Notification No.1854 F.R., dated 8th July, 2003
In exercise of the power conferred by section 104 of the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994), the Governor is pleased hereby to make the following amendments in the West Bengal Sales Tax Rules, 1995, as subsequently amended (hereinafter referred to as the said rules):-
Amendments
In the said rules,-
(1) in CHAPTER V,-
(a) for rule 53, substitute the following rule:-
53. Exemption from tax on certain sales to industrial units situated in any Special Economic zone.
Where a registered dealer makes a, sale of any goods, other than those specified in Part B of Schedule IV, or containers or other materials, to a registered dealer for use directly by such registered dealer in the manufacture of any other goods in his industrial unit situated in a Special Economic zone or for the packing of goods purchased or goods to be manufactured by such registered dealer in such industrial unit, the dealer selling such goods or containers or other packing materials may, for the purpose of determining his taxable turnover of sales, deduct under sub-clause (xi) of clause (a) of sub-section (3) of Section 17 from his gross turnover of sales that part of such gross turnover of sales which represents the sale to such registered dealer for the purpose as aforesaid in such industrial unit:
Provided that the claim for deduction shall not be allowed unless the dealer selling the goods furnishes, on demand, before the appropriate assessing authority a certificate in Form 10, duly filled in and signed by the registered dealer to whom such goods are sold, to the effect that the goods, containers and other packing materials purchased by him are covered by the letter of authority issued in his favour by the Development Commissioner of the Special Economic Zone of any officer authorised by him";
(b) after rule 53, insert the following rule:-
"53A. Exemption from tax on certain sales by industrial units situated in any Special Economic Zone.
Where a registered dealer makes sales of any goods, other than those specified in Part B of Schedule IV, manufactured in his industrial unit situated in any Special Economic Zone, such registered dealer, may, for the purpose of determining his taxable turnover of sales, deduct under sub-clause (xi) of clause (a) of sub-section (3) of section 17 from his gross turnover of sales that part of such gross turnover of sales which represents the sales effected by such registered dealer from such industrial unit";
(c) in rule 54, for the words "outside the Falta Export Processing Zone referred to in the Explanation to rule 53", substitute the words "outside the Special Economic Zone";
(d) after rule 54, insert the following rule:-
54A. Exemption from tax on sales to a developer for development of Special Economic Zone.
Where a dealer makes a sale of goods, other than those specified in Part B of Schedule IV, to a developer for use by him for development of a Special Economic Zone, such dealer may, for the purpose of determining his taxable turnover of sales, deduct sub-clause (xi) of clause (a) of sub-section (3) of section 17, from his gross turnover of sales that part of such gross turnover of sales which represents the sale to such developer for use by him for the purpose of development of such Special Economic Zone:
Provided that the claim for such deduction shall not be allowed unless the dealer selling the goods to the developer furnishes on demand, before the appropriate assessing authority, a certificate in the Form appended to this rule duly filled in and signed by such developer to whom such goods are sold and such assessing authority is satisfied, upon enquiry or otherwise, that particulars filled in such form are correct.
Explanation.- For the purposes of rule 53, rule 53A, rule 54 and this rule,-
(a) The expression "developer" means a person a body of persons, company, firm and such other private or government undertaking, who develops, builds, designs, organizes, promotes, finances, operates or maintains or manages a part or whole of the infrastructure of the Special Economic Zone notified accordingly by the Government;
(b) the expression "Special Economic Zone" means a geographical area declared and notified as Special Economic Zone by Government.
FORM OF CERTIFICATE
[See rule 54A of the West Bengal Sales Tax Rules, 1995]
Serial No. . . . . . . . . . . . . .
Date of issue . . . . . . . . . .
To
. . . . . . . . . . . . . . . . . (Seller)
. . . . . . . . . . . . . . . . . . (Address)
. . . . . . . . . . . . . . . . . (R.C.No., if any)
Certified that the goods purchased from you as per bill cash memo stated below have been used/are intended to be used in the development of the Special Economic Zone situated at . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bill/Cash Memo No. . . . . . . . . . . . . . . . . . . . . .
Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Name of the developer . . . . . . . . . . . . . . . . . .
Address and R.C. No. if any . . . . . . . . . . . . .
Signature and status of the person issuing the certificate";
(2) (i) CHAPTER VII. In rule 66,-
(a) in the marginal note, for the words "the Falta Export Processing zone", substitute the words "any Special Economic Zone";
(b) in sub-rule (I), for the words and figures "the Falta Export Processing Zone having the same meaning as given in the Explanation to rule 53", substitute the words, figures, letters and brackets "any Special Economic Zone having the same meaning as given in clause (b) of the Explanation to rule 54A";
(c) in sub-rule (2), for the words "the Falta Export Processing Zone", substitute the words "the Special Economic Zone";
(3) in CHAPTER VIII, after rule 71, insert the following rule:-
"71A. Exemption on contractual transfer of goods involved in the development Special Economic Zone.
Where as dealer, being a developer as referred to in clause (a) of the Explanation to rule 54A, is liable to pay tax under section 15, he may, for the purpose of determining the contractual transfer price on which tax is payable by him under section 21 during any period, deduct under clause (c) of sub-section (1) of section 21 from contractual transfer price received or receivable by him that part of such contractual transfer price during that period which represents contractual transfer of goods involved in the execution of works contract by him in the development of any Special Economic Zone as referred to in clause (b) of the said Explanation";
(4) in CHAPTER XI, in PART I, in the declaration attached to rule 101A, in Part II, in item 1, for the word, figures, letter and brackets "section 17(3)(xi)", substitute the word, figures, letter and brackets "section 17(3)(a)(viii)".
(5) in CHAPTER XVII, in PART IV, in rule 253,-
(a) in clause (a), for the word "two", substitute the word "three";
(b) in clause (b), for the word "two", substitute the word "three";
(6) in Form 10,-
(a) in the heading, for the words "Falta Export Processing Zone", in the two places where they occur, insert the words "Special Economic Zone";
(b) in clause (a),-
(i) in sub-clause (i), for the words "unit situated in the Falta Export Processing Zone", substitute the words "unit situated in the Special Economic Zone";
(ii) in sub-clause (iii), for the words "Falta Export Processing Zone" substitute the words "Special Economic Zone";
(c) in clause (b), in sub-clause (i), for the words "outside the Falta Export Processing Zone", Substitute the words "outside the Special Economic Zone";
2. This notification shall be deemed to have come into force on the 1st day of July, 2003.