The Haryana Tax on Entry of Goods into Local Areas Act, 2008

The Haryana Tax on Entry of Goods into Local Areas Act, 2008
[Haryana Act No. 8 of 2008]

Applicability:
a.) levy and collection of tax on entry of goods into a local area (means jurisdiction of Haryana) for consumption, use or sale therein and for matters connected therewith or incidental thereto.

b.) It extends to whole of the State of Haryana
c.) It shall come into force with immediate effect i.e. 16th April, 2008

Definitions:-
Section 2 (c) “assessee” means a person by whom tax is payable

Section 2 (g) “bring goods into a local area” means causing the entry of goods into a local area by bringing them inside the local area or causing the goods to be brought inside the local area from any place outside the local area

Section 2 (i) “business” includes any trade, commerce, manufacture, works contract, leasing or any adventure or concern in the nature of trade, commerce, manufacture, works contract or leasing, whether or not, such trade, commerce, manufacture, works contract, leasing, adventure or concern is carried on regularly and with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, works contract, leasing, adventure or concern and any transaction in connection with or incidental or ancillary to such trade, commerce, manufacture, works contract, leasing adventure or concern

Section 2 (l) “entry of goods into a local area” means taking or bringing goods into a local area from any place outside the State or from any place inside any other local area in the State;

Section 2 (o) “goods carrier” means any kind of vehicle of transport of goods including pipeline, motor vehicle, boat, riding animal, beast of burden, push cart, animal drawn cart, tractor-trailer and the like

Section 2 (q) “gross turnover” used in relation to an importer with reference to a period of time means the sum of value of goods which the importer brings or receives on the entry of such goods into a local area during the given period

Section 2 (r) "importer" means any person who, in the course of business, whether on his own account or on account of a principal or any other person, brings any goods into or receives or is entitled to receive any goods on their entry into a local area and includes a casual importer

Section 2 (t) “local area” means an area within the limits of a Municipal Corporation established under the Haryana Municipal Corporation Act, 1994 (Haryana Act 16 of 1994), or a municipality established under the Haryana Municipal Act, 1973 (Haryana Act 24 of 1973), or a Town Board or a Cantonment Board established under the Cantonment Act, 1924 (Central Act 2 of 1924), or a Zila Parishad established under the Haryana Panchayati Raj Act, 1994 (Haryana Act No. 11 of 1994), or any other local authority constituted or continued under any law for the time being in force;

Explanation:-Notwithstanding the above definition of local area, the whole State, for the purposes of section 25, shall be treated as one local area.

Section 2 (u) “manufacturer” means a person who carries on business of processing or manufacturing of goods, whether wholly or partly;

Section 2 (y) “old Act” means the Haryana Local Area Development Tax Act, 2000 (13 of 2000)

Section 2 (z) “person” shall include a company, an association or body of individuals, whether incorporated or not, an undertaking of the Government of Haryana, the Central Government or any other State Government or local authority, the Central Government or a State Government;

Section 2 (za) “place of business” means any place where an importer is doing business and includes−
(i) any warehouse, godown, or other place where the importer stores or processes his goods;
(ii) any place where the importer produces or manufactures goods;
(iii) any place where the importer keeps his books of accounts;
(iv) any place where the importer carries on business through an agent by whatever name called, the place of business of such agent;

Section 2 (zd) “quarter” means a period of three calendar months ending on 30th June, 30th September, 31st December or 31st March;

Section 2 (ze) “receive any goods” means to take delivery or possession of any goods, whether actual or constructive, or cause the goods to be received by any other person;

Section 2 (zf) “registered importer” means an importer registered under this Act;

Section 2 (zg) “Sales Tax” means the tax leviable in the State under the Haryana Value Added Tax Act, 2003 (Act 6 of 2003) or under the Central Sales Tax Act, 1956 (Central Act 74 of 1956);

Section 2 (zj) “tax” means the tax leviable under this Act;

Section 2 (zk) “taxable goods” means the goods which are not included in Schedule ‘A’;

Section 2 (zl) “turnover” used in relation to any assessee means the aggregate of the value of goods which the assessee brings or receives in any local area for consumption or use therein during any given period and determined in accordance with the provisions of this Act and the rules made there under

Section 2 (zm) “value of the goods” means the purchase value of such goods, that is to say, the purchase price at which an importer has purchased the goods inclusive of charges borne by him as cost of transportation, packing, forwarding and handling charges, commission, insurance, taxes, duties and the like, or if such goods have not been purchased by him, the prevailing market price of such goods in the local area

Section 2 (zn) “works contract” means any agreement for carrying out for cash, deferred payment or other valuable consideration, the construction, fitting out, improvement, maintenance or repair of any building, road, bridge or any other immovable property, or manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair, conversion or commissioning of any movable property

Levy of Tax (section 3)
(1) There shall be levied and collected a tax on entry of all goods, except goods specified in Schedule ‘A’, into a local area for consumption, use or sale therein, from any place outside that local area, at such rate not exceeding 5% of the value of the goods, as may be specified by the State Government by notification and different rates may be specified in respect of different goods or different classes of goods.

(2) the basis of tax shall be the sum of value of goods which the importer brings or receives on the entry of such goods into a local area during the given period.

(3) The importer shall be liable to pay tax only when the aggregate value of taxable goods he brings into or receives on their entry into any local area in a year exceeds Rs. 10 lacs.

(4) Importer who has once become liable to pay tax under this Act shall continue to be so liable until the expiry of 3 consecutive years during each of which the aggregate value of any taxable goods he brings into or receives on their entry into any local area does not exceed the amount specified in the first proviso to this sub-section.

Explanation.  Where the goods are received on its entry into a local area by a person other than an importer, the importer, if any, who further receives the goods from such person shall be deemed to have received the goods on entry into the local area.

(5) The tax shall be levied, assessed and collected in such manner and in such instalments, if any, as may be prescribed.

Registration (section 4)
(1) Every importer who is liable to pay tax shall get himself registered under this Act in such manner, on payment of such fee and within such period as may be prescribed

Provided further that an importer who held a registration certificate granted under section 4 of the old Act need not apply afresh for registration under this section and the certificate granted earlier shall be deemed to have been granted under this Act.

COMPUTATION OF VALUE OF GOODS (SECTION 8)



(Amt. in lacs)

GROSS TURNOVER


(Sum of value of goods, importer brings or receives on the entry of such goods).
NOTE: Paddy, Rice, Packaging Materials, Machinery, Machinery Parts and other items used in manufacturing of goods.





DEDUCT:-

A.
Value of goods specified in Schedule A:-

1
Bajra, Jowar and Maize

2
Cattle feed and poultry feed

3
Celery seeds

4
Common Salt

5
Electric Energy
NOTE: Captive Power Plant- Energy used in manufacturing process to be deducted. (Diesel, Furnace oil etc)

6
Flowers

7
Fresh vegetables, sugarcane, fruits, milk, meat including meat on hoof, poultry, fish and eggs.

8
Hand spun yarn.

9
Kikar bark.

10
Newsprint and other materials used in the printing of newspapers, periodicals, magazines etc.

11
Textiles and tobacco on which additional excise duty in lieu of sales tax is leviable notwithstanding that the rate of such duty is NIL.

12
Tyres, tubes and flaps of animal drawn vehicles.




B.
Value of sugar received from another local area

C.
Value of goods which have, without use or consumption, been delivered outside the local area.
NOTE: Goods traded as it is.

D.
Value of goods which have been subjected to tax once under this Act, either as such or in some other form.

E.
Value of goods on which sales tax has been paid or has become payable to the State.

1.
Purchase in the Course of Export [Section 5 of CST Act]

2.


F.
Value of plant, machinery, equipment and tools, brought or received on lease for use in manufacture or processing of goods.

G.
Value of goods brought or received in a local area for resale or for use or consumption therein in the manufacture or processing of goods, left in stock whether as such or in different form, lying with him in the local area, except when the certificate of registration issued under this Act is cancelled.







H.
Value of such other goods as may be prescribed


Returns and Assessment (section 9)
Every importer registered under this Act and every importer whose application for the registration under this Act is pending with the assessing authority shall every year or at such shorter intervals as may be prescribed, submit a return to the assessing authority within such period and in such manner containing such particulars as may be prescribed. The proforma of return, the interval of period at which and the time period within which a return is required to be filed may be prescribed differently for different class of importers, inter alia, depending upon the extent of business, annual tax liability and the class of goods usually dealt in.

Payment and Recovery of tax (section 12)
(1) The amount of any tax, interest and penalty imposed under this Act, which remains unpaid after the due date shall be recoverable as arrears of land revenue.

(2) Where the tax, interest assessed or penalty imposed not paid within the time, the importer shall be liable to pay simple interest on such amount for the period beginning with the day following the last date for making payment and ending with the date of payment (inclusive), calculated at the rate of 2% per month for the first 12 months and at the rate of 3% per month for the remaining period. The period during which recovery of any amount remained stayed by order of any competent authority or court, shall not be excluded for the purpose of calculation of interest.

(3) the unpaid amount shall be recoverable as arrears of land revenue.

Maintenance of accounts by importers, issue of sale bills or cash memorandum (sec 16)
Every importer shall maintain and keep true and complete accounts relating to his business as well as such other registers or records, as may be prescribed in this regard. All such accounts, registers or records shall be retained by the importer in his safe custody till his assessment or re-assessment for the relevant year is completed or in cases where any appeal, revision, reference or other proceedings in respect of such year has been filed and is pending, the same is disposed of, or for a period of at least six years from the end of the year to which these relates, whichever is later.

In respect of Goods
Type of Document
Sold
Bill of sale or cash memorandum
Delivered or dispatched, otherwise sale
Delivery note
Purchased and has not issued any bill of sale or Cash memorandum
Purchase Invoice

Checking of goods in transit (section 18)
The owner or person incharge of the goods and, when the goods are carried by a goods carrier, the driver or any other person in-charge of the goods carrier, shall carry with him in.

In respect of Goods carrier
In respect of Goods being carried
(i) record of ownership of the goods carrier
(i) goods receipt

(ii) trip sheet or log-book, containing such particulars, as may be prescribed
(ii) delivery-note or cash-memorandum or bill of sale/purchase, as the case may be

(iii) declaration duly filed and signed by the consignor or consignee obtained from such authority on payment of such fee and containing such particulars, as may be prescribed, and produce the same before any officer of the department not below the rank of an Assistant Excise and Taxation Officer or such other officer, as the State Government may, by notification, appoint, checking the goods carrier at any place.


Repeal and saving (section 34)
(1) The Haryana Local Area Development Tax Act, 2000 (Haryana Act 13 of 2000), is hereby repealed.