In exercise of the powers conferred by Sub-Section (1) of Section 93 of the Bihar Value Added Tax Act, 2005 (Act 27 of 2005), the Governor of Bihar is pleased to make the following amendments to rule 11 of the Bihar Value Added Tax Rules, 2005:

Amendment

Rule 11 with its sub-rule (1) (2) and (3) shall be substituted as follows:

"11 Payment of tax at a fixed rate or amount under section 15 in lieu of the tax payable by a dealer-

(1) The provisions of sub-section (1) or (1A) of section 15 shall apply to such dealers whose gross turnover is not expected to exceed forty lacs rupees during a financial year.

(2) A dealer entitled to pay tax at a fixed rate or amount under section 15 shall intimate the authority specified in rule 62 through an application in Form A-XI or A-XIA. Such intimation shall be submitted at the counter of the circle. The incharge of the counter, after ascertaining that all the columns of the application have been properly filled in, signed and verified shall-

(i) grant the person a receipt in lieu thereof, and

(ii) enter the same in register VR-XII."

(3) Notwithstanding anything contained in sub rule (1) or (4), if the gross turnover of a dealer paying tax under section 15 exceeds forty lacs rupees during the course of the year or he imports any goods from outside the State for the purpose of his business, his entitlement to pay tax at fixed rate or amount in lieu of the tax payable shall cease from the date on which his gross turnover first exceeded forty lacs rupees or, as the case may be, he first sold the goods imported by him from outside the State.

A new sub-rule shall be added below sub-rule (3) of rule 11 of the said Rules as follows:

"(4) Subject to provisions contained in sub-section (1A) of section 15 of the Act, dealers opting for compounding and whose gross turnover does not exceed Rs. forty lacs during a financial year shall pay a fixed amount as notified in two equal instalments, first instalment by 30th September and second instalment by 31st March respectively." Dealers concerned may pay the notified amount in September at a time.

(2) Not withstanding anything contained in the Act, no scrutiny or audit shall be done against such compounding dealers.

(3) Notification No. S.O. 79, dated 13th September 2007 issued under section 15 (1) of the Act prescribing rate of tax at 0.5 per centum of the taxable turnover shall stand cancelled.

(4). This notification shall come into force from the date of issue.

By order of the Governor of Bihar,

J. R. K. RAO,

Commissioner-cum-Principal Secretary.

FORM A-XIA

Intimation under sub section (1A) of section 15 of the Bihar Value Added Tax Act, 2005

[See rule 11 (2)]

To,

The …………………………

……………………… Circle.

I, …………………………… (full name), son of ……………… (full name) hereby submit this information under sub-section (1A) of section 15 of the Bihar Value Added Tax Act, 2005 and through following particulars for that purpose:

Declaration

I do hereby declare that the particulars furnished in this application are correct and complete to the best of my knowledge and belief.

I further declare that I shall inform the Department as soon as I purchase/receive any goods from outside Bihar.

The application shall be signed by the proprietor of the business if an individual; by the Karta, if an undivided Hindu family, by an8 authorized partner in the case of a firm; by a managing director, managing agent or principal executive officer in the case of a company or corporation; by the Principal executive officer – in charge of in the case of society, club, association, department of Gov ernment or local authority.

ACKNOWLEDGEMENT

Received on ……………… from ……………… an application in Form A-XIA for permission to pay tax under sub-section (1A) of section 15 of the Bihar Value Added Tax Act, 2005.