BIHAR VALUE ADDED TAX (AMENDMENT) ACT, 2016 – AMENDMENT IN SECTIONS 2, 14, 35, 36 & 41 AND INSERTION OF SECTION 15C
NOTIFICATION NO.LG-01-11/2016/149/LEG.I, DATED 12-8-2016
Be it enacted by the Legislature of the State of Bihar in the Sixty-Seventh year of the Republic of India as follows:—
Short title, extent and commencement
1. (1) The Act may be called the Bihar Value Added Tax(Amendment) Act, 2016.
(2) It shall extend to the whole of the State of Bihar.
(3) It shall come into force at once.
Amendment in section 2 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)
2. After clause (k) of section 2 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) the following new clause (kk) shall be inserted :—
“(kk). Developer means a person/contractor/builder who is engaged in and undertakes the construction of civil structures, flats, dwelling units, building, premises, complexes, commercial or otherwise, whether wholly or partly (either himself or through an authorized person) for sale and transfers them in pursuance of an agreement along with land or interest underlying the land to a buyer, where the value of land or interest underlying the land is included in the total consideration received or receivable.”
Amendment in section 14 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)
3. (1) The words “five per cent” used in clause (b) of sub-section (1) of section 14 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), shall be substituted by the words “six per cent.”
(2) The words “four per cent” used in clause (bb) of sub-section (1) of section 14 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), shall be substituted by the words “five per cent.”
(3) Serial number 55 and its corresponding entries of schedule-III appended to the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) are hereby be deleted.
(4) A new serial number 1 and its corresponding entries shall be inserted in schedule-IIIA appended to the Bihar Value Added Tax Act, 2005 (Act 27 of 2005) in the following way, namely—
“1. Goods as specified in Section 14 of the Central Sales Tax Act, 1956 other than those specified in any of the schedules appended to the Act.”
(5) The words “fourteen and a half per cent” used in clause (d) of sub-section (1) of section 14 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), shall be substituted by the words “fifteen per cent.”
Insertion of section 15C in the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)
4. After Section 15B of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the following new section 15C shall be inserted :—
“15C. Compounding of Tax liability in respect of developers- Notwithstanding anything to the contrary contained in the Act & subject to such Rules as may be made in this behalf, the State Government may, by notification and subject to such conditions and restrictions, as may be specified in the notification, permit any developer to pay, in lieu of tax payable by him under the Act, by way of compounding of tax at such rate not exceeding 5 per centum, as may be specified in the notification, of entire aggregate amount specified in agreement or value specified for the purpose of stamp duty, whichever is higher, in respect of the said agreement.”
Amendment in section 35 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)
5. (1) After number (ix) of clause (c) of sub-section (1) of Section 35 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the following new number (x) shall be inserted :—
“(x) in case of developer, cost of land as specified in prescribed manner.”
(2) After clause (c) of sub-section (1) of Section 35 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the following new clause (cc) shall be inserted :—
“(cc). Notwithstanding anything contained in clause (c), where the contractor does not maintain proper accounts or the amount actually incurred towards charge for labour and other services and other items mentioned in clause(c)are not ascertainable from the accounts maintained by him, the amount of such charges for labour and services and such items may, for the purpose of deductions, be determined on the basis of such per centage with regard to the value of the works contract, or any part thereof, as may be prescribed in this behalf.”
Amendment in section 36 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)
6. (1) In section 36 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the “full stop” used after the words and figure “B means the total amount of input tax credit allowable to the dealer under section 16 or section 17” shall be substituted by ‘colon’ and the following proviso shall be added :—
“Provided that the tax payable by a dealer to whom the provisions of clause (cc) of sub-section (1) of section 35 apply, shall be calculated at the rate of ten per centum of the taxable turnover”.
Amendment in section 41 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005)
7. The words “five per cent” used in sub-section (1) of section 41 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), shall be substituted by “eight per cent.”