CA. O.P. Agarwalla
( Expert )
31 March 2009
MINISTRY OF LAW AND JUSTICE
New Delhi, the 28th March, 2007/Chaitra 7, 1929 (Saka)
The following Act of Parliament received the assent of the President on the
26th March, 2007, and is hereby published for general information:-
THE TAXATIONLAWS (AMENDMENT)ACT, 2007
No. 16 OF2007
[26th March. 2007.]
AnAct further to amend the Central SalesTaxAct, 1956an~the Additi.onal
Duties of Excise (Goods of SpecialImportance)Act, 1957., .. ... . .. ~
BE it enacted by Parli~ment in the Fifty-eighth Year of the Republic of India as'
1. (1) This Act may be catled the Taxation Laws (Amendment) Act, 2007.
(2) It shall come into force on such date as the Central Government may, by notification
in the Ofticial Gazette, appoint.
2 THE GAZETTEOF INDIAEXTRAORDINARY [PART1ICHAPTER
CENTRAL SALES TAX
2. In the Central Sales TaxAct, 1956 (hereinafter in this Chapter referred to as the 74 of 1956.
principalAct), insection6, forsub-section(2),the followingsub-sectionshallbe substituted,
"(2) Notwithstanding anything contained in sub-section (1) or sub-section
(1A), where a sale of any goods in the course of inter-State trade or commerce has
either occasioned the movement of such goods from one State to another or has been
effected by a transfer of documents of title to such goods during their movement from
one State to another, any subsequent sale during such movel1}enteffected by a transfer
of documents of title to such goods to a registered dealer, if the goods are of the
description referred to in sub-section (3) of section 8, shall be exempt from tax under
Provided that no such subsequent sale shall be exempt from tax under this subsection
unless the dealer effecting the sale furnishes to the prescribed authority in the
prescribed manner and within the prescribed time or within such further time as that
authority may, for sufficient cause, permit,-
(a) a certificate duly filled and signed by the registered dealer from whom
the goods were purchased containing the prescribed particulars in a prescribed
form obtained from the prescribed authority; and
(b) if the subsequent sale is made to a registered dealer, a declaration
referred to in sub-section (-I) of section 8:
Provided further that it shall not be necessary to furnish the declaration
referred to in clause (b) of the preceding proviso in respect of a subsequent sale of
(a) the sale or purchase of such goods is, under the sales tax law of the
appropriate State exempt from tax generally or is subject to tax generally at a rate
which is lower than three per cent. or such reduced rate as may be notified by the
Central Government, by notification in the Official Gazette, under sub-section
(1) of section 8 (whether called a tax or fee or by any ether name); and
(b) the dealer effecting such subsequent sale proves to the satisfaction of
the authority referred to in the preceding proviso that such sale is of the nature
referred to in this sub-section.".
Amendment 3. In section 7 of the principalAct, in sub-section(2A), for the words, brackets, letter
of section7. and figures "clause (a) of sub-section (4) of section 8", the words, brackets and figures
"sub-section (4) of section 8" shall be substituted.
Amendment 4. In section 8 of the principal Act,-
(a) for sub-sections (1) and (2), the following sub-sections shall be substituted,
"(1) Every dealer, who in the course of inter-State trade or commerce,
sellsto a registereddealergoodsof the descriptionreferred to in sub-section(3),
shall be liable to pay tax under this Act, which shall be three per cent. of his
turnover or at the rate applicable to the sale or purchase of such goods
inside the appropriate State under the sales tax law of that State, whichever
Provided that the Central Government may, by notification in the Official
Gazette, reduce the rate oftax under this sub-section.