Whereas the State Government considers that the following amendments in the Madhya Pradesh Vat Rules, 2006 should be made :

Now therefore, in exercise of the powers conferred by Section 71 of the Madhya Pradesh Vat Act, 2002 (No. 20 of 2002), the State Government hereby, makes the following amendments in the Madhya Pradesh Vat Rules, 2006, namely :-

AMENDMENTS

In the said rules -

1. After rule 8, the following rule shall be inserted, namely :-

"8-A : Restrictions and conditions subject to which permission to make lump sum payment of tax by way of composition may be granted under Section 11-A :

(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.

(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 shall verify the correctness of the option and on being so satisfied, the appropriate Commercial Tax Officer 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.

(4) The amount to be paid in lump sum by way of composition shall be determined at the rate mentioned against each type of contract specified below and shall be so determined at such rate on the total monetary consideration received or receivable by the registered dealer in respect of such works contract.

(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 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.

(7) On receipt of the statement in Form 4-B the appropriate Commercial Tax Officer 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 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 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 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.";

2. in rule 37,-

(i) in clause (a) of sub-rule (3), for the figures and words "040-VAT tax", the words, figures and brackets "040-Tax on sales, trade etc. (110)-trade tax, (0678)-tax under the Madhya Pradesh Vat Act, 2002" shall be substituted :

(ii) for sub-rule (6) the following sub-rule shall be substituted, namely -

"(6) The tax or any other amount may be accepted as deposited by a dealer or person through internet in the branch of a bank authorised by the Finance Department of the Government of Madhya Pradesh for the purpose in accordance with the procedure laid down in Madhya Pradesh Treasury Code-Volumn II-Appendix-25, subject to the following conditions :-

(a) Appropriate Commercial Tax Officer shall verify it with the digitally signed daily scroll send electronically by the bank or alternatively, the deposits may be verified using challan identification number (CIN) on the web-site www.mptreasury.org

(b) The e-receipt of such deposit shall be in Form 26-A in case of an amount other than the amount of tax deducted at source under section 26 and in Form 27-A in case of an amount of tax deducted at source under section 26.";

3. In rule 45, sub-rule (4) shall be omitted and sub-rule (5) shall be renumbered as sub-rule (4);

4. After sub-rule (3) of rule 49, the following proviso shall be inserted, namely :-

"provided that if the refundable amount is to be adjusted towards the tax liability of any other registered dealer, a fourth copy of the refund adjustment order shall be prepared and issued to the dealer in whose favour the refundable amount is adjusted."

5. after sub-rule (1) of rule 54, the following proviso shall be inserted, namely :-

"Provided that a dealer who is an industrial unit having annual turnover of ten crore rupees or less may furnish the audit report prepared by a member of institute of Cost and Works Accountants.";

6. In the table of rule 56, against serial No. 2 in column (3) for clause (iv), the following clause shall be substituted, namely :-

"(iv) To demand and to forfeit security under sub-section (12) of section 17."

7. In sub-rule (1) of rule 64 for the words "whichever is more" wherever occur, the word and figure "Whichever is more, but not exceeding Rs. 100" shall be substituted.

8. In sub-rule (1) of rule 82, for the words and figure "within 60 days of aforesaid date" the words and figures "on or before 30th june, 2006" shall be substituted.

9. after form 4, the following forms shall be inserted, namely :-

"FORM 4A

[See Rule 8-A(1)]

Option for grant of permission to make lump sum payment by way of composition under Section 11-A of the Madhya Pradesh Vat Act, 2002

To,

The Commercial Tax Officer,

.............................. Circle.

I, ................................ A dealer holding registration certificate No. (TIN)................ Under the Madhya Pradesh Vat Act, 2002, have taken a works contract at ............... (Place) for execution of the work (give description of work) for Rs. ..................... The execution of the contract shall commence on ........... and is likely to be completed by ........... I desire to pay a lump sum amount by way of composition in lieu of tax that would be payable on goods that may be supplied in the execution of the said works contract awarded to me and accordingly, I hereby seek permission to make such lump sum payment under Section 11-A of the Madhy Pradesh Vat Act, 2002.

FORM 4B

[See Rule 8-A(6)]

Statement for the quarter ending .......................... Showing the receipts on account of the works contract under execution

The above statement is true to the best of my knowledge and belief.

10. In form 5,-

(i) for item (3), the following item shall be substituted, namely ,-

"(3) (a) Turnover of goods specified in part III of Schedule II

(b) ................................. (specify, if any other deduction)",

(ii) after item (9), the following items shall be inserted, namely :-

11. In form 10, after PART K, the following items shall be inserted, namely :-

" PART L : List of sales to the units located in a Special Economic Zone

* strike out which is not appliable.

12. In form 27, for the words figures and bracket, "The Madhya Pradesh Vat Act, 2002 (040-VAT / Taxes under the Vat Act)', the words, figures and brackets "040-tax on sales, trade etc. (110)-trade tax, (0678)-tax under the Madhya Pradesh Vat Act, 2002" shall be substituted.

13. Form 33 and 34 shall be omitted.

14. In form 40, in item 4, for the word "dealer", the words "dealer or M/s ................. Holding TIN ............................... " shall be substituted ;

15. Throughout the rules, for the word "e-challan", wherever it occurs, the word "e-Receipt" shall be substituted.

16. These amendments shall be deemed to have come into force with effect from 1st April, 2006.