(1) Notwithstanding anything contained in Sub-section (1) of section 5,

1. any dealer in gold or silver ornaments or wares, may, at his option instead of paying tax in accordance with the provisions of that sub-section, pay tax at one hundred and fifty percent of the tax payable by him as conceded in the return or accounts for the immediate preceding year

Explanation .- For the purpose of this clause "tax payable as conceded in the return or account for the immediate preceding year" means tax payable on the sales turnover under sub-section(1) of section 5 and the tax payable on the purchase turnover under section 5A:

Provided that where during the preceding year, the dealer had not transacted business for any period the tax payable for the whole year shall be calculated proportionately on the basis of the tax payable for the period during which such dealer had transacted business:

Provided also that where such dealer acquires any running business or a branch of a business with respect to gold, silver ornaments or wares during the year, the amount of compounding tax payable in respect of such business shall be calculated in accordance with the provisions of this clause as if it were an independent business, taking into account the turnover conceded in the return or accounts thereof for the previous year with respect to that business or on the basis of the quantum of compounded tax fixed for the previous year in accordance with the second and third provisos, as the case may be

Provided also that where a dealer paying tax in accordance with the provisions of this sub-section opens a new branch during a year, such branch shall be treated as if it were an independent place of business and the provisions of this sub-section shall apply to it accordingly.

(b) any mechanised crushing unit producing granite metals may, at its option, instead of paying tax in accordance with the provisions of the that Sub-section, pay tax at the following rates, namely:-

Explanation.- Primary crusher shall also be reckoned for the purpose of computation of the quantum of compounded tax

(7) Notwithstanding anything contained in Sub-section (1) of Section 5 every contractor, in civil works of construction of buildings, bridges, roads, railway tracks, walls including seawalls, dams and canals including any repair or maintenance of such civil work may at his option instead of paying tax in accordance with Clause (iv) of that Sub-section pay tax at the rate of two percent, on the whole amount of contract and which shall be deducted from the payments made by the awarder made at every time including advance payment and shall remit it to Government in such manner as may be prescribed.

(7A) Notwithstanding anything contained in Sub-section (1) of Section 5 every contractor not covered by Sub-section (7) may at his option, instead of paying tax in accordance with the said Section, pay tax on the whole amount of contract at the rate of seventy percent of the rates shown in the Fourth Schedule against such Contract, less any tax paid by him uder this Act on the purchase of any goods used in such contract, the transfer of which to the works contract was effected without any processing or manufacture :

Provided that in respect of a contract entered into on or after the 1st day of April, 1984 and the amount of which does not exceed fifty lakhs rupees, the contractor may if he has not opted for payment of tax in accordance with the provisions of this Sub-section, opt to pay tax at five percent of such contract amount.

(7AA) Notwithstanding anything contained in Sub-section (7) or Sub-section (7A), any contractor who voluntarily files return for any period commencing on the 1st day of April, 1984 and pays tax at the rate specified in Sub-section (7) or Sub-section (7A) on or before the 30th day of September, 1994 shall be entitled to a reduction in the compounded rate of tax by half per cent in respect of civil contracts and one per cent in respect of other contracts.

(7AAA) Nothing contained in Sub-section (7A) or Sub-section(7AA) shall be construed as permitting the reopening of an assessment already completed before the 1st day of April, 1994, for the purposes of the said Sub section.

(7AAAA) Notwithstanding anything contained in this Act any works contractor, who, being a dealer liable to get registered under section 13 and to file return and to pay tax in accordance with the provisions of this Act for any period prior to 1st day of April, 1999 has failed to do so, may file returns for the said period, pay tax under section 5 or under sub-section (7) or sub-section (7A) of this section, and apply for registration under section 13, as the case may be, before the 31st day of December, 1999. Upon making of an application for registration, filling of such returns and payment of tax, such works contractor shall not be liable for payment of registration fee for the period up to 31st day of March, 1999 or to pay interest or penalties due, accrued or leviable under this Act in relation to the tax so paid.

(7B) Every awarder shall deduct tax at the rate of two percent in respect of civil contracts and five percent in respect of other contracts from the payments made by him to any contractor liable to pay tax under section 5, and who is registered under section 13 and at the rate of seventy per cent of the rates shown in the Fourth Schedule against such contract where the transfer of goods involved in the execution of works contract is not in the form of goods or, as the case may be, at the rate applicable to the goods under this Act, where such transfer is in the form of goods , from any other contractor liable to tax under section 5 at every time, including advance payments and remit it to the Government on or before the fifth day of the succeeding month from the date of such deduction in the prescribed manner.

(7C) Every awarder shall obtain from the contractor or assessee who is liable to tax under clause (iv) of sub-section (1) of section 5 and opted for payment of tax under sub-section (7) or (7A) of section of section 7 of the Act, a certificate issued by the assessing authority with regard to the tax liability excluding the turnover in respect of inter-state sale and import and shall deduct the tax due as per the said certificate at every time including advance payment and remit it to Government on or before the fifth day of the succeeding month from the date of such deduction in the prescribed manner.

(8) The option referred to in Sub section (1) shall be exercised by an application to the assessing authority and the option referred to in Sub sections (7) and (7A) may be exercised either by an express provision in the agreement for the contract or by an application to the assessing authority, to permit him to pay the tax in accordance with any of the said Sub-sections.

(9) On receipt of an application under Sub-section (8), the assessing authority may grant the permission or, for good and sufficient reasons to be recorded in writing, reject the same:

Provided that no application shall be rejected without giving the person affected thereby an opportunity of being heard.

(10) If the awarder affects any payment without deduction of the tax payable or without the permission of the assessing authority in case application is presented before him, the whole amount of tax payable shall be recovered from the awarder and all provision of this Act for the recovery of tax including those relating to levy of penal interest and penalty shall apply as if the awarder is the assessee for the purposes of this Act.

(11) Any contractor opts for the payment of tax in accordance with the provisions of Sub-section (7) and (7A) shall file the returns showing all the contracts he has undertaken along with certificates from the awarders, showing the whole amount of contract and the details of tax deducted and remitted to Government and if the particulars are correct and complete, the assessing authority may summarily make an assessment on that basis.

Provided that no such certificate from the awarder shall be insisted upon in respect of works contract fully executed prior to the 1st day of April, 1994 , if the contractor proves to the satisfaction of the assessing authority that the details furnished by him are correct or where the assessing authority is satisfied that the return filed by the contractor is correct and complete.

(12) After the close of the year or at the completion of the works contract and on receipt of final statement of accounts and return, if the tax on purchases is found to be in excess of the tax payable under the compounded rates, no refund of such excess tax paid shall be made.

(13) Notwithstanding anything contained in Sub-section (1) of Section 5 every person who transfers the right to use video cassettes may, at his option, instead of paying tax in accordance with Clause (iii) of that Sub-section, pay tax at the rate of one thousand rupees per year for every main or branch shop situated in any place within the limits of any Municipal Corporation or Municipality and rupees five hundred per year for any main or branch shop situated in any other place or places.

(14) Notwithstanding anything contained in Sub-section (1) of Section (5), any dealer who is having licence for retail sales in arrack, may at his option instead of paying tax in accordance with Clause (v) of that Sub-section, pay tax at thirty per cent of the rental amount payable by him under the Abkari Act 1 of 1077 for the licence, less tax paid for the purchase of arrack on the first sale point.

(15) Every dealer referred to in Sub-section (14) may opt to pay tax in accordance with that Sub-section by making an application in the prescribed form to the assessing authority and pay the tax in monthly installments in the prescribed manner after deduction of the tax paid on purchase of arrack for each month in accordance with the provisions of Sub-section (14).

(16) On receipt of the application referred to in Sub-section (13) or (15), the assessing authority may, after gathering the necessary particulars, grant the permission.

(17) After the close of the year and on receipt of statement of accounts if the tax paid on purchases is found to be in excess of twenty percent of twice the rental amount payable for the year no refund of tax paid shall be made.