RETURNS, ASSESSMENT, RE-ASSESSMENT AND PAYMENT OF TAXState · Bihar

Section 38 of The Bihar Value Added Tax Act, 2005 in hindi

In computing the period of limitation prescribed for assessment or re-assessment, as the case may be, under section 27 or section 28 or section 29 or section 30 or section 31 or section 32 or section 33, the time during which any assessment or reassessment proceedings remained stayed under the order of any competent court shall be excluded.

Summary

This section pauses the legal timer for tax assessments if a competent court issues a stay order.
Any time spent waiting under a court's stay order is completely excluded when calculating the time limits for assessments or re-assessments.
This applies to several specific assessment processes, including those for unregistered dealers, escaped turnover, and audit objections.

Practical examples

1Amit's electronics shop is facing a tax assessment, but Amit gets a court order in January 2026 freezing the process for six months. Because of this rule, the tax officer gets an extra six months added to their legal deadline to finish the assessment.

2A tax officer discovers escaped turnover for Sunita's business and starts re-assessment. Sunita files a lawsuit and the High Court stays the process for a year. That entire year is ignored when calculating the officer's time limit to complete the job.

FAQ

1. What happens if a court pauses my assessment under Section 38 of The Bihar Value Added Tax Act, 2005?

According to Section 38 of the Bihar VAT Act, the duration of any stay ordered by a competent court is not counted when calculating the legal time limit for completing your assessment or re-assessment.

2. Does Section 38 of the Bihar VAT Act apply to re-assessments as well as original assessments?

Yes, Section 38 of The Bihar Value Added Tax Act, 2005 explicitly applies to computing the period of limitation for both assessments and re-assessments under various sections of the Act.

3. Who has the authority to issue a stay that triggers Section 38 of The Bihar Value Added Tax Act, 2005?

Section 38 of The Bihar Value Added Tax Act, 2005 specifies that the stay must be under the order of any competent court.

Test yourself

Q1.What does Section 38 of The Bihar Value Added Tax Act, 2005 exclude from the assessment timeline?

Q2.Section 38 of The Bihar Value Added Tax Act, 2005 applies to time limits for which of the following?

Q3.Which authority's order triggers the exclusion of time under Section 38 of The Bihar Value Added Tax Act, 2005?

Q4.If a court stays a proceeding for an assessment of escaped turnover under section 31, does Section 38 of The Bihar Value Added Tax Act, 2005 apply?

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