THE RAJASTHAN FINANCE BILL, 2009

Bill No. 14 of 2009

A Bill further to amend the Rajasthan Fiscal Responsibility and Budget Management Act, 2005, the Rajasthan Value Added Tax Act, 2003 and the Rajasthan Electricity (Duty) Act, 1962 and to make certain other provisions.

Read full Act

S.Chapter I PRELIMINARY

S.1 Short title

This Act may be called the Rajasthan Finance Act, 2009.

S.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 the provisions of clauses 3 to 12 of this Bill shall have immediate effect under the said Act.

S.Chapter II AMENDMENT IN THE RAJASTHAN FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, 2005

S.3 Amendment of section 2, Rajasthan Act No. 7 of 2005

The existing clause (kk) of section 2 of the Rajasthan Fiscal Responsibility and Budget Management Act, 2005 (Act No. 7 of 2005), hereinafter in this Chapter referred to as the principal Act, shall be deleted.

S.4 Amendment of section 6, Rajasthan Act No. 7 of 2005

For the existing first proviso of section 6 of the principal Act, the following shall be substituted, namely:-

"Provided that revenue deficit and fiscal deficit may exceed the limits specified under this section-

• (a) due to ground or grounds of unforeseen demands on the finances of the State Government arising out of national security or natural calamity including drought relief or such other exceptional circumstances beyond the control of the State Government; or
• (b) due to developmental and other unavoidable expenditure; or
• (c) up to the limits indicated by the Central Government from time to time:".

S.5 Deletion of section 6A, Rajasthan Act No. 7 of 2005

The existing section 6A of the principal Act shall be deleted.

S.Chapter III AMENDMENT IN THE RAJASTHAN VALUE ADDED TAX ACT, 2003

S.6 Amendment of section 3, Rajasthan Act No. 4 of 2003

In sub section (2) 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, after the existing expression “clause (b) of sub-section (1)”, and before the existing expression “, who purchases goods”, the expression “or the dealer or class of dealers as may be notified by the State Government” shall be inserted.

S.7 Amendment of section 38, Rajasthan Act No. 4 of 2003

In sub section (4) of section 38 of the principal Act, for the existing punctuation mark ".", appearing at the end, the punctuation mark ":" shall be substituted and after the aforesaid sub-section (4), so amended, the following proviso shall be added, namely:-

"Provided that where an application for stay is not disposed of within a period of thirty days from its filing and the delay is not attributable to the applicant, the same shall be deemed to have been accepted subject to the condition that such dealer or person furnishes sufficient security to the satisfaction of the Assessing Authority or the officer, as the case may be, in such form and in such manner as may be prescribed.".

S.8 Amendment of section 53, Rajasthan Act No. 4 of 2003

In sub section (1) of section 53 of the principal Act, for the existing punctuation mark ".", appearing at the end, the punctuation mark ":" shall be substituted and after the aforesaid sub-section (1), so amended, the following proviso shall be added, namely:-

"Provided that in case of the dealer who files returns electronically and also opts for quarterly assessment under sub-section (2) of section 23, refund may be made provisionally to the extent of fifty percent of the refundable amount subject to the condition of subsequent verification of the deposit of refundable amount.".

S.9 Amendment of section 58, Rajasthan Act No. 4 of 2003

For the existing section 58 of the principal Act, the following shall be substituted, namely:-

"58. Penalty for failure to furnish return.- Where the assessing authority or any other officer not below the rank of Assistant Commercial Taxes Officer as authorized by the Commissioner is satisfied that any dealer has, without reasonable cause, failed to furnish prescribed returns within the time allowed, he may direct that such dealer shall pay by way of penalty,-

• (i) in case the dealer is required to pay tax every month under section 20, a sum equal to rupees one hundred per day for first fifteen days of such default and thereafter a sum equal to rupees five hundred per day for the period during which the default in furnishing such return continues, but not exceeding in the aggregate thirty percent of the tax so assessed; and
• (ii) in all other cases, a sum equal to rupees fifty per day subject to a maximum limit of rupees five thousand, for the period duri
  

S.10 Amendment of section 73, Rajasthan Act No. 4 of 2003

In sub section (1) of section 73 of the principal Act, after the existing expression “by the Commissioner”, and before the existing expression “, shall, if his turnover”, the expression “or the dealer or class of dealers as may be notified by the State Government” shall be inserted.

S.11 Amendment of section 77, Rajasthan Act No. 4 of 2003

For the existing sub-section (2) of section 77 of the principal Act, the following shall be substituted and shall be deemed to have always been substituted, namely.-

"(2) Notwithstanding any thing contrary contained in any contract under sub-section (1), a contactor covered by sub-section (1) shall deposit the amount of-

• (i) tax collected; or
• (ii) the amount of contracted annual tax revenue,

whichever is higher, subject to revision on account of any increase or decrease in the rate of tax or grant of exemption from tax, in such manner and within such time as may be prescribed, and all the provisions of this Act including the provisions of recovery and interest shall, so far as may be, apply to such contractor.

(2A) Notwithstanding anything contained in any rule, judgment, order or any other instrument, the amount of tax payable in accordance with the provisions of sub-section (2) as amended by the Rajasthan Finance Act, 2009 (Act No

S.Chapter IV AMENDMENT IN THE RAJASTHAN ELECTRICITY (DUTY) ACT, 1962

S.12 Insertion of section 3B, Rajasthan Act No. 12 of 1962

After the existing section 3A and before section 4 of the Rajasthan Electricity (Duty) Act, 1962 (Act No. 12 of 1962), the following new section shall be inserted, namely:-

"3B. Levy of water conservation cess. - (1) There shall be levied for, and paid to, the State Government on the energy consumed by a consumer or by a person other than a supplier generating energy for his own use or consumption, a cess to be called "water conservation cess" at the rate of ten paise per unit:

Provided that no cess under this section shall be levied on the energy-

• (a) consumed by the Government of India;
• (b) consumed in the construction, maintenance or operation of any Railway by the Government of India;
• (c) consumed in domestic category;
• (d) consumed by a cultivator in agriculture operations;
• (e) consumed by the following classes of institutions, namely:-
  • (i) hospitals or dispensaries, which are not maintained for