Liability to Tax Under the Act

Liability to tax under the Act (1) Subject to the provisions of this Act, every dealer shall, for each assessment year, pay a tax at the rates provided by or under section 3A or section 3D on his turnover of sales or purchases or both, as the case may be, which shall be determined in such manner as may be prescribed.
(2) No dealer shall, except as otherwise provided in section 18, be liable to tax under sub-section (1), if, during the assessment year, the aggregate of his turnover of
(a) purchases of goods notified under section 3D;
(b) purchases liable to tax under any other provisions of this Act;
(c) sale of goods notified under section 3D where such goods have not been purchased within the State;
(d) sales of all goods (except those notified under section 3D), whether such sale is made by the dealer directly or through his branch, depot or agent inside the State in the course of inter-State trade or commerce or outside the State, is less than [two lakh rupees in the case of manufacturers and three lakh rupees in the case of other dealers] , or such larger amount as the State Government may, by notification in the Gazette, specify in that behalf either in respect of all dealers in any goods or in respect of a particular class of such dealers.
(3) Nothing in sub-section (2) shall apply in respect of
(a) the sale by a dealer of goods imported by him from outside Uttar Pradesh, the turnover whereof is liable to tax under sub-section (1) of section 3A, or (b) the sale by a dealer of
(i) goods imported by him from outside Uttar Pradesh after furnishing to the selling dealer a declaration under sub-section (4) of section 8 of the Central Sales Tax Act, 1956, or , as the case may be;
(ii) goods purchased or imported by furnishing any declaration or certificate prescribed under any provision of this Act;
(iii) goods manufactured by him by using the goods referred to in sub-clause (i) or sub-clause (ii).
(4) Where the amount specified in or notified under sub-section (2) is altered during an assessment year, the tax payable by a dealer under this section shall be computed as follows:
(a) on the turnover relatable to the period prior to such alteration, as though the amount specified in or notified under sub-section (2) had not been altered; and (b) on the remainder, as though the altered amount had been in force on all material dates.
(5) Where tax is payable, and has been so paid, by a commission agent on any turnover on behalf of his principal, the principal shall not be liable to pay the tax in respect of the same turnover.
[(6) Notwithstanding anything to the contrary contained in any other provision of this Act, where the State Government considers it expedient in public interest so to do, it may, by notification, permit a dealer selling any goods specified in the notification to another dealer, hereinafter in this sub-section referred to as the purchaser, to own the liability of tax or composition money, as the case may be, payable by the purchaser in the event of resale of such goods or sale of any other commodity manufactured from such goods and if such dealer owns such liability, he shall be liable in place of the purchaser, to pay the tax or composition money in respect of the turnover of such resale of such goods or sale of such commodity]
[(7) Subject to such conditions as may be prescribed, the State Government may permit any power project industrial unit, engaged in generation, transmission and distribution having the aggregate capital investment of Rs. 1000 crore or more to won the trade tax liabilities of a dealer of such sales as are made to that unit:
Provided that such permission may also be granted in the case of a sub-dealer whose sales culminate in the purchases by such unit.
[(8) The State Government may, by notification, remit the amount of tax to the extent necessary to ensure the effective rates of trade tax on all purchases for and sales by a Power Project Industrial Unit, do not exceed the respective rates applicable to as on the date of commencement of State Energy Policy subject to the conditions as may be notified in such notification.] ]