Section 3 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962 in hindi
Levy of tax.
- (1)There shall be levied and collected from every dealer a tax on all sales effected by him of the following goods at such rates as may be fixed by the Central Government, from time to time, by notification in the Official Gazette, not exceeding the rates specified below:--
- (i)motor spirit (except diesel oil and internal combustion oils other than petrol). eight naye paise per litre.
- (ii)lubricant. nine naye paise per litre.
- (iii)diesel oil and internal combustion oils other than petrol. seven naye paise per litre.
- (iv)crude oil. one naya paisa per litre.
- (2)Every notification under sub-section (1) shall also be published in the Manipur Gazette.
- (3)Nothing in sub-section (1) shall be deemed to render any dealer liable to tax on the sale of taxable goods where such sale takes place:--
- (i)outside the Union territory;
- (ii)in the course of the import into or export out of the territory of India; or
- (iii)in the course of the inter-State trade or commerce as laid down in section 3 of the Central Sales Tax Act, 1956 (74 of 1956).
- (4)For the purpose of sub-section (1), any shortage in excess of one per cent. of the quantities of each consignment of motor spirit received into stock by a dealer for sale shall, unless the contrary is proved, be presumed to be due to sale, and the tax shall be levied and collected from the dealer accordingly.
Summary
- The tax is collected from dealers based on the sales they make.
- The Central Government fixes the exact tax rates, but they cannot exceed specific maximum limits set in the law.
- The maximum rate for lubricants is nine naye paise per litre, while motor spirit (excluding diesel) has a maximum of eight naye paise per litre.
- Sales are not taxed under this law if they happen outside Manipur, during international import or export, or as part of inter-State trade.
- If a dealer's stock is short by more than one percent, the missing amount is automatically assumed to have been sold and will be taxed, unless the dealer can prove otherwise.
Practical examples
FAQ
1. Who decides the final, exact tax rate that dealers have to pay?
The Central Government fixes the exact rates from time to time, as long as they stay under the maximum limits in the Act.
2. What is the highest possible tax rate for crude oil?
The maximum rate allowed for crude oil is one naya paisa per litre.
3. Do dealers have to pay tax if they sell goods to another state in India?
No, sales made in the course of inter-State trade are not liable to this tax.
4. What happens if a small amount of fuel evaporates while in storage?
A shortage of up to one percent of the received consignment is allowed, but anything beyond that is presumed to be a sale and is taxed unless proven otherwise.
Test yourself
Q1.Under Section 3 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962, what is the highest permissible tax rate for diesel oil and internal combustion oils other than petrol?
Q2.Under Section 3 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962, how is an unexplained shortage in a dealer's stock treated if it exceeds one percent of the consignment?
Q3.Under Section 3 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962, if the Central Government fixes a tax rate on motor spirit under sub-section 1, how do the rules in sub-section 3 affect a sale of that motor spirit to a customer outside the Union territory?
Q4.Under Section 3 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962, where must the notification setting the exact tax rates be published?