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

Provided that such registered dealer may exercise such option for any subsequent year subject to fulfilment of the terms and conditions as laid down in this rule.

(2) A registered dealer opting to pay tax under sub-section (3A) of section 16 for a year or part of 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 bring any such goods from outside the State after such date;

(b) be a dealer importing taxable goods;

(c) be a dealer selling goods in the course of import of goods into, or export of goods out of, the territory of India within the meaning of section 5 of the Central Sales Tax Act, 1956 (74 of 1956).

(3) 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 (3A) of section 16, 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 that where a dealer is registered under the Act after coming into force of sub-section (3A) of section 16 and intends to exercise his option to pay tax in accordance with the provisions of that section, such dealer 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.

(4) The provisions of sub-rule (6) and sub-rule (11) of rule 38 shall apply mutatis matandis to the dealers opting to pay tax under sub-section (3A) of section 16.