(1) Any dealer specified in this rule shall, under section 7 or under sub-section(2) of section 16 and subject to the provisions of rule 45 and this rule , pay the lump sum tax in the manner prescribed below.

(2) A retailer for the purpose of this rule shall be a dealer registered under the Act who sells goods exclusively within the State after purchasing them from dealers or other retailers in the State or after purchasing them in the course of inter-State trade or commerce from outside the State.

(3) Subject to other provisions of this rule, a retailer whose turnover during the last year does not exceed twenty five lakh rupees, may, at anytime, opt for payment of lumpsum tax calculated in acordance with the provisions of subrule(4), by making an application in Form L-1 given below and a retailer who makes an application for registration under the Act may also excercise such option by making an application in Form L-2 given below simultaneously. However, the existing retail sale dealers who are already paying lumpsum tax by way of composition shall continue to do so, provided their turnover does not exceed Twenty Five Lakhs rupees and therefore such dealers shall not be required to file fresh application/option in this regard.

Application Form L-1

Form of application under rule 50 of the Himachal Pradesh Value Added Tax Rules,2005.

(For a dealer who is already registered under the Act)

To

The Assessisng Authority

District...............................

Option to pay lumpsum tax by way of composition under section 7 and sub-section(2) of section 16 of the Himachal Pradesh Value Added Tax Act,2005.

I/We..................................(name, aged......S/O/D/o/W/o Sh./Ms.....................R/o village/Town.................... Tehsil.............District............. proprietor/partner of M/s............................holding TIN..................... In terms of the provisions of rule 50 of the Himachal Pradesh Value Added Tax Rules,2005, do hereby opt for lumpsum tax payment by way of composition under section 7 and under sub-secton(2) of section 16 of the Himachal Pradesh Value Added Tax Act,2005.

2. The business concern is a retailer and deals in mainly following commodities:-

(i)

(ii)

(iii)

(iv)

(v)

(vi)

3. The turnover last year was about Rs. Lakhs.

ACKNOWLEDGEMENT

Received option from M/s.................................................... (mention complete name and address with TIN if any)

Application Form L-2

Form of application under rule 50 of the Himachal Pradesh Value Added Tax Rules, 2005.

(For a dealer who is simultaneously making application for registration under the Act)

To

The Assessing Authority

District............

I/We...............(name), aged.......S/o/D/o/W/o Sh./Ms............ proprietor/ partner of...............................R/o Village/ Town..........Tehsil...........district.............am/ are applying for registration under the Himachal Pradesh Value Added Tax Act,2005 and opt for payment of lumpsum tax in lieu of tax from the commencemnt of the business(date of becoming liable to pay tax) in terms of rule 50 of the Himachal Pradesh Value Added Tax Rules,2005.

2. The gross turnover of the business is likely to be Rs................in a full year of operation.

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ACKNOWLEDGEMENT

Received option from M/s................................. (mention complete name and address with TIN if any)

3. The application made under sub-rule(2) shall, subject to the correctness of the information furnished therein, shall be allowed from the date of appliation.

4. The retailer whose application has been allowed (hereinafter referred to as the 'lumpsum retailer') under the foregoing sub-rule shall furnish returns in Form VAT-XVH and shall pay lumpsum tax at quarterly intervals within 30 days of the close of the quarter. The lumpsum tax for a quarter shall be computed at the rate of 1% of the taxable turnover during the quarter. Howerver, in case of taxable goods purchased in the course of inter-State trade or commerce from outside the State during the quarter the tax shall have to be paid on actual i.e. as per the tax applicable on the sale of such goods in the State:

Provided that the sale value of the goods for the purpose of computing lump sum tax shall be the invoiced price including all taxes and charges shown in the invoice.

5. The retailer paying lumpsum tax shall keep regular account of purchases made by him, separately in respect of exempted and taxable goods. He shall not be required to keep account of sales but, if he makes a sale of goods price whereof exceeds ten thousand rupees or in case the purchaser requests for the goods to be invoiced, he shall issue a retail sale invoice to the purchaser and keep record of all such invoices.

6. The retailer paying lumpsum tax and whose turnover in a year exceeds thirty lakh rupees shall continue to pay lumpsum tax during that year and composition of tax in his case shall cease to have effect only from 1st April next. Such retailer shall be entitled to claim the credit of input tax on the stock of goods in trade held by him at the close of 31st March subject to furnishing information relating to such goods held in stock with his return for the quarter ending 31st March.

7. The retailer paying lumpsum tax shall be authorized to make purchase of goods on declarations in Form C from outside the State but he shall not be authorized to make use of declaration in Form F. He shall be required to make use of declaration in Form VAT-XXVI-A as per rule 61 and rule 61-A of the Himachal Pradesh Value Added Tax Rules,2005 for importing goods in the State.