1. VAT U/S. 7(1)

Section 7(1) is a charging section under which tax is levied on sale of goods, listed in Schedule II and Schedule III.

2. PURCHASE TAX U/S. 9

Section 9 is another charging section wherein, purchase tax is payable in the following situations.

  1. Sub-section (1) provides for levy of purchase tax at the rates set out against each of such goods in Schedule II or III of the Act, when these goods are purchased from unregistered person, by a registered dealer, liable to pay tax.
  2. Sub-section (2) provides for levy of purchase tax, where a registered dealer, purchases sugarcane from an unregistered person for use in manufacture of sugar or khandsari.
  3. Sub-section (3) provides for levy of purchase tax where any dealer has purchased any taxable goods against a certificate or declaration under any provisions of this Act or earlier law, rules or notification, and the conditions, recitals or undertakings of such certificate or declaration are not complied with, then such person or dealer shall be liable to pay purchase tax on the turnover of such purchases at the rate set out against each of such goods in Schedule II or III or at applicable rate of tax under the earlier law, as the case may be.
  4. Sub-section (4) provides for levy of purchase tax, where a dealer or a commission agent, who is liable to pay tax under this Act, purchases taxable goods from a commission agent, to whom permission to pay lump sum tax is granted u/s. 14B and the goods so purchased by him are not resold within the State, then such dealer or the commission agent shall be liable to pay purchase tax on the turnover of such purchases at the rate set out against each of such goods in Schedule II.
  5. Sub-section (5), inserted w.e.f. 1-4-2008, imposes P.T. on purchase of taxable goods, sales of which is zero rated u/s. 5A, if the goods so purchased are used for prohibited purposes like branch/consignment transfer, fuel for motor vehicle/generation of electricity, etc.

3. ADDITIONAL TAX SEC. 7(1A) & 9(6)


1) W.e.f. 01/04/2008, Additional tax is levied u/s. 7(1A) on the turnover of sales of goods except the following:

  1. Schedule I Tax Free Goods
  2. Schedule III Petrol, Diesel ATF, Motor Spirit, etc.
  3. Schedule II Entry 13 Bullion & Species, gold, silver & other precious metals, precious stones & pearls and Articles/Jewellery of gold/ silver or both or other precious metals.
  4. Taxable Declared Goods However, w.e.f. 11-4-2011, additional tax is payable @ 1% on these goods also.

2) As per Section 9(6), Additional Tax is also leviable on turnover of purchases liable to P.T. u/s. 9 except aforementioned goods.

3) The rate of Additional Tax is 1% in case of goods which are liable to tax @ 4% and is 2.5% in case of other goods, which are liable to tax @ 12.5 % or more. The Additional Tax is Vattable and is leviable on sales price excluding VAT. The Additional Tax is not payable on the tax payable under the lump sum Scheme.