Rates of tax on sale or purchase of goods in the State.

7. (1) The tax payable by a dealer on his taxable turnover in so far as such turnover or any part thereof relates to, –

(a) the sales of goods not falling within sub-section (2), –

(i) in the case of goods specified in Schedule A, shall be calculated at the rates specified therein;

(ii) in the case of declared goods except those specified in Schedule B, shall be calculated at four per cent or such other rate not exceeding the ceiling specified in clause (a) of section 15 of the Central Act as the State Government may, by notification in the Official Gazette, direct;

(iii) in the case of goods specified in Schedule C, shall be calculated at four per cent or such other rate not exceeding ten percent as the State Government may, by notification in the Official Gazette, direct;

(iv) in the case of other goods, shall be calculated at ten percent or such other rate not exceeding fifteen per cent, as the State Government may, by notification in the Official Gazette, direct:

Provided that where any goods are sold in containers or packed in any packing materials, the rate of tax applicable to such containers or packing materials shall, whether the price of the containers or packing materials is charged separately or not, be the same as those applicable to the goods contained or packed therein; and where such goods are exempt from tax, the sale of the containers or packing materials shall also be exempt from tax;

(b) the purchase of goods, shall be calculated at four per cent or such lower rate applicable on sale of such goods had it been a sale falling under clause (a):

Provided that the State Government may, by notification in the Official Gazette, direct that the tax shall be calculated at a lower rate.

(2) The tax payable by a dealer on his taxable turnover in so far as such turnover or any part thereof relates to goods sold to the Government or (Omitted vide Notification Dated 1st april 2014 in Refrence to The Haryana Value Added Tax(AMENDMENT) 2014)   to goods of the description referred to in sub-section (4) sold to a VAT dealer or such other registered dealer as may be prescribed (hereinafter both referred to in this section as ‘authorised dealer’), shall

be calculated –

(a) if the goods are of the description contained in Schedule D, at the rate mentioned against such goods, otherwise;

(b) at four per cent or such lower rate applicable on sale of such goods had it been a sale falling under clause (a) of sub-section (1):

Provided that the State Government may, by notification in the Official Gazette, direct that tax under clause (b) shall be calculated at a lower rate:

Provided further that the State Government, if satisfied that it is necessary or expedient so to do in the interest of promotion of exports out of the country may, by notification in the Official Gazette, direct that tax under clause (b) on the taxable turnover which relates to the sale of goods of such class or classes to such class or classes of authorised dealers for such use by them, as may be specified in the notification, shall be calculated at zero rate.

(3) The provisions of sub-section (2) so far as the rate of tax applicable thereunder on a sale of goods in the State is lower than the rate of tax applicable under clause (a) of sub-section (1) if such sale had been a sale falling within that clause, shall not apply unless the dealer selling the goods furnishes to the assessing authority in the prescribed circumstances and in the prescribed manner –

(a) if the goods are sold to an authorised dealer, a declaration duly filled in and signed by him containing the prescribed particulars in the prescribed form obtained from the prescribed authority and in case such form is not available with such authority, a self printed and serially numbered form authenticated by such authority in the prescribed manner; or

(b) if the goods are sold to the Government, not being a registered dealer, a certificate in the prescribed form duly filled in and signed by a duly authorised officer of the Government.(Omitted vide Notification Dated 1st april 2014 in Refrence to The Haryana Value Added Tax(AMENDMENT) 2014).

(4) The goods sold to an authorised dealer referred to in sub-section (2) -

(a) are goods of the class or classes specified in the certificate of registration of the authorised dealer purchasing the goods as being intended, subject to any rules made by the State Government in this behalf, for use by him –

(i) in the manufacture of goods for sale;

(ii) in the telecommunications network;

(iii) in mining; or

(iv) in the generation or distribution of electricity or any other form of power;

(b) are goods of the class or classes specified in the certificate of registration of the authorised dealer who is covered under the notification issued under the second proviso to clause (b) of sub-section (2),

purchasing the goods as being intended for use by him for the purposes specified in the said

notification;

(c) are containers or other materials used for the packing of any goods or classes of goods specified in the certificate of registration referred to in clause (a) or clause (b).

(5) If an authorised dealer after purchasing any goods for any of the purposes specified in clause (a), clause (b) or clause (c) of sub-section (4) fails, without reasonable excuse, to make use of the goods for any such purpose, the assessing authority may, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum not exceeding one-and-a-half times the tax which would have been levied additionally under clause (a) of sub-section (1), if the sale made to him had been a sale falling within that clause:

Provided that no penalty shall be imposed where an authorised dealer voluntarily pays the tax which would have been levied additionally, as referred to in the foregoing provision, with the return for the period when he failed to make use of the goods purchased for the specified purposes.