Karnataka Value Added Tax Act, 2003 Section 2 - Bare Act |
| State | Karnataka Government |
| Year | 2003 |
| Section Title | Definitions |
In this Act unless the context otherwise requires:-
(1) 'Agriculture'with its grammatical variations includes horticulture, the raising of crops,grass or garden produce and grazing but does not include dairy farming, poultryfarming, stock breeding and mere cutting of wood.
(2) 'Agriculturist' means aperson who cultivates land personally.
(3) 'Agriculturalproduce or horticultural produce' shall not be deemed to include tea,beedi leaves, raw cashew, timber, wood, tamarind and such produce, except coffeeas has been subject to any physical, chemical or other process for being madefit for consumption, save mere cleaning, grading, sorting or drying.
(4) 'AppellateTribunal' means the Karnataka Appellate Tribunal constituted under theKarnataka Appellate Tribunal Act, 1976 (Karnataka Act 59 of 1976).
(5) 'Assessment' means an assessment made or deemed to have been made under this Act and includesa re-assessment.
1[(5A) Body corporate means a corporation, a company as defined under the Companies Act, 1956 (Central Act 1 of 1956) and a company incorporated outside India but does not include.-
(a) a corporation sole;
(b) a co-operative society registered under any law relating to co-operative societies; and
(c) any other body corporate, not being a company as defined in the Companies Act, 1956, which the State Government may, by notification in the Official Gazette, specify in this behalf.]
2[(5-B) Branded means any goods sold under a name or trade mark registered or pending registration or pending registration of transfer under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958) or the Trade Marks Act, 1999 (Central Act 47 of 1999).]
(6) 'Business'includes:-
(a) any trade, commerce, manufacture or any adventure or concern in the nature oftrade, commerce or manufacture, whether or not such trade, commerce,manufacture, adventure or concern is carried on in furtherance of gain or profitand whether or not any gain or profit accrues therefrom; and
(b) any transaction in connection with, or incidental or ancillary to, such trade,commerce, manufacture, adventure or concern.
3[(7) Capital goods for the purposes of section 12 means plant, including cold storage and similar plant, machinery, goods vehicles, equipments, moulds, tools and jigs, and used in the course of business other than for sale;]
(8) 'Commissioner'means any person appointed to be a Commissioner of Commercial Taxes underSection 3 of the Karnataka Sales Tax Act,1957 (Karnataka Act 25 of 1957).
(9) 'Company'shall have the meaning assigned to it in the Companies Act, 1956 (Central Act 1of 1956).
(10) 'Tocultivate' with its grammatical variations and cognate expressionsmeans to carry on any agricultural operation;
(11) 'Tocultivate personally' means, to cultivate land on one's own account, -
(a) by one's own labour, or
(b) by the labour of one's own family, or
(c) by servants on wages payable in cash or kind but not in crop share, or by hiredlabour under one's personal supervision or the personal supervision of anymember of one's family.
Explanations.- (1) A person who is a widow or a minor or is subject toany physical or mental disability shall be deemed to cultivate the landpersonally if it is cultivated by her or his servants or by hired labour.
(2) In the case of undivided family, the land shall be deemed to have beencultivated personally, if it is cultivated by any member of such family.
(12) 'Dealer'means any person who carries on the business of buying, selling, supplying ordistributing goods, directly or otherwise, whether for cash or for deferredpayment, or for commission, remuneration or other valuable consideration, andincludes-
(a) an industrial, commercial or trading undertaking of the Government, the CentralGovernment, a State Government of any State other than the State of Karnataka, astatutory body, a local authority, company, a Hindu undivided family, anAliyasanthana Family, a partnership firm, a society, a club or an associationwhich carries on such business;
(b) acasual trader, a person who has, whether as principal, agent or in any othercapacity, carries on occasional transactions of a business nature involving thebuying, selling, supply or distribution of goods in the State, whether for cashor for deferred payment, or for commission, remuneration or other valuableconsideration;
(c) acommission agent, a broker or del credere agent or an auctioneer or any othermercantile agent by whatever name called, who carries on the business of buying,selling, supplying or distributing goods on behalf of any principal;
(d) anon-resident dealer or an agent of a non-resident dealer, a local branch of afirm or company or association situated outside the State;
(e) aperson who sells goods produced by him by manufacture or otherwise;
(f) aperson engaged in the business of transfer otherwise than in pursuance of acontract of property in any goods for cash, deferred payment or other valuableconsideration;
(g) aperson engaged in the business of transfer of property in goods (whether asgoods or in some other form) involved in the execution of a works contract;
(h) aperson engaged in the business of delivery of goods on hire purchase or anysystem of payment by installments;
(i) aperson engaged in the business of transfer of the right to use any goods for anypurpose (whether or not for a specified period) for cash, deferred payment orother valuable consideration;
Explanations.-
(1) Asociety (including a cooperative society), club or firm or an association which,whether or not in the course of business, buys, sells, supplies goods ordistributes goods from or to its members for cash, or for deferred payment orfor commission, remuneration or other valuable consideration, shall be deemed tobe a dealer for the purposes of this Act.
(2) The Central Government or a State Government or a local authority or a statutorybody which whether or not, in the course of business, buys, sells, supplies ordistributes goods, directly or otherwise, for cash or deferred payment or forcommission, remuneration or other valuable consideration shall be deemed to be adealer for the purposes of this Act.
(3) In respect of the transfer of the right to use feature films, the person whotransfers such right to the exhibitor and from whom the exhibitor derives theright to make such use shall be deemed to be the dealer under this clause.
(4) (a) An agriculturist who sells exclusively agricultural produce grown onland cultivated by him personally or a person who is exclusively engaged inpoultry farming and sells the products of such poultry farm shall not be deemedto be a dealer within the meaning of this clause;
(b) Where the agriculturist is a company and is selling 4[arecanut,] pepper, cardamom, rubber,timber, wood, raw cashew or coffee grown on land cultivated by it personally,directly or otherwise, such company, shall be deemed to be a dealer in respectof turnovers relating to sales of such produce.
(13) 'Document' includes writtenor printed records of any sort, title deeds and data stored electronically inwhatever form.
6[(13-A) "Electronic tax register" means a secure fiscal electronic device meant to issue tax invoices or bills of sale and record the details of such sales, and includes a printer and a device to affix signature of the dealer or his agent.]
(14) 'Export'means a sale of goods taking place in the course of export of the goods out ofthe territory of India only if the sale either occasions such export or iseffected by a transfer of documents of title to the goods after the goods havecrossed the customs frontiers of India and includes the last sale of any goodspreceding the sale occasioning the export of those goods out of the territory ofIndia, if such last sale took place after, and was for the purpose of complyingwith the agreement or order for or in relation to such export.
(15) 'Goods'means all kinds of movable property (other than newspaper, actionableclaims, stocks and shares and securities) and includes livestock, all materials,commodities and articles (including goods, as goods or in some other form)involved in the execution of a works contract or those goods to be used in thefitting out, improvement or repair of movable property, and all growing crops,grass or things attached to, or forming part of the land which are agreed to besevered before sale or under the contract of sale.
(16) 'Goodsvehicle' means any kind of vehicle used for carriage of goods eithersolely or in addition to passengers (other than aeroplanes and rail coaches) andincludes push cart, animal drawn cart, tractor-trailer and the like.
(17) 'Government'means the Government of Karnataka.
(18) 'Import'means sale or purchase in the course of the import of goods into theterritory of India if the sale or purchase either occasions such import or iseffected by transfer of documents of title to the goods before the goods havecrossed the customs frontiers of India and includes procurement of goods fromoutside the State either as a result of purchase or otherwise.
(19) 'Input'means any goods including capital goods purchased by a dealer in the course ofhis business for re-sale or for use in the manufacture or processing or packingor storing of other goods or any other use in business.
(20) 'Inputtax' has the meaning assigned to it in Section 10.
(21) 'Maximumretail price' or 'MRP' shall mean the price marked on the packagein which the goods are contained.
(22) 'Outputtax' has the meaning assigned to it in Section 10.
(23) 'Placeof business' means any place where a dealer purchases or sells goodsand includes, -
(a) any warehouse, godown or other place where a dealer stores or processes hisgoods;
(b) any place where a dealer produces or manufactures or processes goods;
(c) any place where a dealer keeps his accounts including documents and in a casewhere a dealer carries on business through an agent (by whatever name called),the place of business of such agent.
(24) 'Prescribedauthority' means an officer of the Commercial Taxes Department,authorised by the Government or the Commissioner to perform such functions asmay be assigned to him.
(25) 'Prevailingmarket price' shall mean the published wholesale price in force in themarket and in cases where there is no such published wholesale price, theprevailing market price of any goods.
(26) 'Published'shall mean published in any newspaper, journal or periodical or notified by amarket committee or any such authority.
(27) 'Registereddealer' means a dealer registered under this Act.
(28) 'Return'means any return 5[including a revised return] prescribed or otherwise required to be furnished by or underthis Act.
(29) 'Sale'with all its grammatical variation and cognate expressions means every transferof the property in goods (other than by way of a mortgage, hypothecation, chargeor pledge) by one person to another in the course of trade or business for cashor for deferred payment or other valuable consideration and includes,-
(a) atransfer otherwise than in pursuance of a contract of property in any goods forcash, deferred payment or other valuable consideration;
(b) atransfer of property in goods (whether as goods or in some other form) involvedin the execution of a works contract;
(c) adelivery of goods on hire purchase or any system of payment by installments;
(d) atransfer of the right to use any goods for any purpose (whether or not for aspecified period) for cash, deferred payment or other valuable consideration.
Explanations.-
(1) Atransfer of property involved in the sale or distribution of goods by a society(including a co-operative society), club, firm, or any association to itsmembers, for cash, or for deferred payment or other valuable consideration,whether or not in the course of business, shall be deemed to be a sale for thepurposes of this Act.
(2) Every transaction of sale by way of or as a part of any service or in any othermanner whatsoever, of goods, being food or any other article of humanconsumption or any drink (whether or not intoxicating) where such sale orservice is for cash, deferred payment or other valuable consideration, shall bedeemed to be a sale of those goods by the person making the sale and purchase ofthose goods by the person to whom such sale is made.
(3) Notwithstanding anything to the contrary contained in this Act or any other lawfor the time being in force, two independent sales or purchases shall, for thepurposes of this Act, be deemed to have taken place,
(a) when the goods are transferred from a principal to his selling agent and fromthe selling agent to the purchaser, or
(b) when the goods are transferred from the seller to a buying agent and from thebuying agent to his principal, if the agent is found in either of the casesaforesaid,-
(i) to have sold the goods at one rate and to have passed on the sale proceeds tohis principal at another rate, or
(ii) to have purchased the goods at one rate and to have passed them on to hisprincipal at another rate, or
(iii) not to have accounted to his principal for the entire collections or deductionsmade by him in the sales or purchases effected by him on behalf of hisprincipal, or
(iv) to have acted for a fictitious or non-existent principal.
(4) Every transfer of property in goods by the Central Government, any StateGovernment, a statutory body or a local authority for cash or for deferredpayment or other valuable consideration, whether or not in the course ofbusiness, shall be deemed to be a sale for the purposes of this Act.
(30) 'StateRepresentative' means any person appointed to be the StateRepresentative under Section 58 and includes an officer empowered by theCommissioner under that Section to perform the functions of a Staterepresentative.
(31) 'Taxablesale' means any sale of goods, which is taxable under the provisions ofthis Act.
(32) 'Taxinvoice' means a document specified under Section 29 listing goods soldwith price, quantity and other information as prescribed.
(33) 'Taxperiod' means such periods as may be prescribed.
(34) 'Taxableturnover' means the turnover on which a dealer shall be liable to paytax as determined after making such deductions from his total turnover and in such manner as may be prescribed, but shall not include the turnover of purchaseor sale in the course of interstate trade or commerce or in the course of exportof the goods out of the territory of India or in the course of import of the goods into the territory of India and the value of goods transferred ordespatched outside the State otherwise than by way of sale.
(35) 'Totalturnover' means the aggregate turnover in all goods of a dealer at allplaces of business in the State, whether or not the whole or any portion of suchturnover is liable to tax, including the turnover of purchase or sale in the course of interstate trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India and the value of goods transferred or despatched outside the State otherwise than by way of sale.
(36) 'Turnover'means the aggregate amount for which goods are sold or distributed or delivered or otherwise disposed of in any of the ways referred to in clause (29) by adealer, either directly or through another, on his own account or on account of others, whether for cash or for deferred payment or other valuable consideration, and includes the aggregate amount for which goods are purchased from a person not registered under the Act and the value of goods transferred ordespatched outside the State otherwise than by way of sale, and subject to suchconditions and restrictions as may be prescribed the amount for which goods aresold shall include any sums charged for anything done by the dealer in respect of the goods sold at the time of or before the delivery thereof.
Explanation.- The value of the goods transferred or despatched outside the State otherwise than by way of sale, shall be the amount for which the goodsare ordinarily sold by the dealer or the prevailing market price of such goodswhere the dealer has not ordinarily sell the goods.
(37) 'Workscontract' includes any agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property
(38) 'Year' means the year commencing on the first day of April.
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1. Inserted by Karnataka Value Added Tax (Amendment) Act, 2005
2. Renumbered by Act 4 of 2006 w.e.f. 01.04.2006.
3. Substituted by Act 4 of 2006 w.e.f. 01.04.2006.
4. Inserted by Act 10 of 2008 w.e.f. 01.08.2008.
5. Inserted by Act 4 of 2006 w.e.f. 01.04.2006.
6. Inserted by the Karnataka Value Added Tax (Amendment) Act, 2009.