(1) A registered dealer shall be eligible to exercise his option to pay tax under sub-section (4) of section 18 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 (4) of section 18 for a year shall not -

(a) have any goods in stock which were brought from outside the State on the day he exercises his option to pay tax by way of composition and shall not make any transfer of property in any goods brought from outside the State in execution of works contract within West Bengal, after such date, excepting where such dealer transfers property in sand, and stone chips, brought from outside the State, in the execution of works contract within West Bengal and whose contractual transfer price during the year shall not exceed rupees twenty lakhs;

(b) be a dealer who has claimed input tax credit on stock in hand of goods, as on the date on which he opts to pay tax under sub-section (4) of section 18;

(c) be a dealer involved in transfer of property in goods in the execution of works contract in the course of inter-State trade or commerce; and

(d) be a dealer who despatches his goods otherwise than by way of sale to outside the State for execution of works contract

(3) A registered dealer may, in exercise of his option under sub-section (4) of section 18, pay tax for a year or part of a year at the compounded rate of 3% of the aggregate amount received or receivable in respect of such works contract in lieu of tax payable for such a year or part thereof on his taxable contractual transfer price at the rates specified under sub-section (1) of section 18 in respect of such a year or part thereof.

(4) A registered dealer, exercising his option for a year or part of a year to pay tax in accordance with the provisions of sub-section (4) of section 18, shall communicate such option in Form 16, to the 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, 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 electronic acknowledgement within fifteen days from the date of electronic submission:

Provided further that where a dealer is registered in a year and intends to exercise his option for a year or part thereof to pay tax in accordance with the provisions of sub-section (4) of section 18, such registered dealer shall communicate such option in Form 16 firstly, 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.

(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 (4) of section 18, 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 (4) of section 18 and inform the same to such dealer within fifteen days from the date of the order.

(7) Omitted.

(8) If the dealer who has exercised his option under sub-rule (4) to pay tax at a compounded rate, 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 so 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.