Rajasthan Sales Tax Act,1994
Section 11. Levy of purchase tax
(1) Every dealer who in the course of his business purchases any goods other than exempted goods, in the circumstances in which no tax under sections 4 and 12 is payable on the sale price of such goods, shall be liable to pay tax on the purchase price of such goods at the same rate at which it would have been leviable on the sale price of such goods under sections 4 and 12.
(2) Where any dealer has purchased any goods, otherwise than under the provisions of section 10, without paying any tax or after paying tax at concessional or reduced rate of tax on the strength of any declaration furnished by him under the Act, the purchase price of such goods shall be included in his taxable turnover and such dealer shall be liable to pay tax with interest at the same rate which would have been leviable on the sale price of such goods under sections 4 and 12, except in a case where such dealer satisfies the assessing authority that the said goods have been utilised for the purpose mentioned in the declaration form.
(3) Where tax is leviable under sub-section (1) at the time of purchase of any goods, no tax under section 4 shall be leviable at the time of sale of such goods.
(4) The dealer shall be entitled to claim set-off of the tax paid by him under sub-section (2) on the purchase price of the goods, against the tax payable by him on the sale of such goods.