Vat Actupdated - RS Goyal & Associates

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composition of tax under section 11 20 or from a registered dealer in the circumstances in which
no tax under Section 9 is payable by the registered dealer on the sale price of such goods 20 ,
shall be liable to pay tax on the purchase price of such goods if after their purchase, -
(a) the goods other than those specified in part III of the said Schedule, are not sold
within the State of Madhya Pradesh or in the course of inter-state trade or
commerce or in the course of export out of the territory of India but are sold or
disposed of otherwise; or
3/4 (b) the goods other than those specified in part III of the said Schedule, are consumed
or used,-
(i) in the manufacture or processing of goods declared tax free under section 16
and the manufactured or processed goods are disposed of otherwise
(ii)
than by way of sale in the course of export out of the territory of India; or
as plant, machinery, equipment and parts thereof in generation, transmission
or distribution of electrical energy ; or 3/4
(c) the goods other than those specified in part III of the said Schedule, after
consumption or use in the manufacture or processing or mining of any goods
specified in Schedule II, the manufactured or processed or mined goods are
disposed off otherwise than by way of sale within the State of Madhya Pradesh or in
the course of inter-state trade or commerce or in the course of export out of the
territory of India ; or
(d)
(e)
the goods specified in part III of the said Schedule, are not sold within the State of
Madhya Pradesh or in the course of inter-state trade or commerce or in the course
of export out of the territory of India but are sold or disposed of otherwise; or
the goods specified in part III of the said Schedule, are consumed or used in the
manufacture or processing or mining of goods ;
and such tax shall be levied, -
(i) in respect of goods referred to in clauses (a), (b) and (c), at the rate of 4
percent or the rate specified in column (3) of Schedule II, whichever is lower;
and
(ii)
in respect of goods referred to in clauses (d) and (e),at the rate specified in
column (3) of Schedule II.
Explanation - The rate specified in Schedule II shall be the rate at which tax would have
been levied on the sales of such goods within the State of Madhya Pradesh on the date of
such purchase. 2
(2) No tax under this section shall be levied in respect of any year on -
(a) a dealer whose turnover in a year does not exceed the limit prescribed under subsection
(1) of section 5,
(b) any other dealer who has no turnover, if his aggregate of purchase prices of all the
goods does not exceed such amount as may be prescribed.
(3) Every dealer who has no turnover and is liable to pay tax under sub-section (1) shall,
for the purpose of Sections 18,20,21, 24,25 and 39, be deemed to be a registered dealer
20 10A. Levy of purchase tax on certain goods.
23.
(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.