The Manipur Value Added Tax (1st Amendment) Act, 2012

 

.EvXTRAO RD-INARYJV"
PUBLISHED BYAUTHORITY

 No. 198 . ‘ ' Imjahal, Thursday, August 30,2012 (1311mm 8,1934)

GOVERNMENT OF— MANIPUR ~
SECRETARIAT: LAW & LEGISLATIVE AFFAIRS DEPARTMENT

NOTIFICATION

'Imphal, the 23rd July, 2012

, No. 2/65/2012—Leg/L : The following Act ofthe Legislature, Manipur which received assent of

the Governor of Manipur on21-7—2012 is hereby published in the Official Gazette.

TI-DE NIANIPUR VALUE ADDED TAX (131'ANIENDMENFT) ACT, 2012

(MANIPURACTNO. 6 OF 2012)

An
Act

further toamend the Manipur Value Added Tax Act, 2004 (Maniput Act No. 6 of
.2005).

' Be it enacted by the Legislature ofManipur in the Sixty-third year ofRepublic of India
as follows:

1. Short title, extent and commencement.-(1) This Act may be called the Manipur
Value Added Tax (1St Amendment) Act, 2012

(2) It extends to the whole ofthe State ofManipur.

(3) It shall come into force on such date as the State Government may, by notificationin
the official Gazette, appoint.

2. Amendment of section 2:— In seetion 2 ofthe Manipul- Value Added Tax Act, 2004
(hereinaflet called thePrincipal Act), afiel- clause (x-i), the following clauses shall be
added, namely,-

“(xia) ‘Contractee’ means any person for whom or for whose benefit 3 works
contract is executed:

“(xib) ‘Contractor’ means any person Who executes a works contract and
includes a sub—eontractor;”. , .

3. Amendment of section 8:~ In sub-section (5) ofsection 8 ofthe Prineipal Act—
(i) in clause (b), the figure“4,00,000/-”shall be substituted by “6,00.000l-”,and

(ii) in clause (c), the figure “3,00,000/—” shall also be substituted by “5,00,000/-”.

4.1nsertion of new section 43A.-— Afier section 48ofthe Principal Act, the following
new section 43A shall be added, namely,-



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“43A. Special provision relating to deduction oftax at source in certain cases-
(1X8) Every person other than an individual, a Hindu Undivided Family (HUF), a firm
or acompany not under the control of the Government, responsible for making any
payment or diseharging anyhability on accountofany amount putpartmg to be the full
or part payment of salepnéeor consideration for the transfer bfproperty in goods
(whether as goods or in some other faith)involvedIn the execution of works contract
shall, at the time ofcredit to the account ofor payment to the dealer (hereinafter referred
to as’ Contractor) of such amount in cash, by cheque, by adjustment or in any other
manner, whatsoever, deduct in. the prescribed manner and at the prescribed rate.

(b) (i) Where on an application oronline application being made by any contractor in
this behalf, the Tax Authority is satisfied that any works contract under reference
is separable and involves both transfer of propertyin goods and labour and

services, or involves only labour and services and aecordingly, justifies deduction
of tax on a part ofthe sum payable1n respect of any works contract or, as the case
may be, justifies no deduction of tax at all, he shall, 'afier giving the contractor a
reasonable opportunity of being heard, grant him a certificate as may be
appropriate: > ,

Provided that the Tax Authority mayirejeet such application, or on his own

motion, cancel or modify such certificate, after giving the contractor a reasonable
opportunity ofbeing heard:

Provided further that nothing in the said certificate shall affect the tax liability
ofthe contractor.

(ii) Where such certificate is produced by the contractor, before the person
responsible for payment, such person shall, unless the certificateis cancelled or
modified by the Tax Authority, make deduction oftax in accordance with the said
certificate. In the event of such certificate being cancelled or modified as
provided, such person shall make the deductions accordingly.

(1:) Any person mentioned in clause (a) of this sub-seetion entering into any contract
with any contractor for transfer of property in goods (whether as goods or in some other
form) involved in the execution of works contract shall furnish within thirty (30) days
from the date of signing of the contract such information as may be prescribed to the
Tax Authority.

(2) Every person other than an individual, a Hindu undivided Family, a firm or a
company not under the control ofthe Government responsible for making any payment
or discharging any liability on account of any amount purporting to be full or part

payment of sale price or consideration for the transfer of the'right to use any goods for
any purpose, at the time of credit to the account of or payment to the payee of such ’
amount in ecash, by cheque, by adjustment or in any other manner, shall deduct an,
amount calculated at the rate as specified in the schedule.

(3) Every person responsible for paying sales price '01" consideration or any amount
purporting to be the full or part payment of sale price or consideration in respect of any
sale or supply of goods liable to tax under this Act to the Government or Corporation,
Board, Authority, Undertaking or any other. body by whatever name called, owned,
financed or controlled wholly or substantially by the Government, at the time of credit
.to the account of or payment to the payee of such amount in cash, by cheque, by
adjustment or in any other manner, whatsoever, shall deduct an amount calculated at the
rate as may be Specifiedm the Schedule from total sale price of such sale 61 supply.

(4) Notwithstanding anything contained in any other Law for the time being in force,
every person mentioned in sub—section (1), sub—section (2) and sub-seetion (3)
responsible for paying sale price in respect of any works contract or lease or sale or
mupplyof goods shall not enter into such-tmnsaetioh unless the contractor, lessor or

seller or supplier, as the case may be, produces an authenticated copy of the ceftificate
of registration under this Act. .



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(5) Every person referred to in sub-section (1), sub-section (2) and sub-section (3)
responsible for paying sale price, shall within the prescribedtime apply to the Tax

- Authority for allotment ofa 'be Deduction Acéount Number (TAN)The number shall
be quoted'in such documents, statementsand returns as may be prescribed '
(6) Any tax deducted under this section shall be paid into the Government account
within such time and111 such manner accompanied with such documents and statements
,ofaeeountasmaybeprescn’bed. .

(7) The person making any deduction of tax under this section and paying it into the
Government account Tshall1ssue to the payee a cerfifieate oftax deduction and payment
in such form and manner and within such time as maybeprescribed.

(8) Any deduction made1n accordance with the provisions of this section and credited
into the Government account, shall be treated as payment of tax on behalf of the person

and any amount deducted in excess of the tax so assessed or determined shall be
refundable in. accordance with the-provisions ofthis Act.

(9) The person responsible for deduction oftax shall within the prescribed time after the
end ofeach year, file a return in the prescribed form to the Tax Authority.

(10) No interest or penalty shall be imposed or recovery proceedings against the dealer
or payee shail be initiated1n respect ofdeduction oftax under this section.

(11) If any person asreferred to in sub-section (1), sub-section (2) and sub-section (3)
fails to make the deduction or afier making the deduction fails, to deposit the amount so
deducted into the Government account, the Tax Authority may, after giving such pefson
a reasonable oppommity of being heard, by an order1n writing, direct that such person
shall pay, by way of penalty, 3 sum not exceeding double, the amount of tax deductible
but not so deducted and, 1fdeducted not so deposited into the GOvemment account.”

5. Amendment ofsection 53:— Composition ofTax: After sub-section (3) of section 53
ofthe Principal Act, the following new sub-sections shall be added, namely,-

“(4) Notwithstanding anything contained in- this Act, the Government, may by notification
published in the official Gazette provide for a scheme of composition subject to such
conditions and restrictions as may be provided therein, permit any dealer liable to pay
tax on sales effected by way of transfer of property in goods (whether in goods or in
some. other form) involved in the eXecution of works contract, to pay, at his option, .in ,
lieu ofthe amount of tax payable by him under this Act, at the rate specified in the said ‘
notification but not exceeding five (5) per eentum of the total contact value of the
works contract.

(5) A dealer111 whose case composition under this section is in force, shall not,-
(i) be entitled to any claim ofinputtax credit1n respect ofpmhase ofany goods by him
in the state; and

(ii) issue tax invoice to any dealer who has purchased of goods from him.

(6) The option so exercised under this section shall be final for the year and shall
continue for subsequent years until the dealer becomes ineligible, or withdraws his
option in writing.”



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6.An1endmentof section 58:- In section 58-
(1) in sub-seetlon (1), the fi_gure“20, 00000” shall be substituted by the figures

' “60,00" .,

(ii) afier‘ sub-sectim1-(3), a" new proviso shall be added, namely,-

“Provided that, no penalty shall be imposed under this sub-section in“ respect of
dealer whose tax has been deducted at source”

7.A111e11dme11t ofsection 66: In sub-section(5) of section 66 ofthePrincipal Aet—
(i) the words “eciual to the amount of five times” shallbe substituted by the words “equal

to twice the amount” and
(ii) the words & figures “twenty percent (20%)” shall also be substituted by the words and
' figures “ten percent (1.0%)”. ,

TH. KAMINI KUMAR SINGH,
, Deputy Secretary (Law),
Government of Manipur.

 

Printed at the Directorate of Printing & Stationery, Govt.» of Manipur/310-C/30-8-2012.