Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com Andhra Pradesh Value Added Tax (Amendment) Act, 2011 21 of 2011 [29 December 2011] CONTENTS 1. Short title and commencement 2. Amendment of Section 2: (Act 5 of 2005) 3. Amendment of Section 4 4. Amendment of Section 13 5. Amendment of Section 17 6. Amendment of Section 21 7. Amendment of Section 22 8. Amendment of Section 31 9. Amendment of Section 32 10. Amendment of Section 40 11. Amendment of Schedule IV 12. Repeal of Ordinance 7 of 2011 Andhra Pradesh Value Added Tax (Amendment) Act, 2011 21 of 2011 [29 December 2011] PREAMBLE An Act Further to Amend the Andhra Pradesh Value Added Tax Act, 2005 Be it enacted by the Legislature of the State of Andhra Pradesh in the Sixty-second Year of the Republic of India as follows.-- 1. Short title and commencement :- (1) This Act may be called as the Andhra Pradesh Value Added Tax (Amendment) Act, 2011. (2) (i) sub-section (2) of Section 2, subsection (2) of Section 3, and clause (b) of sub-section (1) of Section 4 shall be deemed to have come into force with effect from 1-4-2005; (ii) sub-section (3) of Section 3 shall be deemed to have come into force on 24-9-2008; (iii) sub-section (4) of Section 3, shall be deemed to have come into force on 1-4-2009; (iv) Section 5 shall be deemed to have come into force on 24-9- 2008; (v) sub-section (2) of Section 11 shall be deemed to have come into force on 19-5-2010; (vi) sub-section (3) of Section 11 shall be deemed to have come into force on 1-4-2005; (vii) sub-section (4) of Section 11 shall be deemed to have come into force on 1-9-2005; (viii) sub-section (5) of Section 11 shall be deemed to have come into force on 2-8-2010; (ix) the remaining sections shall be deemed to have come into force on 15-9-2011. 2. Amendment of Section 2: (Act 5 of 2005) :- In the Andhra Pradesh Value Added Tax Act, 2005, (herein after referred to as the principal Act), in Section 2,- (1) for clause (4), the following shall be substituted, namely;- "(4) "Assessing Authority" means any officer of the Commercial Taxes Department, authorized by the Commissioner or as may be prescribed, to make any assessment in such area or areas or the whole of the State of Andhra Pradesh."; (2) in clause (38), after Explanation-II, the following shall be added, namely,- "Explanation-III: The sale price, relating to loose liquor, served to customer in a bar/restaurant which was derived from the goods enumerated in item 1 of the Schedule-VI, on which tax at special rates has been levied and paid in the State, shall not form part of the taxable turnover." 3. Amendment of Section 4 :- In the principal Act, in Section 4, (1) in sub-section (7);- (a) for clause (b); the following shall be substituted, namely,- "(b) Every dealer executing works contract may in lieu of the amount of tax payable by him under clause (a) opt to pay by way of composition at the rate of 4% of the total amount received or receivable by himself towards execution of the works contract either by himself or through subcontractor subject to such conditions as may be prescribed: Provided that the sub-contractor, executing works contract on behalf of the contractor, who opts to pay tax under this clause, shall be exempted from levy of tax."; (b) clause (c) shall be omitted; (c) for clause (d), the following shall be substituted, namely,- "(d) Every dealer engaged in construction and selling of residential apartments, houses, buildings or commercial complexes may, in lieu of the amount of tax payable by him under clause (a) opt to pay tax by way of composition at the rate of 4% on twenty five percent (25%) of the amount, received or receivable towards the composite value of both the land and building or the market value fixed therefore for the purpose of stamp duty, whichever is higher, subject to such conditions as may be prescribed: Provided that no tax shall be payable by the sub-contractor of a works contractor, who opts to pay and paid tax under this clause on the turnover relating to the amount received as a sub-contractor from such main contractor towards the execution of works contract, whether wholly or partly, subject to the production of evidence to prove that such main contractor has exercised such option in respect of the specific work and subject to such other conditions as may be prescribed.". (d) clause (e) shall be omitted; (e) in clause (f), for the words "any dealer who is liable to be registered", the words "any dealer registered or is liable to be registered" shall be substituted; (f) in clause (h), for the expression "clauses (a) or (b) or (c)", the expression "clause (a)" shall be substituted; (g) clause (i) shall be omitted. (2) after sub-section (8A), the following shall be added namely, - "(8B) any dealer other than the producer of a feature film may, in lieu of the tax payable by him under sub-section (8), opt to pay by way of composition an amount of tax at the rate of 4% of the total amount, received or receivable by him towards transfer of right to use any goods subject to the conditions, as may be prescribed: Provided that, wherever the tax is paid under this sub-section, the subsequent transfer of right to use such goods shall not be liable to tax under sub-section (8)". (3) in sub-section (10), to clause (a), the following proviso shall be added, namely,- "Provided that the agent selling agricultural produce on behalf of the agriculturist principal, shall be exempted from payment of tax subject to such conditions as may be prescribed.". (4) after sub-section (10) so amended the following new sub- section shall be added, namely,- "(11) Every dealer, who is engaged in the integrated activity of printing and supplying the printed materials may, in lieu of the amount of tax payable under the Act, opt to pay by way of composition an amount of tax at the rate of 4% on sixty percent (60%) of the total value of such supplies received or receivable, irrespective of the fact whether such supplies involve sale or works contract or job work subject to such conditions as may be prescribed.". 4. Amendment of Section 13 :- In the principal Act, in Section 13,- (1) in sub-section (5),- (a) in clause (a), the expression," (c)" shall be omitted; (b) in clause (g), after the words, "subsection (8A)", the words "or subsection (8B)" shall be inserted; (c) after clause (h), the following new clause shall be added, namely,- "(i) transactions on which tax is paid or payable under sub-section (11) of Section 4.". (2) in sub-section (7), for the expression "90%", the expression, "75%" shall be substituted. 5. Amendment of Section 17 :- In the principal Act, in Section 17, in subsection (5), in clause (e), the following words shall be added at the end,- "except the agent, selling agricultural produce on behalf of agriculturist principals.". 6. Amendment of Section 21 :- In Section 21 of the principal Act,- (1) for sub-section (7), the following subsection shall be substituted, namely.-- "(7) where an assessment has been deferred by the Commissioner under subsection (5) of Section 32 or as the case may be, by the Appellate Tribunal under the proviso to sub-section (4) of Section 33 on account of any stay granted by the Appellate Tribunal, or as the case may be the Andhra Pradesh High Court or Supreme Court respectively, or whereas appeal or other proceedings is pending before the Appellate Tribunal or the High Court or Supreme Court involving a question of law having a direct bearing on the assessment in question, the period during which the stay order was in force or such appeal or proceedings was pending shall be excluded in computing the period of four years or six years as the case may be for the purpose of making the assessment.". (2) in sub-section (8), for the words, "any Court", the words "any Court or as the case may be the Appellate Tribunal" shall be substituted. 7. Amendment of Section 22 :- In the principal Act, in Section 22,- (1) in sub-section (2), for the words "interest calculated at the rate of one percent per month", the expression "interest calculated at the rate of one and quarter (1.25%) percent per month" shall be substituted; (2) in sub-section (6), in clause (b), for the words "interest at the rate of one percent per month" the expression "interest calculated at the rate of one and quarter (1.25%) percent per month" shall be substituted. 8. Amendment of Section 31 :- In the principal Act, in Section 31,- (1) in sub-section (1), for the second proviso, the following shall be substituted, namely,- "Provided further that an appeal so preferred shall not be admitted by the appellate authority concerned unless the dealer produces the proof of payment of tax, penalty, interest or any other amount admitted to be due, or of such instalments as have been granted, and the proof of payment of twelve and half percent of the difference of the tax, penalty, interest or any other amount, assessed by the authority prescribed and the tax, penalty, interest or any other amount admitted by the appellant, for the relevant tax period, in respect of which the appeal is preferred.". (2) after sub-section (4), the following new sub-section shall be inserted, namely, "(4A) Where any proceeding under this section has been deferred on account of any stay orders granted by the High Court or Supreme Court in any case or by reason of the fact that an appeal or other proceeding is pending before the High Court or the Supreme Court involving a question of law having a direct bearing on the order proceeding in question, the period during which the stay order is in force or the period during which such appeal or proceeding is pending, shall be excluded, while computing the period of two years specified in sub-section (4) for the purpose of passing appeal orders under this section.". 9. Amendment of Section 32 :- In the principal Act, in Section 32,- (1) in sub-section (2), for the two provisos, thereunder, the following proviso shall be substituted, namely.-- "Provided that the power under subsection (1) or (2) shall not be exercised by the authority specified therein in respect of any issue or question which was decided on appeal by the Appellate Tribunal under Section 33; (2) in sub-section (5), for the words, "the High Court or Supreme Court", the words "the Appellate Tribunal or the High Court or the Supreme Court" shall be substituted. (3) in sub-section (7), for the words, "the High Court or Supreme Court", wherever they occur, the words "the Appellate Tribunal or the High Court or the Supreme Court" shall be substituted. 10. Amendment of Section 40 :- In the principal Act, in Section 40, in subsection (3), for the words, "interest at the rate of one percent per month" the expression "interest at the rate of one and quarter (1.25%) percent per month" shall be substituted. 11. Amendment of Schedule IV :- In the principal Act, in Schedule IV,- (1) in Entry 19, for the words, "and auxines", the words, "Plant Harmones, Gibberllines, Auxines and Plant growth promoters or regulators" shall be substituted. (2) in entry 100, after item 233, the following new item shall be added, namely,- "234. Winding wire made of copper or enameled copper". (3) in entry No. 102, after serial Number 50, the following shall be added, namely: .style1 {font-family: Verdana} --> Sl. No. Heading Sub- Heading Description of Goods 51. 8403 90 00 Parts of central heating boilers other than those of heading 8402. 52. 8404 90 00 Parts of auxiliary plant for use with boilers of heading 8402 or 8403 (for example, economizers, super heaters, soot removers, gas recoverers); condensers for steam or other vapour power units 53. 8405 90 00 Parts of producer gas or water gas generators, with or without their purifiers; Acetylene gas generators and similar water process gas generators with or without their purifiers. 54. 8406 90 00 Parts of steam turbines and other vapour turbines 55. 8410 90 00 Parts including regulators of hydraulic turbines, water wheels, and regulators therefore. 56. 8411 99 00 Parts of turbo-jets, turbo-propellers and other gas turbines. 57. 8483 90 00 Toothed wheels, chain sprockets and other transmission elements presented separately; (4) after Entry 124, the following entry shall be added, namely,- "125. Lime, Burnt Lime, Lime Stone, Products of Lime, Dolomite and other White washing materials including Cem Powder other than White Cement.". (5) after Entry 125, so added, the following entry shall be added, namely: "126. Purified Packed drinking water in bulk containers/Cans and sachets but excluding aerated, mineral, distilled, medicinal, ionic, battery and demineralized water.". 12. Repeal of Ordinance 7 of 2011 :- The Andhra Pradesh Value Added Tax (Amendment) Ordinance, 2011 is hereby repealed.