6. Composition of tax.

(1) Any registered dealer covered under Schedule 'E' to the Act may apply to the Appropriate Assessing Authority in Form VAT-XIII to compound the tax assessable, within thirty days from the date of commencement of financial year:

Provided the Appropriate Assessing Authority may entertain an application for composition of tax filed by the dealer beyond 30 days but not later than 60 days from the date of commencement of financial year, on payment of late fee of Rs. 50/-, per day of delay.

(2) The dealer shall not be eligible for composition of tax in case he.-

(i) makes sales in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956, (Central Act 74 of 1956);

(ii) brings any goods in the State of Goa or to whom any goods are dispatched from any place outside the State;

(iii) makes consignment sale/stock transfers;

(iv) makes sales in the course of import of goods into or export of the goods out of the territory of India, within the meaning of section 5 of the said Central Sales Tax Act, 1956;

(v) receives any goods for sale on consignment basis or effects sales on behalf of the principal;

(vi) manufactures any goods for sale other than covered under entry (2) of Schedule 'E' to the Act;

(vii) is a non-resident dealer.

(3) The Appropriate Assessing Authority upon scrutiny of application received from the dealer under sub-rule (1) and if it is found in order shall grant him the certificate in Form VAT-XIV.

(4) The permission so granted shall be valid initially for a period of one year and thereafter be renewed every year upon application in that behalf from the concerned dealer alongwith the declaration as regards to his turnover during the immediate preceding year. The application for renewal of the certificate shall be made within a period of 30 days from the date of expiry of the said certificate.

Provided that the Appropriate Assessing Authority may entertain an application for renewal of certificate of composition of tax beyond 30 days but not later than 60 days on payment of late fee of Rs. 50/- per day of delay.

The dealer applying for renewal of his certificate of composition of tax shall submit the certificate issued to him to the Appropriate Assessing Authority alongwith the application.

(5) A dealer to whom a certificate of composition of tax in Form VAT – XIV has been granted if found covered any time during the year under any of the contingencies as stated in sub-rule(2) above, such certificate shall stand withdrawn from the date of such contingency.

The input tax credit on the stock held by the dealer on the date of such withdrawal shall be allowed to him in accordance with the provisions of sub-rule(1) of rule 7 of these rules.

(6) The payment of the amount of composition tax at the rate specified in Schedule 'E' to the Act shall be made by the respective dealer quarterly in Form VAT-V in the appropriate Government treasury, within 30 days from the end of the quarter to which the payment relates.

(7) The dealer to whom the composition benefit has been granted, shall file return of his sales for every quarter in Form VAT-IV, within 30 days from the end of the quarter alongwith a copy of challan acknowledging receipt of tax.