The Tamil Nadu General Sales Tax Act, 1959

Under this Act every dealer whose total turnover in a year exceeds three lakhs of rupees and every casual dealer or agent of a non-resident dealer, whatever be his turnover for a year, shall get himself registered and pay tax. The Registration fee  for different categories are tabled below . The renewal of registration fee has to be paid in advance before the 31st March of the preceding year with out penalty, and before 30th of the renewal year with penalty.

      The tax is levied at single point rate either at first sale (or) first purchase (or) last purchase in the State. Goods are grouped in Part 'A' to Part 'F' and tax ranges from 1% to 20% under First Schedule and not exceeding 4% under Second Schedule (on declared goods).

      The goods mentioned in Part 'A' and 'B' of Third Schedule are completely exempted from tax. Government have issued various notifications exempting a classes of goods or a classes of dealers with or without conditions.   Special goods taxable at different rates are grouped in Schedule XI.

      The business of transfer of right to use any goods and the transfer of property in goods involved in the execution of works contract are liable to tax at the same rate specified in the schedules. The second and subsequent sales are liable to resale tax at 1% of the resale turnover of Rs.10 Lakhs and above with effect from 1.7.2002.    The printers, the dealers in works contract, food and drinks, jewellery, lottery tickets and other dealers having a turnover below Rs.50/- lakhs a year can exercise option to pay tax at the compounding rate. Surcharge is payable at 5% of the tax with effect from 1.7.2002 only on first sales.

      The sale by Trade Mark holders is treated as I sales in the state even if such sale is not the first sale in the state. Every dealer who is liable to pay tax under the Act shall file monthly return with proof for payment of tax. Concessional rate of 3% is applicable on sale of raw materials/components, and other capital goods on filing one single Form XVII to cover the entire transactions in a financial year.

      Self assessments are made by a dealer whose aggregate turnover (Tamil Nadu General Sales Tax Turnover, inter-state sales,  export sales and stock transfer all included)  does not exceed Rs.10 crores subject to the conditions laid down under sub rule (5-A) of rule 15 of Tamil Nadu General Sales Tax Rules,1959. Back year assessments upto the year   1998-99 and non assessees upto 2000-2001 will be accepted if returns are filed on or before 30-09-2002   subject to conditions laid down under sub-rules (5-C) and (5-D) of rule 15 of Tamil Nadu General Sales Tax Rules, 1959.