Purchase Tax - Payment of Purchase Tax Incentives - Procedure of adjustment to be followed - Orders - Issued.


G.O.Ms.No.413                            Dated:24-12-1999.

Read the following:-

1) G.O.Ms.No.398, Ind. & Com. (Sugar) Deptt., Dt.17.12.1999.

2) G.O.Ms.No.406, Ind. & Com.(Sugar) Deptt., Dt.21.12.1999.



O R D E R :-

Government have issued orders fixing the StateAdvised Cane Price for the Sugar Factories and Khandasari Sugar Mills for the season1999-2000 in the Government Orders 1st and 2nd read above. It has also been mentioned inthe said G.Os., that orders regarding payment of Purchase Tax incentives and procedure ofadjustment to be followed will be issued separately.


2. Government after careful consideration, herebydirect all the Sugar Factories and Khandasari Units to pay an amount of Rs.20/- per M.T.,and Rs.10/- per M.T., respectively over and above the State Advised Price to the Canegrowers which shall be adjusted against the Purchase Tax liability of Rs.60/- per M.T.,and Rs.22/- per M.T., payable by the Sugar factories and Khandasari Units respectively.The procedure to be followed for the purpose is prescribed in the Annexure appended tothis order shall be followed by all the Sugar Factories and Khandasari Units in the State.








The Director of Sugar & Cane Commissioner,A.P., Hyderabad.

The Managing Director, Nizam Sugars Ltd.,Hyderabad. The Managing Directors of All Coop.Sugar Factories, through

the Director of Sugar and Cane Commissioner.

The Secretary to Govt.of India, Ministry of Food& Consumer Affairs,

Deptt., of Sugar & Edible Oils, New Delhi.

The Managing Director, A.P.State Federation ofCoop.Sugar Factories Ltd.,Hyderabad.

The Commissioner of Information & PublicRelations,Hyderabad.

The Accountant General of A.P., Hyderabad.


Copy to:

The P.S. to M (Tourism & Sugar).

The P.S. to Secretary to Chief Minister.









(G.O.Ms.No.413, Industries & Commerce(Sugar) Department, Dated: 24.12.1999)

The Purchase Tax Incentive Cane Price of Rs.20/-per M.T., paid by the Sugar Factories and Rs.10/- per M.T., paid by the Khandasari Unitsto the Cane Suppliers shall be adjusted against the Purchase Tax of Rs.60/- or Rs.22/- perM.T., as the case may be, of cane purchased by them and payable to the Government forwhich the following procedure shall be adopted.

1) Alongwith the State Advised Cane Pricecommunicated by the State Government in respect of crushing season the occupier of sugarfactories should pay to the cane suppliers the purchase tax incentive price @Rs.20/- perM.T., and obtain the signature of the cane suppliers for the value of the cane supplied atthe State Advised Cane Price and for Rs.20/- per M.T., seperately. The Sugar Factoriespaying the incentive of Rs.20/- per M.T., to the cane suppliers through the Banks shouldsubmit a certificate of paymentes issued by the conerned Banks. The Sugar Factories houldremit the balance amount of Rs.40/- per M.T., to the Government towards the purchase tax.

2) In respect of Khandasari Units, alongwith theState Advised Cane Price communicated by the State Government in respect of a crushingseason, the owners of the Khandasari Units should pay the cane suppliers the purchase taxincentive price of Rs.10/- per M.T., and obtain the signatures of the cane suppliers forthe value of the cane supplied at the State Advised Cane Price and for Rs.10/- per M.T.,seperately. The Khandasari Units should remit the balance amount of Rs.12/- per M.T., tothe Government towards Purchase Tax.

3) Immediately after the payment is made, thesugar factories and Khandasari Units shall prefer a bill for adjustment of the incentiveprice paid at Rs.20/- and Rs.10/-per M.T., respectively to the cane suppliers to theDirector of Sugar and Cane Commissioner, Andhra Pradesh, Hyderabad or her nominee to whomthe powers are delegated by her, to pay the amount. In the bill it must be so indicatedthat the amount shall be credited to the Government under the Head of Acount"0045-OTHER TAXES AND DUTIES OF COMMODITIES AND SERVICES-114 - RECEIPTS UNDERSUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 1961 (01) - TAX COLLECTION"PURCHASE TAX ON SUGARCANE".

4) Along with the bill, the list of canesuppliers to who to incentive price was paid and the amount paid to them duly certified bythe managements of the sugar factories and khandasari units and countersigned shall beenclsoed. Alongwith the bills, the sugar factories and khandasari units should alsoenclose challans showing the balance amount of purchase tax is remitted by them.

5) After receipts of the Bills/challans asmentioned above from the sugar factories and khandasari units, the Director of Sugar orthe Officer authorised by her shall prepare an adjustment bill and present the same at thetreasury for adjustment of receipt of purchase tax at Rs.60/- per M.T., or Rs.22/- perM.T., as the case may be.

6) The Director of Sugar and Cane Commissionershall obtain supplementary grant during the respective financial year for the amountactually required for adjustment.

7) The Incentive Cane Price of Rs.20/- andRs.10/- per M.T., to the cane suppliers can be paid by the sugar factories and khandasariunits respectively within 60 days from the date of isue of this Government Order (or) fromthe date of closure of crushing of the sugar factories concerned for the season 1999-2000whichever is later.