11. Composition of tax

(1) A registered dealer purchasing goods specified in Schedule II from another such dealer within the State after payment to him of tax under Section 9 and/or purchasing goods specified in Schedule I, and whose turnover in a year does not ordinarily exceed such limit as may be prescribed but does not exceed fifty lacs, may opt, in the prescribed form within one month of the commencement of such year, for payment, in lieu of tax payable by him under Section 9, a lump sum at such rate not exceeding four percent in such manner and subject to such restrictions and conditions as may be prescribed.

(2) If a registered dealer during the year for which an option has been given by him, contravenes any of the restrictions and conditions prescribed under sub-section (1), the option given by him shall stand revoked.

(3) A registered dealer who opts for composition of tax under sub-section (1) shall not be eligible to any input tax rebate in respect of the goods sold during the year in relation to which such option is exercised by the dealer.