(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.

(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.