(1) An application for permission to pay lump sum tax under section 14 shall be submitted in Form 210 by the registered dealer to the Commercial Tax Officer in whose jurisdiction he is required to furnish return under rule 19.
(2) An application under sub-rule (1) shall be submitted,-
(i) on or before 31st May, 2006 in respect of the permission for the year 2006-2007;
(ii) on or before 30th April for any year subsequent to the year 2006-2007 in respect of which permission is sought.
(3) The dealer registered after 1st April, 2006, may apply for the permission referred to under this rule not later than thirty days from the effect of such registration.
(4) The Commissioner shall communicate his decision regarding the permission or rejection thereof to the applicant dealer within fifteen working days from the date of receipt of application.
(5) The Commissioner may, after making such inquiry as he thinks fit, ensure compliance of the provisions of the Act and the rules, grant permission under sub-section (1) of section 14 in Form 211.
(6) If the registered dealer to whom such permission was granted contravenes the provisions of the Act or the rules, such permission shall be liable to be cancelled forthwith from the date of the event concerning such contravention. Such dealer shall be liable to pay tax from the month immediately succeeding the month during which the event for such contravention has occurred. No order for cancellation of permission under this sub-rule shall be made unless such dealer has been given reasonable opportunity of being heard.
(7) If the registered dealer to whom such permission was granted elects not to have such permission, such dealer shall intimate accordingly to the authority with whom he files the returns and the authority shall cancel the permission. Such dealer shall be liable to pay tax under the Act from the month immediately succeeding the month during which permission to pay lump sum has been cancelled on basis of his application.
(8) (a) The Commissioner may on application by any dealer in Form 214 who has under section 14A has opted to pay a lump sum tax by way of composition of tax in lieu of the amount of tax leviable from him under sections 7 and 9 on the turnover of sales of goods (whether as goods or in any other form) involved in the execution of works contract, permit such dealer, subject to the conditions specified in clause (b) to pay a lump sum tax by way of composition in respect of the contracts for which such permission is granted.
(b) The Commissioner shall after making such inquiry as he thinks fit, grant the permission subject to the provisions of the Act, these rules and the conditions specified as follows, namely:-
(i) such permission shall be granted in Form 215 in respect of the contracts for which option to pay composition money is exercised and such permission is effective from the date of the beginning of the contract and till its conclusion,
(ii) an application made under this rule shall be in respect of those contracts, which begin during the period for which the dealer hold valid registration certificate under the Act,
(iii) such an application shall be made within thirty days from the beginning of the contract,
(iv) in respect of dealers in whose case the tax already paid along with the respective returns for any period prior to the date of application is less than the amount of composition payable for the particular period for which the return is filed, such a dealer shall pay the amount of difference between the composition due for that period and the amount already paid along with the interest on the unpaid amount at the rate of one and one half per month from the date by which the amount due for the said return was required to be paid under the provisions of rule 26 till the date of actual payment. Such amount shall be paid in the Government treasury before making an application,
(v) such permission shall be granted in respect of contracts for which no tax credit is claimed or allowed in the returns or assessment,
(vi) such permission shall be granted only on the production of the proof that no amount has been collected by the applicant by way of tax in respect of the contract for which option is exercised,
(vii) the dealer applying for permission should not have contravened any provisions of the Act or rules made there under.
(c) The composition money shall be payable by the dealer on the full amount received by him at any time in respect of those contracts for which permission for composition has been granted.
(d) The composition money shall be paid in the manner in which the tax is payable under rule 26.
(e) The amount shall be considered to have been received as under:-
from the date on which it becomes due as per the schedule of payment in respect of contracts which provided for a schedule of payment,
the date on which the bill is prepared or the amount is received whichever is earlier in respect of contracts, which do not provide for schedule of payment.
(f) (i) the dealer shall be required to file the returns in accordance with the provisions of section 29 of the Act.
(ii) the dealer shall be required to file a statement in Form 216 for every quarter within twenty-two days from the end of the quarter to which it pertains.
(g) The Commissioner may cancel the permission, if any, where,-
(i) the dealer fails to pay the full amount of composition money or to furnish a statement in Form 216 within the time prescribed,
(ii) the dealer contravenes any provisions of the Act or rules made there under.
(h) Any dealer who is covered by sub section (3) of section 14A desires to obtain permission under this Act, shall apply as per the provisions of this rule. All the provisions shall mutatis mutandis apply to such dealer.
(i) The option exercised under this rule shall be final and is irrevocable.