(1) Notwithstanding anything contained in this Act, the Commissioner may, in such circumstances and subject to such conditions as may be prescribed, permit a Commission Agent engaged in the business of agricultural produce, to pay at his option in lieu of the amount of tax leviable from him under this Act, a lump sum tax by way of composition at such rate as may be fixed by the State Government by notification in the Official Gazette.

(2) The permission to pay lump sum tax under sub-section (1) shall be granted by the Commissioner to a Commission Agent who, -

(a) exclusively carries on a business of agricultural produce, and

(b) is licensed as general commission agent with a market committee established under the Gujarat Agricultural Produce Markets Act, 1963(Guj. 20 of 1964).

(3) The Commissioner shall not grant permission to pay lump sum tax under sub-section (1) to a Commission agent who,-

(a) sells the goods in the course of inter-State trade and commerce or exports goods out of the territory of India,

(b) purchases the goods in the course of inter-State trade and commerce or imports goods from a place out of the territory of India,

(c) dispatches the goods to his branch or his consigning agent out side the State or receives the goods from his branch situate out side the State or from consigning agent out side the State,

(d) sells the goods to a person who is not a registered dealer, or

(e) sells the goods to a dealer who is permitted to pay lump sum tax under section 14.

(4) The commission agent who is permitted under sub-section (1) to pay lump sum tax shall not,-

(a) be entitled to claim tax credit in respect of tax paid by him on his purchases,

(b) charge any tax under this Act in his sales bill or sales invoices in respect of the sales on which lump sum tax is payable, and

(c) issue tax invoice to any dealer who has purchased the goods from him.

(5) The commission agent who is permitted to pay lump sum tax under sub-section (1) shall be liable to pay purchase tax leviable under sub-sections (1), (3), (4) and (6) of section 9 in addition to the lump-sum tax under this section.

(6) The permission granted under sub- section (1) shall remain valid so long as the provisions of this section and rules made in this behalf are complied with; and in case of breach of any of the provisions of this section or rules, the commission agent shall be liable to pay tax under sections 7 and 9 for such tax period as may be prescribed.