THE ORISSA ENTRY TAX RULE, 1999

Chapter-I | Chapter-II | Chapter-III | Chapter-IV | Chapter-V | Chapter-VI


 

CHAPTER – I

Preliminary

1.                               Short title and commencement.

(1) These rules may be called the Orissa Entry Tax Rules, 1999.

(2) They shall come into force on the date of their publication in the Orissa Gazette.

2.                              Definitions.

(1) In these rules, unless the context otherwise requires –

a.                                                       "Act" means the Orissa Entry Tax Act, 1999;

b.                                                       "Form" means a form appended to these rules;

c.                                                       "Manufacturer", with all its grammatical variations and cognate expressions, means a dealer or a person in the business of manufacture as defined in the Orissa Sales Tax Act, 1947;

d.                                                       "Month" means a calendar month;

e.                                                       "Place of business" means any place where a dealer sells or purchases any goods or keeps accounts of sales or purchases;

f.                                                        "Principal place of business" means in relation to a dealer who has more than one place of business in the State of Orissa, the place of business mentioned as the principal place of business for the State in the application for registration or the registration certificate.

Explanation.- For the dealer under the Orissa Sales Tax Act, 1947 who has been allowed to file consolidated returns under the Orissa Sales Tax Rules, 1947, principal place of business means the place within the jurisdiction of that Circle where he is permitted to file consolidated returns under the said rules;

g.                                                       "Registered dealer" means a dealer registered under the Act;

h.                                                       "Rule" means Orissa Entry Tax Rules, 1999;

i.                                                         "Sales Tax Act" means Orissa Sales Tax Act, 1947, and "Sales Tax Rules" means Orissa Sales Tax Rules, 1947.

2.                               All words and expressions used but not defined in these rules, unless the context otherwise requires, shall have the same meaning as respectively assigned to them in the Act or in the Sales Tax Rules.

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CHAPTER – II

Rate of Entry Tax

3. Rate of Tax.

The tax payable by a dealer or any other person under the Act shall be at the following rates : -

1.                               Goods specified in part III of the Schedule to the Act shall be exigible to tax at the same rate as notified by the Government under the Sales Tax Act for such goods, subject to the maximum of 12%.

2.                               Subject to the provisions of sub-rule (4) the goods specified in part II of the Schedule to the Act shall be exigible to the tax at the rate of 2% of the purchase value.

3.                               Subject to the provisions of sub-rule (4), the goods specified in Part I of the Schedule to the Act shall be exigible to the tax at the rate of 1% of the purchase value.

4.                               Goods specified in Part I and II of the Schedule to the Act when used as raw material by a manufacturer on its first entry, -

a.                               in a local area which is notified as a Municipality or Municipal Corporation or Notified Area Council, shall be exigible to tax at fifty per centum of the rate to which such goods is exigible under sub-rules(2) and (3) of this rule; and

b) in a local area other than that specified in clause (a) above shall not be exigible to tax:

Provided that goods specified in Part I and II of the Schedule to the Act when used as raw material directly in the manufacture of goods to be exported out of the territory of India shall not be exigible to tax.

1.                               Notwithstanding anything contained in this rule, no tax shall be levied under these rules in respect of such goods purchased by a dealer for which the details are furnished in Form-E1 along with the statement under rule 10 to prove that such goods have already been subjected to entry tax or that the entry tax has already been paid under the Act for such goods.

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CHAPTER – III

Registration of Dealers

4. Application for registration.

(1) Every dealer in scheduled goods who is registered under the Sales Tax Act shall apply for registration under the Act to the assessing authority in Form – E2 within thirty days from the date of publication of these rules or within thirty days from the date of registration under the Sales Tax Act.

2.                               On filing of the application under sub-rule (1) the assessing authority shall allow the registration under the Act within thirty days of filing the application under sub-rule(1) if the particulars furnished in the application are correct.

3.                               The assessing authority shall mention the registration number under this rule in the remark column of the certificate of registration issued under the Sales Tax Act.

4.                               If a dealer under this rule has different places of business within the jurisdiction of two or more assessing authorities, he shall make an application under sub-rule(1), mention in the application the additional places of business, if any, and submit such application to the assessing authority in whose jurisdiction the principal place of business is situated.

5. Assignment of registration numbers and marks.

(1) The assessing authority shall assign to each dealer registered under these rules a number and a registration mark.

2.                               The registration mark shall be the same as specified under sub-rule (2) of rule 9 of the Sales Tax Rules, but there shall be added a suffix "E.T." to the number assigned in sub-rule (1).

Illustration :

If a dealer is registered under the Orissa Sales Tax Act under the jurisdiction of Bhubaneswar – II Circle and is assigned the registration number "57", the registration mark and number for the purpose of rule 5 shall be as follows : -

"BH-II-57-E.T."

6. Renewal of Registration.

If the registration certificate granted to a dealer is renewed under sub-section(3-d) of section 9 of the Orissa Sales Tax Act, the certificate of registration under these rules shall be deemed to have been renewed.

7. Validity of Registration.

The registration under these rules shall be valid as long as the registration under the Sales Tax Act is valid. Unless the registration granted under the Sales Tax Act is cancelled or the renewal is refused, the registration under these rules shall be deemed to be valid.

8. Cancellation of Registration.

If the registration granted under the Sales Tax Act is cancelled, the registration granted under these rules shall be deemed to have been cancelled.

9. Security.

No security shall be required for registration under these rules.

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CHAPTER – IV

Return, Assessment, Payment of Tax and Set Off.

10. Payment of Tax.

1. The statement under sub-section (1) of section 10 of the Act shall be in Form E3 and shall be submitted to the assessing authority within one month from the close of the month to which the statement relates. Such statement shall be accompanied by a receipt from the Government Treasury or a crossed demand draft or a crossed cheque in favour of the assessing authority on the branch of any nationalised bank of that place where the Government Treasury is situated, for the full amount of tax payable by him under the Act in respect of the said month.

2.                               If no statement under sub-rule (1) is submitted by a dealer within the time specified there-in or if the statement submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority may proceed under sub-section(3) of section 10 of the Act, issue notice in Form E4 and after giving the dealer a reasonable opportunity of being heard, assess the dealer to the best of his judgement.

3.                               If an un-registered dealer or a person or organisation not being a registered dealer, causes entry of scheduled goods into a local area in such a manner that he becomes liable under sub-section (2) of section 3 of the Act and if the tax from him has not been collected under section 23 of the Act, then he shall pay the tax due under the Act to the assessing authority having jurisdiction over the place where such un-registered dealer, person or organisation causing entry of the scheduled goods is located or resident, by furnishing a statement in Form E5 within 15 (fifteen) days of his becoming liable to pay the tax under the Act and on his failure to pay the tax, he may be prosecuted under section 29 of the Act.

11.                           Returns.

(1) Every registered dealer and every dealer liable to be registered under this Act shall submit a return in Form E6 to the assessing authority within a period of one calendar month of the expiry of each year:

Provided that every dealer who discontinues his business during the course of the year shall submit to the assessing authority a return in Form-E6 for the period up to and inclusive of the date of discontinuance, within one month from the date of such discontinuance.

(2) Every dealer, who submits a return under sub-rule(1) shall submit along with the return a receipt from the Government Treasury or crossed demand draft or crossed cheque in favour of the assessing authority for the balance amount of tax payable , if any, on the basis of the return.

(3) If no return is submitted by the dealer under sub-rule(1) within the time specified therein or if the return submitted by him appears to be incorrect or incomplete, the assessing authority may proceed to assess the dealer to the best of his judgement as per the procedure laid down in sub-rule(2) of the rule 10 and may also impose penalty as laid down in sub-section (5) of section 7 of the Act.

12. Consolidated returns.

In the case of a dealer having more than one place of business in the State, the statement and returns under rules 10 and 11 shall be furnished to the assessing authorities to whom the dealer is liable to furnish returns specified under the Sales Tax Act:

Provided that in case the dealer has been permitted to file consolidated return under Sales Tax Rule, he shall be deemed to be permitted to file consolidated statements and returns under these rules.

13. Incomplete returns.

The statement and return required to be filed under rules 10 and 11 respectively shall not be treated to be statement and return, as the case may be, unless the tax due on the basis of such statement and return is paid in full.

14. Revised returns.

Revised returns may be furnished by the registered dealer under this Act if revised returns are furnished under the Sales Tax Act and the Sales Tax Rules.

15. Assessment.

(1) In cases where the returns have been received, the assessing authority shall complete the assessment along with the assessment under the Sales Tax Act in the similar manner as applicable to the latter. Separate assessment proceedings under these rules shall not ordinarily be taken up by the assessing authority.

2.                               In case the assessing authority feels that the dealer is required to be assessed under these rules independent of the assessment under the Sales Tax Act, he shall take prior approval of the Commissioner and on getting approval of the Commissioner, he shall proceed to assess the dealer under these rules and for this purpose the procedure specified in section 12 of the Sales Tax Act shall mutatis mutandis be applicable.

16. Demand Notice.

The assessment order under sub-rule(2) of rule 10, sub-rule (3) of rule 11 and rule 15 shall be issued in Form E7 and the demand notice shall be issued in Form E8.

17. Deduction, Exemption and Assessment of Tax.

(1) In determining the purchase value liable to tax under the Act, the amount relating to the purchases made within the local area from a registered dealer carrying on business in the same local area shall be deducted. The purchase value shall be determined on the basis of the invoices unless the same are rejected for reasons to be recorded in writing and after giving reasonable opportunity of being heard to the dealer.

2.                               The purchase value of scheduled goods entering into the local area, which has already been subjected to tax under these rules or on which entry tax under these rules has been paid by any other person or dealer and for which the proof as specified in sub-rule(5) of rule 3 has been furnished by the dealer, shall be deducted in determining the purchase value liable to tax.

3.                               The purchase value of scheduled goods brought inside a local area but sent outside the said local area otherwise than by way of sale shall be deducted while determining the purchase value liable to tax under these rules.

18. Set off of Entry Tax against Sales Tax.

(1) When the importer of a motor vehicle liable to pay tax under sub-section (2) of section 3 of this Act being a dealer in motor vehicles becomes liable to pay tax under the Sales Tax Act by virtue of sale of such motor vehicle, his tax liability under the Sales Tax Act shall be reduced to the extent of the tax paid under these rules.

Illustration: Assuming Entry Tax Rate and Sales Tax Rate to be 10%

1) Purchase value of Motor vehicle

Rs. 2,00,000/-

2) Entry Tax payable @ 10%

Rs. 20,000/-

Total : -

Rs.2,20,000/-

3) Sale Price of the Motor vehicle

Rs.2,20,000/-

4) (a) Sales Tax due @ 10%

Rs.22,000/-

Deduct Entry Tax paid

Rs.20,000/-

Sales Tax payable

Rs.2,000/-

Total :-

Rs.2,22,000/-

Note: If the sales tax payable on such motor vehicle is less than the entry tax paid, then the sales tax payable will be nil.

2.                               When an importer of goods specified in Part III of the Schedule to the Act other than motor vehicle, liable to pay tax under this Act is also a dealer liable to pay tax under the Sales Tax Act, then the Sales Tax payable on the sale of goods shall be reduced to the extent of entry tax paid in the same manner as illustrated under the sub-rule (1).

19. Set off of Entry Tax.

(1) Every manufacturer of scheduled goods who is registered under the Sales Tax Act shall, in respect of the finished products which are scheduled goods and are sold by it to a dealer, either directly or through an intermediary, shall collect tax payable under section 3 of this Act from the buying dealer.

2.                               The tax so collected from the buying dealer shall be paid to the Government Treasury along with the statements and returns filed under the Act.

3.                               The tax so collected shall be separately shown in the sale invoices issued by the selling dealer to the buying dealer.

4.                               The buying dealer shall produce copy of such sale invoice as evidence of payment of entry tax along with the statement under rule 10.

5.                               The entry tax paid by the manufacturer of the scheduled goods on the purchase of raw materials which directly go into the composition of finished products by the manufacturer of the scheduled goods shall be set off against the entry tax payable under sub-rule (2) above by the selling dealer:

Provided that the amount set off shall be limited to the tax payable under sub-rule (1) above.

Illustration :

1. Sale price/purchase value of finished products

Rs.1,00,000/-

2. Entry tax collected @ 1%

Rs.1,000/-

3. Purchase value of the raw materials which have gone into the composition of finished products of the manufacturer.

Rs.70,000/-

4. Entry tax on the raw materials as shown as item 3. @ 1%

Rs.700/-

Entry tax to be deposited in Govt. Treasury under sub-rule(2)

Rs.1000/-- Rs.700/- =Rs.300/-

20. Remission of penalty.

The Commissioner may for reasons to be recorded in writing remit the whole or part of the penalty imposed under sub-section (2) of section 11 of the Act:

Provided that no remission shall be allowed if the amount of tax finally determined is not paid in full.

21. Recovery from other person.

The order of attachment under section 12 of the Act shall be in Form E9.

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CHAPTER – V

Appeal and Revision

22. Appellate Authority.

The appellate authorities appointed under the Sales Tax Act and rules framed thereunder shall be deemed to be the appellate authorities under the Act.

23. Procedure.

Except for the condition expressly provided in the section 16 of the Act in respect of appeal and in section 18 of the Act in respect of revision, the procedure laid down under the Sales Tax Act and the Sales Tax Rules for appeals and revisions shall, mutatis mutandis, apply to the appeals and revisions under the Act.

24. Appeal before the High Court.

The appeal to the High Court under section 19 of the Act shall be in Form E10 accompanied by an affidavit and a fee of rupees two hundred only.

25. Filing of Appeal.

The appeal under sub-section (1) of section 17 of the Act shall be filed by the State Representative, or the Additional State Representative or the Deputy State Representative or any other officer authorised by the State Government in that behalf.

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CHAPTER – VI

Miscellaneous

26.                           Search, seizure, inspections and confiscation.

The procedure laid down under Sales Tax Act and Sales Tax Rules shall, mutatis mutandis apply to search, seizure, inspection and confiscation under the Act.

27.                           Statement from agents.

Carrying and forwarding agency, Transport agency, Shipping agency and Steamer agency who are not registered dealers under this rule shall submit to the assessing authority of the local area, in which they deliver scheduled goods, a monthly statement in Form E-11 in respect of the scheduled goods, cleared, forwarded, transported or shipped by them before the end of the succeeding month.

28.                           Compounding of offences.

(1) Before initiating prosecution for offence committed under section 29 of the Act, the Commissioner shall issue a show-cause notice in Form E-12 to the person or dealer alleged to have committed or abetted the offence.

(2) The said person or dealer may exercise option to compound the offence and upon such exercise, the Commissioner shall determine the sum of money to be paid by way of compounding the offence along with the tax and/ or other tax recoverable under the Act.

2.                               The Commissioner shall communicate to the said person or dealer his determination in Form E-13.

(4) Upon such communication, the sum of money, determined by the Commissioner, shall be paid by the said person or dealer within 30 days.

29. Powers and functions of Commissioner.

The Commissioner may, subject to the approval of the State Government, by an order in that behalf, delegate to any authority subordinate to him such functions as he may decide and also specify the conditions subject to which the function shall be performed.

30. Refund.

(1) If after making the final assessment of a dealer under rule 15 of these rules, the tax due on such assessment is less than the tax already paid, the assessing authority shall refund such sum as is in excess of the tax due.

2.                               The tax paid by a registered dealer, on the entry of any scheduled goods into a local area for consumption, use or sale therein, shall be refunded if such scheduled goods are sold in course of export out of the territory of India.

3.                               The refund under sub-rules (1) and (2) may be adjusted against the arrear recoverable dues or the tax payable under the Act by the dealer during subsequent month.

4.                               The dealer or person entitled to get the refund may opt to take the refund in cash and in that event the procedure laid down under the Sales Tax Act and Sales Tax Rules for refund shall, mutatis mutandis, be applicable.

31. Fees.

The fees specified and the procedure with regard to payment of fees provided under rules 85, 86, 87 and 88 of the Sales Tax Rules shall, mutatis mutandis, apply under these rules.

32. Service of notice.

The service of any notice, summons or order under these rules on a dealer may be effected in any of the following manner, namely: -

a.                                                       by giving or tendering it to such dealer or his manager or agent in person, or

b.                                                       by leaving it at his last known place of business or residence, if such dealer or manager or agent is not available, or

c.                                                       by sending it to such dealer through registered post, or

d.                                                       by affixing it in some conspicuous place at the last known place of business or residence of such dealer.

33.                           Option for specified amount of tax.

(1) Notwithstanding anything contained in these rules, a dealer may submit his option in Form E14 to the assessing authority to pay in lieu of the tax payable under these rules an amount specified in sub-rule (2) for such period as indicated in the option, subject to the following conditions: -

i.                                                            that the dealer must be registered under the Sales Tax Rules, and

ii.                                                            that he is not dealing with any goods specified in Part III of the Schedule to the Act.

(2) The dealer exercising option under sub-rule (1) shall pay along with the returns under Sales Tax Rules an amount for the period covered under the said return, at the rate of, -

i.                                                            1% of total purchases of all goods if the dealer is not dealing with any goods specified in Part II of the Schedule to the Act; and

ii.                                                            1.5% of total purchases otherwise.

Explanation. – For the purpose of this sub rule the word "purchases" means total amount of purchases made by the dealer for the period as reflected in the books of accounts maintained under Sales Tax Act.

(3) If the dealer exercising option under sub rule (1) becomes ineligible for doing so anytime after furnishing the option then the said option shall be deemed to have been withdrawn from the date he becomes ineligible.

(4) The dealer exercising option under sub rule (1) and paying tax under sub rule (2) shall be deemed to have discharged his liability under this rule.

34. Implementation.

For any other matters not specified under these rules but required for the carrying out the purposes of the Act and these rules, the procedure laid down under the Sales Tax Act and Sales Tax Rules shall, mutatis mutandis, apply.

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