irrespective of the fact whether such supplies involve sale or works contract or job work subject to such condition

as may be prescribed.
1. Inserted by Act No. 21 of 2011 dated 29-12-2011 w.e.f. 1.4.2009. 2. 4% replaced by 5% vide Act 12 of 2012 dated 20-0-2012 w.e.f. 15-09-2011.

5.

Nothing contained in the Act shall be deemed to impose or authorize the imposition of a tax on the sale or purchase of any goods, where such sale or purchase takes place: a) b) outside the State; or in the course of the import of the goods into, or export of the goods out of the territory of India; or c) in the course of inter-State trade or commerce.

Explanation: - The provisions of Chapter II of the Central Sales Tax Act, 1956, shall apply for the purpose of determining when a sale or purchase takes place in the course of inter-State trade or commerce or outside a State or in the course of import or export. 6. Where goods sold or purchased are contained in containers or are packed in any packing material liable to tax under the Act, the rate of tax applicable to such containers or packing material shall, whether the price of the containers or packing material is charged for separately or not, be the same as the rate of tax applicable to such goods so contained or packed, and where such goods sold or purchased are exempt from tax under the Act, the containers or packing material shall also be exempted. 7. The goods listed in Schedule I to the Act shall be exempted from tax under the Act.

7-A Notwithstanding any thing contained in this Act, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer to a registered dealer for the purpose of setting up operation, maintenance, manufacture, trading, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as packing material or packing accessories in an unit located in any Special Economic Zone or for development, operation and maintenance of Special Economic Zone by the developer of the Special Economic Zone, if such registered dealer has been authorized to establish such unit or to develop, operate and maintain such Special Economic Zone by the authority specified by the Central Government in this behalf.
(Section 7-A was added by Act No 28 of 2008dated 24-09-2008 w.e.f 24-09-2008)

8.

Subject to the conditions in Sections 9 and 13 of the Act, the following shall be zerorated sales for the purpose of the Act and shall be eligible for input tax credit: (a) Sale of taxable goods in the course of inter-state trade and commerce falling within the scope of Section 3 of the Central Sales Tax Act, 1956; (b) Sale of goods falling within the scope of sub sections (1) and (3) of Section 5 of the Central Sales Tax Act 1956; (c) Deleted.
(The original clause (c) Sale of goods to any unit located in Special Economic Zone. Is deleted by Act No 28 of 2008 dated 24-09-2008 w.e.f 01-06-2008)

9.

Every dealer, who is liable to pay tax on the sale of goods specified in Schedule VI, shall be eligible for input tax credit subject to the conditions in Section 13 of the Act and in the manner prescribed.

10. (1) Any dealer who is not registered or does not opt to be registered as VAT dealer shall not be entitled to claim input tax credit for any purchase, and shall not be eligible to issue a tax invoice. (2) Any dealer who is registered as a VAT dealer shall not be liable to Turnover Tax from the effective date of such registration. 11. (1) Subject to sub-section (2), the VAT payable on a sale liable to VAT shall be calculated by applying the rate of tax specified in the Schedules, on the sale price of goods. (2) Where the sale price of goods is inclusive of VAT, the amount of VAT shall be determined in accordance with the formula prescribed. (3) Where a dealer is liable to pay turnover tax under sub-section (2) of Section 4, the tax shall be calculated by applying the rate of Turnover Tax specified therein on the taxable turnover.