In pursuance of Clause (3) of Article 348 of the Constitution of India, the Governor is pleased to authorise the publication in the Rajasthan Gazette of the following translation in the English language of Rajasthan Vitt Adhiniyam, 2014 (2014 Ka Adhiniyam Sankhyank 14):-
THE RAJASTHAN FINANCE ACT, 2014
(Act No. 14 of 2014)
[Received the assent of the Governor on the 31st day of July, 2014]
An
Act
further to amend the Rajasthan Value Added Tax Act, 2003, the Rajasthan Tax on Luxuries (In Hotels and Lodging Houses) Act, 1990, the Rajasthan Electricity (Duty) Act, 1962, the Rajasthan Entertainments and Advertisements Tax Act, 1957, the Rajasthan Tax on Entry of Goods into Local Areas Act, 1999, the Rajasthan Stamp Act, 1998, the Rajasthan Motor Vehicles Taxation Act, 1951, the Rajasthan Excise Act, 1950, the Rajasthan Fiscal Responsibility and Budget Management Act, 2005, and to provide for the levy and collection of infrastructure development cess on sale or purchase of certain goods in the State of Rajasthan, in order to give effect to the financial proposals of the State Government for financial year 2014-15 and to make certain other provisions.
Be it enacted by the Rajasthan State Legislature in the Sixty-fifth Year of the Republic of India, as follows:-
CHAPTER I
PRELIMINARY
1. Short title.- This Act may be called the Rajasthan Finance Act, 2014.
2. Declaration under section 3, Rajasthan Act No. 23 of 1958.-
In pursuance of section 3 of the Rajasthan Provisional Collection of Taxes Act, 1958 (Act No. 23 of 1958) it is hereby declared that it is expedient in the public interest that provisions of clauses 19, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 42, 44, 45 and 46 of this Bill shall have immediate effect under the said Act.
CHAPTER II
AMENDMENT IN THE RAJASTHAN VALUE ADDED TAX ACT, 2003
3. Amendment of section 3, Rajasthan Act No. 4 of 2003.-
In clause (b) of sub-section (1) of section 3 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003), hereinafter in this Chapter referred to as the principal Act, for the existing expression "rupees two lacs", the expression "rupees five lacs" shall be substituted.
4. Amendment of section 16, Rajasthan Act No. 4 of 2003.-
In sub-section (4) of section 16 of the principal Act, after the existing clause (a) and before the existing clause (b), the following sub-clause shall be inserted, namely:-
"(aa) a dealer has discontinued business at his principal place of business; or".
5. Amendment of section 18, Rajasthan Act No. 4 of 2003.-
In section 18 of the principal Act, for the existing subsection (2), the following shall be substituted, namely:-
"(2) The input tax credit under sub-section (1) shall be allowed only after verification of the deposit of tax payable by the selling dealer in the manner as may be notified by the Commissioner.".
6. Amendment of section 20, Rajasthan Act No. 4 of 2003.-
In section 20 of the principal Act,-
(i) in sub-section (2), for the existing expression "six percent", the expression "twenty percent" shall be substituted; and
(ii) the existing sub-section (2A) shall be deleted.
7. Amendment of section 22, Rajasthan Act No. 4 of 2003.-
For the existing sub-section (4) of section 22 of the principal Act, the following shall be substituted, namely:-
"(4) No order under this section shall be passed after the last date of submission of annual return for that year.".
8. Amendment of section 23, Rajasthan Act No. 4 of 2003.-
For the existing section 23 of the principal Act, the following shall be substituted, namely:-
"23. Self Assessment.-
Every registered dealer who has furnished, all the returns under the provisions of section 21 or audit report as contemplated in section 73 along with all the returns under section 21, for the year, before issuance of any notice under sub-section (2) of section 24, shall, subject to the provisions of section 24, be deemed to have been assessed on the basis of such returns and such audit report, as the case may be.".
9. Amendment of section 24, Rajasthan Act No. 4 of 2003.-
For the existing section 24 of the principal Act, the following shall be substituted, namely:-
"24. Assessment.-
(1) Assessment of a dealer shall be for a year and i shall be made after the last date of furnishing of annual return for the year. However, the assessment of a closed business may be made immediately after its closure.
(2) Every return furnished by a registered dealer shall be subject to such scrutiny as may be determined by the Commissioner, to verify its correctness, and if any error is detected in any return or returns, the assessing authority or the officer authorised by the Commissioner shall serve a notice in the prescribed form to the dealer for rectification of the errors and the dealer may file a revised return within such period as specified therein.
(3) Where the dealer, in pursuance of the notice issued under sub-section (2),-
(a) furnishes the revised return or returns, as the case may be, in terms of the notice and deposits the tax, interest, late fee, if any, he shall be deemed to have been assessed under section 23;
(b) does not furnish revised return or returns, as the case may be, or the revised return or returns, as the case may be, furnished by the dealer is not in terms of the notice, the assessing authority or the officer authorised by the Commissioner, after giving an opportunity of being heard to the dealer and after conducting such enquiry as he may consider necessary, shall assess the dealer to the best of his judgment on the basis of the material available on record.
(4) Where a dealer, fails to furnish return in accordance with the provisions of section 21, the assessing authority or the officer authorised by the Commissioner, after giving an opportunity of being heard to the dealer and after conducting such enquiry as he may consider necessary, shall assess the dealer to the best of his judgment on the basis of the material available on record and shall impose a penalty, for non-filing of returns, of an amount equal to twenty percent of the net tax payable subject to a minimum of five thousand rupees.
(5) No assessment order under this section shall be passed after the expiry of two years from the end of the relevant year. However, the Commissioner may for reasons to be recorded in writing, extend such time limit in any particular case by a period not exceeding six months.
(6) Notwithstanding anything contained in subsection (5), where any proceeding relating to an assessment is subject to adjudication before the Tax Board or a competent court or any other authority under this Act, assessment in such matters may be passed within two years from the final adjudication of such proceedings. The limitation of two years shall be counted from the date of communication of the order of such final adjudication to the assessing authority.".
10. Amendment of section 25, Rajasthan Act No. 4 of 2003.-
In section 25 of the principal Act, for the existing subsection (4), the following shall be substituted, namely:-
"(4) Notwithstanding anything contained in this Act, where notice has been issued under sub-section (1), the authority issuing such notice shall be competent to make the assessment for the relevant year.
(5) No notice under sub-section (1) shall be issued after the expiry of five years from the end of the relevant year.
(6) Notwithstanding anything contained in subsections (3) and (5), where any proceeding relating to an assessment is subject to adjudication before the Tax Board or a competent court or any other authority under this Act, assessment in such matters may be passed within two years from the final adjudication of such proceedings. The limitation of two years shall be counted from the date of communication of the order of such final adjudication to the assessing authority.".
11. Amendment of section 26, Rajasthan Act No. 4 of 2003.-
In section 26 of the principal,-
(i) the existing Explanation of sub-section (1) shall be deleted; and
(ii) for the existing sub-section (3), the following shall be substituted, namely:-
"(3) No notice under sub-section (1) shall be issued after the expiry of five years, and no assessment under this section shall be made after the expiry of eight years, from the end of the relevant year.
(3A) Notwithstanding anything contained in sub-section (3), where any proceeding relating to an assessment is subject to adjudication before the Tax Board or a competent court or any other authority under this Act, assessment in such matters may be passed within two years from the final adjudication of such proceedings. The limitation of two years shall be counted from the date of communication of the order of such final adjudication to the assessing authority.".
12. Amendment of section 27, Rajasthan Act No. 4 of 2003.-
In section 27 of the principal Act, after the existing subsection (5), the following shall be added, namely:-
"(6) No notice under sub-section (4) shall be issued after the expiry of five years, and no assessment under this section shall be made after the expiry of eight years, from the end of the relevant year.
(7) Notwithstanding anything contained in subsection (6), where any proceeding relating to an assessment is subject to adjudication before the Tax Board or a competent court or any other authority under this Act, assessment in such matters may be passed within two years from the final adjudication of such proceedings. The limitation of two years shall be counted from the date of communication of the order of such final adjudication to the assessing authority.".
13. Amendment of section 38, Rajasthan Act No. 4 of 2003.-
In section 38 of the principal Act, for the existing subsection (7), the following shall be substituted, namely:-
"(7) Notwithstanding anything contained in this Act the State Government may defer the recovery of demand payable by an industrial unit declared sick under the Sick Industrial Companies (Special Provisions) Act, 1985 as amended from time to time (Central Act No. 1 of 1986) to such extent, for such period and on such conditions with regard to the payment or rate of interest as may be deemed proper.".
14. Insertion of section 51B, Rajasthan Act No. 4 of 2003.-
After the existing section 51A and before the existing section 52 of the principal Act, the following shall be inserted, namely:-
"51B. Rebate of tax.-
Notwithstanding anything contained in this Act, if the State Government is of the opinion that it is expedient in the public interest so to do, it may, by notification in the Official Gazette, and subject to such conditions as may be specified therein, allow, whether prospectively or retrospectively, a rebate up to the full amount of tax to such dealers or class of dealers as may be specified in the notification.".
15. Amendment of section 53, Rajasthan Act No. 4 of 2003.-
For the existing sub-section (4) of section 53 of the principal Act, the following shall be substituted, namely:-
"(4) Where refund of any amount becomes due to a dealer, he shall be entitled to receive, in addition to the amount of refund, simple interest at such rate as may be notified by the State Government with effect from 1st April of the year immediately following the year to which it relates upto the date of payment:
Provided that where the dealer has paid any amount of tax after the closing of the year and such amount is required to be refunded, no interest shall be payable for the period prior to the date of the deposit of such amount.".
16. Amendment of section 61, Rajasthan Act No. 4 of 2003.-
For the existing sub-section (1) of section 61 of the principal Act, the following shall be substituted, namely:-
"(1) Where any dealer has-
(a) disclosed taxable turnover of sale of goods in any return furnished by him at a lower rate of tax than the rate of tax as specified under this Act or otherwise furnished inaccurate particulars deliberately in the return furnished by him; or
(b) incorporated any transaction of sale or purchase in his accounts, registers or
documents required to be maintained by him under this Act at a lower rate of tax than the rate of tax as specified under this Act; or
(c) concealed any particulars from any return furnished by him; or
(d) concealed any transactions of sale or purchase from his accounts, registers or documents required to be maintained by him under this Act; or
(e) failed to get himself registered as required under section 11 of this Act and has avoided tax; or
(f) avoided or evaded tax in any other manner,
the assessing authority or any officer not below the rank of an Assistant Commercial Taxes Officer as may be authorised by the Commissioner, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty in addition to tax payable by him under this Act, a sum equal to two times the amount of tax avoided or evaded.".
17. Amendment of section 67, Rajasthan Act No. 4 of 2003.-
In sub-section (1) of section 67 of the principal Act, for the existing expression "be punishable with simple imprisonment for a term which may extend to six months and with fine not exceeding rupees five thousand, and for the offences covered under clauses (b), (c), (f), (g), and (i) with a minimum sentence of simple imprisonment of three months.", the expression
"(I) for offences described under clauses (c) or (i) or offences where amount of demand notice exceeds rupees one crore under clause (d) be punishable with simple imprisonment for a term which may extend upto three years and also be liable to fine but the minimum sentence shall not be less than simple imprisonment of six months and fine of rupees five thousand; and
(II) for other offences not covered under clause (I), be punishable with simple imprisonment for a term which may extend upto six months and also be liable to fine."
shall be substituted.
18. Amendment of section 91, Rajasthan Act No. 4 of 2003.-
For the existing section 91 of the principal Act, the following shall be substituted, namely:-
"91. General Powers of the Commissioner.-
(1) The Commissioner may from time to time, issue such orders, instructions and directions to all officers and persons employed in the execution of this Act as he may deem fit for the administration of this Act, and all such officers and persons shall observe and follow such orders, instructions and directions of the Commissioner.
(2) For the purposes of official use, the Commissioner may, by notice in any newspaper, or in such other manner as he deems proper, call upon all dealers or any class of dealers or persons to furnish such information, statement or return as may be specified in the notice issued in this behalf.
(3) No such orders, instructions, or directions shall be issued under sub-section (1) so as to interfere with the discretion of any appellate authority in the exercise of its appellate functions.
(4) Without prejudice to the generality of the foregoing power, the Commissioner may, on his own motion or on an application by a registered dealer liable to pay tax under this Act, if he considers it necessary or expedient so to do, for the purpose of maintaining uniformity in the work of assessments and collection of revenue, clarify the rate of tax payable under this Act in respect of goods liable to tax under this Act, and all officers and persons employed in the execution of this Act shall observe and follow such clarification.
(5) No such application under sub-section (4) shall be entertained unless it is accompanied by proof of payment of such fee, paid in such manner, as may be prescribed.".
19. Amendment of section 95, Rajasthan Act No. 4 of 2003.- In section 95 of the principal Act, for the existing subsection (2), the following shall be substituted, namely:-
"(2) Where any return, application, communication or intimation is submitted by a dealer or his business manager or by a person, electronically through the official website of the Commercial Taxes Department, such return, application, communication or intimation shall be deemed to be submitted by him, if the dealer or business manager or person has given his consent to use the website for e-filing in the prescribed manner:
Provided that dealer or business manager or person, who has consented to use the official website of the Department shall not retract from or repudiate such e-documents submitted by him through the website.
(3) Where any notice, communication or intimation is served on a dealer or his business manger or any person electronically through the official website of the Commercial Taxes Department, then, said notice, communication or intimation shall not be deemed to be invalid only on the ground that it is not personally signed or digitally signed or is not served properly.".
20. Amendment of section 96, Rajasthan Act No. 4 of 2003.-
The existing section 96 of the principal Act shall be deleted with effect from 5th day of October, 2014.
Prakash Gupta
Principal Secretary to the Government