TAMIL
NADU GENERAL SALES TAX (FOURTH AMENDMENT) ACT, 2006 THE TAMIL NADU
GENERAL SALES TAX (FOURTH AMENDMENT) ACT, 2006[1] [Act No. 37 of 2006] Statement of Objects
and Reasons[2] In
view of the proposal to introduce the system of Value Added Tax in Tamil Nadu
with effect from 1st January 2007, there is urgent need to complete the back
year assessments before introduction of the same. The Government has to
concentrate more on cases of high revenue yield rather than on cases of low
revenue potential. There is a lot of pendency in back year assessments. 2.
The Government have therefore decided to make a provision in the Tamil Nadu
General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) for completing the back
year assessments pending as on 1st April 2006 based on the return filed by the
dealer without requiring the presence of the dealer or production of books of
accounts by the dealer subject to certain conditions. 3.
The Bill seeks to achieve the above decision. Memorandum Regarding
Delegated Legislation Clause
2 of the Bill authorizes the Government to make Rules for the purpose specified
therein. 2.
The powers delegated are normal and not of an exceptional character. An Act further to
amend the Tamil Nadu General Sales Tax Act, 1959. Be
it enacted by the Legislative Assembly of the State of Tamil Nadu in the
Fifty-seventh Year of the Republic of India as follows:-- (1) This Act may be called the Tamil Nadu General Sales
Tax (Fourth Amendment) Act, 2006. (2) It shall come into force on such date as the
Government may, by notification, appoint. In
the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959)
(hereinafter referred to as principal Act), after Section 12-B, the following
Section shall be inserted, namely:-- "12-C.
Assessment of sales in certain cases.-- (1) Notwithstanding anything contained in this Act but
subject to the provisions of Section 16, the assessment of a dealer in respect
of the assessment for the period prior to the 1st day of April 2006 shall be on
the basis of the return relating to his turnover and on the basis of the
declaration or certificate as may be prescribed, furnished on or before the
31st March 2007 and such return shall be accepted without requiring the
presence of the dealer or production of books of accounts by the dealer subject
to such conditions as may be prescribed: Provided
that this sub-section shall not apply to a dealer who has filed an appeal or
other proceeding in respect of any assessment for the period referred to in
this subsection and is pending before the High Court or the Supreme Court, as
the case may be. (2)
Every
dealer who claims to be not liable to pay tax and has not filed return, shall
file the return on or before the 31st March 2007 in the prescribed manner
relating to his turnover for the period prior to the 1st day of April 2006 and
such return shall be accepted, subject to the provisions of Section 16, failing
which his registration shall be cancelled, after giving him a reasonable
opportunity of being heard.". [1] Received the Assent of the Governor of
Tamil Nadu on the December 16, 2006 -- Published in Tamil Nadu Government
Gazette, Extraordinary, Part IV, Section 2, Iss. No.350, page 219, dated
December 18, 2006. [2] Vide L.A. Bill No.41 of 2006 as
introduced in the Tamil Nadu Assembly on December 6, 2006 -- Published in the
Tamil Nadu Government Gazette, Extraordinary, Part IV, Section 1, Issue No.337,
pages 367-369, dated December 6, 2006.
Preamble - THE TAMIL NADU GENERAL SALES
TAX (FOURTH AMENDMENT) ACT, 2006PREAMBLE