(1) Every registered dealer referred to in Section 11-A desirous of making a lump sum payment by way of composition in respect of the tax payable by him in relation to goods to be supplied in the execution of a works contract or contracts shall give his option in Form 4-A to the appropriate Commercial tax officer or any other officer authorised by the commissioner in this behalf.
(2) If execution of a works contract or contracts has commenced before the date of issue of this notification, the option for composition shall be submitted on or before 30th June, 2006.
(3) On receipt of the option the appropriate Commercial tax officer or any other officer authorised by the commissioner in this behalf shall verify the correctness of the option and on being so satisfied, the appropriate Commercial tax officer or any other officer authorised by the commissioner in this behalf shall, by an order in writing grant permission to the registered dealer to make lump sum payment of tax by way of composition and send a copy thereof to the registered dealer giving the option.
(3A) The permission under sub-rule (3) shall be granted within thirty days from the date of receipt of the option by Commercial Tax Officer or any other officer authorised by the Commissioner in this behalf.
(4) The amount to be paid in lumpsum by way of composition shall be determined at the rate specified below and shall be so determined on the total monetary consideration received or receivable by the registered dealer in respect of works contract.
Provided that in case of works contract in which a registered dealer supplies goods specified in Schedule II purchased from an unregistered dealer to the extent of rupees one lac, the amount to be paid in lump sun by way of composition shall be determined at the rate of 1 percent.
Explanation: The rates of composition as specified before the amendment by the notification No.FA-3-19-2009-1-5-27 dated 24.09.2009. shall be applicable to a works contract, execution of which has commenced before 24.09.2009.
(5) On the commencement of the execution of works contract or contracts, a registered dealer to whom permission has been granted under sub-rule (3) shall pay within thirty days of the receipt of payment on account of a running bill, into the Government Treasury, that much amount out of the amount payable by way of composition on the amount of the said running bill, which remains after deducting therefrom the amount deducted at source under the provisions of sub-section (2) of Section 26.
(6) Every such registered dealer shall within thirty days of the close of the quarter ending on 30th June, 30th September, 31st December and 31st March send a statement in Form 4-B to the appropriate Commercial tax officer or any other officer authorised by the commissioner in this behalf enclosing therewith the copies of the challan or e-Receipt as also the certificates issued under sub-section (3) of Section 26 by the person making the deduction of an amount at source under sub-section (2) of the said Section in proof of the payments of lump sum amount of way of composition made during the quarter:
Provided that the lump sum amount pertaining to the quarter ending on 30th June, 2014 shall be paid upto 30th July, 2014 and the statement in Form 4-B shall be sent upto 20th September, 2014.
(7) On receipt of the statement in Form 4-B the appropriate Commercial tax officer or any other officer authorised by the commissioner in this behalf shall verify the correctness of the amounts paid by way of composition by the registered dealer. If he is not satisfied about the correctness of the payments made, he shall, by order in writing, determine the correct amount payable by the registered dealer during the quarter and if the amount so determined is more than the amount paid by the registered dealer the appropriate Commercial tax officer or any other officer authorised by the commissioner in this behalf shall require the registered dealer to pay the balance of the amount within fifteen days from the date of service of the notice of demand issued by him for this purpose. The registered dealer, on payment of the balance within the specified period, shall send a copy of the challan or e-Receipt to the appropriate Commercial tax officer or any other officer authorised by the commissioner in this behalf in proof of such payment within seven days from the date of payment.
(8) Where the registered dealers fails to pay the balance of the amount within the period specified in the notice of demand issued under sub-rule (7), or within such further time as may have been granted to him for the purpose on an application made by him in this behalf, the appropriate Commercial tax officer or any other officer authorised by the commissioner in this behalf may revoke the permission granted to the registered dealer under sub-rule (3) in respect of the works contract or contracts in relation to which such default has been committed and thereupon the registered dealer shall be liable to be assessed under Section 20 in respect of such works contract or contracts in relation to which the permission has been revoked.
(9) When the permission granted to a registered dealer under sub-rule (3) is revoked under sub-rule (8), the provisions of Sections 18, 20, 20-A, 39 and 40 shall apply to such registered dealer in relation to the works contract in respect of which such permission had been granted to him.
(10) The registered dealer who has been granted permission to make lump sum payment by way of composition in respect of a works contract or contracts under the repealed Act and the execution of the contract or contracts is continuing after 31st March, 2006, shall continue to avail the facility of composition till the completion of the contract or contracts in accordance with the permission granted.