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 shall be exigible to tax at fifty percentum of the rate to which such goods are exigible under sub-rule (3) and

5. sub-rule (2)  respectively of this rule, when such goods- 

a) are used as raw material by a manufacturer on its first entry into local area:- or

b) are brought by a registered dealer into any local area and then sold to a manufacturer for use as raw material, provided the tax payable under the Act is collected by such registered dealer from the said manufacturer and shown separately in the cash memo or the credit memo or Bill of such manufacturer, and the sale is supported by a declaration from the buying manufacturer in Form E 13;

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.

Explanation-(a) Goods common to Part I and Part II of the Schedule to the Act shall be taxed at the rate specified in sub-rule (2)

(b) Where the amount of tax collected by a dealer is higher than the tax payable, the dealer shall be liable to pay the amount of tax so collected.