Provisional assessment of tax

(1) The tax payable under this Act for each year may be provisionally assessed in advance during the year in monthly or other prescribed installments on the basis of estimated or actual turnover of the dealer; and for that purpose a dealer may be required to submit a return or periodical return of estimated or actual turnover (and pay the tax on the basis of such return or periodical returns, in such manner as may be prescribed.) NOTE : The bracketed words were substituted by Act 18 of 1985 w.ef. 1.7.1985 for the words 'in such manner as may be prescribed'. (2) If the assessing authority has reason to believe that the provisional assessment for any period was made on too low a turnover or at too low a rate, or on too high a turnover or too high a rate, he may enhance or reduce, as the case may be, such provisional assessment: Provided that before making an enhancement of the provisional assessment as aforesaid the assessing authority shall, except where such enhancement is based on the turnover finally determined for the preceding year, issue a notice thereof to the dealer and make such inquiry as he considers necessary. (3) The tax provisionally assessed may be levied and collected, either in advance during the year in monthly or other prescribed installments or at any time thereafter in one lumpsum.) NOTE: Sub-section (3) was substituted by Act 14 of 1978 w.e.f. 17.1.1978. The original sub-section read as under: "(3) The tax provisionally assessed may be levied and collected, in advance, during the year in monthly or other prescribed instalments." (4) [Any dealer who is liable to pay tax fails to submit a return as required by the provisions of this Act or the rules made thereunder or any dealer who fails] to pay the tax due on the basis of the return submitted by him under Section 13 or fails to pay the tax provisionally assessed shall be liable to pay by way of penalty: *[(a) an amount equal to thirty percent(30%) of the tax where the dealer has charged the tax from the purchaser; and (b) in any other case, an amount equivalent to twenty percent(20%) of the amount of tax.] * Clauses (a) and (b) were sub. by Act No. 2 of 1998. The earlier clauses read as under:     "(a) an amount equal to the tax where the dealer has charged the tax from the purchaser; and      (b) in any other case, an amount not exceeding half the amount of tax." Provided that before levying such penalty the assessing authority shall give the dealer a reasonable opportunity of being heard.

See Rules 10 to 13,15-A,16,18,19-A,32,35,37,50,54, and 58 Forms A, A-1, B,B-1,B-3 ,C ,E and XXIX

NOTE: Sub-section (4) was inserted by Act 18 of 1985, w.e.f.1.7.1985. The bracketed words were subs.for the words 'Any dealer who fails' by Act No.25 of 1988 w.e.f.6.9.1988. (15-A.Assessment of tax on Casual Traders: Notwithstanding anything in Sections 14 and 15, it shall be open to an assessing authority, including the officer in-charge of the check-post or barrier referred to in Section 29 to make a provisional or final assessment on a casual trader on the turnover of the purchase, or the sale of the goods, effected by him, in accordance with such rules as may be made in this behalf.)

See Rule:27,14(1),14(2),14(3)&54(3) Forms AA, BB, A-3, B-4

NOTE: Section 15-A was inserted by Act 26 of 1961, w.e.f.15.6.1957.                                           (15-B.Discontinuance of business or dissolution: (1) Where any business carried on by a firm, a Hindu undivided family or an association has been discontinued or the firm, Hindu undivided family or association has been dissolved, the assessing authority shall make an assessment of the turnover of the firm, Hindu undivided family, or association, as the case may be, as if no such discontinuance or dissolution had taken place and all the provisions of this Act, including the provisions relating to the levy of a penalty or any other sum chargeable under any provision of this Act, shall, so far as may be, apply to such assessment. (2) Where such discontinuance or dissolution takes place after any proceeding in respect of an assessment for any year has commenced, the proceeding may be continued against every person who was, at the time of such discontinuance or dissolution, a partner of such firm or a member of such Hindu undivided family or association, as the case may be, or the legal representative of any such person who is deceased, from the stage at which the proceeding stood at the time of such discontinuance or dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly.) NOTE: Section 15-B was inserted by Act 5 of 1968, w.e.f.15.6.1957.

See Rules:22,51,51-A,52&53