in the event of dissolution of such firm a partition of such family, recovery of tax from third parties, appeals, reviews, revision, references (refunds, rebates, penalties), (charging or payment of interest) compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly.
(2) All the provisions relating to offences and penalities including the provisions relating to penalities in lieu of prosecution for an offence or in addition to the penalties or punishment for offence under the (Andhra Pradesh General Sales Tax Act, 1957, (Act VI of 1957) shall with necessary modifications apply in relation to the assessment, re-assessment, collection and enforcement of payment of any case required to be collected under this Act or in relation to any process connected with such assessment, re-assessment, collection and enforcement of payment as if the case under this Act were a tax under Andhra Pradesh General Sales Tax Act, 1957.
(3) Every dealer shall submit such return or returns in such manner, within such period and to such authority as may be prescribed.
Section 15 Power to make regulations
(1) The Board, may, from time to time, with the previous approval of the Government, make regulations not inconsistent with this Act, and the rules made thereunder for the purposes of giving effect to the provisions of the Act.
(2) In particular and without prejudice to the generality of the foregoing powers, such regulations may provide for transacting business at the meeting of the Board and for such other matters as may be prescribed.
Section 16 Removal of difficulties
If any difficulty arises in giving effect to the provisions of this Act, the Government may, by Order, make such provisions, including any adaptation or modification of any provision of this Act as appears to the Government to be necessary or expedient for the purpose of removing the difficulty.
Section 17 Repeal of Ordinance 16 of 1996
The Andhra Pradesh Rural Development Ordinance, 1996 is hereby repealed.
SCHEDULE 1 SCHEDULE
SCHEDULE
(Goods liable to pay cess under Section 7)
Sl.No.
Description of Goods
(1)
(2)
1.
Paddy
2.
Cashewnut
RULE:
ANDHRA PRADESH RURAL AND INFRASTRUCTURE DEVELOPMENT CESS RULES, 1996
In exercise of the powers conferred by sub section (1) Section 12 of the Andhra Pradesh Rural Development Ordinance, 1995 (Ordinance No. 2 of 1995), the Government of Andhra Pradesh hereby makes the following rules
Rule 1
These rules may be called the Andhra Pradesh Rural and Infrastructure Development Cess Rules, 1996.
Rule 2
They shall cone into force on the 30th December 1995.
Rule 3
In these rules, unless the context otherwise requires
(a) "Act" means the Andhra Pradesh Rural and Infrastructure Development Cess Act.
(b) "Assessing authority" means the assessing authority under the Andhra Pradesh General Sales Tax Act, 1957.
(c) "Form" means a form appended to these rules.
(d) "Government" means the Government of Andhra Pradesh.
(e) "Month" means a calendar month.
(f) "Ordinance" means the Andhra Pradesh Rural Development Ordinance 1995.
(g) "Section" means a section of the Ordinance.
(h) "State" means the State of Andhra Pradesh. All other words and expressions used but not defined in these rules or the Ordinance shall have the meaning assigned to them in the Andhra Pradesh General Sales Tax Act, 1957 or Andhra Pradesh General Sales Tax Rules, 1957, in so far as they are not inconsistent with the provisions of the Ordinance and the rules.
Rule 4
(1) Every dealer liable to pay cess under the Ordinance shall submit so as to reach the assessing authority on or before the 15th of every month a return in Form RD 1 (in duplicate) showing the total quantity of purchases of goods specified in the Schedule to the Ordinance during the preceding month. The return shall be accompanied by a receipt from a Government or a crossed demand draft in favour of the assessing authority for the full amount of cess payable for the month to which the return relates:-
Provided that where a dealer intends to pay the cess through a crossed cheque, the cheque should be sent so as to reach the assessing authority on or before the 15th day of the month succeeding the month to which the cess relates.
(2) The return in Form RD-1 so filed shall subject to the provisions of sub rule (3) be provisionally accepted.
(3) Where any dealer fails to submit in respect of any month before the due date or if the return submitted appears to be incorrect or incomplete, the assessing authority shall after making such enquiry as he considers necessary and after giving dealer an opportunity of proving the correctness and completeness of the return submitted by him and making such enquiry as he deems necessary, estimate the total quantity of the goods purchases to the best of his judgment and provisionally assess the cess payable for the month and shall serve upon the dealer a notice in Form RD II and the dealer shall pay the sum demanded at the time and in the manner specified in the notice:
Provided that if for any reason the determination of provisional assessment of cess payable for any month is not completed on or before the receipt of the return for the succeeding month the assessing authority may in his discretion provisionally assess in a single order the cess payable for all such months as the case may be and serve upon the dealer a notice in Form RD II and the dealer shall pay the sum demanded within the time and in the manner specified in the notice.
(4) After the close of the year for which the returns have been submitted under sub rule (1) or in the course of the year where a dealer has discontinued business the assessing authority shall if he is satisfied after such scrutiny of the accounts and after such enquiry as he considers necessary, that the return or returns filed are correct and complete finally assess in a single order on the returns the cess payable under the Ordinance.
(5) If on final assessment made under sub rule (4) any cess is found to be due from the dealer after deducting the cess paid by him towards the provisional assessment, the assessing authority shall serve on the dealer notice in Form RD-II and the dealer shall pay the sum demanded in the notice within such time and in such manner as specified therein. If however, any refund of cess is found to be due to the dealer, the assessing authority shall serve on him a notice Form RD-III.
(6) If, for any reason the whole or any part of the quantum of purchase of goods specified in the Schedule of a dealer has escaped assessment to cess or has been under assessed in any year, he assessing authority may after issuing a notice to the dealer and after making such enquiry as the considers necessary within a period of three years from the date on which such order was served on he dealer determine to the best of his judgment the correct quantum of purchase of goods and assess the cess payable on such quantum of purchase of goods.
(7) An assessing authority may, at any time within three years from the date of any order passed by him rectify and arithmetical mistake apparent on the face of the record:
Provided that no such rectification which has the effect of enhancing the assessment shall be made unless the assessing authority has given a notice to the dealer of the intention to do so and has allowed him a reasonable opportunity of being heard.
(8) The powers conferred by sub rules (6) and (7) on the assessing authority may also be exercised by the appellate or revising authority subject to the same limitation and conditions as are applicable in the case of assessing authority.
(9) Notwithstanding anything contained in sub rules (6)(7) and (8) of Rule 4 where an assessment, re assessment, rectification in revision of, an assessment, is made in respect of an assessee or any person, in pursuance or in consequence of or to give effect to any finding or direction contained in an order passed by an appellate or revisional authority or in any order of any court in a proceeding otherwise than by way of appeal or revision under the Ordinance, such assessment, re assessment, rectification in or revision of an assessment shall be made within three years from the date of receipt of such order by the assessing or revising authority as the case may be.
Rule 5
Whoever commits any breach of any of these rules shall on conviction by a Magistrate of the first class be punishable with fine which may extent to five hundred rupees and when the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues.
Rule 6
The provision contained in the Andhra Pradesh General Sales Tax Act 1957 relating to the inspection of books, accounts or documents kept and maintained by the dealer, the entry into any premises at all reasonable times by the Officers duly empowered for the purposes of search for any such books, accounts or documents kept or suspected to be kept in such premises and the seizure of such books, accounts or documents shall so far as may be apply in relation to those matters under this Ordinance.
APPENDIX RD1 FORM RD1
Form of return under Rule 4(1) of the Rural Development Cess Rules, 1996
FORM - RD1
Form of return under Rule 4(1) of the Rural Development Cess Rules, 1996
To
The Deputy Commercial Tax Officer,
I, ................... Son Daughter Wife ............. on behalf of the dealer carrying business known as ........... (dealer name firm name) furnish herewith the statement of the total quantity of purchases of goods during the month of ....................... and ............... ending on ................. and give the following connected particulars:-
1. Registration Certificate No. APGST CST
2. Address of the Dealer
3. Particulars of Payment of Cess
(a) Total cess payable :
(b) Deduct
Adjustment of refund of cess
(c) Net cess payable
(d) Total cess paid
(i) Cheque DD particulars
Number : Date :
Bank : Branch :
(ii) Each (Receipt No.) if paid
Receipt No. Date :
(iii) Challan particulars :
Number : Date :
Name of Treasury :
(iv) Balance Cess payable if any
(c)-(d)
STATEMENT OF COMMODITY WISE CESS AND QUANTITY OF PURCHASES
CommodityDescription Total Quantumof purchasesof goods Exemptedquantum ofpurchases if any Net quantumof purchasesof goods Rate ofcess Cess (1) (2) (3) (4) (5) (6)
DECLARATION
I/We ................. Son Daughter Wife of ........... declare to the best of my our knowledge and belief, the information furnished in the above statement is true and complete.
Place Signature
Date: Status and relationship to the dealer.
APPENDIX RD2 NOTICE OF PROVISIONAL MONTHLY ASSESSMENT AND DEMAND
FORM See Rule 4(4)
FORM RD-2
See Rule 4(4)
NOTICE OF PROVISIONAL MONTHLY ASSESSMENT AND DEMAND
To
(Dealer) Assessment No.
Take notice that you have been provisionally assessed under the Rural Development Ordinance, 1995 to a cess of Rs ........... (Rupees in words) ................... only for the month of ... and (that month those months) you have to pay a further sum of Rs. ............. (Rupees in words) ............. only). This balance of cess shall be paid within thirty days from the date of service of this notice ........... by cheque, demand draft in favour of the undersigned or by remittance into the Government Treasury at .............. failing which the amount will be recovered as if it were an arrear of land revenue and you will be also be liable to interest as provided in Section 7(3) of the Rural Development Ordinance, 1995.
Total quantum of purchases as determined by the assessing authority in respect of;
CommodityDescription Total Quantumof purchasesof goods Exemptedquantum ofpurchases if any Net quantumof purchasesof goods Rate ofcess Cess (1) (2) (3) (4) (5) (6)
Place
Date: Assessing Authority.
APPENDIX RD3 NOTICE OF ANNUAL ASSESSMENT AND REFUND ORDER
FORM-See Rule 4(5)
FORM-RD-3
See Rule 4(5)
NOTICE OF ANNUAL ASSESSMENT AND REFUND ORDER
To
(Dealer)
Take notice that you have been finally assessed under the Rural Development Ordinance Act 1996 to a Cess of Rs. .............. (Rupees) (in words) .... only) for the year ending ........ the total amount of cess paid by you already is Rs. ...... (Rupees (in words)...............only that is Rs. ............. in excess of the Cess due.
2) Out of the above excess a sum of Rs............... will be adjusted towards Cess due from you for the period.
3) The claim for the amount of refund due shall be made in Form RD IV. No such claim made after the lapse of three years from the date of this notice will be allowed. A refund order for the amount of Rs. ............. is enclosed. You should apply to the Government Treasury at ................... for the refund of the sum .................... within three months from the date of issue of this notice failing which the amount will lapse to the Government.
Total quantum of purchase as determined by the assessing authority in respect of :
CommodityDescription Total Quantumof purchasesof goods Exemptedquantum ofpurchases if any Net quantumof purchasesof goods Rate ofcess Cess (1) (2) (3) (4) (5) (6)
Place
Date: Assessing Authority.
APPENDIX RD4 CLAIM FOR REFUND
FORM
(See Rule)
FORM RD-4
CLAIM FOR REFUND
(See Rule)
1. Name of the dealer:
2. If refund is sought in pursuance of an order or assessment;
(i) No. and date of order of assessment.
(ii) Date of notice of final assessment and refund order.
(iii) Date on which the notice of final assessment and refund order was served on the dealer.
(iv) Amount of refund order.
3. If refund is sought in pursuance of an order passed in appeal or revision:
(i) No. and date of order of the appellate or revisional authority
(ii) Date of revised notice of final assessment and order of refund
(iii) Date on which the notice of final assessment and order of refund was served on the dealer.
(iv) Amount of refund due.
Signature of the Authority Representative if any. Signature of Claimant
VERIFICATION
I/We ................ the applicants do hereby declare that what is stated above is true to the best of my our knowledge and belief.
Verified to day the .............. day of ........ 19...
Signature of the Authorised Representative, if any. Signature of the Applicant (s) |
