Tax in respect of declared goods

Notwithstanding anything  contained in Section 5, the sales or purchases of declared goods by a dealer shall be liable to tax at the rate, and only at the point of sale or purchase specified against each in the 1(Third Schedule on his turnover of such sales or purchases for each year) irrespective of the quantum of his turnover in such goods; and the tax shall be assessed, levied and collected in such manner as may be prescribed. 1.Subs. for the words 'Fourth Schedule' by Act 16 of 1963 w.e.f.1.8.1963. 2[Provided that where any such goods on which a tax has been so levied are sold in the course of inter-State trade or commerce, 3(and tax has been paid under the Central Sales Tax Act, 1956, in respect of the sale of such goods in the course of inter-State trade or commerce the tax) so levied, 4(shall be reimbursed to the person making such sale in the course of inter-State trade or commerce,) in such manner and subject to such conditions as may be prescribed.] 2. The  provision was added by Act II of 1959 w.e.f.1.10.1958 3.  Subs. for the words 'the tax so levied' retrospectively w.e.f.1.10.1958 by Act 4 of 1974. 4.  Subs. for the words 'shall be refunded to such person' by Act 4 of 1974 w.e.f.1.4.1973.

See Rule17-D and 27-A Forms F and F1

1 (6-A. Levy of tax on turnover relating to purchase of certain goods:

Every dealer, who in the course of business: (i)  Purchases any goods (the sale or purchase of which is liable to tax under this Act) from a registered dealer in circumstances in which no tax is payable under Section 5 or under Section 6, as the case may be, or       1.Ins. by  Act 49 of 1976 w.e.f.1.9.76.  (ii) Purchases any goods (the sale or purchase of which is liable to tax under this Act) from a person other than a registered dealer , and 2 (a) consumes such goods in the manufacture of other goods for sale or consumes them         otherwise, or;)      2. Subs. for the clause: "either consumes such goods in the manufacture of other goods for sale or otherwise,or" by Act 8 of 1985 w.e.f.1.7.1985. (b) disposes of such goods in any manner other than by way of sale in the State, or (c) dispatches them to a place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce,   shall pay tax on the turnover relating to purchase aforesaid at the same rate at which but for the existence of the aforementioned circumstances, the tax would have been leviable 3(on such goods under Section 5 4[....]or Section 6:  5[.........]      3. Subs. for the words "on such goods under Section 5 or Section 6" by Act 18 of 1985 w.e.f.1.7.1985. Note: (i) The A.P.High Court in NANDANAM CONSTRUCTION COMPANY CASE(53 S.T.C. 42)held "To attract the provisions of Sec.6-A(ii) (a) there must be consumption of the original goods for purpose of manufacture. In the absence of any such consumption, the petitioners are not liable to tax". (ii) The A.P. High Court in Hindustan Milk Food's case (51 S.T.C. 1) held that "there is no warrant for levying tax under Section 5-A on the transactions covered under Section 6-A". To get over the aforesaid judgments the above amendments were made. Minimum turnover limit is Rs. 25,000/- vide G.O.Ms.No.358, Rev., dt.7.3.1981. 4. The words 'or Section 5A' were omitted by Act No.22 of 1995 w.e.f.1.4.1995. 5. The proviso was omitted by Act No.22 of 1995 w.e.f.1.4.1995. The omitted proviso read as under: "Provided that in respect of declared goods such rate together with the rate of additional tax specified in Section 5-A shall not be exceed four percent of purchase price of such goods."

6-B. Omitted by Act No.22 of 1995 w.e.f.1.4.1995.

The earlier section read as under:- 16B.Levy of surcharge on sales tax: (1) Every dealer,who is liable to pay tax under this Act on the sale or purchase of goods,shall pay a surcharge on such tax at the rate of *[twenty percent] of such tax: Provided that if, in respect of declared goods,the tax under Section 6 and the surcharge under this section,payable by such dealer, exceeds four percent of the sale or purchase price thereof,the rate of surcharge in respect of such goods shall be reduced to such an extent that the tax and the surcharge together shall not exceed four percent of the sale or purchase price of such goods. *Subs. by A.P.Act No.7 of 1995 w.e.f.1.1.95. (2) The provisions of this Act shall apply in relation to the surcharge payable under sub-section (1) as they apply in relation to the tax payable under this Act. Explanation: For the purpose of this section, the term 'tax under this Act' shall include 2(additional tax), concessional tax and other tax payable under Section 6 or Section 6 or Section 6-A) 1. Ins. by Act 16 of 1980 w.e.f.6.5.1980. 2. For the words "additional tax", the words "turnover tax" were substituted by Act No. 13 of 1993 w.e.f.18.7.1993. Again by Ord.No.8 of 1994 and Ord.No.10 of 1994 the words "turnover tax" were subs. by "additional tax" w.e.f.1.7.1994 and the same was replaced by Act 8 of 1995.

1(6-C. Levy of tax on packing material

Notwithstanding anything contained in Section 5, Section 5F, Section 6 and Section 6A, the rate of tax on packing material sold with the goods shall be the same as that of the goods packed or filled, whether or not there is separate sale or agreement for sale for the packing material and the goods packed or filled. 1. Subs. by Act No.22 of 1995 w.e.f.1.4.1995. 2. The earlier section Ins.by Act 11 of 1984 w.e.f.8.7.1993, read as under : "6-C. Levy of tax on packing material: Notwithstanding anything in Section 5 and 6-A, where goods packed in any materials are sold or purchased along with the goods are so packed shall be deemed to have been sold or purchased along with the goods and the tax shall be leviable on such sale or purchase of the materials at the rate of tax, if any, as applicable to the sale, or, as the case may be, purchase of goods themselves." 3. By G.O.Ms.No.374,Rev.dt.25.4.1987 w.e.f.1.4.1987 the tax levied and collected on packing materials shall be reduced from the tax payable on packed goods. G.O.Ms.375 Rev. dt.12.5.1997 Notification II rescinded G.O.Ms.No.374 Rev. dt.25.4.1987 w.e.f. 12.5.1997. Entry 19 of the First Schedule was also amended in Notification I.