Vat Actupdated - RS Goyal & Associates

20
3/4 Provided that in case of a dealer who is a manufacturer, the condition of
purchases from a registered dealer shall be limited to the goods specified in part-III and IV of
Schedule II.
Provided further that the option for composition pertaining to the year 2006-07 can be
given up-to 30th June, 2006; 3/4
4 Provided also that a dealer who has obtained registration certificate during a year,
may give option for composition for the part period of the year and the option for composition
can be given within 30 days from the date of registration. 4
(2) If a registered dealer during the year for which an option has been given by him,
contravenes any of the restrictions and conditions prescribed under sub-section (1), the
option given by him shall stand revoked.
3/4 (3) A registered dealer who opts for composition of tax under sub-section (1) shall not
be eligible to any input tax rebate in respect of the goods sold during the year in relation to
which such option is exercised by the dealer and the input tax rebate already claimed and
adjusted towards the tax payable, shall be paid alongwith the first quarter of the year. 3/4
3/4 11A. Composition of tax by certain registered dealers
(1)(a) The Commissioner may, subject to such restrictions and conditions as may be
prescribed, permit any registered dealer, who carries on wholly or partly the business of
supplying goods in the course of execution of works contract entered into by him, to pay in
lieu of tax payable by him under this Act a lumpsum at such rate as may be prescribed and
determined in the prescribed manner, by way of composition, and this option for composition
will have to be submitted within 20 60 days 20 of commencement of execution of the works
contract or contract.
(b) The provisions of Sections 18, 20, 20 A, 39 and 40 shall not apply to a registered dealer
to whom permission to pay a lumpsum by way of composition is granted under clause (a) in
relation to the period for and the goods in respect of which such composition of tax has been
made and who complies with the restrictions and conditions prescribed under the said
clause.
(2) For the purpose of determination of the lumpsum by way of composition under clause (a)
of sub-section (1), the State Government may prescribe different rates for different kinds of
contracts.
(3) A registered dealer who opts for composition of tax under sub-section (1) shall not be
eligible to any input tax rebate in relation to the period for and the goods in respect of which
such option is exercised by the dealer. 3/4
6 11-B : Payment of lump sum in lieu of tax
(1) Notwithstanding anything contained in this Act, the State Government may direct
payment of tax in lump sump in respect of such class of goods by such class of dealers on
such terms and conditions as may be notified in the official Gazette.
(2) The tax in lump sump specified in sub-section (1) shall not exceed the amount of
maximum tax liability provided in sub-section (1) of section 9. 6
12 : Dealer not to pass incidence of tax to agriculturists and horticulturists under
certain circumstances
No dealer shall collect any amount, by way of tax, from a person who sells agricultural or
horticultural produce grown by himself or grown on any land in which he has an interest,
whether as owner, usufructuary mortgagee, tenant or otherwise, when such produce is sold