In exercise of powers conferred by sub-section (4) of section 109 of the Assam Value Added Tax Act, 2003 (Assam Act VIII of 2005) hereinafter called the Act, the Governor of Assam is pleased to frame THE ASSAM INDUSTRIES (TAX REMISSION) SCHEME, 2005 substituting the existing THE ASSAM INDUSTRIES (SALES TAX CONCESSIONS) SCHEME, 1997 for continuing the conferment of benefits being enjoyed by the eligible industrial units under the "Assam Industries (Sales Tax Concessions) Scheme, 1997", by way of remission of tax to those units in conformity with the provisions of the Act, in the manner hereinafter appearing, namely :-
1. Short title and commencement :-
2 Definition of Eligibility -
An industrial unit, which is a holder or will be a holder in due course of a Certificate of Authorisation granted or to be granted under the erstwhile "The Assam Industries (Sales Tax Concession Scheme, 1997 as per eligibility criteria of the industrial Policy of Assam, 1997 or the Industrial Policy of Assam 2003, as the case may be, on the date of commencement of the Act, shall be treated as an eligible industrial unit for the purpose of this Scheme.
Provided that an industrial unit shall not be eligible for any benefit under this Scheme of its own venture or joint venture, if it is a Public Sector Undertaking under the Government of India :
Provided further that the following categories of industries shall not be eligible for any benefit under this Scheme:-
3. Limits of tax remission for the eligible units:-
(1) Where an eligible unit who is holder or will be holder in due course of Certificate of Authorisation in Form-IVA or Form-IVC as per terms of the Assam Industries (Sales Tax Concessions) Scheme, 1997 on the date of commencement of the Act and is registered under the Act, shall be entitled for remission of ninety nine percent of the tax payable by him during return periods after commencement of the Act until the amount of such remission exceeds the un-availed quantum of monetary ceiling or the extended un-expired period of eligibility, whichever is earlier, remaining available to him at the time of commencement of the Act.
(2) Where an eligible unit who is holding or will be holder in due course of Certificate of Authorisation in Form-IVB as per terms of the Assam Industries (Sales Tax Concessions) Scheme, 1997 on the date of commencement of the Act and is registered under the Act, shall be entitled for remission of ninety nine percent of the tax payable by him in respect of sales of manufactured goods corresponding to the difference between its actual annual production after completion of expansion/modernization/diversification and its average base year production-
The annual production and the average base year production shall have the same meaning as assigned to them in the erstwhile the Assam Industries (Sales Tax Concession Scheme, 1997.
(3) The un-expired period of eligibility remaining available to a holder or a holder in due course of the Certificate of Authorisation on the date of commencement of the Act shall be extends by applying the following formula-
Extended un-expired period of eligibility = un-expired period of eligibility on the date of commencement of the Act X 9/7.
(4) For the purpose of calculating the available quantum of tax remission for an eligible unit, Tax Payable during any return period under the Act by it shall be computed according to the following formula-
(a) If the eligible unit is holder or will be holder in due course of Certificate of Authorisation in Form -IVA or in Form IVC as per terms of the Assam Industries (Sales Tax Concessions) Scheme, 1997 on the date of commencement of the Act.
Tax Payable = output Tax plus tax liability under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) minus Input Tax.
(b) If the eligible unit is holder or will be holder in due course of Certificate of Authorisation in Form-IVB as per terms of the Assam Industries (Sales Tax Concessions) Scheme, 1997 on the date of commencement of the Act;
Tax Payable = Output Tax plus tax liability under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) minus Input Tax as they relate to sales of manufactured goods corresponding to the difference between its actual annual production after the completion of expansion/modernization/diversification and its average base year production.
Provided further that until the determination of both the average base year production and the annual production after the expansion/modernization/diversification, the benefits of tax remission under this Scheme shall not be admissible to an otherwise eligible unit of this category.
(5) Notwithstanding anything contained in this Scheme or the Assam Industries (Sales Tax Concessions) Scheme, 1997, an eligible unit engaged in manufacture of goods taxable at the first point of sale in the Fourth Schedule of the Act, shall not be entitled for availment of any input tax credit while computing the amount of "Tax Payable" by it for any return period under the Act.
(6) The amount of tax eligible for remission shall be ninety nine percent of the amount of Tax Payable in accordance with tax return and the balance one percent of the Tax Payable shall be deposited by the eligible unit into the Government Account.
4. Issue of Certificate of Entitlement by the Prescribed Authority :-
Provided that such application may be admitted by the Prescribed Authority, if he is satisfied that the unit had sufficient cause for not making the application within the said period.
5. Tax Return and Annual Return :
In accordance with the provisions of the Act and the rules framed thereunder, the eligible unit shall file tax return and annual return within the prescribed time to be jurisdictional Prescribed Authority. However such tax return and annual return shall be in the formats IV and V appended to this Scheme.
6. Renewal of Certificate of Entitlement :
The Certificate of Entitlement shall remain valid for a year only, i.e., upto the end of financial year and thereafter shall be renewed after examination of annual return for each financial year or for a fraction of financial year till the eligible industrial unit reaches the maximum permissible limit of tax remission as specified in the para 3 of the Scheme. The concerned Prescribed Authority of the area shall examine the return furnished in the format V by the eligible unit and pass necessary orders as and when the unit reaches the maximum limit of tax remission., withdrawing the Certificate of Entitlement with an intimation to the authority granting the Eligibility Certificate besides taking action, for realisation of the due taxes and for violation of provisions, if any, under the provisions of the Assam Value Added Tax Act, 2003.
7. Particulars of Certificate of Entitlement on the invoice :
The holder of the Certificate of Entitlement in the case of an eligible industrial unit shall be competent to sell his finished products in the State of Assam or in the course of inter-State trade or commerce, for which the unit shall be eligible to remission of taxes. In the tax invoice or the retail invoice, as the case may be, issued to the purchaser, the holder of the Certificate of Entitlement, in addition to his taxpayer identification number (TIN) shall also clearly mention the number and date of his Certificate of Entitlement.
8. Surrender of the Certificate of Entitlement :
If an industrial unit to which an Eligibility Certificate has been granted under this Scheme closes down or reaches the maximum limit of exemption, it shall be the duty of the unit to report within 14 days from the date of such closure in writing to the jurisdictional Prescribed Authority and the authority, which had issued the eligibility Certificate to it. Simultaneously alongwith this report, it shall also surrender the original Eligibility Certificate to the authority, which had issued the same and it shall also surrender the Certificate of Entitlement to the concerned Prescribed Authority. For any lapse or violation on the part of the industrial unit, it shall be liable for all penal actions under the provisions of the Assam Value Added Tax Act, 2003 and other laws in force.
9. Raw Materials :
The expression "raw materials" shall have the same meaning as assigned to it in clause (38) of section 2 the Act and the admissibility of input tax credit thereon as well as on other goods shall be subject to the provisions of the Act.
10. Remission of tax during the pendency of the application of Eligibility Certificate
Where an eligible unit has made an application for Eligibility Certificate in accordance with the Assam Industries (Sales Tax Concessions) Scheme, 1997 and such application has remained pending for disposal or an eligible unit which makes an application for Eligibility Certificate under this scheme, and such application remains pending for disposal, the amount of tax due according to the return under the Act shall be remitted in accordance with the provisions of this scheme subject to the production of a certificate from the authority competent to issue such Eligibility Certificate to the effect that the application of the unit for the Eligibility Certificate is under consideration. On the basis of such certificate, remission of tax can be granted for a period of six months only. If, the unit cannot obtain the Eligibility Certificate within such period of six months for reasons not attributable to it, remission of tax can be allowed for a further period not exceeding six months subject to the production of a fresh certificate from such competent authority. If, for any reason, such application for Eligibility Certificate is rejected, the unit shall, within thirty days from the date of order rejecting such application, make the payment of tax, which has been remitted pending disposal of such application for a Eligibility Certificate, along with the interest accrued thereon as per the provisions of the Act. The competent authority, which rejects the application for Eligibility Certificate of such unit, shall immediately send a copy of the order of rejection of the Prescribed Authority having jurisdiction over the unit.
11. Termination of Eligibility Certificate as well as the Certificate of Entitlement for violation of or non-compliance with any of the conditions laid down in the Scheme.
(1) The Eligibility Certificate is granted to an industrial unit which fulfils all eligibility conditions in terms of the Assam Industries (Sales Tax Concessions) Scheme, 1997 and for the purpose of getting the Certificate of Entitlement of enable the industrial unit to enjoy the benefit of tax remission in terms of this Scheme. Violation of any condition of the eligibility or information on any of these conditions being found false at any time after the issue of the Eligibility Certificate or obtaining of such certificate by fraud or misrepresentation or suppression of facts or failure on the part of the holder of the Certificate of Entitlement to comply with any condition, laid down in his Certificate of Entitlement or to furnish any information required by his Prescribed Authority with regard to the implementation of this Scheme shall entail the termination of both the eligibility Certificate and Certificate of Entitlement.
(2) For violation of any condition of eligibility in reference to which the Eligibility Certificate has been granted to an industrial unit as per the provisions of the Assam Industries (Sales Tax Concessions) Scheme, 1997 or it is found at any time after the issue of Eligibility Certificate to an industrial unit that the information furnished by it on any of the conditions, which had led to the issue of the Eligibility Certificate to the unit is false or it is found that the Certificate was obtained by the fraud or misrepresentation or suppression of facts, the competent authority of the Industries Department of the Government of Assam, which had issued the Eligibility Certificate shall be competent to terminate the same after giving an opportunity of hearing to the holder of the Eligibility Certificate against such termination. In the event of any such termination, the competent authority shall intimate the fact of such termination forthwith to the concerned eligible industrial unit and the Prescribed Authority concerned. On receipt of such intimation, the Prescribed Authority shall cancel forthwith the Certificate of Entitlement issued to that industrial unit and require such unit to surrender the same forthwith.
(3) For failure on the part of a holder of the Certificate of Entitlement to comply with any condition, laid down in the Certificate of Entitlement, issued to him or to furnish any information required by the Prescribed Authority with regard to the implementation of this Scheme as per this Government notification, the Prescribed Authority who had issued Certificate of Entitlement shall be competent to terminate the Certificate of Entitlement, after giving an opportunity of hearing to the holder of the Certificate of Entitlement against such termination. In the event of any such termination, the Prescribed Authority shall intimate the fact of such termination forthwith to the concerned competent authority who had issued the Eligibility Certificate to this industrial unit. On receipt of such intimation the competent authority shall terminate forthwith the Eligibility Certificate, granted to the industrial unit and communicate the same to the industrial unit as well as the Prescribed Authority.
12. Savings.
Notwithstanding the substitution of the Assam Industries (Sales Tax Concessions) Scheme, 1997, all proceedings relating to the issuance of Eligibility Certificate and Certificate of Authorisation and any other proceeding under the said Scheme in respect of any period before the date of commencement of the Act may be taken or continued as if this Scheme had not been passed.
THE ASSAM INDUSTRIES (TAX REMISSION) SCHEME, 2005
FORMAT - I
[See Para 4]
APPLICATION FORM FOR GRANT OF CERTIFICATE OF ENTITLEMENT
To
The Prescribed Authority,
____________________ District.
Sir,
I ______________________________________________________________________ son/wife/daughter of Shri _______________________________________________________ Proprietor/Partner/Managing Director/Director/ Manager/ Authorised Signator of M/s _______________________________________ (name of the industrial unit), having TIN ____________________________ under the Assam Value Added Tax Act, 2003 and the registration certificate number ______________________________ under the Central Sales Tax Act, 1956, do hereby declare that :
(i) The applicant unit is holding an Eligibility Certificate bearing number _____________________________ dated _____________ issued under the Assam Industries (Sales Tax Concessions) Scheme, 1997 for total tax exemption of Rs. ___________________ for the period from ______________ to _____________ . (copy enclosed)
(ii) The applicant unit is in possession of a Certificate of Authorisation bearing number _______________________ dated _______________ issued under the Assam Industries (Sales Tax concessions) Scheme, 1997 and such Certificate is renewed upto _________________ (copy enclosed).
(3) The applicant unit has availed of tax benefit to the tune of Rs. _____________ for the period from __________ to _________________ (the date of commencement of the Act). The balance tax benefit amounting to Rs. ___________ is available to the credit of the applicant unit to be utilized up-to _________________.
(4) The applicant unit makes this application for change over from the benefit of tax exemption under the Assam Industries (Sales Tax Concessions) Scheme, 1997 to remission of tax under the for the remaining period from ______________ to _____________ and remaining extent of benefit amount of Rs.____________, whichever is earlier.
Declaration
I/We hereby solemnly declare that the information furnished in this application for the grant of Certificate of Entitlement for claiming the remission of tax are correct and true to the best of my/our knowledge and belief.
.
FORMAT - II
[See para 4]
CERTIFICATE OF ENTITLEMENT
Certificate of Entitlement No. _____________
This is to certify that the industrial unit in the name and style of M/s. _________________________ situated at _______________ (place) having TIN _______________ under the Assam Value Added Tax Act, 2003 and holding Certificate of Authorisation * in Form-IVA/IVB/IVC under the Assam Industries (Sales Tax Concessions) Scheme, 1997 is eligible for remission of tax in accordance with the provisions of the Assam Industries (Tax Remission) Scheme, 2005.
The dealer is eligible for remission of tax to the extent of Rs. ____________ within the period from _______ to ____________ in respect of sale of its finished product(s), namely :-
and ** without any qualification as to the term of manufacture corresponding to the different between the actual annual production after the completion of expansion or modernization or diversification, as the case may be, and the average base year production.
This certificate is valid from _____________ to ____________ subject to renewal from year to year.
The certificate is renewal and the period of validity is extended as specified in columns (2) and (3) below :-
** Strike out whichever is not applicable.
FORMAT - III
[See Para 4(2)(d)]
REGISTER OF CERTIFICATE OF ENTITLEMENT
FORM-IV
[Para 5]
TAX RETURN BY AN ELIGIBLE UNIT CLAIMING REMISSION OF TAX
TAX CALCULATIONS :
DECLARATION
I, ................................................................................. do solemnly declare that to the best of my knowledge and belief the information furnished in the above statement is true and complete and that it relates to the period from ..................................... to ................................
FORMAT - V
ANNUAL RETURN OF REMISSION OF TAX BY ELIGIBLE UNIT
Part - A
Part - B
Part - C
07. Taxable turnover of goods taxable at every point of sale and tax payable thereon as per Second Schedule, Third Schedule and Fifth Schedule
Part - D
08. Determination of taxable turnover of goods taxable at the first point of sale and tax payable thereon as per Fourth Schedule
Part - E
11. Determination of turnover of purchases and tax payable thereon
(excluding VAT)
Part - F
12. Purchases of taxable goods made in the State and tax paid thereon
Part-G
13. Calculation of total tax and interest payable and paid
I, ............................................................................... son/daughter/wife of ........................................ in the capacity of ................................................... of M/s. ................................................. do solemnly declare that to the best of my knowledge and belief, the information given in this return and the annexures accompanying it is correct and complete in every material particular.
Annexure - I
Details of purchases and stocks (wherever possible, specify the goods)
(Stock Transfer etc.)
(Second Schedule)
(Third Schedule)
(Fifth Schedule)
Annexure - II
Statement of commodity-wise details and tax payable
(This annexure is applicable only in respect of imported and manufactured goods)
Annexure - III
ACCOUNT OF MANUFACTURE, PROCESSING ETC.
Annexure - IV
(To be attached with the return where adjustment in Output Tax or Tax Credits are made)
Adjustment to Output Tax
Annexure - V
Adjustments to Tax Credits
Annexure VI
Tax remission claimed/received during the previous financial years: