The West Bengal Sales Tax Rules, 1995
Chapter VII : Purchase of goods exempt from purchase tax payable under section 20(3) and determination of the taxable specified purchase price

69. Determination of specified purchase price with respect to stock transfer of finished goods to other States

(1) Where a registered dealer liable to pay tax on his purchases under sub-section (1) of section 13 cannot fully identify his specified purchases price of goods referred to in clause (d) of sub-section (3) of section 20, such specified price of the goods shall be determined-

(a) for any month or quarter, other than the last month or quarter, of a year, or for a year, by applying the following formula :-

"P x S/M During such month, quarter or year",

Where -

(i) "P" means the aggregate of the purchase prices or parts of purchase prices paid or payable by a dealer in respect of purchases, other than those referred to in clause (c), or clause (e) of sub-section (3) of section 20, against which declarations referred to in the second proviso to sub-section (2) of section 17 have been or will be furnished by the dealer in respect of sales to such dealer referred to in clause (b) or clause (c) of sub-section (2) of section 17;

(ii) "S" means the aggregate of the sale prices of the goods sold in West Bengal which have been manufactured during any period or periods from goods purchased against declaration forms as referred in clause (i);

(iii) "M" means the aggregate of the value of goods manufactured during the period in West Bengal by a dealer for the manufacture of which goods have been purchased against declarations as referred to in clause (i) ; and such value shall include the value of such manufactured goods held in opening stock at the commencement of a period but shall not include the value of closing stock of such goods at the end of that period ;

Explanation.- "Value of goods manufactured" shall denote the market price at which such goods are saleable ;

(b) for the last month or last quarter of a year, as the case may be, the aggregate of the specified purchase prices for each of the earlier months or earlier quarters of the year as determined by applying the formula specified in clause (a) shall be deducted from the specified purchase price for the whole year determined by applying the formula as aforesaid, and the balance amount so arrived at shall be the specified purchase price referred to the clause (d) of sub-section (3) of section 20, for the last month or last quarter, as the case may be.

(2) Consequent upon determination of specified purchase price in accordance with clause (b) of sub-rule (1) for the whole year, if the aggregate of the amounts of tax paid during the earlier month or earlier quarters of a year exceeds the amount of the tax payable on the taxable specified purchase price representing specified purchase price so determined for the whole year, the balance of the amount so paid in excess for the whole year shall be adjusted against the amount of any other taxes payable under the Act for the last month or last quarter or the year.

(3) Notwithstanding anything contained elsewhere in these rules, every registered dealer who is liable to pay tax under sub-section (1) of section 13 shall furnish along with the return in Form 25, an Annexure "P" indicating therein the computation of taxable specified purchase price and the tax payable under sub-section (1) of section 13 and the said Annexure shall be a part of the said return in case of such dealer.