Incidence of Tax
(1) Every dealer.-
(a) whose gross turnover of sales or purchases during the year immediately preceding the commencement of this Act, –
(i) exceeded the specified quantum, or
(ii) who is registered or liable to be registered under the adopted Bihar Finance Act, 1981 or the Central Sales Tax Act, 1956, or
(b) to whom clause(a) does not apply, and
(i) whose gross turnover first exceeds the specified quantum during any period of twelve consecutive months, or
(ii) who has become liable to pay tax under the Central Sales tax Act, 1956, or
(iii) who is registered as a dealer under the Central Sales tax Act, 1956 or under this Act at any time after the commencement of this Act; Shall be liable to pay tax in accordance with the provisions of this Act.
(2) Every dealer is liable to pay tax under sub-section (1) on purchases and sales effected by him,
(a) in case of clause (a) of sub-section (1), with effect from the date of commencement of this Act;
(b) in case of sub-clause (i) of clause (b) of sub-section (1), with effect from the date immediately following the day on which his gross turnover first exceeded the specified quantum during a period of any twelve consecutive months.
(c) In case of sub-clauses (ii) and (iii) of clause (b) of sub-section (1), with effect from the date of registration or the date on which he becomes so liable whichever is earlier.
(3) Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed the specified quantum and his liability to pay tax under this Act shall cease on the expiry of the period specified above.
(4) Every dealer who has ceased to be liable under sub-section (3) shall be again liable to pay tax under this Act with effect from the date immediately following a period not exceeding twelve consecutive months during which his gross turnover again exceeds the specified quantum.
(5) For the purpose of this Act, specified quantum means in relation to any dealer who:
(a) imports for sale any goods into the State of Jharkhand on his own behalf or on behalf of his principal Nil
(b) manufactures or produces any goods for sale Rs. 50,000
(c) is engaged in any other business other than clause (a) and (b) Rs. 5 lakh
(d) involved in the execution of works contract and leasing Rs. 25 thousand
Provided that the State Government may, by notification published in the Official Gazette and subject to condition of one month’s previous notice, increase or reduce the amount of specified quantum.
(6) For the purpose of calculating the gross turnover to determine the liability to pay tax under the Act-
(a) except as otherwise expressly provided, the turnover of all sales or as the case may be, the turnover of all purchases shall be taken, whether such sales or purchases are taxable or not, and
(b) the turnover shall include all sales and purchases made by a dealer on his own account and also on behalf of principals whether disclosed or not.
(7) Where by any order passed under this Act, it is found that any person registered as a dealer ought not to have been so registered, then, notwithstanding any thing contained in this Act, such person shall be liable to pay tax for the period commencing with the date of his registration and ending with the date of such order, as if he were a dealer.