(1) (a) Every dealer, other than a casual trader or agent of a non-resident dealer, whose total turnover for a year is not less than rupees five lakhs and every casual trader or agent of a nonresident dealer, whatever be his total turnover, for a year, shall pay tax under this Act.

(b) Notwithstanding anything contained in clause (a), every dealer other than a casual trader or agent of a non-resident dealer who purchases goods within the State and effects sale of those goods within the State and whose total turnover for a year is not less than rupees ten lakhs shall pay tax under this Act.

(1-A) Notwithstanding anything contained in this Act, for the purpose of assessment of tax under this Act, for the period from the 1st day of January 2007 to the 31st day of March 2007 in respect of dealers referred to in clause (a) or (b) of sub-section (1), the total turnover for the period from the 1st day of April 2006 to the 31st day of December, 2006 under the repealed Tamil Nadu General Sales Tax Act, 1959 and the total turnover for the period from the 1st day of January 2007 to 31st day of March 2007 under this Act, shall be the total turnover for the year 2006-07. In respect of such dealer whose total turnover for that year exceeds the total turnover referred to in the said clause (a) or (b) of sub-section (1) and if,-

(a) such dealer has not collected the tax under this Act, he is not liable to pay tax under this Act,

(b) such dealer has collected the tax under this Act, he is liable to pay tax under this Act and the other provisions of this Act shall apply to such dealer.

(2) Subject to the provisions of sub-section (1), in the case of goods specified in Part -B or Part -C of the First Schedule, the tax under this Act shall be payable by a dealer on every sale made by him within the State at the rate specified therein.

Provided that all spare parts, components and accessories of such goods shall also be taxed at the same rate as that of the goods if such spare parts, components and accessories are not specifically enumerated in the First Schedule and made liable to tax under that Schedule.

(3) The tax payable under sub-section (2) by a registered dealer shall be reduced, in the manner prescribed, to the extent of tax paid on his purchase of goods specified in Part -B or Part -C of the First Schedule, inside the State, to the registered dealer, who sold the goods to him.

(4)(a) Notwithstanding anything contained in sub-section (2), but subject to the provisions of sub-section (1), every dealer, who effects second and subsequent sales of goods purchased from the registered dealers within the State, whose turnover relating to taxable goods, for a year, is less than rupees fifty lakhs, may, at his option, instead of paying tax under sub-section (2), pay a tax, for each year, on his turnover relating to taxable goods at such rate not exceeding one per cent, as may be notified by the Government. Such option shall be exercised by a dealer,-

(i) who commences business, within thirty days from the date of commencement of the business;

(ii) whose turnover relating to taxable goods is below rupees fifty lakhs during the previous year, on or before the 30th day of April of the year for which he exercises such option;

(iii) for the year 2008-09, within thirty days from the date of commencement of the Tamil Nadu Value Added Tax (Second Amendment) Act, 2008;

Provided that such dealer shall not collect any amount by way of tax or purporting to be by way of tax:

Provided further that such dealer shall not be entitled to input tax credit on the goods purchased by him:

Provided also that the dealer who purchased goods from such dealer shall not be entitled to input tax credit on the goods purchased by him.

(b) If the turnover relating to taxable goods of a dealer paying tax under clause (a), in a year, reaches rupees fifty lakhs at any time during that year, he shall inform the assessing authority in writing within seven days from the date on which such turnover has so reached. such dealer may pay a tax for each year on his turnover relating to taxable goods upto rupees fifty lakhs at such rate not exceeding one per cent, as may be notified by the Government and is liable to pay tax under sub-section (2) on all his sales of taxable goods above rupees fifty lakhs and he is entitled to the input tax credit on the purchases made from the date, and on the stock available with him, the purchases of which has been made within ninety days before the date, on which such turnover has reached rupees fifty lakhs;

Provided that such dealer whose turnover relating to taxable goods has reached rupees fifty lakhs during the previous year shall not be entitled to exercise such option for subsequent years.

(5) Subject to the provisions of sub-section (1), every dealer, who deals in the goods specified in the Second Schedule, shall pay a tax, for each year, on the sale or purchase of such goods, at the point and at the rate specified therein:

Provided that the dealer, who pays tax under this sub-section, shall not be entitled to input tax credit on goods purchased by him.

(5-A) Notwithstanding anything contained in this Act, but subject to the provisions of sub-section (5), every dealer liable to pay tax on the sale of alcoholic liquors of all kinds for human consumption, other than the sale in the course of inter-State trade or commerce or in the course of international trade or commerce, shall be liable to pay, in addition to the tax payable, an additional tax on the taxable turnover of sale of alcoholic liquors of all kinds for human consumption, at such rate not exceeding five per cent, as may be specified by the Government by notification, and different rates may be specified in respect of different kinds of alcoholic liquors for human consumption:

Provided that the dealer who pays tax under this sub-section shall not be entitled to collect the tax payable under this sub-section or purporting to be by way of tax payable under this sub-section.

(6) When goods are sold together with containers or packing materials, the rate of tax applicable to such containers or packing materials, as the case may be, shall, whether the price of the containers or packing materials is charged separately or not, be the same as those applicable to the goods contained or packed and the turnover in respect of containers and packing materials shall be included in the turnover of such goods.

(7) Where the sale of goods, packed in any container or packed in any packing material, in which such goods are packed, is exempt from tax, then the sale of such containers or packing materials shall also be exempt from tax.

Explanation.-For the purposes of sub-sections (6) and (7), "containers" include gunny bags, tins, bottles and any other containers.