Sales Tax amendment comes into force with higher penalty for defaulters

GANGTOK, 09 Jan: Business has become more regimented for all businessmen and traders in Sikkim. The Sikkim Sales Tax (Amendment) Rules, 2012 came into force in the state on 01 January, and with it, dealers and traders are now required to file tax returns every month. Furthermore, the fine for late payment has been hiked ten-fold - from Rs. 50 per day to Rs. 500 per day of delay.
As per the amended rules, any dealer or person failing to pay tax or file tax returns within the stipulated period as required under the Sikkim Sales Tax Act, 1983, the issue of prescribed Forms of declaration of purchases or waybills commonly called Form XX, or any other Forms used for transaction of trade or business shall be withheld. Also, import of goods, even if declared in the prescribed Forms, shall be suspended until payment is made.
All registered dealers are to pay sales tax and will have to furnish tax returns for each month. The returns will be furnished to the assessing authority having jurisdiction over the particular place of business. These will have to be furnished within the first 15 days of the expiry of the stipulated period. This has been made more stringent than the earlier provision that allowed businessmen to file the returns within 30 days of the stipulated period. This is a new rule (Rule 9A) which has been inserted after Rule 9 which designates the authority from whom the blank forms of declaration can be obtained. Rule 9A imposes a bar on the issue of declaration forms or suspension of the issue of such forms.
Earlier, tax returns had to be filed every quarter it is informed, while now, it has been made monthly. Along with this, the businessmen and traders are also required to furnish proof that they have made their tax payments within the stipulated time period.
The State government has also increased the monetary penalty for default or late payment of the monthly sales tax by the traders. The earlier fine of Rs. 50 per day has been hiked to a fine of Rs. 500 per day for each day of late payment or default on the payment of taxes. And while earlier the fine was not to exceed Rs. 1000 the new ceiling up to which the fines can be levied has been raised to Rs. 50,000.
Another new rule which has been inserted is Rule 12A which deals with the Sale price on which the tax is to be computed. As such it has been decreed that the sales tax will be computed on the full amount of the retail sale price as determined.