Liability to pay tax on transfer of property in goods involved in the execution of works contract.

14. (1) Notwithstanding anything contained elsewhere in this Act, any transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract in West Bengal shall be deemed to be a sale of those goods by the person making the transfer and a purchase of those goods by the person to whom such transfer is made.

(2) Every dealer, who is liable on the day immediately before the appointed day to pay tax under section 15 of the West Bengal Sales Tax Act, 1994, and who would have continued to be so liable under the said Act on such appointed day had this Act not come into force, shall, in addition to the tax, if any, payable by him under any other provisions of this Act, be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1), from such appointed day, at the rate specified in section 18.

(3) Every dealer to whom the provisions of sub-section (2) do not apply and whose contractual transfer price calculated from the commencement of the year ending on the day immediately before the appointed day exceeds the amount prescribed under section 15 of the West Bengal Sales Tax Act, 1994, on the last day of such year shall, in addition to the tax, if any, payable by him under any other provisions of this Act, be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1) from such appointed day, at the rate specified in section 18.

(4) Every dealer to whom the provisions of sub-section (2) or sub-section (3) do not apply, shall, if it is contractual transfer price calculated from the commencement of any year, exceeds ten lakh rupees at any time within such year, be liable, in addition to the tax, if any, payable by him under any other provisions of this Act, to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on Andhra from the day immediately following the day on which such contractual transfer price first exceeds ten lakh rupees.

(5) Every dealer who has been registered under sub-section (2) of section 24 for his application under clause (b) of sub-section (1) of that section, on any date prior to the date on which his contractual transfer price exceeds ten lakh rupees, shall be liable to pay tax on all transfers of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the date of such registration.

(6) Every dealer who incurs liability to pay tax under sub-section (3) of section 27C, shall, notwithstanding that his contractual transfer price does not exceed ten lakh rupees, also be liable, in addition to the tax, if any, payable by him under any other provisions of this Act, to pay tax on transfer by him of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the date of transfer of business.

(7) Every dealer who incurs liability to pay tax under section 10 or section 11, shall, notwithstanding that his contractual transfer price does not exceed ten lakh rupees, also be liable, in addition to the tax payable by him under any other provisions of this Act, to pay tax on transfer by him of property in goods involved in the execution of works contract referred to in sub-section (1) at the rate specified in section 18 on and from the day in the incurs liability to pay tax under that section.

(8) Every dealer who has become liable to pay tax under the section, shall continue to be so liable until the expiry of three consecutive years commencing on or after the appointed day, during each of which his contractual transfer price does not exceed ten lakh rupees and such further period after the date of such expiry as many prescribed, and on the expiry of such three years or for the period, his liability to pay such tax shall cease : Provided that where a dealer has become liable to pay tax under subsection

(7) and has not incurred liability to pay tax under sub-section (4), he shall continue to be so liable until his liability ceases under section 10 or section 11.

(9) The provisions of sub-section (4), or sub-section (5), or sub-section (6), as the case may be, shall apply to every dealer who is liability to pay tax ceases under sub-section (8) as if such dealer had not ever become liable to pay tax

under the section.

(10) The Commissioner, after making such enquiry as he making necessary and after giving the dealer an opportunity of being heard, shall fix the date on and from which such dealer shall become liable to pay tax under the section.