The West Bengal Sales Tax Act, 1994
Chapter V : RETURN AND PAYMENT OF TAX, INTEREST, PENALTY AND DEDUCTION OF AMOUNT AT SOURCE TOWARDS PAYMENT OF TAX ETC.

30A. Composition of tax payable under the Act

(1) Notwithstanding anything contained elsewhere in this Act, the amount of tax payable under this Act by a registered dealer of such class of business or trade as the State Government, may by notification, specify, may, subject to the other provisions of this section, be compounded by the Commissioner and the amount of tax so compounded shall be paid by such registered dealer in such manner, in such installments, and by such date, as may be prescribed:

PROVIDED that the amount of tax payable by any registered dealer for any year shall not be compounded -

(a) where his gross turnover of sales exceeds seven lakh rupees during the immediately preceding year,

(b) where the period of three years in respect of which or part of which the dealer is assessable to tax has not expired from the date of certificate of registration granted to him under sub-section (5), or a fresh certificate issued to him under sub-section (7), of section 26, as the case may be,

(c) where the turnover of sales or any part thereof for such year represents sales of goods imported by him from any place outside West Bengal, or

(d) where he is liable to pay tax under section 12 or section 15.

EXPLANATION.- For the purposes of this sub-section, in computing the period of three years referred to in clause (b) of the proviso, the period of a year or years which expired on any date before the appointed day during which a dealer was registered under the Bengal Finance (Sales Tax) Act, 1941 or under the West Bengal Sales Tax Act, 1954, repealed by section 106 (hereinafter referred to as earlier Act), and was assessed thereunder, shall be included.

(2) A registered dealer who is eligible for composition of tax under sub section (1) may, by an application made to the Commissioner in such form, in such manner, and by such time, as may be prescribed, exercise his option to pay the amount of tax to be compounded under sub-section (3) in lieu of the amount of tax payable by him under any of the provisions contained elsewhere in this Act.

(3) If the Commissioner is satisfied that the application made by the registered dealer under sub-section (2) in respect of a year is correct and complete, he may compound the amount of tax payable by such dealer for such year by adding such percentage, not exceeding twenty-five per centum, as may be prescribed, of-

(a) the amount of tax last assessed for all the periods of a year under any earlier Act or under this Act and admitted by him to be due from him, or the amount of tax paid by him as per receipts furnished along with returns in accordance with the provisions of section 30 in respect of all the periods taken together of the year immediately preceding the year for which composition is sought, whichever is greater, or

(b) the amount of tax compounded under this sub-section and paid by him in respect of the year, if any, immediately preceding the year for which composition is sought,

as the case may be, to the amount of tax last assessed, paid or compounded as referred to in clause (a) or clause (b), whichever is applicable, for computing the amount of tax to be compounded.

(4) The different percentage of the amount of tax last assessed, paid or compounded, referred to in sub-section (3), may be prescribed for different class or classes of business or trade.

(5) Where the Commissioner has compounded the amount of tax payable by a dealer in respect of any year, he shall direct the dealer to pay the amount of tax so compounded in such manner, in such instalments, and by such date, as may be prescribed, and such dealer shall not be required to furnish returns under section 30 in respect of any period of such year unless he is so required under sub-section (6).

(6) Where the business of a dealer, whose tax has been compounded in respect of any year, is closed down or discontinued before the expiry of the year, he may, with the prior permission of the Commissioner, opt out of the ambit of this section in respect of the remaining part of the year and he shall be required to furnish return or returns in accordance with the provisions of section 30 for all the periods of the year commencing from the 1st day of that year and the amount of tax paid as instalment, if any, shall be adjusted with the amount of tax payable according to his returns.

(7) Notwithstanding anything contained in section 45, the Commissioner shall not proceed to make any assessment of tax payable by a registered dealer for any period or periods of the year, if the amount of tax compounded under sub-section (3) has been fully paid by such registered dealer in accordance with the provisions of sub-section (5).