49A LUMPSUM SCHEME IN RESPECT OF DEVELOPERS
(1). A developer liable to pay tax under the Act, and duly registered, may pay, as an option, in lieu of tax payable by him under the Act, by way of composition of lump sum tax calculated at the compounded lump sum rate of one percent of entire aggregate amount specified in the agreement or value specified for the purpose of stamp duty, whichever is higher, in respect of the said agreement. The developer opting for this scheme here-in-after shall be referred to as the composition developer.
(2). The composition developer opting for composition under this scheme shall,
(i) purchase goods for use in the execution of the works contract from a registered dealer of the State but shall not be entitled to claim any input tax credit thereon. If the input tax in respect of any goods purchased in the State has been availed of by a developer and such goods are held in stock at the time of option of composition scheme, the input tax in respect of such goods shall be reversed. In case any goods used in the execution of works contract are procured or purchased from dealers other than the registered dealers from within the State or from outside the State on which no tax has been paid to the State, the composition developer shall be liable to pay an amount equal to the amount of tax that would have been payable, had the goods been purchased within the State from a registered dealer.
(ii) be entitled to purchase or receive goods, from any place outside the State including imports from out of India, against prescribed declaration forms, to be used in the execution of the contract at any time during the period for which the composition remains in force under this Scheme, but he shall pay tax at the rate of 4% on purchase price thereof and on goods purchased and or received from any place outside the State and held in stock at the time of option of the composition scheme, and such tax shall not be adjustable towards his composition tax liability;
(iii.) not be entitled to use declaration Form VAT D-1 for purchasing goods at concessional rate of tax from within the State; (Author’s Note 4:- Newly Inserted and Clarified)
(iv.) be treated as non-vat dealer and shall not be eligible to claim input tax credit under section 8 of the Act;
(v). not collect any amount by way of tax under the Act;
(vi). not issue “Tax Invoices
(vii). retain the originals of all tax invoices and all the retail invoices for all his purchases
(viii). not be entitled to any refund
(3) The tax period for the composition developer shall be monthly and the payment of lumpsum in lieu of tax shall be paid by the composition developer within 15 days of the close of the month;
Provided that if a composition developer fails to make the payment of tax including of tax on purchases in time under this scheme,then he shall be liable to pay interest as per the provisions of sub-section (6) of Section 14 of the Act .
(4) Where the composition developer awards any portion of his contract to another contractor or sub-contractor, such composition developer shall not be eligible for any deduction on account of any tax paid by the contractor or sub-contarctor under the Act.
(5) A developer may opt for payment of tax in lumpsum with effect from the 1st April,2014 in accordance with the provisions of this Scheme, by submitting an application in Form VAT-CD1 to the appropriate assessing authority within sixty days of the issue of the notification. However, a developer getting registration certificate after the issue of the notification, may opt for the scheme within thirty days of the issue of registration certificate under the Act . A registered developer can also exercise such option from the begining of the financial year by submitting the application to the assessing authority within thirty days of the commencement of the financial year concerned.
(6) A composition developer who has opted for lump sum payment of tax under lump sum scheme notified on 12 August, 2014 shall be deemed to have opted for lump sum of tax under this scheme . In case the tax deposited under the scheme notified on 12th August, 2014, is more than the tax liability calculated under the scheme ,the excess tax shall be adjusted against the future tax liability but no adjustment on account of such excess tax shall be allowed if the composition developer opts out of the scheme.
(7) A composition developer shall furnish a quaterly return in Form VAT R -13 to the appropriate assessing authority and also submit proof of tax along with the return.
(8) The Excise and Taxation Commissioner shall be competent to issue guidelines, specifying the procedure and the Form etc. for the purpose of availing, compliance and monitoring the Scheme.
(9) For the removalof the doubts,it is hereby made clear that nothing contained here-in-above shall be construed as conferring any benefit,concession or immunity on the composition developer other than the benefit, concession or immunity granted under the scheme. |