M.P.
Commercial Tax Rules, 1995
[1]No. A-5-8-94-ST-V(14), dated 16th March, 1995
Whereas
the State Government considers that
the following rules under the Madhya Pradesh Commercial Tax Act, 1994 (No. 5 of
1995) should be made and brought in to force at once.
Now,
therefore, in exercise of the powers conferred by Section 80 of the said Act
and all other enabling powers under that Act the State Government hereby makes
the following rules, namely -
Rule 1 :
Short title and commencement
(1) These rules may be called the Madhya Pradesh Vanijyik Kar Niyam,
1995.
(2) They shall be deemed to have come into force with effect from the
1st day of April, 1995.
Rule 2 :
Definitions
(1) In these rules, unless the context otherwise requires
-
(a) Act
means the Madhya Pradesh Commercial Tax Act, 1994;
(b) Appropriate Commercial Tax Officer in relation to a dealer means the Commercial
Tax Officer of the circle in which the dealer’s place of business is situated
or if a dealer has more than one place of business in the State, the Commercial
Tax Officer of the circle in which his principal place of business is situated;
[2](bb)
Assessing Authority means the person
to whom the Commissioner has delegated all or any of his powers of assessment
and imposition of penalty or levy of fee under the Act.
(c) Circle
means the area comprised within the local limits of the jurisdiction of a
Commercial Tax Officer specified in a order issued under sub-section (4) of Section
3;
(d) Form
means a form appended in these rules;
(e) Government Treasury means in relation to a
dealer -
(i) having one place of business, the treasury or any sub-treasury
within the district in which his place of business is situated; and
(ii) having more than
one place of business, the treasury or any sub-treasury within the district in
which his principal place of business is situated;
(f) Inspector
means an inspector of Commercial Tax appointed under Section 3;
(g) Inspecting Officer means any officer specified
in clause (c) to (g) of sub-section (1) of Section 3 to whom the Commissioner
delegates his power for the purpose of Section 45;
(h) Licensing Authority means the appropriate
Commercial Tax Officer to whom the Commissioner delegates his powers for the
purpose of Section 18;
(i) Registering
Authority means the appropriate Commercial Tax Officer to whom the
Commissioner delegates his powers for the purposes of Sections 22, 23 or 24;
(j) Repealed Act means the Madhya Pradesh
General Sales Tax Act, 1958 (No. 2 of 1959);
(k) Section means a Section of the Act;
(l) Warehouse means any enclosure,
building or vessel in which a dealer keeps his stock of goods for sale;
(2) All
other words and expressions used herein but not defined and defined in the Act
shall have the meaning assigned to them in the Act.
Rule 3:
Appointment
(1) Officers specified in clause (f) and (g) of
sub-section (1) of Section 3 shall be appointed by the Commissioner.
(2) An
Inspector of an area shall be subordinate to the Assistant Commercial Tax
Officer, and the Commercial Tax Officer exercising jurisdiction therein. An
Assistant Commercial Tax Officer posted to assist a Commercial Tax Officer of
an area shall be sub-ordinate to such Commercial Tax Officer. The Commercial
Tax Officer and the Assistant Commercial Tax Officer shall in all matters
arising within the area within which he exercises jurisdiction, be sub-ordinate
to the Assistant Commissioner and Deputy Commissioner exercising jurisdiction
over such area.
(3) All
Inspectors, Assistant Commercial Tax Officers, Commercial Tax Officers and
Assistant Commissioners shall, in all matters arising within the area within
which they exercise jurisdiction, be sub-ordinate to the Appellate Deputy
Commissioner and Deputy Commissioner exercising jurisdiction over such area.
(4) The
authorities specified in clause (b) to (g) of sub-section (1) of Section 3
shall be subordinate to the Additional Commissioner and the Additional
Commissioner shall be sub-ordinate to the Commissioner.
(5) The
authorities specified in clause (a) to (g) of sub-section (1) of Section 3,
shall, in exercise of the powers and in the discharge of their duties and
functions under the provisions of the Act or any rules made thereunder, follow
such direction as the Commissioner may issue from time to time.
[3][Rule 4 : Constitution of
Tribunal and its functions
(1)
The Tribunal shall consist of a Chairman and two members, appointed by the
State Government, who have vast experience of administration or taxation
matters.
(2)
The Headquarters of the Tribunal shall be at Bhopal,
(3)
The function of the Tribunal under the Act may be performed by any one of the members sitting singly or a bench of
two members of the Full bench:
Provided
that any appeal against the order of the appellate Deputy Commissioner or the
Commissioner shall be heard and decided either by the Chairman or by a bench
consisting of the Chairman as a member:
(4)
In the event of difference of opinion between the two members, the appeal shall
be heard and decided by the Full bench. In case any member of the Tribunal, in
deciding any case pending before him, has a difference of opinion about any
earlier judgment passed by a single member or a bench then be shall refer the
case to the Full bench.
(5)(a)
The State Government shall determine the nature and categories of the Officers and Employees required to assist
the Tribunal in the discharge of its
functions and provide such Officers and other Employees as it may think fit.
(b)
The Officers and other Employees of the Tribunal shall discharge their
functions under the general superintendence of the Chairman of the Tribunal.
(c)
The salaries, allowances and other conditions of service of the Chairman,
member, Officers and other Employees of the Tribunal shall be such as the State
Government may, by order specify.]
Rule 5 :
Application and procedure for grant of licence
(1) A registered dealer whose yearly turnover in respect
of all goods specified in Schedule I and Schedule II does not ordinarily exceed
five lac rupees shall be eligible for a licence under Section 18.
(2) The
fee for grant of licence in respect of goods specified in Schedule IV shall be as under :
(a) in
the case of goods liable to tax at the rate of 2 per cent -
2 per cent of the amount of turnover;
(b) in the case of goods liable to tax at the rate of 4
per cent -
|
(i) upto the turnover of rupees
one lac : |
2
per cent of the amount of the turnover |
|
(ii) turnover exceeding rupees one lac : |
Rs.2,000
plus 4 per cent of the amount by which the yearly turnover exceeds Rs. one
lac. |
(c) in the case of goods liable to tax at the rate of
six per cent -
|
(i) upto the turnover of rupees
one lac : |
3
per cent of the amount of the turnover |
||||
|
(ii) turnover exceeding rupees one lac : |
Rs.
3000 plus 6 per cent of the amount of the turnover exceeding rupees one lac. |
||||
|
[4](d) in the case of goods liable
to tax at the rate of 8 per cent -
|
|||||
Provided that the fee for grant of a licence in
respect of goods specified in entry 5 of Schedule IV shall be payable on
the taxable turnover of such goods :
Provided further that when
the licence is granted with effect from the date of receipt of the application,
the fee payable under sub-rule (2) shall be determined as under :
(i) in respect of a registered dealer who commences his business
during the year for which licence is applied for, or in respect of a registered
dealer who has no turnover for the period of previous year corresponding to the
period for the year for which licence is applied for, on the estimated turnover
for a period from the date of receipt of the application till the end of the
year in respect of which it is granted;
(ii) in respect of a registered dealer not falling in clause (i) on the
turnover of the part of the previous year corresponding to the period for which
the licence is granted.
(3) (a) An application for grant of
licence under Section 18 shall be made by a registered dealer in Form 1 so as
to reach the licensing authority not later than 30 days after the commencement
of the year for which licence is applied for or the commencement of the
business in that year after the date of his registration, as the case may be;
(b) Every such application shall be -
(i) signed by the proprietor of the business
or in the case of a firm or a partnership, by a partner or director of the firm
or in the case of Hindu undivided family business by the manager or karta of
the Hindu undivided family or in the case of a company incorporated or deemed
to be incorporated under the Companies Act, 1956 (Act No.1 of 1956), or any
other law for the time being in force by the principal officer managing the
business or in the case of society, club or association, by the president or
secretary responsible for the management of such society, club or association
and in the case of a registered dealer who resides outside that State but who
has a place of business in the State, by his manager or agent; and
(ii) verified in the manner provided in the said form :
Provided that a registered dealer carrying on business on the date of
commencement of the Act may apply for a licence within sixty days from the date
of publication of these rules in the Madhya Pradesh Gazette.
[5][Provided
also that the registered dealer covered under clause (d) of sub-rule (2) on the
date of coming into force of the said clause, may apply for a licence within
sixty days from the date of publication of these rules in Madhya Pradesh Gazette.
. ]
(4) The
registered dealer shall also file along with his application under sub-rule (3) a copy of the treasury receipted
challan in Form 39 showing the deposit into the Government Treasury not less
than half of the amount of fee prescribed under sub-rule (2).
(5) (a) If the application for grant of
a licence for any year is received from a registered dealer within the period
specified in sub-rule (3) the licence shall be granted from the date of
commencement of such year.
(b) If the application for grant
of a licence for a part of any year from a registered dealer commencing his
business in that year is received within the period specified in sub-rule (3),
the licence shall be granted from the date of validity of his registration
certificate.
(c) If the application for grant
of licence under the proviso to sub-rule (3) is made within the time specified
therein, the licence shall be granted from the date of commencement of the said
provision.
(d) If the application for grant
of a licence under sub-rule (3) is received after the expiry of the period
specified therefor, the licence shall not ordinarily be granted from the date
specified in [6][clause (a)
or clause (b) or clause (c) or clause (d)
but shall be granted from the date of application :
Provided that in the case of any registered dealer the Licensing
Authority is satisfied that the said dealer was prevented from making the
application in the prescribed period, it may for reasons to be recorded in
writing, direct that the licence be granted to such dealer with effect from the
date specified in [7][clause (a)
or clause (b) or clause (c) or clause (d)] as the case may be.
(6) On
receipt of the application under sub-rule [8][(3)]
the Licensing Authority may, if it is satisfied after making such enquiry, as
it deems fit, that the turnover or taxable turnover as the case may be, and
other particulars given in the application are correct and complete, admit the
application and if the amount of fee deposited by a registered dealer under
sub-rule (4) is found to be in accordance with the provisions of sub-rule (2)
it shall grant him a licence in Form 2.
(7) Where
the Licensing Authority is not satisfied about the correctness of the turnover
or taxable turnover or completeness of other particulars given in the application
it shall, after making such enquiry as it considers necessary, and after giving
the applicant an opportunity of proving the correctness of the turnover or the
taxable turnover and completeness of the particulars furnished in the
application, determine, for reasons to be recorded in writing, the turnover or
the taxable turnover, as the case may be, to the best of its judgment and the
fee payable by him in accordance with the provisions of sub-rule (2) and shall
serve upon the applicant a notice of demand in Form 3 and require the
registered dealer to further deposit the difference between half the amount so
determined by it and the amount already deposited by the registered dealer,
within thirty days of the intimation in that behalf and on depositing the
difference, the Licensing Authority shall grant a licence in Form 2.
(8) Where
a registered dealer is found to have deposited an amount in excess of the
amount as calculated by the registered dealer under sub-rule (2), such excess
amount shall be adjusted towards the balance to be paid under sub-rule (9).
(9) The
balance of the licence fee shall be paid by the registered dealer within two
months from the date on which the licence is granted and he shall submit to the
Licensing Authority a copy of the treasury receipted challan in proof of such
payment.
(10) Every licence granted under
this rule shall -
(a) be
deemed to have been issued personally to the licensee and shall not be
transferable; and
(b) expire
immediately after the last day of the year in respect of which it is granted.
(11) Where a licence granted under
this rule is lost or destroyed or defaced or becomes unintelligible, a
duplicate of the licence may be issued by the Licensing Authority on payment of
a fee of rupees twenty; such licence shall be stamped “Duplicate” in red ink.
Rule 6 :
Cancellation of licence
Where
during the currency of the licence, the Licensing Authority has reason to
believe that any licensee has committed breach of any one or more of the
conditions of the licence or of the provisions of the Act or the Rules made
thereunder it may after giving the licensee an opportunity of being heard
cancel the licence and assess him to tax, after the expiry of the year to which
the licence relates, in accordance with the provisions of Section 20. A copy of
the order cancelling the licence shall be communicated to the licensee.
Rule 7 :
Period of application for grant of registration certificate under Section 22
(1) A
dealer required to get himself registered under sub-section (1) of Section 22
shall apply for grant of a registration certificate in the manner laid down in
Rule 8 within sixty days of the publication of these rules in the Madhya
Pradesh Gazette.
(2) A
dealer required to get himself registered under sub-section (2) of Section 22
shall apply for grant of registration certificate in the manner laid down in
Rule 8 within thirty days of the date on which his turnover for the period
referred to in that sub-section first exceeds the limits specified in
sub-section (5) of Section 5.
(3) A
dealer required to get himself registered under sub-section (1) of Section 49
shall apply for grant of a registration certificate in the manner laid down in
Rule 8 within thirty days of the transfer of business unless he already holds a
registration certificate under the Act.
Rule 8 :
Application for grant of registration certificate
(1) An
application for grant of a registration certificate under Section 22 or 23
shall be made in Form 4 in duplicate to the Registering Authority and shall be
-
(a) signed by the proprietor of
the business or in the case of a firm or a partnership by a partner or director
of the firm or in the case of a Hindu undivided family business by the manager
or karta of the Hindu undivided family or in the case of company incorporated
or deemed to be incorporated under the Companies Act, 1956 (No. 1 of 1956), or
any other law for the time being in force by the principal officer managing the
business or in case of a society, club or association by the president or secretary
responsible for the management of such society, club or association or in the
case of the Central or a State Government or any of their departments, by the
officer-incharge of the business of selling or supplying or distributing goods
and in the case of a dealer who resides outside this State but who has place of
business in this State, by his manager or agent;
(b) verified in the manner
provided in the said form; and
(c) accompanied by passport size
photograph(s) of the proprietor or each of the adult partners of the firm, or
of each adult co-partner of the Hindu undivided family, as the case may be,
duly attested by a lawyer, or a Tax Practitioner or a Gazetted Officer.
(2) The
Commissioner may, on an application made by the dealer having more than one
place of business in the State and on being satisfied about the genuineness of
the grounds put forth in the application, grant him permission in writing to
apply to the Registering Authority for grant of registration certificate
separately for each place of business :
Provided that for the purpose of determining the liability of such
dealer for payment of the tax under the Act his turnover in respect of all the
places of business in the State shall be taken into consideration.
(3) Every
application for grant of a registration certificate shall be accompanied by an
affidavit and a treasury receipted challan in Form 39 for rupees five hundred
and every such application made by a dealer or person undertaking a works
contract shall, along with such treasury receipted challan, also be accompanied
by a copy of the award of contract.
Rule 9 :
Grant of Registration Certificate
(1) On
the day, the application for grant of a registration certificate is received,
the Registering Authority shall grant to the applicant a provisional
registration certificate in Form 5.
(2) After
the issue of the provisional registration certificate, the Registering
Authority shall, with a view to verify the correctness of the particulars given
in the application, call for the applicants accounts and require him to produce
evidence in support of the particulars given in the application. On
verification of the accounts and the documents furnished to him if the
Registering Authority is satisfied about the correctness of the particulars, it
shall issue to the applicant a permanent registration certificate in Form 6
within the period specified in clause (b) of sub-section (4) of Section 22 or
clause (c) of sub-section (1) of Section 23, as the case may be.
(3) If
on such verification, the Registering Authority is satisfied that the
particulars given in the application are incorrect, it shall reject the
application and cancel the provisional registration certificate in accordance
with the provisions of clause (c) of sub-section (4) of Section 22 or clause
(d) of sub-section (1) of Section 23, as the case may be.
(4) The
requirement to furnish the evidence under sub-rule (2) shall be limited to the
particulars given in the application in Form 4 for grant of a registration
certificate.
Rule 10 :
Grant of duplicate copy of registration certificate
If a registration certificate granted under these rules is lost, destroyed, defaced or becomes unintelligible, the Registering Authority shall on application and on payment of a fee of rupees ten per copy, grant a duplicate registration certificate. Such certificate shall be stamped “Duplicate” in red ink.