(1) A registered dealer shall be eligible to exercise his option to pay tax under sub-section (3) of section 16 for a maximum period of one year only at a time :

Provided that such registered dealer can again exercise such option for subsequent years also subject to satisfaction of terms and conditions laid down in this rule.

(2) A registered dealer opting to pay tax under sub-section (3) of section 16 for a year shall not-

(a) have any goods in stock which were brought by him from outside the State on the day he exercises his option to pay tax by way of composition and shall not sell any such goods brought from outside the State after such date;

(b) be a dealer who has claimed input tax credit on stock of goods lying with him on the date from which he opts to pay tax under sub-section (3) of section 16;

(c) be a dealer selling goods in the course of inter-State trade or commerce or in the course of export out of the territory of India; and

(d) be a dealer who despatches his goods otherwise than by way of sale within or outside the State.

(3) Subject to the provisions of sub-rule (3B), a registered dealer may, in exercise of his option under sub-section (3) of section 16, make payment-

(a) of tax, for a year or part of a year, at the compounded rate of one fourth of one per centum of turnover of sales; or

(b) of the fixed amount as mentioned in sub-rule (3 A).

(3A) Where a registered dealer in exercise of his option decides to pay a minimum fixed amount under sub-section (3), communicated through Form 16 as per sub-rule (4), the said amount, depending on his turnover of sales in the preceding year, shall be payable in one instalment alongwith Form 16 to the extent as referred to in column (3) of the TABLE below:-

TABLE

(3B) A dealer to whom a certificate of composition registration in Form 3CR under sub-rule (1A) of rule 6 has been granted, shall pay fixed amount only as referred to in sub-rule (3 A).

(3C) A registered manufacturing dealer may, in exercise of his option under sub-section (3) of section 16, make payment of tax, for a year or part of a year, as the case may be, at the compounded rate of two per centum of turnover of sales.

(4) A registered dealer including a dealer granted certificate of composition registration, exercising his option for a year or part of a year to pay tax in accordance with the provisions of sub-section (3) of section 16, shall communicate such option in Form 16, to the appropriate Additional Commissioner or the Senior Joint Commissioner or the Joint Commissioner duly authorized by the Commissioner for such purpose,-

(a) firstly, by way of transmitting the data in Form 16, either under digital signature or without any digital signature electronically through the website of the Commercial Tax Directorate, West Bengal, within ninety days from the date of commencement of the year in respect of which the option is so exercised or subject to the satisfaction of the appropriate authority, within such further time as may be allowed by such authority; and

(b) secondly, by way of furnishing a duly signed copy of the electronic acknowledgement within fifteen days from the date of electronic submission:

Provided that a registered dealer intending to exercise his option to pay tax in accordance with the provision of clause (c) of sub-section (3) of section 16, shall submit Form 16 through the website of the Commercial Tax Directorate, West Bengal, within thirty days from the date of receipt of certificate of registration or subject to the satisfaction of the appropriate authority within such further time as may be allowed by such authority, by way of transmitting the data, either under digital signature or without any digital signature electronically, in the manner laid down in clause (a) and clause (b) of this sub-rule.

Provided further that where a dealer to whom a certificate of composition registration has been granted, pays a fixed amount by exercising option under sub-section (3) of section 16 and furnishes a copy of the proof of payment to the assessing authority within the time as allowed, he shall be deemed to have communicated such option.

Provided also that where a registered dealer, other than a dealer granted composite registration, pays a fixed amount by exercising option under sub-section (3) of section 16 and furnishes a copy of the proof of payment to the assessing authority, he shall be deemed to have communicated such option.

(5) omitted.

(6) If the concerned Additional Commissioner or the Senior Joint Commissioner or the Joint Commissioner, as the case may be, after making such enquiry as he deems necessary, is of the opinion that the dealer is not entitled to pay tax under sub-section (3) of section 16, he shall, after giving such dealer an opportunity of being heard, pass an order to the effect that such dealer is not entitled to pay tax under sub-section (3) of section 16 and inform the same to such dealer within fifteen days from the date of the order.

(7) omitted.

(8) If the turnover of sales of the registered dealer, who has exercised option to pay tax at the compounded rate, in a year or part of a year, exceeds fifty lakh rupees at any time during the year, he shall inform no. the assessing officer in writing within seven days from the day, when his turnover of sales has so exceeded.

(9) The registered dealer, whose turnover exceeds fifty lakh rupees at any time during a year, shall continue to pay tax at the compounded rate up to the end of that month, but he shall not be eligible for payment of tax at the compounded rate for the remaining part of the quarter.

(10) Notwithstanding anything contained in sub-rule (1), if the turnover of sales of a registered dealer who has exercised his option to pay tax under sub-rule (4), exceeds fifty lakh rupees in a quarter, he shall be liable to pay tax on all his sales under sub-section (2) of section 16 of the Act from the beginning of the month immediately following the month in which, his turnover of sales has so exceeded.

(11) If the dealer who has exercised his option under sub-rule (4) to pay tax at a compounded rate of one-fourth of one per centum or two per centum, as the case may be, fails to make payment of such tax for any two consecutive quarters of the year, such dealer shall be deemed to have withdrawn his option exercised under sub-rule (4) and such withdrawal shall be effective from the first day of the quarter following the quarters for which he has failed to pay tax.