The UTTAR PRADESH VALUE ADDED TAX Act , 2008
(1) This Act may be called the Uttar Pradesh Value Added Tax Act, 2008.
(2) It extends to the whole of Uttar Pradesh.
(3) It shall be deemed to have come into force on January 1, 2008
2. In this Act, unless there is anything repugnant in the subject or context;
(a) appellate authority means the authority to whom an appeal lies under section 55;
(b) assessing authority means any person -
(i) appointed and posted by the State Government; or
(ii) appointed by the State Government and posted by the Commissioner; or
(iii) appointed and posted by the Commissioner,
and empowered under rules framed under this Act to perform all or any of the functions of the assessing authority under this Act.
(c) assessment year means the period of twelve months commencing on the first day of April of a calendar year;
(d) board means the Uttar Pradesh State Tax Board established under section 78.
(e) business in relation t
(1) Subject to the other provisions contained in this Act, every dealer shall be liable to pay tax under this Act, for each assessment year, on his taxable turnover of sale or purchase or both, as the case may be, of taxable goods, at such rates and at such point of sale or purchase as provided under section 4 or section 5:
Provided that tax shall be levied on and charged from every dealer on such sales and purchases as are made on or after the date on which the dealer becomes liable for payment of tax in accordance with provisions of sub-section (3) or sub-section (5), as the case may be.
(2) Where a dealer carries on business for part of any assessment year he shall, subject to the other provisions contained in this Act, be liable to pay tax on the taxable turnover of sale or purchase or both, as the case may be, of taxable goods, at such rates and at such point of sale or purchase as provided under section 4 or section 5, where such sales or purchases are affected during
(1) Notwithstanding anything to the contrary contained in any other provision of the Act but subject to the provisions of sub-section(2), every dealer liable to pay tax under the Act shall be liable to pay in addition to the tax payable under any other provision of this Act, an additional tax on the taxable turnover of sale or purchase of goods or both, at such rate not exceeding five percent, as may be specified by the State Government by notification in the gazette. Different rate may be specified in respect of different goods or class of goods.
(2) No additional tax under subsection (1) shall be levied and paid on
(a) the turnover of sale or purchase or both, as the case may be, of goods specified in column 2 of the Schedule I and schedule III ;
(b) …… *
(a) goods named or described in column 2 of the Schedule II, at every point of sale and at the rate of four percent;
(b) goods named or described in column 2 of the Schedule III at every point of sale and at the rate of one percent;
(c) goods named or described in column 2 of the Schedule IV at the point of sale mentioned in column 3 and at the rate of tax mentioned in column 4 of the Schedule against such goods;
(d) goods named or described in column 2 of the Schedule V at every point of sale and at the rate of twelve and half percent;
Pr
(1) Every dealer, who, in the course of business, makes purchase of any taxable -
(i) goods other than non-vat goods from a person other than a registered dealer; or
(ii) non-vat goods, the earlier sale or purchase of which has not suffered levy of tax either under the provisions of the erstwhile Act or under the provisions of this Act, (w.e.f.01.01.2008)
shall be liable to pay tax levied on the turnover of purchase of such taxable goods except non-vat goods or turnover of purchase of non-vat goods or both, as the case may be. (w.e.f.01.01.2008)
(2) Tax on the turnover of purchase of taxable goods referred to in clause (i) or clause (ii) of sub-section (1) shall be levied at the same rate at which turnover of sale of such goods is liable to tax in accordance with the provisions of section 4.
(1) Notwithstanding anything to the contrary contained in any other provision of this Act, but subject to other provisions of this section and the directions of the State Government, the assessing authority may agree to accept a composition money either in lump sum or at an agreed rate on his turnover of sale or purchase or both as the case may be, in lieu of tax that may be payable under this Act by a dealer in respect of such goods or class of goods and for such period as may be agreed upon:
Provided that in the case of a dealer not being a dealer executing works contract, who carries on exclusive business of re-sale of goods within the State after their purchase from a registered dealer within the State and whose turnover of sale of such goods, for any assessment year, does not exceed fifty lakh rupees or his turnover, for the assessment year preceding that assessment year, has not exceeded fifty lakh
(1) Notwithstanding anything to the contrary contained in any other provision of this Act, but subject to the directions of the Commissioner, the assessing authority may accept from any person other than registered dealer by way of composition money either in lump sum or at an agreed rate in lieu of tax or penalty leviable or imposable under this Act, where any person -
(a) imports or attempts to import or abets the import of any goods, in contravention of the provisions of section 50 or section 51 with a view to evading payment of tax on sale of ,-
(i) such goods; or
(ii) goods manufacture
No tax under this Act shall be levied and paid on the turnover of–
(a) sale or purchase where such sale or purchase takes place -
(i) in the course of inter-state trade or commerce; or
(ii) outside the State; or
(iii) in the course of the export out of or in the course of the import into, the territory of India;
(b) sale or purchase of any goods named or described in column 2 of the Schedule I or;
(c) such sale or purchase; or sale or purchase of such goods by such class of dealers, as may be specified in the notification issued by the State Government in this behalf:
Provided that while issuing notification under clause (c), the State Government may impose such conditions and restrictions as may be specified.
Explanati
Notwithstanding anything to the contrary contained in any other provision of this Act and without prejudice to the provisions of section 54, where it is found that any dealer has issued tax invoice or sale invoice without making actual sale of goods shown in such invoice then the selling dealer and the purchasing dealer who has received such invoice, jointly and severally, be liable for payment of an amount equal to amount of tax shown to have been charged in such invoice:
Provided that before taking any action under this section, persons concerned shall be given an opportunity of being heard.
8-A Liability (1) Notwithstanding anything to the contrary contained in any other provisions of this Act on wrong or false use of certificate or declaration and without prejudice to the provisions of section 54, a person who issues a false or wrong certificate or declaration, prescribed under any provision of this Act or the rules or the notification issued thereunder, to another person
(1) Subject to the provisions of this Act, where the dealer is a firm or association of persons or a Hindu Undivided Family -
(a) such firm or association and every person who is a partner of such firm or a member of such association or Hindu undivided family shall be liable jointly and severally for the payment of tax assessed and penalty imposed or any amount due under this Act and is payable by such firm or association or Hindu Undivided Family; and
(b) where such firm or association or Hindu Undivided Family has discontinued its business, -
(i) tax, including penalty payable under this Act by such firm or association or Hindu Undivided Family up to the date of suc
.(1)Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for the purposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer:
Provided that -
(a) in respect of any liability of the deceased, his executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hand;
(b) any proceeding including the proceeding for recovery may be continued from the stage at which it was pending at the time of the death of the
11. In the case of any guardian, trustee or agent of any minor or other incapacitated person, carrying on business on behalf of and for the benefit of such minor or other incapacitated person, the tax shall be, levied upon and recoverable from such guardian, trustee or agent, as the case may be, in like manner and to the same extent as it would be leviable upon and recoverable from any such person or other incapacitated person, if he were of full age and sound mind and if he were conducting the business himself; and all the provisions of this Act and the rules made thereunder shall apply accordingly.
12. In the case of business owned by a dealer whose estate or any portion of whose estate is under the control of the Court of Wards, the Administrator General, the Official Trustee or any Receiver or Manager (including any person whatever his designation, who in fact manages the business on behalf of the dealer) appointed by him or under any order of a court, the tax shall be levied upon and recoverable from such Court of Wards, Administrator General, Official Trustee, Receiver or Manager, in like manner and in the same terms as it would be leviable upon and recoverable from the dealer, as if he were conducting the business himself, and all the provisions of this Act and the rules made thereunder shall apply accordingly.
Subject to provisions of this Act, dealers referred to in the following clauses and holding valid registration certificate under this Act, shall, in respect of taxable goods purchased from within the State and mentioned in such clauses, subject to conditions given therein and such other conditions and restrictions as may be prescribed, be allowed credit of an amount, as input tax credit, to the extent provided by or under the relevant clause:
(a) Subject to conditions given in column 2, every dealer liable to pay tax, shall, in respect of all taxable goods except non-vat goods, capital goods and captive power plant, where such taxable goods are purchased on or after the date of commencement of this Act, be allowed credit of the amount, as input tax credit, to the extent provided in column 3 of the table below:
(b) Input tax cre
(1) Consistent with the provisions of this Act, the State Government may prescribe the
circumstances in which and the goods in respect of which input tax credit shall be
neither claimed nor allowed.
(2) Where, in respect of any goods, a dealer has already claimed input tax credit against
the provisions of this Act or the rules framed there under or has wrongly claimed
input tax credit in respect of any goods, benefit of input tax credit to the extent it is
not admissible, shall stand reversed and such amount of reverse input tax credit shall
be deducted from the amount of input tax credit already claimed by the dealer in the
tax period in which event giving rise to reverse input tax credit has occurred:
Provided that where event, giving rise to reverse input tax credit, comes to the
notice of the dealer after the tax return, for the tax period in which such event has Reverse
input tax credit occurred,
14. (1) For any tax period, net amount of tax payable shall be computed using the following equation:
Net amount of tax payable for any period = Gross amount of tax payable for such period – Gross amount of admissible input tax credit for the period
Where-
a gross amount of tax payable for the period is the aggregate of amounts of-
(i) tax payable on the turnover of sale of goods made during the tax period;
(ii) tax payable on turnover of purchase of goods made during the tax period;
Provided that a dealer who fails to apply for issue of registration certificate within the time prescribed, without prejudice to any other liability under this Act,
may apply after depositing late fee at the rate of rupees one hundred for every
month or part thereof for the period of delay.
(3) Subject to the provisions of sub-section (5), every dealer who has held
immediately before
18.(1) On January 1, 2008, a dealer, who is otherwise not liable to pay tax, and if such
dealer either carries on business or intends to carry on business, may apply at any
time on or after January 1, 2008 for issue of registration certificate in the form and
manner prescribed under sub-section (2) of section 17 alongwith proof of deposit
of fee prescribed under that sub-section.
(2) Every other dealer who has held immediately before January 1, 2008 a
registration certificate under the erstwhile Act but otherwise is not liable to pay
tax under this Act, shall be deemed a voluntarily registered dealer under this Act
provided he informs the registering authority within a period of thirty days from
January 1, 2008 in the form prescribed under sub-section (5) of section 17, of his
intention to remain registered dealer under this Act:
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(1) Where it appears necessary to the registering authority so to do -
(a) for the proper realization of any tax, penalty or other sums due or
payable under this Act; or
(b) for the proper custody or use of forms prescribed under this Act or the
rules framed there under; or
(c) as a condition for the grant or, as the case may be, the continuance in
effect of registration certificate,
it may, by an order in writing and for reasons to be recorded therein,
direct, before the grant or as the case may be, at any time while such certificate
is in force, that the dealer or the person concerned shall furnish, in the
prescribed manner and within such time as may be specified in the order such
security or, if dealer or person concerned has already furnished such security,
additional security of any nature, as may be specified, for all or any of the
aforesaid purpos
(1) Every registered dealer shall quote his Taxpayers’ Identification number,
allotted to him on his registration certificate, on all correspondence made,
statement and return submitted, information furnished and documents issued by
him and on each copy of treasury challan while depositing amount of tax, fee or
any other dues under this Act.
(2) While making sale of any taxable goods, if purchaser of such goods demands,
the selling dealer shall show his registration certificate.
(3) While making purchases of any taxable goods, every purchasing dealer shall
give his name, address and Taxpayers’ Identification number, to the selling
dealer and the selling dealer shall mention such particulars on tax invoice, sale
invoice, transport memo, challan or transfer invoice, as the case may be, issued
by him.
(4) Every registered dealer shall present registration certificate issued to him before
an officer or official authorized by the State Government whenever required by
such office
(1) Every taxable dealer shall keep and maintain a true and correct account
showing the value of the goods sold and bought by him, and in case the
accounts maintained in the ordinary course do not show the same in an
intelligible form, he shall maintain true and correct account in such form, as
may be prescribed in this behalf.
(2) A manufacturer liable to pay tax under this Act shall, in addition to the
accounts referred to in other sub-sections, maintain stock books in respect of
goods used or consumed in manufacture as well as the products obtained at
every stage of production.
Provided that in the case of any class of manufacturers, the aggregate of
whose turnover, in an assessment year does not exceed twenty five lakh rupees,
the Commissioner, or in any other case the State Government, may relax the
requirements of this sub-section subject to such conditions and restrictions as
may be deemed fit
(1) In respect of all taxable goods, except non-vat goods, in the circumstances
mentioned below, every registered dealer except a dealer who opts for payment
of composition money under section 6, where such dealer is liable for payment
of tax on sale of any such goods, shall, while making sale of the goods, issue to
the purchaser, tax invoice containing such particulars as may be prescribed
including name and complete address and Taxpayer's Identification Number, if
any, of the person purchasing the goods, and shall charge separately on such tax
invoice the amount of tax payable by him, where such goods are sold to -
(i) a registered dealer; or
(ii) an official or personnel of any foreign diplomatic mission or consulate
in India; or
(iii) the U
(1) (a) No person who is not a dealer registered under this Act, shall in respect of any
sale or purchase made by or through him, realize from any person any amount
by way of tax on sale or purchase of goods or any amount in lieu of tax on sale
or purchase of goods by giving it different name or colour and no dealer
registered under this Act, shall in respect of any sale or purchase made by or
through him, realize from any person, other than a person to whom goods are
sold by him, any amount by way of tax on sale or purchase of goods, or any
amount in lieu of tax on sale or purchase of goods by giving it different name or
colour;
(b) Where tax is payable on sale or purchase of goods on any turnover by a dealer
including a commission agent or any person mentioned in clause (h) of section 2
registered under this Act, such dealer may recover an amount, equivalent to the
amount of tax on sale or purchase of goods payable, from the person to whom
any such goods is sold by him, whether o
(1) Every taxable dealer including a dealer from whom any amount of tax has been
deducted at source under section 34, shall, for such tax period and within such
time, as may be prescribed, submit tax return of his self assessed turnover and
tax, in such form and verified in such manner as may be prescribed, but the
assessing authority may in its discretion and for reasons to be recorded, extend
the date for submission of the return by any dealer or class of dealers:
Provided that every taxable dealer, including a dealer who claims
input tax credit, shall also submit along with tax return a list of-
(i) purchases of goods made from registered dealer in respect of which the
dealer has received tax invoices;
(1) Where in respect of any tax period of an assessment year-
(i) any dealer has not submitted tax return within the time prescribed or
within the time extended by the assessing authority, or if tax return has
been submitted without payment of tax shown payable in such return;
or
(ii) preliminary examination of tax return, by the assessing authority,
reveals that computations shown in the tax return are wrong or amount
of input tax credit claimed or tax payable shown is incorrect; or
(iii) on the basis of material available on records with the assessing
authority, it appears to the assessing authority that the turnover of sales
or purchases or both, disclosed by the dealer is not worthy of credence;
Subject to provisions of this Act, in respect of every taxable dealer, for each
assessment year, there shall be an assessment of tax payable by him and
amount of input tax credit admissible to him:
Provided that where the dealer has carried on business during a
part of the assessment year, such assessment shall be for such part of
the assessment year:
Provided further that in case of person who being a dealer other
than a registered dealer brings any taxable goods from outside the State, the assessing authority may make separate assessments for each
receipt of such goods by the dealer,
the assessing authority may make separate assessments for each such
authorisation f
(1)Notwithstanding anything to the contrary contained in any other provision of
this Act, a casual trader shall-
(a)inform the assessing authority at least three days before beginning of his
business in Uttar Pradesh, such particulars of his business in such form and
in such manner as may be prescribed;
(b)deposit security in cash or in the form of bank draft, of such amount as
may be fixed by the assessing authority which shall not exceed estimated
liability to pay tax for such period for which the casual trader is
conducting the business in Uttar Pradesh;
(c) pay tax daily on sales made during the previous day;
(d)furnish to the assessing authority next day afte
(1) Subject to provisions of section 28, every dealer, who has submitted the
return of last tax period as well as the prescribed Annexures of
Consolidated Details in the prescribed form and manner, shall be deemed
to have been assessed to an amount of tax admittedly payable on the
turnover of purchase or sale or both, as the case may be, disclosed in such
Annexures and to an amount of input tax credit shown admissible in such
Annexures.
(2) For all purposes under this Act and rules made there under –
(a) Annexures of Consolidated Details submitted by a dealer, shall be
deemed to be an assessment order and facts disclosed or figures
mentioned in such Annexures shall be deemed part of such
assessment order; and
(b) last date of the assessment year succeeding the assessment year in
which the date prescribed for submission o
(1) In following types of cases or dealers, the assessing authority, after detailed
examination of books, accounts and documents kept by the dealer in relation
to his business and other relevant records, if any, and after making such
inquiry as it may deem fit, subject to provision of sub-section (9), shall pass
an assessment order for an assessment year in the manner provided in this
section: -
(a) in cases of such dealers as are specified or selected for tax audit by
the Commissioner or any other officer, not below the rank of a Joint
Commissioner, authorized by the Commissioner in this behalf; in
such manner and within such time as may be prescribed.
(b) in case of a dealer falling in any of the categories below,
Provided that the tax shall be charged at the rate at which it would have
been charged had the turnover not escaped assessment or full assessment as the
case may be.
Explanation I:- Nothing in this sub-section shall be deemed to prevent the
assessing authority from making an assessment to the best of
its judgment.
Explanation II:- For the purpose of th
(1) The amount of turnover, determined in the prescribed manner shall if such
amount is not in the multiple of ten, be rounded off to the nearest multiple of
ten rupees, that is to say, a part of ten rupees which is less than five rupees shall
be ignored and any other part shall be counted as ten rupees. The amount so
rounded off shall be deemed to be the turnover of the assessee for the purpose
of assessment of tax under this Act.
(2) The amount of tax, fee, interest, penalty or any other sum payable or the
amount of refund due under the provisions of this Act shall, where such amount
contains part of a rupee, be rounded off to the nearest rupees, that is to say, a
part of a rupee which is less than fifty paise shall be ignored and any other part
shall be counted as one rupee.
(1) Any officer, authority, the Tribunal or the High Court may on its own motion
or on the application of the dealer or any other interested person rectify any
mistake apparent on the face of record, in any order passed by him under this
Act, within three years from the date of the order sought to be rectified:
Provided that where an application under this sub-section has been made
within such period of three years, it may be disposed of even beyond such
period:
Provided further that no rectification which has the effect of enhancing the
assessment, penalty, fees or other dues, shall be made unless reasonable
opportunity of being heard has been given to the dealer or other person likely to
be affected by such enhancement.
(2) Where such rectification has the effect of enhancing the assessment, the
assessing authority sha
(1)In any case in which an order of assessment or re-assessment or rejection of
application for registration or order of penalty is passed exparte, the dealer may
apply to the assessing authority within thirty days of the service of the order to set
aside such order and re-open the case; and if such authority is satisfied that the
applicant did not receive notice or was prevented by sufficient cause from
appearing on the date fixed, it may set aside the order and reopen the case for
hearing:
Provided that no such application for setting aside an exparte assessment
order shall be entertained unless it is accompanied by satisfactory proof of the
payment of the amount of tax to be due under this Act on the turnover of sales or
purchases, or both, as the case may be, admitted by the dealer in the returns filed
by him or at any stage in any proceeding under this Act, whichever is greater.
(2) Where an asse
(1) Any amount of tax or fee or penalty or any other amount, which a dealer or
other person is liable to pay under this Act, shall be deposited by the dealer or
such other person in the prescribed manner.
(2) Subject to provisions of section 42, the tax admittedly payable, shall be
deposited within the time prescribed, failing which simple interest at the rate of
one and quarter percent per mensum shall become due and be payable on
unpaid amount with effect from the day immediately following the last date
prescribed till the date of payment of such amount and nothing contained in
section 24 shall prevent or have the effect of postponing liability to pay such
interest:
Explanation : For the purposes of this sub-section ,the tax admittedly payable for a tax period or an assessment year , as the
case may be , shall be computed in accordance with provisions of section 15 and shall include the
amount payable under section 8-A.*
*Substituted by THE UTTAR PRADESH VALUE ADDED TAX (
(1) Without prejudice to any other mode of recovery, payment or collection of tax under
this Act, the State Government may, by notification in the Gazette, direct that, in a
specified case and in the specified circumstances but subject to such conditions as may
be specified, every specified person responsible for making payment to the selling
dealer, for discharge of liability on account of valuable consideration payable on sale of
goods in such cases as may be specified, shall, at the time of making such payment to
the seller, either by credit or in cash or in any other manner, towards satisfaction of tax
payable by the dealer on account of sale of any taxable goods, deduct an amount
determined in the manner specified:
Provided that where in case of a works contract, the contractor has awarded a
sub-contract and the notification provides for deduction of amount by the contractee
from the payments made to
(1)Every person responsible for making tax deduction at source in accordance with
provisions of section 34, if he is not a registered dealer, shall apply to the assessing
authority for allotment of tax deduction number and the application shall be
disposed of in such time and manner as may be prescribed.
(2) Tax deduction number shall be referred to in all the documents pertaining to deposit of tax
and returns filed.
(3) No person other than a registered dealer can make tax deduction under sub-section (1) of
section 34 unless he has applied for such tax deduction number.
(4) If any person referred to in sub-section (1) fails to apply for tax deduction number,
the assessing authority may, after giving reasonable opportunity of being heard,
by order in writing, direct that such person shall pay, by way of penalty, a sum
not exceeding twice the amount deductible under section 34.
Notwithstanding anything contained in any other provisions of this Act, no tax, fee,
interest or penalty under this Act shall be recovered and no refund shall be allowed
if the amount involved for any assessment year is less than one hundred rupees.
(1) Every person who -
(a) is the liquidator of a company which is being wound up, whether under
orders of a Court or otherwise; or
(b) has been appointed the receiver of any assets of a company hereinafter
referred to as the liquidator,
shall within thirty days after he has become such liquidator, inform the
assessing authority of his appointment as such.
(2) The assessing authority shall after making such inquiry or calling for such
information as it may deem fit, notify the liquidator within three months from
the date on which he receives information of the appointment of the liquidator
the amount which in the opinion of the assessing authority would be sufficient
to provide for any tax which is then or likely thereafter to become, payable by
the company.
(3) The liquidator shall not part with any of the asset
Notwithstanding anything contained in the Companies Act, 1956, when any limited
company is wound up and any tax assessed on the company under this Act for any
period, whether before or in the course of or after its liquidation, can not be
recovered, then every person who was a director of the limited company at any time
during the period for which the tax is due shall be jointly and severally liable for the
payment of such tax unless he proves that the non-recovery cannot be attributed to
any gross neglect, misfeasance or breach of duty on his part in relation to the affairs
of the company.
(1) Subject to such conditions and restrictions, including the conditions regarding
furnishing security to the satisfaction of the assessing authority, as may be
deemed fit to be imposed-
(a)the State Government may permit any dealer or other person, against whom
any amount of tax, penalty or other dues is outstanding, either under this Act
or under the erstwhile Act, to pay the amount in such number of monthly
installments not exceeding twenty four; and
(b)the Commissioner may likewise permit any dealer or other person, against
whom any amount of tax, penalty or other dues, payable either under this Act
or under the erstwhile Act, aggregating not more than five lakh rupees is
outstanding, to pay the amount in such number of monthly installments, not
exceeding twelve.
(2) Where such dealer or other person fails to furnis
(1) Subject to other provisions of this Act, the assessing authority shall in the
manner prescribed, refund to the dealer an amount of tax, fee, or other dues
paid in excess of the amount due from him under this Act.
Provided that amount found to be refundable shall first be adjusted
towards tax or any other amount outstanding against the dealer under this Act
or under The Central Sales Tax Act 1956 or under the erstwhile Act and only
the balance if any shall be refunded.
Provided further that refund, of excess amount of input tax credit, shall,
without prejudice to other conditions, be subject to conditions and restrictions
of section 15.
(2) Where amount found refundable in accordance with the provisions under subsection
(1), is not refunded within thirty days from the date of order of refund
passed by the assessing au
40A.(1) Notwithstanding anything to the contrary contained in any other
provision of this Act or in any judgment, decree or order of any
Court, Tribunal or other authority, where after giving reasonable
opportunity of being heard to the dealer or the person concerned, the
Commissioner is satisfied on the report of the assessing authority
that,-
(a) the dealer has submitted false return of the turnover or has
concealed particulars of his turnover or has deliberately
furnished inaccurate particulars of such turnover or has
prevented the assessing authority or any other competent
authority from making inspection and examination of books,
accounts or documents maintained or goods shown to be held
in stock by such dealer or obstructed any competent authority
in performing his functions under this Act; or
(b) any purchase in respe
(1) Notwithstanding anything contained in section 40, in the case of a dealer, whose
main business is to sell goods in the course of the export of the goods out of the
territory of India, the assessing authority, upon receiving the return for a tax period
and application for provisional refund along with the proof of export, pending audit
and investigation to establish the correctness of the claim and consequent assessment,
shall, allow provisional refund of the excess amount of input tax credit for such tax
period on account of sale in the course of the export of the goods out of the territory
of India, within thirty days from the date of receipt of such application:
Provided that if any amount of tax, fee or penalty or any other amount either under
this Act or under the Central Sales Tax Act, 1956 or under the erstwhile Act is due
against such dealer the amount found refundable first shall be adjusted t
(1) No industrial unit,- (w.e.f.01.01.2008)
(a) availing benefit of exemption from or reduction in the rate of tax
under the erstwhile Act or under the Central Sales Tax Act, 1956
on the turnover of sales or purchase or both as the case may be,
before the commencement of this Act; or
(b) which is granted the benefit of exemption from or reduction in
the rate of tax on the turnover of sale or purchase or both as the
case may be, under the erstwhile Act or under the Central Sales
Tax Act, 1956;
shall be permitted to avail the benefit of exemption from, or reduction in
the rate of, tax on the turnover of sale or purchase or both as the case may
be, on or after the commencement of this Act.
(2) The industrial unit availing the benefit of tax deferment under the
erstwhile Act or under the Central Sales Tax Act, 1956 befor
43.(1) Where any amount has been realized from any person by any dealer, purporting
to do so by way of realisation of tax on the sale or purchase of goods, in
contravention of provisions of sections 22 and 23, such dealer shall, subject to
provisions of sub-section 14 of section 21, deposit the entire amount so realised in
the manner and within the period prescribed under section 24.
(2) Any amount deposited by any dealer under sub-section (1) shall to the extent it is
not due as tax, be held by the State Government in trust for the person on whom
such liability has been passed ultimately in respect of goods on the sale or
purchase whereof such excess amount has been charged.
(3) Where any amount is deposited by any dealer under sub-section (1) such amount
or any part thereof shall on a claim being made in that behalf be refunded in such
manner as may be prescribed to the person on whom liability of such amount has
been passed ultimately.
(1) For the purpose of examining the correctness of tax return or returns and
Annexures of Consolidated Details filed by a dealer or class of dealers and to
verify admissibility of various claims including claim of input tax credit made by a dealer or class of dealers, tax audit shall be made of such number of
dealers as may be prescribed.
(2) Any officer, not below the rank of an assessing authority, appointed by the State
Government or the Commissioner and posted in the audit wing of the department
administering this Act or any other officer authorised by the Commissioner in
this behalf may, undertake tax audit of the records, stock in trade and the related
documents of the dealers, who are specified or selected in the manner prescribed
under sub-section (1):
Provided that no audit shall be undertaken for any assessment year after
expiry of a period of three years after the end of such assessment ye
(1). Any officer empowered by the State Government in this behalf (hereinafter in
this section referred to as the authorized officer), may for the purposes of this
Act, require any dealer to produce before him any book, document or account
relating to his business and may inspect, examine and copy the same and make
such enquiries from the dealer as may be necessary.
Provided that books, accounts and documents of a period more than five
years prior to the assessment year shall not be so required, unless in any special
case, for reasons to be recorded, such officer considers it necessary.
(2) The authorised officer may, at all reasonable times, enter and search any place
of business or vehicle, vessel or other building or place where he has reason to
believe that the dealer keeps or is for the time being keeping any book, register,
document, account or goods relating to his business:
(i) broker or canvassing agent who acts as mediator between purchaser and
seller of goods; or
(ii) transporter or any other carrier or a forwarding agent of goods; or
(iii) person who fabricates or
(1) Any officer, not being an officer below the rank of an assessing authority, may
require any dealer or other person to furnish any information which may be, or
is in his knowledge or possession.
(2) An officer under this Act shall have the same powers as are vested in a court
under the Civil Procedure Code 1908, when trying a suit in respect of following
matters, namely -
(a) Enforcing the attendance of any person and examining him on oath or
affirmation;
(b) Compelling the production of documents; and
(c) Issuing commission for the examination of witness;
and any proceeding before any of the officers aforesaid shall be judicial
proceeding within the meaning of section 193 and 228 and for the purpose of
section 196 of the Indian Pane
(1) An officer authorised under sub-section (1) of section 45 shall have the powers
to seize any goods -
(i) which are found in a dealer's place of business, vehicle, vessel or any other
building or place; or
(ii) which, such officer has reason to believe to belong to the dealer and which
are found in any place of business, vehicle, vessel or any other building
or place, but are not accounted for by the dealer in his accounts, registers
or other documents maintained in the ordinary course of his business.
(iii) which are found in any place of business, vehicle, vessel or any other
building or place, and such goods are accompanied by any tax invoice or
sale invoice or any other document pertaining to value of goods, as the
case may be, containin
(1) Any person (hereinafter in this section referred to as the importer) who intends
to bring, import or otherwise receive, into the State from any place outside the
State any goods other than the goods named and described in schedule-I in such
quantity or measure or of such value, as may be notified by the State
Government in this behalf, in connection with business, shall either obtain the
prescribed form of declaration, in such manner as may be prescribed from the
assessing authority having jurisdiction over the area, where his principal place
of business is situated or, in case there is no such place, where he ordinarily
resides or shall download from official web site of the department in such
manner as may be prescribed;
Provided that where the importer intends to bring, import or otherwise
receive such goods otherwise than in connection with business, he may, at his
option, in the like manner obtai
(1)(a) Where any taxable goods are consigned by rail, air or post from a place
outside the State for delivery to a dealer inside the State, the concerned
authority shall not deliver the goods to the dealer or consignee unless he
furnishes or causes to be furnished to such authority a declaration in prescribed
form along with the other documents as may be prescribed.
(b) where a taxable goods are consigned by river or rope way from a place
outside the state for delivery to a dealer inside the state the receiving dealer
shall not obtain or cause to be obtained delivery thereof unless he furnishes or
causes to be furnished to such officer, as may be authorized in this behalf by
the Commissioner, prescribed declaration and documents.
(c) after taking d
When a vehicle coming from any place outside the state and bound for any
other place outside the state, and carrying goods referred to in sub-section (1)
of section 50,passes through the state, the driver or other person in charge of
such vehicle shall carry such documents as may be prescribed failing which it
shall be presumed that the goods carried thereby are meant for sale within the
State by the owner or person in charge of the vehicle;
An officer exercising powers under the provisions of sections 45, 48, 50, 51, or 52
may take the assistance of police or other officers or officials of the State.
(1) The assessing authority, if he is satisfied that any dealer or other person, as the case
may, has committed the wrong described in column 2 of the table below, it may, after such
inquiry, if any, as it may deem necessary and after giving dealer or person reasonable
opportunity of being heard, direct that such dealer or person shall, in addition to the tax, if any,
payable by him, pay by way of penalty, a sum as provided in column 3 against the same serial
no. of the said table:
Explanation – For the purposes of this section -
(i) the assessing authority includes an officer not below the rank of an officer appointed
and posted by the Commissioner at a check-post or an officer empowered to exercise
powers under sections 45, 46, 47, 48, 50, 51 and 52 of this Act;
(ii) if the value of goods described or mentioned in tax
(1) Any dealer or other person aggrieved by an order made by the
assessing authority, other than an order mentioned in sub-section (7) of section
48 may, within thirty days from the date of service of the copy of the order,
after serving a copy of appeal memo on the assessing authority or the
Commissioner, appeal to such authority (hereinafter referred to as appellate
authority), as may be prescribed:
Provided that where due to any reason, any appellant fails to serve a
copy of appeal memo on the assessing authority before filing appeal, he may
serve copy of such appeal memo within a time of one week from the date on
which appeal has been filed or within such further time as the appellate
authority may permit.
(2) Where an appeal has been filed against an order referred to in sub-section (1),
the Commissioner may apply to th
(1) The Commissioner or such other officer not below the rank of Joint
Commissioner, as may be authorised in this behalf by the Commissioner may
call for and examine the record relating to any order, passed by any officer
subordinate to him, for the purpose of satisfying himself as to the legality or
propriety of such order and may pass such order with respect thereto as he
thinks fit.
(2) No order under sub-section (1) affecting the interest of a party adversely shall
be passed unless he has been given a reasonable opportunity of being heard.
(3) No order under sub-section (1), shall be passed-
(a) to revise an order, which is or has been the subject matter of an
appeal under section 55, or an order passed by the appellate
authority under that section.
(b) before the expiration of sixty days from the date of the ord
(1) There shall be a Tribunal to be known as Commercial Taxes Tribunal
consisting of such members including a President as the State Government
may, from time to time, deem it necessary to appoint from amongst-
(a) the persons who are qualified to be the judge of the High Court;
(b) the persons belonging to the Uttar Pradesh Trade Tax Services or the
Uttar Pradesh Commercial Tax Services who hold or have held a post
not below the rank of Joint Commissioner:
Provided that-
(i) where the Tribunal consists of one or more persons who is or
are member or members of the U.P. Higher Judicial Se
(1) Any person aggrieved by an order made under sub-section (7) or sub-section
(8) of section 57, other than an order under sub-section (4) of that section
summarily disposing of the appeal, may, within ninety days from the date of
service of such order, apply to the High Court for revision of such order on the
ground that the case involves any question of law.
(2) The application for revision under sub-section (1) shall precisely state the
question of law involved in the case, and it shall be competent for the High
Court to formulate the question of law or to allow any other question of law to
be raised.
(3) Where an application under this section is pending, the High Court may, on an
application in this behalf, stay recovery of any disputed amount of tax, fee or
penalty payable, or refund of any amount due under the order sought to be
revised:
Provided that no order for stay or recovery of such
(1) The Commissioner with the approval of the State Government may, from
time to time, issue orders, instructions or directions to the authorities
under this Act fixing the monetary limits for the purpose of regulating the
filing of appeal under section 57 or revision under section 58 by the
commercial tax authority under this Act.
(2) Where a commercial tax authority in pursuance of the orders,
instructions or directions issued under sub-section(1),has not filed any
appeal under section 57 or revision under section 58 on any issue in the
case of an assessee for any assessment year, it shall not preclude such
authority from filing an appeal under section 57 or revision under
section 58 on the same issue in the case of,-
(a) the same assessee for any other assessment year, or
(b) any other assessee for the same or any oth
(1) If any question arises, otherwise than in a proceedings pending before a Court
or before an authority under this Act, whether, for the purposes of this Act-
(a) any person or association of persons, society, club, firm, company,
corporation, undertaking or Government Department is a dealer; or
(b) any particular thing done to any goods amounts to or results in the
manufacture of goods within the meaning of that term; or
(c) any transaction is a sale or purchase and, if so, the sale or purchase price,
as the case may be, therefor; or
(d) any particular dealer is required to obtain registration; or
(a) an order or notice initiating an inquiry for assessment or reassessment;
(b) any order or action under section 45, sub-sections (1), or subsection
(2) of section 48, sub-section (4) of section 50 or an order of seizure
of goods; and
(c) any direction issued by the Commissioner in exercise of powers as
may be prescribed.
The assessee shall not be entitled to produce additional evidence, whether oral or
documentary, before the appellate authority or the Tribunal except where the
evidence sought to be adduced is an evidence, which the assessing authority had
wrongly refused to admit or which after exercise of due diligence was not within
his knowledge or could not be produced by him before the assessing authority,
and in every such case, upon the additional evidence being taken on record,
reasonable opportunity for challenge or rebuttal shall be given to the assessing
authority.
(1) There shall be a Settlement Commission consisting of a Chairman and such
number of other members as may be determined by the State Government.
Provided that the Commission shall comprise at least one member from each
category mentioned in clauses (i) and (ii) of sub-section (4).
(2) The Commission shall be located at the State headquarter but the Commission
for discharge of its functions, may, at its option, hold its camp at any public
place anywhere inside the State.
(3) A person shall not be qualified for appointment as Chairman, unless he -
(i) has been a judge of a High Court, or
(ii) has, for at least one year, held the post of the President of Tribunal under
this Act or the erstwhile Act;
(4) A person shall not be qualifie
(1) The State Government shall determine the nature and categories of the officers
and other employees required to assist the Settlement Commission (hereinafter
referred to as the Commission) in the discharge of its functions and provide
the Commission with such officers and other employees as it may think fit.
(2) The officers and other employees of the Commission shall discharge their
function under the general superintendence of the Chairman.
(3) The salaries and allowances and conditions of service of the officers and other
employees of the Commission shall be such as may be determined by the State
Government
(1) Any dealer or other person who has been served with a notice
(i) under sub-section (10) of section 45 and who is suspected to have evaded
payment of tax exceeding one lakh rupees or such larger amount of tax as
the State Government may by notification in the Gazette specify; or
(ii) for imposition of penalty either under sub-section (4) of section 48 or
under entries at serial numbers 2 and 14 of the table under sub-section (1)
of section 54 and where the maximum amount of penalty that can be
imposed is likely to exceed one lakh rupees,
may file a petition before the Commission for settlement of amount of tax that
may be assessed or amount of penalty that may be imposed or both, as the case
may be, within thirty days from the date of receipt of such notice after giving
intimation to the authority who has issued such not
(1)The Chairman may from time to time constitute bench of two members for the
disposal of the settlement cases received under section 64.
(2) A bench of two members shall include each category of members mentioned in
clauses (i) and (ii) of sub section(4) of section 62.
Provided that Chairman may nominate himself as one of the members of the
bench.
(3) The petition referred to in section 64 shall be placed before the bench to which it
has been marked by the Chairman and where the bench, after giving reasonable
opportunity of being heard to the petitioner and the representative officer of the
Commissioner, is of the opinion that prima facie case for settlement is made out, it
shall, subject to provision under sub-section (4),
(i) order for registration of the case; and
(ii) stay the proceedings before the assessi
(1) No objection as to the territorial or pecuniary jurisdiction of any assessing
authority shall be allowed by any appellate or revising authority or the
Tribunal, unless such objection was taken before the assessing authority at the
earliest possible opportunity and unless, in the opinion of the appellate or
revising authority or the Tribunal, as the case may be, a failure of justice has in
fact been occasioned thereby.
(2) Where any assessment is set aside or quashed merely on the ground of want of
territorial or pecuniary jurisdiction of the assessing authority or on any other
ground of a like nature not affecting the substance, any tax already paid by the
assessee, to the extent of the liability admitted by him shall not be refundable to
him, in consequence of the assessment being so set aside or quashed.
No suit, prosecution or other legal proceedings shall lie against any servant of the
Government for anything, which is in good faith done or intended to be done
under this Act or the rules made thereunder.
No assessment made and no order passed under this Act or the rules made
thereunder by any authority shall be called in question in any Court, and, save
as is provided in this Act, no appeal or application for revision or review shall
lie against any such assessment or order.
(1) All particulars contained in any statement made, tax return furnished or
accounts or documents produced under the provisions of this Act or of the rules
made thereunder, or in any evidence given or affidavit or deposition made in
the course of any proceedings under this Act or the rules made thereunder, or in
any record of any proceedings relating to the recovery of a demand prepared for
the purpose of this Act or the rules made thereunder, shall be treated as
confidential.
(2) Nothing in sub-section (1) shall apply to the disclosure of any such particulars-
(a) for the purpose of any investigation of, or prosecution for any offence
under this Act or under the Indian Penal Code, 1860, or under any
other enactment for the time being in force; or
(b) to any person acting in the execution of the Act or the rules made
th
The State Government may assign commodity code to each category of
commodities whether described in any entry of any Schedule of this Act or
embodied in Schedule-V.*
*Substituted by THE UTTAR PRADESH VALUE ADDED TAX (AMENDMENT) (SECOND) ORDINANCE, 2014 ( U. P. ORDINANCE
NO. 6 OF 2014)
(1) Notwithstanding anything contained in sub-section (1) and sub-section (2) of
section 33 and section 39, but subject to such conditions, as may be deemed fit
to be imposed, the State Government may allow the deferment of payment of
any existing or future dues payable by an industrial unit under the provisions of
this Act or allow payment of such dues in such number of installments as may
be specified, if such industrial unit is declared a sick unit in accordance with the
guidelines specified in this behalf by an authorised body constituted by the
Central Government or the State Government in connection with the
rehabilitation of sick industrial units, and is approved for rehabilitation by an
approved agency, appointed by the Central Government or the State
Government.
(2) Notwithstanding anything contained in section 32, the State Government may
set aside an order of assessment or penalty passed ex-parte against a sick unit and direct fresh disposal of the case in accordance wit
(1) Subject to other provisions of this Act, the fee payable on a memorandum of
appeal or other applications under this Act filed or moved shall be as follows:
(2) The fee referred to in this section and in any other provision of this Act shall be
payable in the manner prescribed, and proof of deposit of the same shall be
attached to the memorandum or application, as the case may be:
Provided that where the amount of fee payable does not exceed one
hundred rupees, the same may be paid in court fee stamps.
(3) No fee shall be payable in respect of:-
(a) an application or a memorandum of appeal presented by the Commissioner
or any other officer or authority appointed under this Act or the rules made
thereunder.
(b) an application in which
(1) Where, during the pendency of any proceedings under this Act, any person
liable to pay any tax or other dues creates a charge on, or transfers any movable
or immovable property belonging to him in favour of any other person with the
intention of defrauding any such tax or other dues, such charge or transfer shall
be void as against any claim in respect of any tax or other dues payable by such
person as a result of the completion of the said proceedings:
Provided that nothing in this section shall impair the rights of a transferee
in good faith and for consideration.
(2) Nothing in sub-section (1) shall apply to a charge or transfer in favour of a
banking company as defined in the Banking Regulation Act, 1949 ( Act X of
1949) or any other financial institution specified by the State Government by
notification in this behalf.
Where the State Government is satisfied that it is necessary so to do in the public
interest, it may issue notification wherever required under the provision of this
Act so as to make it effective from a date not earlier than six months from the
date of issue of such notification:
Provided that no notification having the effect of increasing the liability to
tax of a dealer shall be issued with retrospective effect under this section.
If any dealer to whom the provisions of sections 17 and 18 apply:-
(a) transfers his business or any part thereof by sale, lease, leave, license,
hire or in any other manner whatsoever, or otherwise disposes of his
business or any part thereof; or
(b) acquires any business, whether by purchase or otherwise; or
(c) effects or comes to know of any other change in the ownership or
constitution of his business; or
(d) discontinues his business or changes his place of business or warehouse
or opens a new place of business or warehouse; or
(e) changes the name, style or nature of his busin
(1) The Commissioner may, by issuing a circular or by publication in the news
paper, direct that statistics be collected relating to any matter under this Act.
(2) Any officer authorised to collect statistics may, call upon all dealers or class of
dealers or a particular dealer to furnish such information, returns or statements
as may be required relating to any matter in respect of which statistics are to be
collected.
(3) Dealer shall be liable to furnish such information within the time allowed.
Notwithstanding anything to the contrary contained in any other law for the time
being in force, any amount payable by a dealer or any other person under this
Act on account of tax, fee, penalty or interest, shall be the first charge on the
property of the dealer or such person.
78-(1)The State Government may, by notification, establish with effect from such date
as may be specified in the notification, a Board to be known as the Uttar
Pradesh State Tax Board to perform the functions conferred on it, by or under
this Act or the rules made there under, consisting of the following members:-
recognized Trade Association nominated by the State
Government
(2)The Board shall be the apex advisory body regarding system of tax
collections, changes in the rate of tax, rules and procedures, promulgation of
schemes, notifications, orders and such other matters as the State Government
may from time to time assign to it.
(3)The members referred to in clause (h) to (j) of sub-section-(1) shall be
entitled to get such facility or benefit and remuneration as may be determined
from time to time by the State Government.
(1) The State Government may make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing powers,
such rules may provide for-
(a) all matters expressly required or allowed by this Act to be prescribed;
(b) the registration of persons engaged in the sales or purchase of goods and the
imposing of condition in respect of the sale for the purpose of enforcing the
provisions of this Act;
(c) the determination of the turnover for the purpose of assessment of tax under
this Act;
(d) compelling the submission of tax returns and the production of documents and
enforcing the attendance of a person and exami
(1) If any difficulty arises in giving effect to the provisions of this Act, or by reason
of anything contained in this Act to any other enactment for the time being in force,
the State Government may, as occasion requires, by notified order direct that this
Act shall have effect subject to such adaptions, whether by way of modification,
addition or omission, as it may deem to be necessary and expedient.
Provided that no order under this sub section shall be made after the
expiration of the period of two years from the date of commencement of this Act.
(2) Provisions made by any order under sub-section (1) shall have the effect as if
effected in this Act and such order may be made so as to be retrospective to any
date not earlier than the date of the commencement of this Act.
(3) Every order made under sub-section (1) shall be laid, as soon as may be, before
both the Houses of the State Legislatur
(1) The Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948) (hereinafter
in this section referred to as the repealed enactment) is hereby repealed.
(2) Notwithstanding such repeal, -
(a) any notification, rule, regulation, order or notice issued, or any
appointment or declaration made, or confiscation made, or any penalty or fine imposed, any forfeiture, cancellation or any other thing done or any
action taken under the repealed enactment, and in force immediately
before such commencement shall, so far as it is not inconsistent with the
provisions of this Act, be deemed to have been issued, made granted,
done or taken under the corresponding provisions of this Act.
(b) any right, privilege, obligation or liability acquired, accrued or incurred
under the repealed Act, shall not be affected and manufacturing units
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