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Understanding the terms and phrases under the Act/ Rules

(Extract from Tax Bits/Gandhali) Part 5
मी नेहमी सांगत असतो की कायदा वाचण्यासाठी आणि समजण्यासाठी जर आपल्याला कायदा ज्या भाषेत लिहिला आहे ती भाषा येत असेल तर कायदा वाचणे आणि आणि त्या भाषेतील अन्य साहित्य वाचणे यामध्ये काहीही फरक नाही. पण बऱ्याच वेळा आपण कायद्यातील काही शब्दांमुळे कायद्यापासून दूर जातो जसे की, “Provided that”, “subject to”, Notwithstanding anything contained” इत्यादी इत्यादी. पण जर आपल्याला अशा शब्दांचे अर्थ समजले तर कायद्यातील कलम आणि वर्तमानपत्रातील बातमी किंवा एखादी गोष्ट वाचणे यात काहीही फरक जाणवणार नाही. Taxbit/Gandhali मधील लेखाचा पुढचा भाग आज मी आपल्यासमोर सादर करत आहे. लेख BST कालावधीतील असल्याने साहजिकच संदर्भ BST कायद्यातील आहेत. परंतु एक लक्षात ठेवा की कायदे कितीही बदलले तरीही शब्द बदलत नाहीत फक्त कलमांचे संदर्भ बदलतात. उद्या VAT गेला आणि GST आला तरी या शब्दांचे अर्थ तेच राहणार आहेत म्हणूनच मी ८ वर्षापूर्वीचा लेख आज आपल्या समोर सादर करण्याचे धाडस करीत आहे.....

In a taxing statute, one has to look merely at what is clearly said. There is no room for intendment, there is no equity about a tax, there is no presumption to a tax, nothing is to be added and nothing is to be implied. One can only look fairly at the language used while considering the provisions of the Act, rule or notification. The exemptions granted are to be strictly construed.

The words in the Acts are to be interpreted in their ordinary grammatical sense, unless there be something in the Statute.

Every Act, Rules contains a section containing definitions of the words and phrases in that Act or rules
What is the purpose of the definition section?
The purpose of the definition section is to explain the meanings of the words used in the Act or to explain the meaning intended to be given to that word by the lawmakers. The definition section also reduces the length of the Act or rule otherwise, at every place it would have been necessary to explain the said word. 
Can a meaning other than that in definition be given to a particular term even though it is expressly defined in the Act?
In normal situations, it is expected that the meaning assigned in the definition section have to be accepted and applied. But there may be certain situations, in which applying the definition meaning could lead to absurd results or if the situation demands that the definition meaning should not be applied.
Section 2 of the B.S.T. Act begins with the words, “ In this Act, unless the context otherwise requires …”
Thus, the beginning of section 2(1) presumes that if the context requires you can depart from the meaning in the definition section.

There may be certain terms, which may not be defined in the Act. in that case the General Clauses Act can be referred.
The most important point to be kept in mind while referring to the definitions is that the meaning in the definitions is applicable only to that particular Act. The definitions in the other Acts should not be normally imported from other acts.

It could be noticed that there are certain terms, which always occur not just in the Sales Tax Act but almost all the laws. These terms take the law out of reach of the common man and then the law becomes an exclusive field for the professionals. I sincerely feel that if these terms are replaced by simpler words which we use every day then there could be fewer violations of the law which otherwise take place due to misinterpretation of law. I also feel that replacing these terms by simpler words and making the sections / a rule shorter is not an impossible job. Now that the right to information is already been made a statutory right, people may claim a right to simpler laws which any of us can read and understand just the same way as we read the instructions displayed in bus, at airports etc. If the laws are to be followed by the people the laws should be framed in such a way that the people {or those supposed to follow those rules} should be able to read and understand without the help of the professionals and asking for this is certainly not unreasonable. This can be achieved even without compromising on the substance of the law.

Of course, until that day comes we have to read and understand the provisions as they stand today. So, we look at some of the most frequently occurring terms in the B.S.T. Act.
Actionable claims: 
Actionable claim means a claim to any debt, other than a debt secured by mortgage of immovable property or pledge of movable property or to any beneficial interest in movable property not in the possession either actual or constructive of the claimant.
Actionable claim in section of the transfer of Property Act refers only to claims capable of enforcement at the time of assignment, by suit in the civil court and not future claims.
The definition of goods in section 2(13), excludes actionable claims. This term is relevant in the case of lottery dealers. The sales price of a lottery ticket comprises of the consideration on account of the right to participate in the draw and the right to claim prize. The consideration for the right to claim prize is an actionable claim and hence deduction of this actionable claim has to be granted to a lottery dealer.

Proviso:
The word, “proviso” is used frequently to denote the clause, the first words of which are, “provided that”. A proviso is a condition inserted or attached to the main provision. The term “proviso” and ‘condition” are synonymous.

Provided that:
The words, “ provided that” are ordinarily used to introduce an exception from, or qualification of general rule to which it is added.
Illustration 1: Section 9(main Para) which pertains to turnover tax states that the T.O.T. shall be levied @ 1 %. But if the proviso attached to sec. 9 is read it states that w.e.f 1-5-2002, if a dealers tax liability exceeds Rs. 1 crore, then the T.O.T. is to be paid @ 1.5%.
Illustration 2: Section 33(1) states that a dealer shall be assessed separately for each year. But the first proviso makes an exception that a dealer can be assessed even for a part of the year if certain conditions and procedure is followed.
Thus, the interpretation of a subsection or a section should not be complete before you have read all the provisos etc. attached. 
In other words, it can be said that a proviso takes away something, which is given, by the main subsection.

The provisos begin with the phrase, “provided that”. But if there are more than one proviso attached to a section or a subsection the provisos are worded as follows:
First proviso: “Provided that”.
Second proviso: “Provided further that”.
Third proviso: “Provided also that”
Fourth proviso: “Provided also that”.

Notwithstanding:
Any provision, which starts with the word, “notwithstanding”, means that it is a non-obstante clause. So, whatever is stated in that provision shall prevail over the subject referred.

This term could be non- obstante a subsection, section, Act, Rule or even any law. The most supreme notwithstanding clause could be the one, which is “notwithstanding anything contained in any law in force”. The narrowest, “notwithstanding clause” could be the one, which states, “ notwithstanding sub clause --- of subsection of section ----.”
The examples of the following sections under the B.S.T. Act shall make the meaning of the term clearer.

i) Notwithstanding anything contained in section: (sec 4)
Section 4 lays down that a dealer is liable to pay tax if he is registered under the C.S.T. Act and purchases certain goods on Form C and resells them or uses those goods in manufacturing and sells the manufactured goods.

On the other hand, sec 3 lays down the turnover limits for an importer and a manufacturer. It may very well be the case that a dealer who falls within the situation detailed in sec. 4 but such dealer has not crossed the turnover limits of sec 3. If the term, “notwithstanding anything contained in sec. 3” had been omitted in sec. 4 then a dealer who had not crossed the T.O. limits of sec 3 would not have been liable to pay tax under sec 4.

Everyday illustration: A father tells his son that even though I am giving you Rs. 1000/- as pocket money, you should not spend more than Rs. 800/- for your pocket expenses. So if the situation is to be colored as a legal provision then it would read thus:
“ Notwithstanding the fact that Rs. 1000/ has been given as pocket money only Rs. 800/ is permitted to be spent as pocket expenses.”
The consequences of this provision would be:
a) The son must save minimum Rs. 200/ out of his pocket money.
b) However, the son can spend any amount of money for his college fees or on medical expenses if he falls sick.

ii) Notwithstanding anything contained in clause (26) of sec 2: (sec 8C)
Section 8C prevails over 2(26). Section 2(26) is about resale and states that if a dealer is entitled to use a trademark then such a dealer is not entitled for resale. But section 8C seeks to allow resale in case a dealer has applied for trademark and the application is pending. Thus, sec 8C is meant to prevail over sec 2(26) only and no other provision of the Act.

iii) Notwithstanding, any contract to the contrary: Sec.18, 391A
As per Section 18, the partners are jointly and severally liable which means that the dues of such a firm can be recovered from all the partners or even from a single partner. The term, “ notwithstanding any contract to the contrary”, signifies that the terms of the partnership or any other contract entered into by the partners shall not decide the amount or percentage of recovery to be made from each of the partners.

iv) Notwithstanding anything in this Act: (sec 5, sec.8A)
The provisions in section 5 and 8A prevails over all the provisions of the B.S.T. Act.

Notwithstanding anything contained in any law for the time being in force:
391A
This section gives power of provisional attachment and this power is not curtailed even if there is some other law, which is contrary to this provision. However, it should be kept in mind that such a broad provision shall prevail over other State Acts and not over any Central Act on the issue because of Constitutional restrictions.

Concisely while interpreting, a non-obstante clause such as notwithstanding the following points should be kept in mind:
A) The said provision is meant to prevail over some other provision or anything else specified in the section.
B) The subject over which it is stated to prevail should also be read to arrive at the correct interpretation. E.g. “notwithstanding anything contained in section ____” “notwithstanding anything contained in this Act”, notwithstanding any contract to the contrary”, notwithstanding any law to the contrary”.

Subject to:
The effect of the phrase, “subject to” is to introduce a condition or proviso.
Section 5 lays down that the goods specified in schedule A shall be tax free but subject to the conditions and exceptions set out against each of the goods specified.

Subject to the provisions of this Act and to any rule there under: (sec 6)
Section 6 begins with the term, “ subject to the provisions of this Act and rules made there under”. Thus, section 6 is not absolute while laying down that the tax shall be payable by every dealer. In other words, the payment of tax is subject to….

Subject to condition of previous publication (sec 8A):
This provision is relating to last point taxation in which the State Government is empowered to specify the goods and the point at which they shall be taxed. But the effect of the, “subject to” clause in this section is that the notification shall be first published and then made effective.

Subject to the previous sanction of the state government: (21A, 21(7))
Section 21A relates to the settlement commission and it is empowered to frame the regulations. But the subject to clause in this section clips the wings by laying down that such regulations should have prior sanction of the State Government.

“Levy” as applied to taxation as a noun means assessment.

Deemed: [sections 17, 2(11), 52,25,40,33(4A), 36(2)©,38B(2)]
The word, “deemed”, is more commonly used for the purpose of creating a statutory fiction that is for the purpose of extending the meaning of some term to a subject matter which it does not properly designate. When a person is deemed to be something, the only meaning possible is that when he is not in reality that something the Act requires him to be treated as if he were. To deem is to hold in belief, estimation or in opinion. The phrase, “ deemed to be” is commonly used in statutes to extend the application of a provision of law to a class not otherwise amenable to it.
The significant deeming provision under the Act is in the definition of, “Dealer”. Thus in a normal sense, the port trust, banks, insurance companies etc. would not have been considered as dealers in an ordinary sense. By this deeming provision, those persons have been given the colour of a dealer by a legal fiction.

Another classic example of the deeming provision is the penalty u/s 36(2)© Explanations I and II. In this penalty provision, a dealer is deemed to have concealed the turnover if he does not file any returns or if the difference between the tax assessed and tax paid, is more than 20%.

The word, “deemed” is used a great deal in modern legislation. The word, “deemed” introduces an artificial definition.

Illustration: section 22 prohibits any person from carrying on business without getting himself registered when liable for registration u/s 3. Thus being liable for registration if a dealer carries on business it would be contravention. But what would happen if a dealer’s application for registration is pending so should he be barred from carrying on business, which would be quite unreasonable. To take care of this situation, a proviso has been added to section 22, which states that in case of this situation it would not be deemed to be a contravention. Thus by a legal fiction, such an act is not to be considered as a contravention.

Illustration (sec.52): An application for DDQ can be made before the assessment or reassessment proceedings have commenced. By the deeming clause in the Explanation in section 52, even if a notice in Form 27/28 is served upon the dealer the assessment proceedings shall be considered as commenced. This also suggests that the assessment proceedings have not commenced in reality but by a legal fiction for the purpose of DDQ we accept that the assessment proceedings have commenced. On the other hand the use of the phrase, “ for the purpose of this sub-section,” in section 52 Explanation, also suggests that for the other purposes the assessment proceedings may not be considered as commenced merely by service of notice.

Prescribed: 20(8)
The word, “prescribed” is defined in the B.S.T. Act as prescribed in the rules. Therefore, whenever the word, “prescribed” is noticed in the Act then the corresponding rule should always be found and read.

Every dealer liable for registration has to apply in the prescribed manner to the prescribed authority [sec. 22(2)]. Thus in order to know the manner of application and the appropriate authority we should refer to the corresponding rule under the B.S.T. Rules.

Prescribed form: 22(3)
The word, “form” is defined in the B.S.T. rules as the form appended to the rules. Therefore, whenever we come across the term, “prescribed form” in the B.S.T. Act then we should invariably refer to the Form under the Rules.

Prescribed manner: 22(6)
The word manner means the procedure and it is to be gathered from the rules.

Vexatious, vindictive and false:
A dealer can complain against an authority that the authority has passed an order, which is vexatious, false or vindictive (section 63A).
The term, “vexatious”(------------) includes false. An accusation cannot be said to be vexatious unless the main intention of the complainant was to cause annoyance to the person accused and not merely to further the ends of justice.
All these three terms indicate that mens rea (guilty mind) is required for the complaint to sustain and in this case, the proceeding sheet could be the deciding factor.
The word vindictive means with an intention to revenge.

Offence:
Offence is an act committed against law or omitted where the law requires it and punishable by it. Offence is generally equivalent to a crime. Offence means any act or omission made punishable by any law for the time being in force.

Prosecution:
Prosecution is the institution or commencement of a criminal proceeding or the process of exhibiting formal charges against an offender before a legal tribunal and pursuing them to a final judgment on behalf of the government.

Compound: To compound means to settle by mutual concession or forbear from prosecution for consideration.

In lieu of: (Section 40 and 40A).
The term, “in lieu of” signifies “instead of” or “in place of”. 
Section 40 pertains to the composition scheme, which was applicable to the retail druggists, petrol pumps etc. In this case, such dealers were supposed to pay the composition amount in lieu of tax. Thus, what they paid was not tax but an amount in lieu of tax. Similarly, the composition amount under the Works Contract Act is also not a tax in the constitutional sense because otherwise it would be against the provisions of the constitution and the Supreme Court judgment.
The lottery dealers can pay composition amount in lieu of tax u/s 40A. Thus, the lottery dealers have been given an option to pay composition amount instead of the tax u/s 8 as per the schedule entry.

It is very important that the composition scheme providing for the payment of an amount in lieu of tax cannot be compulsory but it must be optional or it could be struck down by the judiciary. The reason is a compulsory extraction of money is tax and if it is tax, it should confirm to the constitutional provisions.

Knowingly: 
The primary definition of the word, “knowingly” is “with knowledge”. Omission of word knowingly indicates that mens rea {guilty mind} is not a necessary ingredient. This word has to be read into the Act only when it is specifically inserted in the Act and not impliedly.
Shall: 18,32,33
The word shall suggest that no option is left. 
May: (sec 17)
The word, “ may” is generally permissive and not mandatory.

Satisfaction:
The word satisfaction is not to be construed in a personal manner. This satisfaction is circumscribed by certain rules, procedures or instructions.
This term is noticed in the Act at several places as follows:
• Section 33(2): “ if the commissioner is satisfied that the returns furnished by the registered dealer in respect of any period are correct and complete…”
Thus in the case of summary assessments, the Commissioner lays down certain criteria for passing the orders but still the criteria are not absolute and the assessing authority may pass regular assessment order but in that case he should record reasons for departing from the instructions. This term is used only when the Act or the rules does not give express or specific instructions for actions by the authorities. Thus, the section 33(2) curtails the power of the assessing authority by specifying that the satisfaction should be regarding the correctness and completeness of the returns. In any case, the entire satisfaction revolves around the correctness and completeness of the returns. The satisfaction has to be of the assessing authority resting on the discretion vested in him, but such discretion is not arbitrary and must be sound judicial discretion.

• Section 22(3): [registration] “ if the prescribed authority is satisfied after such enquiry as it deems fit that an application for registration is in order it shall register the applicant…”
Registration: the dealer who applies for registration must comply with the statutory conditions such as exceeding the turnover limits, payment of VRS deposit, and signature on photo etc. the satisfaction of the registering authority comes into picture only if the dealer complies with the statutory requirements. The registering authority’s satisfaction has to be to ascertain that the application filed by the dealer is in order {or correct and true}. To satisfy himself the authority may ask for the evidences about the residence, place of business, voluntary deposit etc.
To summarize, whenever the term satisfaction occurs it means that the satisfaction should be regarding a particular aspect specified in the provision such as correctness and completeness of the returns or that the application for RC is in order.

Reason to believe: According to Lord Wright the word reasonable. A belief can be said to be state of mind. To prove a particular person’s or authority’s state of mind legally can be a difficult task. The term reason to believe presupposes a belief in the first place and the authority is supposed to hold the said belief with the help of reasons. The belief cannot be personal, unfounded, whimsical, prejudiced, as we may tend to behave in our everyday lives.

Some people have a belief that number 13 is unlucky but this belief is not based upon reasons. Similarly, the belief of the assessing authority cannot be unfounded but should be reasoned one.

Some of the sections in which this term is noticed are as follows:
Section 35: [reassessment] “if …the commissioner has reason to believe that any turnover … has escaped assessment, or has been under assessed or assessed at a lower rate, or that any deduction has been wrongly made or that any draw back has been wrongly granted…”

To exercise the reassessment power the assessing authority should have belief that any of the above five events have occurred. This belief should be based on reasons and not just because of suspicion, hearsay or due to his personal opinion.
Secondly, this belief should be at the time of passing the order and should be preferably recorded in writing.

MVAT Capsules-1
(information in brief)
Review (Sec. 25)

1) Review can be by a higher officer only
2)Review in following situations:
a)Sales/purchases not brought to tax
b)Sales/purchases taxed at a lower rate
c)Sales/purchases are incorrectly classified
d)Any claim is incorrectly granted
e)Tax liability is understated
f)in any case, if order is erroneous, prejudicial to interests of revenue

MVAT Capsule-2
Rectification of Mistakes [Sec.24(1)]
1) Any mistake apparent from the record can be corrected

2 Limitation period 2 years

MVAT Capsule-3
Restaurant Composition Scheme

a) Applicable to restaurants, eating house, factory canteen, clubs, caterers
b)Restaurants below 4 Star covered
c)Liquor sales not covered by the Composition Scheme
d)Composition rate 5% for RD and 10 % for URD, instead of regular 12.5 %
e)Tax collection not permissible
f)Composition amount also cannot be collected 
g)Tax Invoice cannot be issued
h)Set off is not admissible generally
i)Application in Form I for restaurants and Form 2 for caterers. Composition application to be made to JC (Regn) in Mumbai or respective JC (VAT) in moffussil 
j) Composition scheme is optional and can be opted from 1st April.
j) Pl refer the notification dated 1-6-2005, amended from time to time.

MVAT Capsule-4
Composition Scheme-Second Hand Motor Vehicle Dealers

Dealers in second hand motor vehicles are eligible for this composition scheme

MVAT Capsule- 5
Returns
• Periodicity of return filing based upon tax liability/refund entitlement of the previous year
• Monthly Returns, if the previous year’s tax liability is above Rs. 10 lakh OR Refund is Above Rs. 1 crore
• Quarterly Returns, if the previous year’s tax liability is between Rs. 1 lakh and Rs. 10 lakh OR refund is between Rs. 1 crore and Rs. 10 lakh
• Six monthly Returns, if the previous year’s tax liability is less than Rs. 1 lakh or less OR refund is Rs. 10 lakh or less
• Periodicity of all the dealers to be published on the web site in April every year.
• Quarterly returns mandatory for PSI and newly registered dealers
• Mandatory e returns for all dealers
• Mandatory e payment for all return filers. (June 10, October 10, April 11)
• Late of Rs. 5000/ for late filing of returns
• Unilateral assessment order can be passed if returns not filed.
Notice of assessment not required
Hearing to dealer is not required
If dealer files return and pays tax, UAO gets cancelled

MVAT Capsule-6
Failure to apply for registration in time

If a dealer fails to apply for registration, then the dealer is liable to pay interest u/s 30(1).

MVAT Capsule-7
Composition Scheme for Retailers

1) Retailer is a dealer, whose 9/10 th sales are to non-dealer persons
2) Turnover of previous year should not exceed Rs. 50 lakh 
3) Liquor, motor spirits & furnishing fabric not eligible
4) Tax to be paid on the difference between the sales turnover and purchase turnover for six months (Op. Stock/ cl. Stock not considered)
5) Cannot collect tax ,
6) Cannot issue tax invoice
7) Dealer should file six monthly returns only
8) Set off is not admissible
9) Rate of composition: 
a) if the differential turnover comprises of Tax free and 5 % goods in excess of 50 %- 5% 
b)if the differential turnover comprises of medicines 6% 
c) In any other case -8% 
10) Dealer should apply to JC Regn (in Mumbai) or to JC (VAT) in moffussil

MVAT Capsule- 8
MVAT मधील व्याज

A) आपल्या मूल्यवर्धित करामधील व्याजाचे दर नियम ८८ मध्ये दिलेले आहेत.फक्त कलम ३०(४) खालील व्याजाचा दर कलमामध्येच(२५%) दिला आहे.

MVAT Capsule-9
Luxury Tax
Levied on the accommodation charges in a residential hotel
Registration turnover limits : Renting of a hotel accommodation for Rs. 751 per day per accommodation 
Rate of Tax on accommodation charges (per day per accommodation)
Up to Rs. 750 – Nil
From Rs. 751 to 1199 – 4%
From 1200 - 10 %
Luxury Tax on costly textiles and tobacco has been abolished.
Revenue Collection in 2011/12 – Rs. 317 Cr.
Revenue Collection in 2012/13 – Rs. 347 Cr.

MVAT Capsule-10
Form I under the CST Act

काही दिवसांपूर्वी श्री सतीश ढाले यांनी Form I विषयी माहिती विचारली होती, म्हणून आज त्या विषयावर थोडे बोलू.
जर एखाद्या व्यापाऱ्याने Special Economic Zone (SEZ) मध्ये असलेल्या नोंदीत घटकाला अथवा SEZ च्या नोंदीत विकासकाला Form I च्या आधारे आंतर राज्य विक्री केल्यास CST ची आकारणी केली जात नाही [Sec. 8(6)].
दिनांक ११ मे २००२ रोजी केंद्रीय विक्रीकर अधिनियमात Sec. 8(6)दाखल करण्यात आला आहे. तर केंद्रीय विक्रीकर नियमात २३ मे २००३ रोजी Form I दाखल करण्यात आला आहे. दिनांक ७-६-२००५ च्या दुरुस्ती नुसार सुधारित Form I दाखल करण्यात आला आहे.

विलंब शुल्क माफ

आपल्या सर्वाना माहीतच आहे की दिनांक १-८-२०१२ पासून जर एखाद्या व्यापाऱ्याने विवरणपत्र उशिरा दाखल केले तर रु. ५००० चे विलंब शुल्क लागू होते व् अशा व्यापाऱ्यास विलंब शुल्काचा भरणा केल्या शिवाय विवरणपत्र दाखल करता येत नाही. [कलम २०(६)]. विलंब शुल्क कमी अथवा माफ करण्याचा अधिकार कुणालाही नाही.
कलम २०(६) मध्ये दिनांक १-५-२०१३ रोजी एक परंतुक (Proviso) दाखल करण्यात आले होते. सदर परंतुकानुसार राज्य शासनाला अधिसूचना जारी करून काही विशिष्ट परिस्थितीत व्यापाऱ्यांच्या काही वर्गास विशिष्ट कालावधीसाठी विलंब शुल्क माफ करण्याचे अधिकार प्रदान करण्यात आले आहेत. 
आपल्याला हे माहीतच आहे की व्यापाऱ्याकडे TIN असल्याशिवाय विवरणपत्र दाखल करू शकत नाही. अधिसूचने मध्ये विशेष करून या परिस्थितील व्यापाऱ्यांचे विलंब शुल्क माफ करण्यात आले आहे. दिनांक १-१-२०१४ रोजी राज्य शासनाने अधिसूचना जारी केली असून खालील परिस्थितीत विलंब शुल्क माफ केला आहे:
1. नवीन नोंदणी दाखला घेतलेला व्यापारी.
2. रद्द झालेला नोंदणी दाखला पुनर्स्थापित झाला असलेला व्यापारी.
3. उशिरा नोंदणी दाखला घेतलेल्या व्यापाऱ्यास प्रशासकीय सवलत मंजूर झाली असल्यास.
4. विभागाच्या संकेत स्थळा संबंधी काही तांत्रिक अडचणीमुळे विवरण पत्र दाखल करू न शकलेला व्यापारी.
5. मालक मृत पावला असेल असा मालकी संस्था असलेला व्यापारी.
6. २०-६-२००६ ते ३०-९-२०१२ या कालावधीची दिनांक ३१-१०-२०१२ पर्यंत दाखल करणारा बांधकाम विकासक. 
ज्या व्यापाऱ्याने विलंब शुल्क यापूर्वीच भरलेले असेल अथवा समायोजित केले असेल त्या व्यापाऱ्यास परतावा दिला जाणार नाही.
मराठी आणि इंग्रजी अधिसूचना आपल्या संकेत स्थळावर उपलब्ध आहे, ज्यामध्ये माफिसाठीच्या अटी दिलेल्या आहेत. अधिसूचना जरूर वाचावी.

MVAT Capsule-11
GST

श्री चंद्रशेखर बोराडे यांनी सर्व मुलाखती साठी निवडलेल्या मित्रांसाठी चांगले प्रश्न विचारावे असे आवाहन केले आहे. सर्व उमेदवार मित्रांचे मी अभिनंदन करतो आणि सुयश चिंतितो.

MVAT Capsule 12
बांधकाम व्यावसायिक/विकासक

या पूर्वी एका Post मध्ये मी आपल्याला L & T च्या सर्वोच्च न्यायालयाच्या निर्णयाबद्दल माहिती दिली होती. त्या निर्णयामध्ये सर्वोच्च न्यायालयाने नियम ५८ मध्ये सुधारणा करण्याचे निर्देश दिले होते.
त्यानुसार आता नियम ५८ मध्ये दिनांक २९ जानेवारी २०१४ च्या अधिसूचनेनुसार सुधारणा करण्यात आली आहे.
लक्षात घ्या की सुधारणा पूर्व-लक्षी(Retrospective effect) प्रभावाने (२०-६-२००६)असल्याने, या सुधारणेचा विचार २००६-०७ चे लेखा परीक्षण/निर्धारणा करताना देखील करावा लागेल. 
या सुधारणेची ठळक वैशिष्ठ्ये खालील प्रमाणे आहेत:
1.कंत्राट मुल्यामधून जमिनीचे मूल्य आधी वजा करायचे असून त्यानंतर नियम ५८ मधील Table मध्ये दिलेल्या टक्केवारी(Standard Deduction method) नुसार येणारी रक्कम वजा करायची आहे. अर्थात जर विकासक Actual Expense Method चा पर्याय घेत असेल तर जमिनीची वजावट कधी केले जाते याला महत्व नाही.

2.विकासकाने जर sub contract दिलेले असेल तर नियम ५८ मधील Table खाली दिलेल्या टिपे नुसार sub contract चे मूल्य, sub contract वरील कराची रक्कम व् जमिनीचे मूल्य वजा करूनच Table मधील टक्केवारी लागू करावी लागेल. Actual Expense Method वापरणाऱ्या विकासकाला ही बाब लागू करण्याचा प्रश्नच येत नाही.

3. अशा प्रकारे वजावट केल्या नंतर शिल्लक राहिलेल्या मूल्याला बांधकामाच्या टप्प्यानुसार टक्केवारी लागू केल्यावर येणारे मूल्य विकासकासाठी विक्री-किंमत म्हणून निश्चित होईल व् त्यावर कर आकारणी होईल.

4.आपल्या लक्षात असेलच की सर्वोच्च न्यायालयाने म्हटले होते की विकासकाने खरेदीदाराबरोबर केलेल्या कराराच्या नंतर ज्या मालाचे कार्य कंत्राटात हस्तांतरण होईल अशा मालाचीच विक्री झाली असे मानता येईल व् अशा मालाच्या विक्री मुल्यावरच विक्रीकर लावण्याचा अधिकार राज्याला आहे. त्यासाठी इमारत उभारतानाचे विविध टप्पे निश्चित करण्यात आले आहेत. विकासकाने खरेदीदारा सोबत कोणत्या टप्प्यावर करार केला आहे त्यावर विक्री मूल्य अवलंबून असणार आहे. वर नमूद केल्यानुसार करार मुल्यातून (contract price)वजावट केल्यानंतर जे मूल्य शिल्लक राहील त्या मूल्याला करार बांधकामाच्या ज्या टप्प्यात झाला आहे त्या टप्प्याची टक्केवारी लागू राहील.

5.बांधकामाचे टप्पे व् टक्केवारी खालील प्रमाणे नियम ५८ मध्ये निश्चित करण्यात आली आहे:
a.काम सुरु करण्याचे प्रमाणपत्र (Commencement Certificate)मिळण्यापूर्वी – १००%
b.काम सुरु करण्याचे प्रमाणपत्र(Commencement Certificate) मिळाल्यापासून जोत्यापर्यंतचे काम(Plinth level) पूर्ण होईपर्यंत-९५%
c.जोत्याचे काम(plinth level) पूर्ण झाल्या पासून साच्याचे(RCC Framework) काम १००% पूर्ण होईपर्यंत-८५%
d.RCC साच्याचे (RCC framework)काम १००% पूर्ण झाल्यापासून भोगवटा प्रमाणपत्र (Occupancy Certificate) मिळेपर्यंत-५५%
e.भोगवटा प्रमाणपत्र (Occupancy Certificate)मिळाल्यानंतर-शून्य %

6.वरील टप्पे पाहिल्यावर लक्षात येईल की Occupancy Certificate प्राप्त झाल्यानंतर काही काम सहसा शिल्लक राहत नाही, म्हणून या टप्प्यावर खरेदीदाराने करार केल्यास विक्री-किंमत शून्य होईल. त्या उलट Commencement-Certificate प्राप्त होण्यापूर्वी बांधकाम सुरु होऊ शकत नाही म्हणूनच Commencement-Certificate च्या पूर्वी मालाच्या हस्तांतरणाचा प्रश्नच उद्भवत नाही. म्हणूनच या टप्प्यावर जर खरेदी करार केला असेल तर कंत्राट मुल्यामधून फक्त जमिनीची व् नियम ५८(१) Actual Expenses पद्धत किंवा Standard Deduction (Table )पद्धती नुसार वजावट दिल्यानंतर शिल्लक मूल्य पूर्णतः (१००%)विक्री किंमत मानली जाईल.

मला हे माहित आहे की हे वाचल्यावर तुमच्या मनात अनेक प्रश्न येणार आहेत. परंतु मला याची देखील जाणीव आहे की MVAT Study Circle चा उद्देश ज्ञानाची भूक भागविणे नसून ज्ञानाची भूक वाढविणे हा आहे. म्हणून प्रश्न डोक्यात आले तरी वाईट वाटण्यासारखे काही नाही.

मला माहित आहे की ही MVAT Capsule तुम्हाला गिळायला थोडा त्रास होणार आहे, परंतु मी capsule चे कवच जितके गोड करता येईल तेवढा करण्याचा प्रामाणिक प्रयत्न केला आहे.

MVAT Capsule-13

परदेशी वकिलाती आणि आंतर राष्ट्रीय संस्थांना परतावा
Refund to Diplomatic Authorities & International Organisations

MVAT Capsule- 14
3 Cheers (दारूबंदी आणि MVAT)

VAT अधिकारी म्हणून आपल्यासमोर विविध व्यावसायिकांचे लेखा परीक्षण करण्याचे प्रसंग येत असतात. प्रत्येक व्यवसाय चालविण्याची पद्धत, त्या व्यवसायाशी संबंधित नियम वेगळे असतात. आपल्याला नुसतेच MVAT चे ज्ञान पुरेसे नाही तर आपल्याला विविध व्यवसायांमधील रूढ पद्धती, हिशेबाची पद्धत, त्या व्यवसायाशी संबंधित कायदे/नियम याची देखील थोडी माहिती असणे आवश्यक आहे. 
महाराष्ट्रा मध्ये Bombay Prohibition Act,1949 लागू आहे ज्यानुसार मद्याच्या उत्पादन पूर्व टप्प्यापासून अंतिम ग्राहका पर्यंतच्या सर्व टप्प्यांवर नियंत्रण ठेवण्यात येते. या व्यवसायावर नियंत्रण ठेवण्यासाठी विविध व्यावसायिकांसाठी परवाने आवश्यक आहेत. आज आपण अशा परवान्याविषयी जाणून घेणार आहोत:

MVAT Capsule- 15 Interest U/s 30(4)
कलम ३०(४) चे व्याज

कलम ३०(४) च्या व्याजाबद्दल आपल्या सगळ्यांच्या मनात अनेक प्रश्न नेहमीच येत असतात. आज आपण या व्याजाबद्दल चर्चा करुया.

A) या व्याजाची सुरुवात:
कलम ३० मध्ये उप-कलम (४) दिनांक १-७-२००९ (Mah. Act XVII of 2009 dated 27-6-2009) पासून दाखल करण्यात आला आहे.

B)व्याजाचा दर: 
कलम ३०(४) च्या व्याजाचा दर कलम ३०(१), ३०(२) आणि ३०(३) मधील व्याजासारखा प्रती महिना १.२५% असा नसून flat rate २५% आहे. म्हणजेच व्याजाची परिगणना करताना कर भरणा दिनांक विचारात घेणे आवश्यक नाही.

C) व्याजाची आकारणी अधिकारी करतो की व्यापाऱ्याने व्याज स्वतःहून भरले पाहिजे? 
एक महत्वाची लक्षात ठेवण्याची गोष्ट म्हणजे जसे कलम ३०(१), ३०(२) आणि ३०(३) च्या व्याजाची आकारणी अधिकारी करत नसून, व्यापाऱ्यास स्वतःहून व्याज भरणे आवश्यक असते, तसेच कलम ३०(४) चे व्याज देखील व्यापाऱ्याने स्वतःहून भरणे आवश्यक आहे. मला माहित आहे की ही गोष्ट कदाचित लगेच पचनी पडणार नाही. 
माझ्या मताच्या पुष्ट्यर्थ काही मुद्दे मांडतो: कलम २९ खालील शास्तीची आणि कलम ३० खालील व्याजाच्या तरतुदींची तुलना केल्यास असे लक्षात येईल की कलम २९ मध्ये सर्व उप-कलमांमध्ये “Commissioner may impose….” असे आढळते तर कलम ३० मध्ये, “ dealer shall be liable to pay……” असा उल्लेख आढळतो. कलम ३० मध्ये कुठेही “Commissioner” हा शब्द देखील आढळत नाही. याचाच अर्थ की कलम ३० मधील कोणतेही व्याज अधिकारी लादत नाही तर व्यापाऱ्याने स्वतःहून भरणे अनिवार्य आहे. याच कारणासाठी शक्ती-प्रदान अधिसूचनेमध्ये (Delegation of powers notification) कलम ३० चा उल्लेख करण्यात आला नाही.
थोडक्यात, जर कलम ३० मधील संबंधित उप-कलमा मधील अटी पूर्ण होत असतील, तर व्यापाऱ्याने व्याज भरलेच पाहिजे व् नाही भरले तर व्यापाऱ्याने वसुलीच्या कार्यवाहीस सामोरे जावे.

D) व्याज कमी करण्याचा अधिकार अधिकाऱ्याला आहे का? 
कायद्या मध्ये व्याजाचे दायित्व कमी करण्याचे अधिकार कोणत्याही अधिकाऱ्याला प्रदान करण्यात आलेले नाहीत.

E) व्याज कोणत्या परिस्थितीत लागू होते ? 
कलम ३०(४) खालील व्याज व्यापाऱ्यास भरणे खालील परिस्थितीत अनिवार्य आहे:
जर एखाद्या व्यापाऱ्याने विवरण-पत्र किंवा सुधारित विवरणपत्र खालील परिस्थितीत भरले असल्यास अशा विवरणपत्रानुसार /सुधारित विवरणपत्रानुसार देय असलेल्या अतिरिक्त कराच्या २५% इतकी रक्कम व्याजाच्या रुपाने भरण्यास व्यापारी बांधील असेल:
1. व्यवसाय लेखा परीक्षण सुरु झाल्यानंतर,किंवा 
2. लेख्यांची, नोंदवह्यांची ,कागदपत्रांची तपासणी करण्यास सुरु झाल्यानंतर , किंवा
3. व्यवसायाच्या ठिकाणी प्रवेश करण्यास आणि झडती घेण्यास सुरुवात केल्यानंतर, किंवा
4. कलम ६३(७) खालील सूचनेच्या (नमुना ६०४) परिणामी,

F) व्यापाऱ्याने जर मूळ विवरण पत्र आधी दाखल केले नसल्याने वर नमूद घटनेच्या नंतर दाखल केल्यास कलम ३०(४) चे व्याज लागू आहे का?
वरील तरतूद वाचल्यावर हे लक्षात येते की सदर व्याज फक्त सुधारित विवरणपत्रा नुसारच्या कर दायीत्वास लागू नाही. जर एखाद्या व्यापाऱ्याने मूळ विवरणपत्र भरले नसेल व् जर त्याने मूळ विवरणपत्र वर नमूद घटनांच्या नंतर भरले तर अशा व्यापाऱ्यास देखील कलम ३०(४) खालील व्याज लागू होते. ह्या प्रकरणात मूळ विवरणपत्रा नुसार जे कर दायित्व असेल त्या संपूर्ण कर दायीत्वाचा विचार २५% व्याजाच्या गणने साठी करावा लागेल.

G) कसुरदार व्यापाऱ्याकडून केलेल्या खरेदीवरील नाकारलेल्या वजावटी वर हे व्याज लागेल का?
एका व्यापाऱ्याचे लेखा परीक्षण सुरु झाले होते. या व्यापाऱ्याने एका विवरणपत्र कसुरदार व्यापाऱ्याकडून केलेल्या खरेदीवर वजावट घेतली होती. लेखा परीक्षण सुरु झाल्यानंतर व्यापाऱ्याला वाटले की आपण आता सुधारित विवरणपत्र दाखल करून प्रकरण मिटवावे. या व्यापाऱ्याचे म्हणणे असे होते की माझा विक्रेता कसुरदार आहे ह्यात माझा काहीच दोष नाही म्हणून मला व्याज लागू होत नाही.
माझ्या मते हा व्यापारी कलम ३०(४) खालील व्याज भरण्यास पात्र आहे, कारण त्याने सुधारित विवरणपत्र व्यवसाय लेखा परीक्षण सुरु झाल्यानंतर दाखल केले आहे. याच प्रकरणात जर व्यापाऱ्याने स्वतःहून लेखा परीक्षण सुरु होण्यापूर्वी सुधारित विवरणपत्र दाखल केले असते तर कलम ३०(४) चे व्याज लागू झाले नसते.

H) कलम ३०(४) चे व्याज व्यापाऱ्याने भरल्यास कलम ३०(२) चे व्याज देखील लागेल का?
कलम ३०(२) आणि कलम ३०(३) चे व्याज एकमेकांशी mutually exclusive आहेत. म्हणजेच, ज्या कराच्या रक्कमेवर कलम ३०(२) चे व्याज लागते अशी करावर कलम ३०(३) चे व्याज लागत नाही. ही बाब कलम ३०(३) ची सुरुवात बारकाईने वाचल्यास स्पष्ट होते. 
“30(3) In the case of a registered dealer, in whose case, any tax other than the tax on which interest is leviable under sub-section (2) has remained unpaid upto one month after the end of the period of assessment......”
परंतु, अशी तरतूद कलम ३०(४) मध्ये नसल्याने कलम ३०(२) आणि ३०(४) खालील दोन्ही व्याज कराच्या एकाच रक्कमेवर लागू होतात.

I) सनदी लेखापालाच्या सल्ल्यानुसार दाखल केलेल्या सुधारित विवरणपत्रानुसारच्या कर दायीत्वास (Asked to Pay)कलम ३०(४) चे व्याज लागू होईल का?
सर्वसाधारणपणे Asked to Pay प्रकरणात कलम ३०(४) चे व्याज लागू होणार नाही. याचे सरळ सोपे कारण म्हणजे वर नमूद केलेल्या कलम ३०(४) मधील घटनांमध्ये याचा उल्लेख नाही. 
परंतु, आता हेच उदाहरण अधिक क्लिष्ट करुया.
एका व्यापाऱ्याच्या ई-७०४ मध्ये त्याच्या सनदी लेखापालाने अतिरिक्त कराची रक्कम भरण्याचा सल्ला दिला (Asked to Pay). परंतु व्यापाऱ्याने सुधारित विवरणपत्र दाखल केले नाही. तदनंतर, व्यापाऱ्याचे व्यवसाय लेखा-परीक्षण सुरु झाले. व्यवसाय लेखा-परीक्षण पूर्ण व्हायच्या आतच व्यापाऱ्याने सुधारित विवरणपत्र दाखल केले. कलम ३०(४) खालील व्याजाची मागणी केली असता व्यापाऱ्याने असा युक्तिवाद केला की सदर रक्कम ही सनदी लेखा-पालाने दिलेल्या सल्ल्या नुसार भरली आहे. यावर माझे वैयक्तिक मत असे आहे की व्यापाऱ्याने जर सनदी लेखापालाच्या सल्ल्यानुसार परंतु व्यवसाय लेखा-परीक्षण सुरु होण्या पूर्वी सुधारित विवरणपत्र दाखल केले असते तर कलम ३०(४) चे व्याज लागले नसते. व्यापाऱ्याने उशीर केला आहे व् माझ्या मते आता तो व्याजास पात्र आहे.

J) कलम ३०(४) चे व्याज १-७-२००९ पूर्वीच्या कालावधी साठी लागू आहे का?
एका व्यापाऱ्याने २००५-०६, २००७-०८ आणि २००८-०९ या वर्षांसाठी विवरण पत्रे दाखल केली होती. ८-७-२००९ ला व्यापाऱ्याचे लेखा परीक्षण सुरु झाले व् व्यापाऱ्यास नमुना ६०४ नुसार अतिरिक्त कर दायित्व कळविण्यात आले. व्यापाऱ्याने २०-८-२००९ रोजी सुधारित विवरण पत्र दाखल केले आणि कर भरणा देखील केला.परंतु कलम ३०(४) खालील व्याज भरले नाही. व्यापाऱ्यास कारणे-दाखवा नोटीस बजावली असता व्यापाऱ्याने असा युक्तिवाद केला की कलम ३०(४) ची तरतूद १-७-२००९ पासून लागू झाली आहे आणि म्हणून हे व्याज पूर्वलक्षी प्रभावाने २००५-०६, २००६-०७ आणि २००७-०८ य कालावधीच्या लेखा परीक्षणासाठी लागू होऊ शकत नाही. प्रकरण मुंबई उच्च न्यायालयात गेले. उच्च न्यायालयाने कलम ३०(४) चे व्याज योग्य असल्याचा निवडा दिला व् कारण मीमांसा दिली ती अशी:
कलम ३०(४) खालील व्याजाचा दर flat आहे त्यामुळे व्याज १-७-२००९ पूर्वीच्या कालावधी साठी लागू होते हे म्हणणे चुकीचे आहे. तसेच या प्रकरणातील व्याजाशी संबंधित सर्व घटना १-७-२००९ नंतर घडल्या असल्याने व्याज लागू होईल. (वाचा: Taurus Auto Dealers V/s DP Amberao 29-3-2012 Bom. HC)

मला आशा आहे की कलम ३०(४) विषयीचे काही गैर समज दूर होण्यास या चर्चेने मदत होईल. माझी मते मान्य करावीत असा माझा कधीच आग्रह नसतो. परंतु माझी मते मांडताना मी समर्थनार्थ तरतुदींचा उल्लेख केला आहे. आपण एक quasi judicial व् जाणकार अधिकारी आहात त्यामुळे विचार नक्की करा.

Understanding the terms and phrases under the Act/ Rules

(Extract from Tax Bits/Gandhali) Part 5
मी नेहमी सांगत असतो की कायदा वाचण्यासाठी आणि समजण्यासाठी जर आपल्याला कायदा ज्या भाषेत लिहिला आहे ती भाषा येत असेल तर कायदा वाचणे आणि आणि त्या भाषेतील अन्य साहित्य वाचणे यामध्ये काहीही फरक नाही. पण बऱ्याच वेळा आपण कायद्यातील काही शब्दांमुळे कायद्यापासून दूर जातो जसे की, “Provided that”, “subject to”, Notwithstanding anything contained” इत्यादी इत्यादी. पण जर आपल्याला अशा शब्दांचे अर्थ समजले तर कायद्यातील कलम आणि वर्तमानपत्रातील बातमी किंवा एखादी गोष्ट वाचणे यात काहीही फरक जाणवणार नाही. Taxbit/Gandhali मधील लेखाचा पुढचा भाग आज मी आपल्यासमोर सादर करत आहे. लेख BST कालावधीतील असल्याने साहजिकच संदर्भ BST कायद्यातील आहेत. परंतु एक लक्षात ठेवा की कायदे कितीही बदलले तरीही शब्द बदलत नाहीत फक्त कलमांचे संदर्भ बदलतात. उद्या VAT गेला आणि GST आला तरी या शब्दांचे अर्थ तेच राहणार आहेत म्हणूनच मी ८ वर्षापूर्वीचा लेख आज आपल्या समोर सादर करण्याचे धाडस करीत आहे.....

In a taxing statute, one has to look merely at what is clearly said. There is no room for intendment, there is no equity about a tax, there is no presumption to a tax, nothing is to be added and nothing is to be implied. One can only look fairly at the language used while considering the provisions of the Act, rule or notification. The exemptions granted are to be strictly construed.

The words in the Acts are to be interpreted in their ordinary grammatical sense, unless there be something in the Statute.

Every Act, Rules contains a section containing definitions of the words and phrases in that Act or rules
What is the purpose of the definition section?
The purpose of the definition section is to explain the meanings of the words used in the Act or to explain the meaning intended to be given to that word by the lawmakers. The definition section also reduces the length of the Act or rule otherwise, at every place it would have been necessary to explain the said word. 
Can a meaning other than that in definition be given to a particular term even though it is expressly defined in the Act?
In normal situations, it is expected that the meaning assigned in the definition section have to be accepted and applied. But there may be certain situations, in which applying the definition meaning could lead to absurd results or if the situation demands that the definition meaning should not be applied.
Section 2 of the B.S.T. Act begins with the words, “ In this Act, unless the context otherwise requires …”
Thus, the beginning of section 2(1) presumes that if the context requires you can depart from the meaning in the definition section.

There may be certain terms, which may not be defined in the Act. in that case the General Clauses Act can be referred.
The most important point to be kept in mind while referring to the definitions is that the meaning in the definitions is applicable only to that particular Act. The definitions in the other Acts should not be normally imported from other acts.

It could be noticed that there are certain terms, which always occur not just in the Sales Tax Act but almost all the laws. These terms take the law out of reach of the common man and then the law becomes an exclusive field for the professionals. I sincerely feel that if these terms are replaced by simpler words which we use every day then there could be fewer violations of the law which otherwise take place due to misinterpretation of law. I also feel that replacing these terms by simpler words and making the sections / a rule shorter is not an impossible job. Now that the right to information is already been made a statutory right, people may claim a right to simpler laws which any of us can read and understand just the same way as we read the instructions displayed in bus, at airports etc. If the laws are to be followed by the people the laws should be framed in such a way that the people {or those supposed to follow those rules} should be able to read and understand without the help of the professionals and asking for this is certainly not unreasonable. This can be achieved even without compromising on the substance of the law.

Of course, until that day comes we have to read and understand the provisions as they stand today. So, we look at some of the most frequently occurring terms in the B.S.T. Act.
Actionable claims: 
Actionable claim means a claim to any debt, other than a debt secured by mortgage of immovable property or pledge of movable property or to any beneficial interest in movable property not in the possession either actual or constructive of the claimant.
Actionable claim in section of the transfer of Property Act refers only to claims capable of enforcement at the time of assignment, by suit in the civil court and not future claims.
The definition of goods in section 2(13), excludes actionable claims. This term is relevant in the case of lottery dealers. The sales price of a lottery ticket comprises of the consideration on account of the right to participate in the draw and the right to claim prize. The consideration for the right to claim prize is an actionable claim and hence deduction of this actionable claim has to be granted to a lottery dealer.

Proviso:
The word, “proviso” is used frequently to denote the clause, the first words of which are, “provided that”. A proviso is a condition inserted or attached to the main provision. The term “proviso” and ‘condition” are synonymous.

Provided that:
The words, “ provided that” are ordinarily used to introduce an exception from, or qualification of general rule to which it is added.
Illustration 1: Section 9(main Para) which pertains to turnover tax states that the T.O.T. shall be levied @ 1 %. But if the proviso attached to sec. 9 is read it states that w.e.f 1-5-2002, if a dealers tax liability exceeds Rs. 1 crore, then the T.O.T. is to be paid @ 1.5%.
Illustration 2: Section 33(1) states that a dealer shall be assessed separately for each year. But the first proviso makes an exception that a dealer can be assessed even for a part of the year if certain conditions and procedure is followed.
Thus, the interpretation of a subsection or a section should not be complete before you have read all the provisos etc. attached. 
In other words, it can be said that a proviso takes away something, which is given, by the main subsection.

The provisos begin with the phrase, “provided that”. But if there are more than one proviso attached to a section or a subsection the provisos are worded as follows:
First proviso: “Provided that”.
Second proviso: “Provided further that”.
Third proviso: “Provided also that”
Fourth proviso: “Provided also that”.

Notwithstanding:
Any provision, which starts with the word, “notwithstanding”, means that it is a non-obstante clause. So, whatever is stated in that provision shall prevail over the subject referred.

This term could be non- obstante a subsection, section, Act, Rule or even any law. The most supreme notwithstanding clause could be the one, which is “notwithstanding anything contained in any law in force”. The narrowest, “notwithstanding clause” could be the one, which states, “ notwithstanding sub clause --- of subsection of section ----.”
The examples of the following sections under the B.S.T. Act shall make the meaning of the term clearer.

i) Notwithstanding anything contained in section: (sec 4)
Section 4 lays down that a dealer is liable to pay tax if he is registered under the C.S.T. Act and purchases certain goods on Form C and resells them or uses those goods in manufacturing and sells the manufactured goods.

On the other hand, sec 3 lays down the turnover limits for an importer and a manufacturer. It may very well be the case that a dealer who falls within the situation detailed in sec. 4 but such dealer has not crossed the turnover limits of sec 3. If the term, “notwithstanding anything contained in sec. 3” had been omitted in sec. 4 then a dealer who had not crossed the T.O. limits of sec 3 would not have been liable to pay tax under sec 4.

Everyday illustration: A father tells his son that even though I am giving you Rs. 1000/- as pocket money, you should not spend more than Rs. 800/- for your pocket expenses. So if the situation is to be colored as a legal provision then it would read thus:
“ Notwithstanding the fact that Rs. 1000/ has been given as pocket money only Rs. 800/ is permitted to be spent as pocket expenses.”
The consequences of this provision would be:
a) The son must save minimum Rs. 200/ out of his pocket money.
b) However, the son can spend any amount of money for his college fees or on medical expenses if he falls sick.

ii) Notwithstanding anything contained in clause (26) of sec 2: (sec 8C)
Section 8C prevails over 2(26). Section 2(26) is about resale and states that if a dealer is entitled to use a trademark then such a dealer is not entitled for resale. But section 8C seeks to allow resale in case a dealer has applied for trademark and the application is pending. Thus, sec 8C is meant to prevail over sec 2(26) only and no other provision of the Act.

iii) Notwithstanding, any contract to the contrary: Sec.18, 391A
As per Section 18, the partners are jointly and severally liable which means that the dues of such a firm can be recovered from all the partners or even from a single partner. The term, “ notwithstanding any contract to the contrary”, signifies that the terms of the partnership or any other contract entered into by the partners shall not decide the amount or percentage of recovery to be made from each of the partners.

iv) Notwithstanding anything in this Act: (sec 5, sec.8A)
The provisions in section 5 and 8A prevails over all the provisions of the B.S.T. Act.

Notwithstanding anything contained in any law for the time being in force:
391A
This section gives power of provisional attachment and this power is not curtailed even if there is some other law, which is contrary to this provision. However, it should be kept in mind that such a broad provision shall prevail over other State Acts and not over any Central Act on the issue because of Constitutional restrictions.

Concisely while interpreting, a non-obstante clause such as notwithstanding the following points should be kept in mind:
A) The said provision is meant to prevail over some other provision or anything else specified in the section.
B) The subject over which it is stated to prevail should also be read to arrive at the correct interpretation. E.g. “notwithstanding anything contained in section ____” “notwithstanding anything contained in this Act”, notwithstanding any contract to the contrary”, notwithstanding any law to the contrary”.

Subject to:
The effect of the phrase, “subject to” is to introduce a condition or proviso.
Section 5 lays down that the goods specified in schedule A shall be tax free but subject to the conditions and exceptions set out against each of the goods specified.

Subject to the provisions of this Act and to any rule there under: (sec 6)
Section 6 begins with the term, “ subject to the provisions of this Act and rules made there under”. Thus, section 6 is not absolute while laying down that the tax shall be payable by every dealer. In other words, the payment of tax is subject to….

Subject to condition of previous publication (sec 8A):
This provision is relating to last point taxation in which the State Government is empowered to specify the goods and the point at which they shall be taxed. But the effect of the, “subject to” clause in this section is that the notification shall be first published and then made effective.

Subject to the previous sanction of the state government: (21A, 21(7))
Section 21A relates to the settlement commission and it is empowered to frame the regulations. But the subject to clause in this section clips the wings by laying down that such regulations should have prior sanction of the State Government.

“Levy” as applied to taxation as a noun means assessment.

Deemed: [sections 17, 2(11), 52,25,40,33(4A), 36(2)©,38B(2)]
The word, “deemed”, is more commonly used for the purpose of creating a statutory fiction that is for the purpose of extending the meaning of some term to a subject matter which it does not properly designate. When a person is deemed to be something, the only meaning possible is that when he is not in reality that something the Act requires him to be treated as if he were. To deem is to hold in belief, estimation or in opinion. The phrase, “ deemed to be” is commonly used in statutes to extend the application of a provision of law to a class not otherwise amenable to it.
The significant deeming provision under the Act is in the definition of, “Dealer”. Thus in a normal sense, the port trust, banks, insurance companies etc. would not have been considered as dealers in an ordinary sense. By this deeming provision, those persons have been given the colour of a dealer by a legal fiction.

Another classic example of the deeming provision is the penalty u/s 36(2)© Explanations I and II. In this penalty provision, a dealer is deemed to have concealed the turnover if he does not file any returns or if the difference between the tax assessed and tax paid, is more than 20%.

The word, “deemed” is used a great deal in modern legislation. The word, “deemed” introduces an artificial definition.

Illustration: section 22 prohibits any person from carrying on business without getting himself registered when liable for registration u/s 3. Thus being liable for registration if a dealer carries on business it would be contravention. But what would happen if a dealer’s application for registration is pending so should he be barred from carrying on business, which would be quite unreasonable. To take care of this situation, a proviso has been added to section 22, which states that in case of this situation it would not be deemed to be a contravention. Thus by a legal fiction, such an act is not to be considered as a contravention.

Illustration (sec.52): An application for DDQ can be made before the assessment or reassessment proceedings have commenced. By the deeming clause in the Explanation in section 52, even if a notice in Form 27/28 is served upon the dealer the assessment proceedings shall be considered as commenced. This also suggests that the assessment proceedings have not commenced in reality but by a legal fiction for the purpose of DDQ we accept that the assessment proceedings have commenced. On the other hand the use of the phrase, “ for the purpose of this sub-section,” in section 52 Explanation, also suggests that for the other purposes the assessment proceedings may not be considered as commenced merely by service of notice.

Prescribed: 20(8)
The word, “prescribed” is defined in the B.S.T. Act as prescribed in the rules. Therefore, whenever the word, “prescribed” is noticed in the Act then the corresponding rule should always be found and read.

Every dealer liable for registration has to apply in the prescribed manner to the prescribed authority [sec. 22(2)]. Thus in order to know the manner of application and the appropriate authority we should refer to the corresponding rule under the B.S.T. Rules.

Prescribed form: 22(3)
The word, “form” is defined in the B.S.T. rules as the form appended to the rules. Therefore, whenever we come across the term, “prescribed form” in the B.S.T. Act then we should invariably refer to the Form under the Rules.

Prescribed manner: 22(6)
The word manner means the procedure and it is to be gathered from the rules.

Vexatious, vindictive and false:
A dealer can complain against an authority that the authority has passed an order, which is vexatious, false or vindictive (section 63A).
The term, “vexatious”(------------) includes false. An accusation cannot be said to be vexatious unless the main intention of the complainant was to cause annoyance to the person accused and not merely to further the ends of justice.
All these three terms indicate that mens rea (guilty mind) is required for the complaint to sustain and in this case, the proceeding sheet could be the deciding factor.
The word vindictive means with an intention to revenge.

Offence:
Offence is an act committed against law or omitted where the law requires it and punishable by it. Offence is generally equivalent to a crime. Offence means any act or omission made punishable by any law for the time being in force.

Prosecution:
Prosecution is the institution or commencement of a criminal proceeding or the process of exhibiting formal charges against an offender before a legal tribunal and pursuing them to a final judgment on behalf of the government.

Compound: To compound means to settle by mutual concession or forbear from prosecution for consideration.

In lieu of: (Section 40 and 40A).
The term, “in lieu of” signifies “instead of” or “in place of”. 
Section 40 pertains to the composition scheme, which was applicable to the retail druggists, petrol pumps etc. In this case, such dealers were supposed to pay the composition amount in lieu of tax. Thus, what they paid was not tax but an amount in lieu of tax. Similarly, the composition amount under the Works Contract Act is also not a tax in the constitutional sense because otherwise it would be against the provisions of the constitution and the Supreme Court judgment.
The lottery dealers can pay composition amount in lieu of tax u/s 40A. Thus, the lottery dealers have been given an option to pay composition amount instead of the tax u/s 8 as per the schedule entry.

It is very important that the composition scheme providing for the payment of an amount in lieu of tax cannot be compulsory but it must be optional or it could be struck down by the judiciary. The reason is a compulsory extraction of money is tax and if it is tax, it should confirm to the constitutional provisions.

Knowingly: 
The primary definition of the word, “knowingly” is “with knowledge”. Omission of word knowingly indicates that mens rea {guilty mind} is not a necessary ingredient. This word has to be read into the Act only when it is specifically inserted in the Act and not impliedly.
Shall: 18,32,33
The word shall suggest that no option is left. 
May: (sec 17)
The word, “ may” is generally permissive and not mandatory.

Satisfaction:
The word satisfaction is not to be construed in a personal manner. This satisfaction is circumscribed by certain rules, procedures or instructions.
This term is noticed in the Act at several places as follows:
• Section 33(2): “ if the commissioner is satisfied that the returns furnished by the registered dealer in respect of any period are correct and complete…”
Thus in the case of summary assessments, the Commissioner lays down certain criteria for passing the orders but still the criteria are not absolute and the assessing authority may pass regular assessment order but in that case he should record reasons for departing from the instructions. This term is used only when the Act or the rules does not give express or specific instructions for actions by the authorities. Thus, the section 33(2) curtails the power of the assessing authority by specifying that the satisfaction should be regarding the correctness and completeness of the returns. In any case, the entire satisfaction revolves around the correctness and completeness of the returns. The satisfaction has to be of the assessing authority resting on the discretion vested in him, but such discretion is not arbitrary and must be sound judicial discretion.

• Section 22(3): [registration] “ if the prescribed authority is satisfied after such enquiry as it deems fit that an application for registration is in order it shall register the applicant…”
Registration: the dealer who applies for registration must comply with the statutory conditions such as exceeding the turnover limits, payment of VRS deposit, and signature on photo etc. the satisfaction of the registering authority comes into picture only if the dealer complies with the statutory requirements. The registering authority’s satisfaction has to be to ascertain that the application filed by the dealer is in order {or correct and true}. To satisfy himself the authority may ask for the evidences about the residence, place of business, voluntary deposit etc.
To summarize, whenever the term satisfaction occurs it means that the satisfaction should be regarding a particular aspect specified in the provision such as correctness and completeness of the returns or that the application for RC is in order.

Reason to believe: According to Lord Wright the word reasonable. A belief can be said to be state of mind. To prove a particular person’s or authority’s state of mind legally can be a difficult task. The term reason to believe presupposes a belief in the first place and the authority is supposed to hold the said belief with the help of reasons. The belief cannot be personal, unfounded, whimsical, prejudiced, as we may tend to behave in our everyday lives.

Some people have a belief that number 13 is unlucky but this belief is not based upon reasons. Similarly, the belief of the assessing authority cannot be unfounded but should be reasoned one.

Some of the sections in which this term is noticed are as follows:
Section 35: [reassessment] “if …the commissioner has reason to believe that any turnover … has escaped assessment, or has been under assessed or assessed at a lower rate, or that any deduction has been wrongly made or that any draw back has been wrongly granted…”

To exercise the reassessment power the assessing authority should have belief that any of the above five events have occurred. This belief should be based on reasons and not just because of suspicion, hearsay or due to his personal opinion.
Secondly, this belief should be at the time of passing the order and should be preferably recorded in writing.