(1) Save as otherwise provided in the Act, every dealer registered or liable to be registered as a VAT dealer shall be liable to pay tax on every sale of goods in the State at the rates specified in the Schedules.

(2) Every dealer, who has not opted for registration as a Value Added Tax dealer and who is registered or liable to be registered for Turnover Tax, shall pay tax at the rate of one percent (1%) on the taxable turnover in such manner as may be prescribed.

(3) Every VAT dealer shall pay tax on every sale of goods taxable under the Act on the sale price at the rates specified in the Schedules III, IV and V, subject to the provisions of Section 13.

(4) Every VAT dealer, who in the course of his business purchases any taxable goods from a person or a dealer not registered as a VAT dealer or from a VAT dealer in circumstances in which no tax is payable by the selling VAT dealer, shall be liable to pay tax at the rate of five percent (5%) on the purchase price of such goods, if after such purchase, the goods are:

(i) used as inputs for goods which are exempt from tax under the Act; or

(ii) used as inputs for goods, which are disposed of otherwise than by way of sale in the State or dispatched outside the State otherwise than by way of sale in the course of inter- State trade and commerce or export out of the territory of India; or

(iii) disposed of otherwise than by way of consumption or by way of sale either within the State or in the course of interstate trade or commerce or export out of the territory of India:or

(iv) dispatched to a place outside the State otherwise than by way of sale in the course of inter-state trade and commerce or export out of the territory of India.

Provided that wherever a common input is used to produce goods, the turnover, taxable under this sub-section, shall be the value of the inputs, proportionate to the value of the goods, used or disposed of in the manner as prescribed under this section:

Provided further that in respect of purchase of goods specified in Schedules and VI, the VAT dealer shall be liable to pay tax at the rates specified for such goods in the respective Schedules.

(5) Every dealer shall pay tax on the sale price of goods specified in Schedule VI at the special rates and at the point of levy specified therein;

Provided that every dealer shall, in addition to the tax payable under this sub-section shall also pay additional tax of such amount on the quantity of goods, specified in schedule VI, at the point of levy, as may be notified.

(6) Every casual trader who sells goods within the State and any dealer covered under Explanation III and IV of clause (10) of Section 2 shall pay tax on the sale price of such goods at the rates specified in the respective Schedules.

(7) Notwithstanding anything contained in the Act;-

a) Every dealer executing works contracts shall pay tax on the value of goods at the time of incorporation of such goods in the works executed at the rates applicable to the goods under the Act:

Provided that where accounts are not maintained to determine the correct value of goods at the time of incorporation, such dealer shall pay tax at the rate of specified in schedule V on the total consideration received or receivable subject to such deductions as may be prescribed;

(b) Every dealer executing works contract may in lieu of the amount of tax payable by him under clause (a) opt to pay by way of composition at the rate of five percent (5%) of the total amount received or receivable by himself towards execution of the works contract either by himself or through sub-contractor subject to such conditions as may be prescribed:

Provided that the sub-contractor, executing works contract on behalf of the contractor, who opts to pay tax under this clause, shall be exempted from levy of tax.

c) Omitted;

(d) every dealer engaged in construction and selling of residential apartments, houses, buildings or commercial complexes may, in lieu of the amount of tax payable by him under clause (a) opt to pay tax by way of composition at the rate of five percent (5%) on twenty five percent (25%) of the amount, received or receivable towards the composite value of both the land and building or the market value fixed therefor for the purpose of stamp duty, whichever is higher, subject to such conditions as may be prescribed:

Provided that no tax shall be payable by the subcontractor of a works contractor, who opts to pay and paid tax under this clause on the turnover relating to the amount received as a sub-contractor from such main contractor towards the execution of works contract, whether wholly or partly, subject to the production of evidence to prove that such main contractor has exercised such option in respect of the specific work and subject to such other conditions as may be prescribed.

e) Omitted.

f) any dealer registered or is liable to be registered for TOT and executing any works contracts shall pay tax at the rate of 1% on total value of the goods at the time of incorporation of the goods used:

Provided that where accounts are not maintained to determine the correct value of the goods at the time of incorporation, such dealers shall pay tax at the rate of 1% on the total consideration received or receivable subject to such deductions as may be prescribed.

(g) notwithstanding any thing contained in clauses (a) to (f) above, no tax shall be leviable on the turnover of transfer of property in goods whether as goods or in some other form involved in the execution of works contract, if such transfer from the contractor to the contractee constituted a sale in the course of interstate trade or commerce under section 3 or a sale outside the State under section 4, or a sale in the course of import or export under section 5 of the Central Sales Tax Act, 1956;

(h) no tax shall be payable under clauses (a) of this sub-section on the turnover relating to amounts paid to a sub-contractor as consideration for the execution of works contract whether wholly or partly subject to the production of proof that such sub- contractor is registered as a VAT dealer under the Act and the turnover of such amount is included in the return prescribed filed by such sub-contractor;

(i) Omitted.

(8) Every VAT dealer who transfers the right to use goods taxable under the Act for any purpose whatsoever, whether or not for a specified period, to any lessee or licensee for cash, deferred payment or other valuable consideration, in the course of his business shall, on the total amount realized or realizable by him by way of payment in cash or otherwise on such transfer of right to use such goods from the lessee or licensee pay a tax for such goods at the rates specified in the Schedules.

(8A), Notwithstanding anything contained in sub-section (8), a producer of a feature film, who transfers the right to use the film to the distributors or the exhibitors for the purpose of exhibiting such films in the theaters, may opt to pay tax by way of composition as may be prescribed.

Explanation: Wherever tax is paid under sub-section (8A) by any producer in respect of any film, the subsequent transfer of right to use such film for exhibition in the theater shall not be liable to tax under sub-sections (8) and (8A).

(8B) Any dealer other than the producer of a feature film may, in lieu of the tax payable by him under sub-section (8), opt to pay by way of composition an amount of tax at the rate of five percent (5%) of the total amount, received or receivable by him towards transfer of right to use any goods subject to the conditions, as may be prescribed:

Provided that, wherever the tax is paid under this subsection, the subsequent transfer of right to use such goods shall not be liable to tax under sub-section (8).

(9) Notwithstanding anything contained in this Act, every dealer, running any Restaurant or Eating House or Club or Hotel or a Caterer, by whatever name called, who supplies, indoor or outdoor by way of or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, shall pay a tax at the rate of five percent (5%), on the taxable turnover.

(10) (a) Notwithstanding anything contained in the Act or any other law for the time being in force, every person who, for an agreed commission brokerage, buys or sells on behalf of any principal who is a resident of the State shall be liable to tax under this Act at the rate or rates leviable threunder in respect of such purchase or sale, notwithstanding that such principal is not a dealer or that the turnover of purchase or sale relating to such principal is less than the minimum specified in sub-sections (2), (3) and (4) of section 17;

Provided that the agent selling agricultural produce on behalf of the agriculturist principal, shall be exempted from payment of tax subject to such conditions as may be prescribed.

(b) The principal shall not be liable to tax on his turnover in respect of which the agent is liable to tax under clause (a) and the burden of proving that the turnover has been subjected to tax at the hands of his agent under the said clause shall be on such principal.

(11) Every dealer, who is engaged in the integrated activity of printing and supplying the printed materials may, in lieu of the amount of tax payable under the Act, opt to pay by way of composition an amount of tax at the rate of five percent (5%) on sixty percent (60%) of the total value of such supplies received or receivable, irrespective of the fact whether such supplies involve sale or works contract or job work subject to such conditions as may be prescribed.

(12) Save as otherwise provided in the Act and subject to such conditions, as may be prescribed, any dealer, engaged in selling Cotton fabrics, manmade fabrics, woolen fabrics, textile made ups, bed sheets, pillow covers, towels, blankets, traveling rugs, curtains and embroidary articles, may, in lieu of tax payable under sub-section (1) of this section, opt to pay tax on such goods at the rate of five percent (5%) on twenty percent (20%) of the total turnover of such goods: -

Provided that,-

(a) such dealer maintains separate accounts for goods mentioned in this sub-section and for goods other than those mentioned in this sub-section, if any;

(b) the total turnover, for the purpose of this subsection, shall be the turnover of sales of the goods, mentioned in this sub-section, at every point of sale within the State but excluding the turnover of sales of goods not mentioned in this sub-section;

(c) in respect of the goods, for which the option of payment of tax under this sub-section is not applicable, tax shall be levied and collected as specified under the Act;

(d) such dealer shall report to the prescribed authority

the exercise of his option and he shall pay such amount s due and furnish a return in such manner as may be prescribed.