175. Permission for payment of tax at compounded rate by the registered dealers of lottery tickets, withdrawal of option or revocation of permission

(1) A registered dealer, who sells lottery tickets, may, in exercise of his option under section 17C, make an application to the appropriate assessing authority in Form 24A for permission to pay tax on the sales of lottery tickets on the basis of draws at the compounded rate specified in the Table below in lieu of tax payable at the rate specified under section 17:

TABLE

(2) The application referred to in sub-rule (1) shall be made for making payment in respect of any period of a year and shall be submitted at least thirty days before the beginning of such year or within thirty days from the date of his registration, whichever is later:

Provided that if the application is made by a dealer, who has been registered before the 1st day of April, 1998, the application shall be submitted on or before the 15th day of June, 1998.

(3) If the appropriate assessing authority, after making such enquiry or scrutiny as deemed necessary, is satisfied that the application is in order, such authority shall permit the dealer to pay tax at a compounded rate under section 17C in respect of all the periods of a year referred to in sub-rule (2) and inform the dealer accordingly.

(4) Where a dealer is liable to pay tax for sales of lottery tickets and is permitted to pay tax at a compounded rate under section 17C, he shall, notwithstanding the provisions of rule 161 or rule 162, furnish quarterly return in Form 25B within thirty days from the expiry of each such quarter, and shall, along with the return, furnish one copy of each challan as a proof of payment made under sub-rule (5):

Provided that if a dealer is liable to pay tax under any other provision of the Act, in addition to tax payable on sales of lottery tickets, he shall furnish a return in Form 25 in accordance with the rules prescribed with a statement in Form 25B attached therewith and a copy of challan as a proof of payment of tax on sales of lottery tickets at compounded rate under section 17C.

(5) Where a dealer is permitted to pay tax in accordance with the provisions of section 17C in respect of the type of draw specified in the Table appended to sub-rule (1), he shall pay such tax in respect of each type of draw at least thirty days before the date of each such type of draw.

(6) If the dealer intends to withdraw his option exercised under sub-rule (1), he shall apply to the appropriate assessing authority before the beginning of the year from which he intends to discontinue payment of tax at a compounded rate and the said authority shall, on being satisfied that the application is in order, pass an order accepting the withdrawal of option by the dealer and inform the dealer accordingly.

(6a) Where a dealer has made an application, referred to in sub-rule (1), to the appropriate assessing authority for making payment of tax for any year at a compounded rate, or where a dealer has been permitted under sub-rule (3) to pay tax at a compounded rate for such year and thereafter if there is any change in respect of that year in the compound rate of tax is specified in sub-rule (1), under section 17C, or in the rate at which tax is payable under section 17C, or in the rate at which tax is payable under section 17, as the case may be, on sale of lottery tickets in West Bengal, and if such dealer intends to withdraw his option exercised under sub-rule (1), he may apply to the appropriate assessing authority ordinarily within two weeks from the date of notification of such change in the rate of tax under section 17C or under section 17, informing the said authority of his intention to discontinue payment of tax at a compounded rate with effect from the date on which such change in the rate of tax is made, otherwise it will be presumed that such dealer will make payment of tax at the changed compounded rate of tax from the date of such change during the remaining part of the year.

(7) If the appropriate assessing authority is satisfied, on information received or otherwise, that a dealer concealed any relevant facts or materials resulting in reduction of the amount of tax payable under section 17C, such authority may, after giving the dealer an opportunity of being heard, at any time during the period for which the dealer was permitted under sub-rule (5) to pay tax at a compounded rate, withdraw or revoke, by an order in writing, permission to make payment in accordance with the provisions of section 17C, and thereafter he shall be liable to pay tax under section 17 in accordance with the provisions of the Act and the relevant rules.