(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 lump sum at such rate not exceeding 15 percent, as may be prescribed, determined in the prescribed manner, by way of composition.

(b) For the purpose of determination of the lump sum by way of composition under clause (a) the State Government may prescribe different rates for different kinds of contracts.

(2)(a) A registered dealer purchasing goods specified in Schedule II from another such dealer within the State after payment of tax under clause (i) of Section 8 and/or purchasing goods specified in Schedule I, and/or a registered dealer who manufactures cooked food and sells such goods within the State, and whose turnover in a year dose not ordinarily exceed rupees sixty lac may opt, in the prescribed form within three month of the commencement of the year for which the option is made, or from the date of registration, issued after the commencement of the business, in that year, as the case may be, for payment in lieu of tax payable by him under clause (i) of Section 8 a lump sum at such rate, in such manner and subject to such restrictions and conditions as may be prescribed.

(b) 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, the option given by him shall stand revoked.

(c) Omitted.

(3) The provisions of Sections 19, 21, 41 and 42 shall not apply to a registered dealer to whom permission to pay a lump sum by way of composition has been granted under sub-section (1) in relation to the period for and the goods in respect of which such composition has been granted and to such dealer who has opted for composition of tax under such-section (2) for the period for which such option has been exercised.