Tamil Nadu Government Gazette Extraordinary No. 122
The Government of Tamil Nadu published Tamil Nadu Government Gazette Extraordinary Number 122 on 10 May 2012, containing three amendment Bills introduced in the Tamil Nadu Legislative Assembly under the Commercial Taxes and Registration, Law, Courts and Prisons portfolios. The Bills propose changes to value added tax assessments and the Indian Stamp Act, 1899, including adding brothers and sisters to the meaning of family for a provision in the stamp schedule. The Bills provide for commencement on dates separately notified by the State Government.
What the Gazette publishes
Tamil Nadu Government Gazette Extraordinary Number 122, published by the Government of Tamil Nadu on 10 May 2012, contains three Bills introduced in the Tamil Nadu Legislative Assembly on that date:
- Legislative Assembly Bill Number 25 of 2012, the Tamil Nadu Value Added Tax (Fifth Amendment) Act, 2012.
- Legislative Assembly Bill Number 26 of 2012, the Indian Stamp (Tamil Nadu Third Amendment) Act, 2012.
- Legislative Assembly Bill Number 27 of 2012, the Indian Stamp (Tamil Nadu Fourth Amendment) Act, 2012.
The supplied text does not include the substantive provisions of Legislative Assembly Bill Number 27 of 2012.
Value added tax changes
Legislative Assembly Bill Number 25 of 2012 proposes replacing the existing assessment order procedure under the Tamil Nadu Value Added Tax Act, 2006 with deemed assessment based on properly filed returns.
Key proposals include:
- Registered dealers must file prescribed returns showing total and taxable turnover, with prescribed documents and proof of tax payment.
- Tax becomes due without a demand notice on the final date of the prescribed return period.
- A dealer filing complete returns with the required documents and payment proof is deemed assessed on 31 October of the following year.
- Qualifying returns for 2006-2007 through 2010-2011, where assessment orders were not passed, are deemed assessed on 30 June 2012.
- Missing, incomplete or incorrect returns may lead to a best judgment assessment after the dealer receives a reasonable opportunity to be heard.
- The proposed penalty is 150 per cent of the difference between assessed tax and tax already paid, subject to the stated exclusions and opportunity to show cause.
- Several assessment, revision and review periods are changed from five years to six years from the date of assessment.
Stamp law change affecting family transactions
Legislative Assembly Bill Number 26 of 2012 proposes amending the Indian Stamp Act, 1899 throughout Tamil Nadu. For the explanation of family in Article 58 of Schedule I, the Bill adds a brother and sister to the existing listed relationships, which include father, mother, husband, wife, son, daughter and grandchild.
A buyer, owner or professional dealing with an instrument that depends on this family definition should check whether a brother or sister is a party. The Gazette does not state a stamp duty rate or fee for this change.
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Common questions
Does the stamp law proposal treat my brother or sister as family?
Yes. Legislative Assembly Bill Number 26 of 2012 proposes adding brother and sister to the meaning of family in the explanation under Article 58 of Schedule I to the Indian Stamp Act, 1899.
Does the Gazette specify a new stamp duty rate for transactions between siblings?
No. Tamil Nadu Government Gazette Extraordinary Number 122 only states that brother and sister will be added to the relevant family definition. The supplied text gives no stamp duty rate or fee.
When do the proposed amendments take effect?
The Tamil Nadu Value Added Tax (Fifth Amendment) Act, 2012 and the Indian Stamp (Tamil Nadu Third Amendment) Act, 2012 state that they will come into force on dates appointed by State Government notification. No commencement notification date is provided in the supplied text.
Are properly filed value added tax returns automatically assessed under the proposal?
Legislative Assembly Bill Number 25 of 2012 proposes deemed assessment where returns are in the prescribed form and include the prescribed documents and proof of tax payment. Incomplete, incorrect or missing returns may instead be assessed to the best judgment of the assessing authority after an opportunity to be heard.
