CHAPTER-II

LEVY AND INCIDENCE OF TAX

3.Incidence of Tax :- 

(2)  A dealer whose turnover of all sales of goods, during the year commencing on the appointed day or any year subsequent thereto, first exceeds the relevant limit, specified in sub-section (4), shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act with effect from the 1st day of April of the said respective year:

Provided that, a dealer shall not be liable to pay tax in respect of 4[such sales] as take place during the period commencing on the 1st day of April of the said respective year upto the time when his turnover of sales, as computed from the 1st day of April of the said respective year, does not exceed the relevant limit applicable to him under sub-section (4).

(3)  Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until his registration is duly cancelled; and upon such cancellation his liability to pay tax, other than tax already levied or leviable, shall remain ceased until his turnover of sales again first exceeds the relevant limit specified in sub-section (4) or, as the case may be, until he becomes liable to pay tax under sub-sections, (8) or (9).

(4)  For the purposes of this section, the limits of turnover shall be as follows :-

(5)  For the purpose of calculating the limit of turnover of sales for liability to tax,-

(a) except as otherwise expressly provided, the turnover of all sales shall be taken, whether such sales are of taxable goods or not

(b) the turnover of sales shall include all sales made by the dealer on his own account, and also on behalf of his principals whether disclosed or not;

(c)in the case of an auctioneer, in addition to the turnover of sales, if any, referred to in clauses (a) and (b), the turnover of sales shall also include the price of the goods auctioned by him for his principal, whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal, if the price of such goods is received by him on behalf of his principal ;

(d) in the case of an agent of a non-resident dealer, in addition to the turnover of sales, if any, referred to in clause (a), (b) or (c), the turnover of sales shall also include the sales of the non-resident dealer effected in the State. 

(6)  Notwithstanding anything contained in any contract or any law for the time being in force, but subject to the provisions of this Act, any person covered by sub-clause (a), (b) or (c)] of clause (8) of section 2 shall be liable to pay tax under this Act, whether, or not the principal is a dealer and whether, or not such principal is liable to pay tax under this Act and whether or not the principals are disclosed.

(8)  Where a dealer liable to pay tax under this Act is succeeded in the business by any person in the manner described in clause (a) of sub-section (1) or sub-section (4) of section 44, then such person shall, notwithstanding anything contained in this section, be liable to pay tax on the sales of goods effected by him on and after the date of such succession and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year.

(9)  Any person who is not liable to pay tax under the foregoing, provisions of this section but has been voluntarily registered under the provisions of this Act shall be liable to pay tax from the date of effect of the certificate of registration duly granted to him and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year.