(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 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 (3A) of section 16.

(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 No. 16 to the Additional Commissioner or the Deputy Commissioner duly authorised by the Commissioner for such purpose within ninety days from the date of commencement of the year in respect of which such option is exercised or within one hundred twenty days from the date of coming into force of the said sub-section (3A) of section 16, whichever is later, or subject to the satisfaction of the appropriate authority, within such further time as may be allowed by such authority:

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 No. 16 within thirty days from the date of receipt of the certificate of registration or subject to the satisfaction of the appropriate authority, within such further time as may be allowed by such authority.

(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.