Section 4 - Central sales tax - Amendment of section 8 - Taxation Laws (Amendment) Act, 2007

Amendment of section 8. 4. In section 8 of the principal Act,— ( a ) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely :— "(1) Every dealer, who in the course of inter-State trade or commerce, sells to a registered dealer goods of the description referred 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 is lower : Provided that the Central Government may, by notification in the Official Gazette, reduce the rate of tax under this sub-section. (2) The tax payable by any dealer on his turnover insofar as the turnover or any part thereof relates to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1), shall be at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State. Explanation. —For the purposes of this sub-section, a dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law."; ( b ) in sub-section (3), in the opening portion, for the words, brackets, figure and letter "The goods referred to in clause ( b ) of sub-section (1)", the following shall be substituted, namely :— "The goods referred to in sub-section (1),—", ( c ) for sub-section (4), the following shall be substituted, namely :— "(4) The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority : Provided that the declaration is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit."; ( d ) in sub-section (5), in clauses ( a ) and ( b ), the words "or the Government" and the words, brackets and figure "or sub-section (2)", wherever they occur, shall be omitted.