Short title:-
1. This Act may be called the Gujarat Sales Tax (Amendment and Validation) Act, 2002.
Amendment of section 57A of Gujarat 1 of 1970:-
2. In the Gujarat Sales Tax Act, 1969 (hereinafter referred to as “the principal Act”), in section 57A,-
(i) for clause (c), the following clause shall be and shall be deemed always to have been substituted with effect from the 1st April, 2997, namely:-
“(c) “specified sale price” in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, means such amount as is arrived at by deducting from the amount of valuable consideration paid or payable to a person for execution of such works-contract, the amount representing labour charges for such execution and the price paid or payable for the goods purchased in the course of inter-State trade or commerce or in the course of import into the territory of India for the use in execution of such works contract; and”;
(ii) in clause (d), for the words “ten lakh rupees”, the words “one crore rupees” shall be and shall be deemed always to have been substituted with effect from the 1st day of April, 2002.
Substitution of section 57B of Gujarat 1 of 1970:-
3. In the principal Act, for section 57B, the following section shall be and shall be deemed always to have been substituted with effect from the 1st April, 1997, namely:-
Deduction at source in certain cases:-
“57B. (1) Notwithstanding that the assessment in respect of the specified sales is to be made for a year or part of a year, the tax on such sales shall be payable at source in accordance with the provisions of this section.
(2) Nothing in sub-section (1) shall prejudice the levy of tax on the specified sales under section 7 and 8.
(3) (a) Any person responsible for paying specified sale price to a contractor for carrying out any work in pursuance of a specified works contract, shall at the time of payment of the whole or part of the specified sale price, deduct from such price an amount equal to two paise in a rupee of such payment as a tax on specified sales.
(b) Any person being a contractor responsible for paying specified sale price to a sub-contractor in pursuance of a contract with the sub-contract for carrying out the whole or part of the work undertaken by the contractor in respect of a specified works contract, shall at the time of payment of the whole or part of the specified sale price deduct from such price an amount equal to two paise in a rupee of such payment as a tax on specified sales.
(c) The contractor, or as the case may be, sub-contractor shall furnish the prescribed Statement to the person or, as the case may be, contactor responsible for paying specified sale price and thereupon such person or contractor shall deduct the amount referred to in clause (a) or (b) on the basis of such Statement.
(4) If a person has entered into works contract with a contractor and the contractor has entered into a contract with a sub-contractor entrusting to the sub-contractor for carrying out of the whole or part of the work (hereinafter referred to as “the sub-contract”) relating to the said works contract and the contractor has at the time of payment of the specified sale price in respect of the said sub-contract to the sub-contractor deducted an amount as a tax under clause (b) of sub-section (3) and has paid the same under sub-section (7), then notwithstanding anything contained in clause (a) of the said sub-section (3), the person shall not at the time of payment of the specified sale price to the contractor deduct an amount under clause (a) of sub-section (3) equal to the amount of tax paid by the contractor under sub-section (7).
(5) (a) Where the contractor or sub-contractor is not liable to pay tax under this Act on specified sales involved in any specified works contract, he shall make an application to the Commissioner in this behalf.
(b) On receipt of the application under clause (a) if the Commissioner is satisfied that the contractor or sub-contractor is not liable to pay tax under this Act on specified sales involved in the specified works contract, he shall give a certificate to that effect in such form as may be prescribed.
(c) Where any such certificate is given under clause (b), the person responsible for paying any specified sale price under clause (a) or clause (b) of sub-section (3), shall not deduct any amount as a tax in respect of the specified works contract mentioned in the certificate.
(6) Any amount deducted as a tax in accordance with the provisions of sub-section (3) shall be deemed to be an amount received by the contractor or the sub-contractor as part of the specified sale price in pursuance of the specified works contract.
(7) Any person deducting the amount as a tax in accordance with the provisions of sub-section (3) shall-
(a) pay such amount into Government treasury in such manner and within such period as may be prescribed.
(b) obtain treasury receipt therefor, and
(c) furnish a copy of such receipt to the contractor or, as the case may be, the sub-contractor within thirty days from the date on which he obtains the receipt.
(8) Every person deducting the amount as a tax in accordance with the provisions of sub-section (3) shall, at the time of payment of the whole or part of the specified sale price, furnish to the contractor or, as the case may be, the sub-contractor a certificate specifying the amount so deducted and such other particulars as may be prescribed.
(9) Any deduction made in accordance with the provisions of sub-section (3) and paid into the Government treasury under sub-section (7) shall be treated as a payment of tax or, as the case may be, lump sum by way of composition under section 55A, on behalf of the contractor or, as the case may be, the sub-contractor, and, on the production of a certificate furnished to him under sub-section (8), alongwith a copy of a treasury receipt given to him under sub-section (7), credit shall be given to him for the amount so deducted in the assessment of tax, if any, made under this Act for the relevant year or, as the case may be in the payment of the lump sum.
(10) Where an amount as a tax on specified sales has not been deducted in accordance with the provisions of this section, the tax on specified sales shall be payable by the contractor or, as the case may be, the sub-contractor directly.
(11) Where any amount deducted under sub-section (3) remains unpaid after expiry of the time specified in sub-section (7), such amount shall be recoverable as an arrear of land revenue and the Sales Tax authorities shall, for the purpose of effecting recovery of the amount, exercise the powers conferred on them under section 47A.
(12) (a) If any person does not deduct an amount under sub-section (3) or after deducting the amount under that sub-section, fails to pay the same into the Government treasury under sub-section (7) within the time specified therein, he shall be liable to pay such penalty not exceeding twenty-five per cent, of the amount required to be deducted by him under sub-section (3) as may be imposed by the Commissioner.
(b) The Commissioner shall, for the purpose of imposing penalty under clause (a), exercise the same powers as are conferred on him under sub-sections (3) and (4) of section 46 in relation to imposing of penalty under that section.
(13) Where a person deducting the amount of tax in accordance with the provisions of sub-section (3) does not pay the amount so deducted into the Government treasury under sub-section (7) within the time specified therein, there shall be paid by such person, in addition to the penalty imposed on him under sub-section (12), for the period commencing on the date of expiry of the time specified in sub-section (7) and ending on the date of payment to the amount into the Government treasury, simple interest at the rate of twenty-four per cent, during the period from 1st April, 1997 to 31st August, 2001 and thereafter at the rate of eighteen per cent, of the amount not so paid or any less amount remaining unpaid during that period.”
Insertion of new section 57D in Gujarat 1 of 1970:-
4. In the principal Act, after section 57C, the following section shall be added, namely:-
No deduction at source:-
“57 D. Notwithstanding anything contained in section 57B, with effect from the 1st April, 2002 tax shall not be deducted at source where payment is to be made by the State Government in case of the specified works contract of the State Government, at the time of payment of the whole or part of the specified sale price.”
Validation of levy and collection of tax on specified works contract:-
5. (1) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or authority, the tax deducted, levied, assessed, reassessed or collected or purported to have been deducted, levied, assessed, reassessed or collected under the principal Act on specified sale sin pursuance of a specified works contract under section 57B shall be and shall be deemed always to have been validly deducted, levied, assessed, reassessed or collected in accordance with law as if the provisions of the principal Act as amended by this Act had been in force at all material times when such tax was deducted, levied, assessed, reassessed or collected and accordingly-
(a) no suit, appeal, application or other proceedings shall be maintained or continued in any court or before any tribunal or authority whatsoever for the refund of the said tax,
(b) no court, tribunal or other authority shall enforce any decree or order directing refund of the said tax, and
(c) recoveries shall be made in accordance with the provisions of the principal Act as amended by this Act as if said provisions had been in force at all material times.
(2) For the removal of doubt, it is hereby declared that,-
(a) nothing in sub-section (1) shall be construed as preventing any person-
(i) from questioning, in accordance with the provisions of the principal Act as amended by this Act, the deduction, levy, assessment, re-assessment or collection of the aforesaid tax, or
(ii) from claiming, in accordance with the provisions of the principal Act as amend by this Act, refund of the aforesaid tax paid by him in excess of the amount due from him.
(b) no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this Act had not come into force. |
