In exercise of the powers conferred by Section 15C of the Bihar Value Added Tax Act, 2005 (Act No. 27 of 2005) the Governor of Bihar permits developers registered under the Act to pay one percent of the total value of consideration received in execution of works contract or value specified for the purpose of the stamp duty, whichever is higher, in lieu of the tax payable by them under the Act, subject to the conditions and restrictions mentioned below :-
(i) Such developers shall make an application in form A-XVI regarding the option to pay tax in accordance with the provisions of Section 15C of the Act, along with two copies of recent passport size photographs to the Circle Incharge in whose jurisdiction the developer is registered.
(ii) The Circle Incharge, if satisfied after making an enquiry within fifteen days of receipt of application that the information furnished to him in the said prescribed Performa by the developer is complete and correct, shall permit him in writing to pay compounding money in lieu of the tax payable by him under the Act.
(iii) Such developers shall not be entitled to input tax credit for any purchase made within the State or on the stock of goods in hand under Rule 12 of the Bihar Value Added Tax Rules, 2005:
Provided that if the input tax, in respect of any goods purchased within the State has been availed by the developer and such goods are held in stock at the time of opting for compounding scheme, an amount equal to the input tax credit in respect of such goods shall be deposited by the developer, at the time of making application for the compounding scheme:
Provided also that in respect of any goods purchased/received from outside the State and such goods are held in stock at the time of option of compounding scheme, the developers, at the time of making option for compounding, shall be liable to pay an amount equal to the amount of tax calculated on purchase value that would have been payable on the goods, had the goods been purchased within the State from a registered dealer.
(iv) Such developers, who have been permitted to pay by way of compounding of tax, shall not be entitled to issue any tax invoice.
(v) If such developers purchase or receive any taxable goods from dealers other than the registered dealers from within the State on which no tax has been paid, the developer shall be liable to pay an amount equal to the amount of tax calculated on the purchase value that would have been payable, had the goods been purchased within the State from a registered dealer and such tax shall not be adjustable towards his composition scheme liability.
(vi) Such developers shall be entitled to purchase or receive goods from any place outside the State or from out of India to be used in the execution of contract at any time during the compounding scheme period. The developers shall be entitled to used SUVIDHA (Form-DIX) and also be entitled to get form-C/F prescribed in Central Sales Tax Act, 1956 if the developers are registered under the Central Sales Tax Act, 1956.But he shall have to pay an amount equal to the amount of tax calculated on purchase value that would have been payable on the goods, had the goods been purchased within the State from a registered dealer and such tax shall not be adjusted towards his compounding tax liability:
Provided that if the developer has deposited entry tax on import of scheduled goods under Bihar Tax on entry of goods into local area for consumption, use or sale therein Act, 1993, the developer shall be entitled to reduce his liability of VAT payable on those goods to the extent of tax paid under the Entry Tax Act.
(vii) where such developers award any portion of his contract to another contractor or sub-contractor, he shall not be eligible to take adjustment on account of any tax paid by the contractor or the sub-contractor under the Act.
(viii) such developers shall not collect any amount by way of tax under the Act.
(ix) The tax period for such compounding developers shall be monthly and the payment of tax payable by him shall be paid before the fifteenth day of the following month.
(x) Such developers who have been permitted to pay by way of compounding of tax shall file Quarterly Return in form RT-IAand annual return in form RT-IIIB as prescribed in Rule19 (2).
(xi) The developer shall retain the originals of all tax invoices and all retail invoices for all purchases.
(xii) Application for opting compounding scheme in respect of developer under Section 15C of the Bihar Value Added Tax Act, 2005, as mentioned in clause (i) above shall be the following:-
"FORM A-XVI
Application for opting Compounding Scheme in respect of developers under Section 15C of the Bihar Value Added Tax Act, 2005.
To,
The Circle Incharge,
………………… Circle.
I………………………………………………………… (full name), son/daughter of …………………………………………………………………… of the father), resident of…………………………………………………… address), in the capacity of ……………………………………… director/karta/ authorized person) of M/s…………………………………………… (full name of the business entity/dealer), hereby opt to pay a fix amount under Section 15C of Bihar Value Added Tax Act, 2005 in lieu of tax payable under the Act, and furnishes following particulars for that purpose-
(a) Details of firm/company:-
1. Name and style of business
2. TIN
3. Date of liability
4. Complete Address of the business
5. Legal status of the business
6. Address of Project/Projects
(b)Value of opening stock on which developer is liable to pay tax:-
(c) Details of Tax deposited:-
Verification
I do hereby declare that the particulars furnished in this declaration are correct and complete to the best of my knowledge and belief.
ACKNOWLEDGEMENT
The undersigned acknowledge having received the original of this application for payment of a fixed amount under Section 15C of Bihar Value Added Tax Act, 2005 in lieu of tax payable under the Act from M/s. ……………………
TIN: …………………… on the date mentioned below:-
(1) Date of receipt of application: .....………………………
(2) Signature
(Name & designation of receiver)
By order of the Governor of Bihar,
SUJATA CHATURVEDI.
Commissioner Commercial Taxes cum-Principal Secretary