Bill for ST Settlement Commission introduced

CHENNAI May 9. A Bill to empower the Government to constitute a Sales Tax Settlement Commission for dealers not covered by the new Samadhan scheme, levy one per cent multipoint (``resale``) tax and five per cent infrastructure surcharge and grant input tax credit in the case of specified products was introduced in the Assembly today.

Another Bill for levy of luxury tax on jewellery and a bill to amend the law on additional sales tax were also introduced by the Minister for Industries and Commercial Taxes, S.M.Velusamy.

Under the Tamil Nadu General Sales Tax Act (Seventh Amendment) Bill 2002, a Sales Tax Settlement Commission would be constituted for settlement of arrears of tax, additional sales tax (AST), penalty or interest in respect of dealers who had stopped business prior to April 1, 1995, and whose appeals or revision petitions were not pending as of April 1, 1995.

The commission will also take up cases of dealers in lottery tickets with arrears relating to the assessment years prior to April 1, 1995, public sector undertakings, including oil companies, government companies and the Chennai Petroleum Corporation Ltd., and dealers who had requested waiver of arrears of tax, surcharge, AST, penalty and interest for the assessment years prior to April 1, 1999, but in whose case no appeal or revision was pending as of February 28, 2002.

Surcharge is to be levied on dealers under various categories.

The Bill also provides that ``whenever a dealer who holds the trade mark or the patent thereof, sells goods other than the declared goods at any point of sale other than the first point of sale, he shall be deemed to be the first seller in the State and shall be liable to pay tax accordingly''.

For determining the tax due to be paid by him, the tax collected at the immediate preceding point of sale on the same goods will be deducted from the tax payable at that point of sale.

A range of transactions by the Port Trusts, local bodies, the railways, airlines and shipping, transport and construction companies by way of disposal of unclaimed/confiscated goods and scrap have been brought under the purview of the TNGST Act.

Other major provisions of the Bill relate to self-assessment facility (from the financial year commencing from April 1, 2002) for traders up to Rs. 10-crore turnover on fulfilment of conditions as may be prescribed by the authorities and provision for clearing the backlog of uncontested backyear assessments up to 1998-99 without any check of accounts.

A significant insertion in the Bill is the provision for the constitution of a Special Committee consisting of the Secretary-Commercial Taxes, Commissioner of Commercial Taxes and Secretary-Finance or his nominee and empowered to call and examine, suo moto or on application, records of the assessing authority and set aside the proceedings or the order of the authority in cases where no appeal or writ application is pending.

The Bill inserts a new Schedule (No. 11) of commodities taxed at differential rates. The Tamil Nadu Tax on Luxuries (Amendment) Bill 2002 adds gold, silver, platinum jewellery and precious stones to the Schedule to the Act of 1981 to make them liable to a tax of one per cent at every point of purchase.

It also extensively amends the definition section of the principal Act.

The Tamil Nadu Additional Sales Tax (Amendment) Bill 2002 seeks to levy AST on the turnover of works contracts subjected to tax at a compounded rate and to exclude resale turnover under Sec.3-H of the TNGST Act from the levy of AST.

The Bill to operate a new ``Samadhan'' scheme for settlement of tax dues was passed by the House on Wednesday.

Recommended for you