[ 15 ]

GOVERNMENT OF PUDUCHERRY

LEGISLATIVE ASSEMBLY

No. 104/LAS/Ref/2021/Bill.

Puducherry, the 18th January 2021.

Under rule 140 of Rules of Procedure and Conduct of Business

of the Puducherry Legislative Assembly, the following Bill viz.,

The Puducherry Value Added Tax (Amendment) Bill, 2021

(Bill No. 4 of 2021).

which was introduced in the Legislative Assembly on 18th January, 2021,

is published for general information.

Registered with the Registrar

of Newspapers for India under

No. 10410

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Janvier

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No.

Puducherry

Monday

18th

January

2021

(28 Pausa 1942)

Registered No.

PY/44/2021-23

16

LA GAZETTE DE L'ETAT

[PART–II

THE PUDUCHERRY VALUE ADDED TAX

(AMENDMENT) BILL, 2021

(Bill No. 4 of 2021)

A

BILL

further to amend the Puducherry Value Added Tax

Act, 2007.

BE it enacted by the Legislative Assembly of

Puducherry in the Seventy-first Year of the Republic

of India as follows:–

1. (1) This Act may be called the Puducherry Value

Added Tax (Amendment) Act, 2021.

(2) It shall be deemed to have come into force with

effect from the 29th day of August, 2020.

2. In the Puducherry Value Added Tax Act, 2007,–

(i) in the Sixth Schedule, the entries against

serial numbers 2 and 3 shall be omitted.

(ii) after the Sixth Schedule, the following new

Schedule shall be inserted, namely,–

"THE SEVENTH SCHEDULE

LIST OF GOODS TAXABLE AT

THE FIRST POINT OF SALE

AT THE RATE SPECIFIED IN COLUMN 3

[See Section 14(1)]

Sl.

Description of Goods

Rate

No.

(1)

(2)

(3)

1

Petrol sold at :

(a) Puducherry region

28.00%

(b) Karaikal region

28.00%

(c) Mahe region

23.90%

(d) Yanam region

25.70%

Short title and

commencement.

Amendment of

s c h e d u l e a n d

insertion of new

Schedule.

Act

N o . 9

o f

2007.

17

PART–II]

LA GAZETTE DE L'ETAT

2

Diesel sold at :

(a) Puducherry region

19.75%

(b) Karaikal region

19.75%

(c) Mahe region

18.15%

(d) Yanam region

20.00%".

(1)

(2)

(3)

————

STATEMENT OF OBJECTS AND REASONS

Petrol and diesel are subject to tax under the Puducherry Value Added

Tax Act, 2007 (hereinafter referred to as the said Act) and are covered in the

Sixth Schedule pertaining to the list of goods taxable at the rate of 35% at the

first point of sale at entry Nos. 2 and 3. However, a lower tax rate for petrol and

diesel is being implemented through notification issued under section 31 of the

said Act which empowers the Government to issue notification to reduce the

rate of tax payable under the said Act.

2. The rate of tax on petrol and diesel was revised with effect from

29th May, 2020 through notification issued vide G.O. Ms. No. 24, dated 27th

May, 2020 under section 31 and the new rates were valid only for three months

i.e., up to 28th August, 2020. The said notification was challenged before the

Hon'ble High Court of Judicature at Madras. The Hon'ble High Court by order,

dated 27th August, 2020 quashed the impugned notification, dated 27th May, 2020

observing that alteration to the rate of tax of this nature would have to be effected

only by way of amendment to the Schedule itself under section 75 and not by

issuance of a notification under section 31 of the said Act.

3. In view of the order of the Hon'ble High Court and to implement new

tax rate on petrol and diesel with effect from 29th August, 2020, in exercise of

the powers conferred under sub-section (1) of section 75 of the said Act, the

Sixth Schedule to the said Act was amended to omit petrol and diesel from it

and a new Seventh Schedule containing the rate of tax applicable on petrol and

diesel was inserted through a notification issued vide G.O. Ms. No. 41, dated

28th August, 2020.

18

LA GAZETTE DE L'ETAT

[PART–II

4. In order to give effect to the amendments made in the Sixth Schedule

and the insertion of Seventh Schedule in the said Act through the notification,

a Bill titled "The Puducherry Value Added Tax (Amendment) Bill, 2021" is proposed

to be enacted.

5. This Bill seeks to achieve the above objects.

V. NARAYANASAMY,

Chief Minister.

————

FINANCIAL MEMORANDUM

The proposed Puducherry Value Added Tax (Amendment) Bill, 2021

does not involve any recurring or non-recurring expenditure from the Consolidated

Fund of the Union territory of Puducherry.

————

MEMORANDUM REGARDING DELEGATED LEGISLATION

– Nil –

————

ADMINISTRATOR’S RECOMMENDATION

UNDER SUB-SECTION (1) OF SECTION 23 OF

THE GOVERNMENT OF UNION TERRITORIES ACT, 1963

(Copy

of

Letter

No. 01-CM/AS/2021,

dated

16-01-2021

from

the Hon’ble Chief Minister Thiru V. Narayanasamy to the Hon’ble Speaker,

Legislative Assembly, Puducherry)

The Lieutenant-Governor, Puducherry, having been informed of the

subject matter of the proposed Puducherry Value Added Tax (Amendment)

Bill, 2021, recommends under sub-section (1) of section 23 of the Government

of Union Territories Act, 1963 (Central Act 20 of 1963), the introduction in and

consideration by the Legislative Assembly of the said Bill.

————

R. MOUNISSAMY,

Secretary.

Legislative Assembly Secretariat.

online publication at “https://styandptg.py.gov.in”

Published by the Director, Government Press, Puducherry.