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Act27
Enacted 2005

The Bihar Value Added Tax Act, 2005

In force 100 sections Home Affairs

An Act to consolidate and amend the law relating to levy of tax on sales or purchases of goods in the State of Bihar and to provide for matters connected therewith or incidental thereto.

Act 27 of 2005 Enacted 23 Jun 2005 In force 23 Jun 2005 Department Department of States

Administered by. Ministry of Home Affairs, Department of States · Other Acts of 2005

Preamble

THE BIHAR VALUE ADDED TAX ACT, 2005

ACT NO. 27 OF 2005

[23rd June, 2005.] An Act to consolidate and amend the law relating to levy of tax on sales or purchases of goods in the State of Bihar and to provide for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:--

What this Act covers

Summary of the Bihar Value Added Tax Act, 2005

Key Provisions

1. Offences and Penalties

• False Representations and Non-Compliance:

• Making false statements or failing to register can lead to simple imprisonment (up to 6 months), fine, or both.

• Daily fine (up to ₹50) for continuing offences.

• Tax Collection Offences:

• Collecting tax in contravention of Section 9A is punishable.

• Penalties for concealed sales, incorrect statements, and excess input tax credit claims (up to three times the tax amount).

2. Assessment and Re-assessment Provisions

• Escaped Turnover Assessment (Section 31): Authority can assess or re-assess tax for under-assessed, escaped, or wrongly deducted sales within 4 years if full particulars were concealed.

• Penalties for non-disclosure include three times the tax amount.

• Concealed Turnovers and Incorrect Particulars (Section 32): Penalties for concealed sales, incorrect statements, or excess input tax credit claims (sum equal to three times the tax on the concealed turnover).

• Penalties can be imposed before assessment completion.

• Audit-Based Re-assessments (Section 33): Re-assessment can be initiated based on audit objections from the Comptroller and Auditor-General of India.

3. Procedural Safeguards

• Hearing Opportunity: Mandatory before imposing penalties (Sections 32 and 33) and in re-assessment cases.

• Prescribed Manner for Notices and Penalties: All actions (notices, penalties, assessments) must follow the prescribed manner as per the Act.

Sections

Type to filter. 100 sections.

  1. 1Short title, extent and commencement
  2. 2Definitions
  3. 3Charge of tax
  4. 4Levy of purchase tax
  5. 5Liability to pay purchase tax on certain purchases
  6. 6Non-levy of tax in certain cases
  7. 7Exemptions
  8. 8Burden of proof
  9. 9Tribunal
  10. 10Taxing Authorities and Inspectors
  11. 11Protection of action taken in good faith
  12. 12Power to issue summons and examine on oath
  13. 13Point or points in series of sales at which sales tax shall be levied
  14. 14Rate of tax
  15. 15Compounding of tax liability in certain cases
  16. 16Input tax credit
  17. 17Exports to be zero-rated
  18. 18Rate of tax on packing materials and containers
  19. 19Registration
  20. 20Amendment and cancellation of certificate of registration
  21. 21Security
  22. 22Declared manager
  23. 23Furnishing of information by dealers
  24. 24Returns, payment of tax, interest and penalty
  25. 25Scrutiny of returns
  26. 26Self-Assessment of tax
  27. 27Assessment of dealer not filing returns
  28. 28Assessment of tax of dealers evading registration
  29. 29Assessment of tax on disputed question
  30. 30Assessment of tax of non-resident dealer doing business temporarily by way of fair, mela, etc
  31. 31Assessment or re-assessment of tax of escaped turnover
  32. 32Escaped turnover detected before or at the time of assessment of tax
  33. 33Assessment of tax based on audit objections
  34. 34Assessment of tax proceedings, etc., not to be invalid on certain grounds
  35. 35Taxable turnover
  36. 36Tax payable by a dealer
  37. 37Time limit for completion of proceeding of assessment of tax
  38. 38Exclusion of time in assessment tax proceedings
  39. 39Payment and recovery of tax
  40. 40Advance recovery of tax on sales and supplies to Governments and other persons
  41. 41Advance recovery of tax from works contractors
  42. 42Production of tax clearance certificate
  43. 43Restriction on collection of tax by dealers
  44. 44Forfeiture of tax collected in violation of this Act
  45. 45Rounding off of tax liability
  46. 46Recovery of tax as arrears of land revenue
  47. 47Special mode of recovery of tax and other liabilities under this Act
  48. 48Liability of surety
  49. 49Transfers to defraud revenue void
  50. 50Period of limitation for recovery of tax
  51. 51Tax to be first charge on property
  52. 52Maintenance of accounts
  53. 53Issue of tax invoice and debit and credit notes
  54. 54Accounts to be audited in certain cases
  55. 55Furnishing of information by Government departments, banks, financial institutions clearing and forwarding agents and owners of warehouses, godowns and others
  56. 56Production of books of account, inspection, search and seizure
  57. 57Cross checking or verification of transactions
  58. 58Survey
  59. 59Control on clearing, forwarding or booking agent and any person transporting goods
  60. 60Establishment of check-posts
  61. 61Restriction on movement of goods
  62. 62Transportation of goods through State of Bihar
  63. 63Liability to pay tax in case of transfer of business
  64. 64Tax payable by deceased dealer shall be paid by his representative
  65. 65Tax-liability of guardian and trustee, etc
  66. 66Tax-liability of court of wards
  67. 67Liability in case of dissolution of firm, etc
  68. 68Refunds
  69. 69Provisional refunds
  70. 70Interest on delayed refund
  71. 71Power to withhold refund in certain cases
  72. 72Appeal to Deputy Commissioner and Joint Commissioner
  73. 73Appeal to Tribunal
  74. 74Revisionary powers of Commissioner
  75. 75Additional evidence in appeal or revision
  76. 76Review
  77. 77Determination of disputed questions
  78. 78Power to transfer proceedings
  79. 79Appeal before High Court
  80. 80Case before High Court to be heard by not less than two Judges
  81. 81Offences and penalties
  82. 82Cognizance of offences
  83. 83Investigation of offences
  84. 84Offences by companies and others
  85. 85Compounding of offences
  86. 86Bureau of Investigation
  87. 87Appearance before taxing authorities
  88. 88Change of an incumbent of an office
  89. 89Bar to certain proceedings
  90. 90Disclosure of information by public servant
  91. 91Agreements to defeat intention and application of this Act to be void
  92. 92Write off of dues
  93. 93Power to make rules
  94. 94Repeal and savings
  95. 95Declaration of stock of goods held on 1st April, 2005
  96. 96Transitory provisions
  97. 97Construction of references in any repealed law to officers, authorities, etc
  98. 98Removal of difficulty
  99. 99Laying of notifications on the table of the State Legislature
  100. 100Validation of Bihar Value Added Tax Ordinance, 2005

Schedules

This Act has 5 schedules. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 100 sections of this Act has its own page. This page is not a substitute for legal advice.