In exercise of the powers conferred by Section 56 of the Jammu and Kashmir Value Added Tax Act, 2005, the Government hereby direct that there shall be composition of Tax to the tune of rupees one lac per annum in lieu of tax payable under section 13 of the Act in respect of brick kiln owners, subject to the following conditions namely:

1. That the composition amount shall be payable in four quarterly installments and shall be paid within one month from the expiry of each quarter;

2. That the dealer shall not collect any sum by way of tax on the sale of goods;

3. That the dealer shall not issue a tax invoice in VAT-50 while making sale of goods in the State to another VAT dealer for resale or use in manufacture or for processing of goods for sale.

4. That no input tax credit shall be available to the dealer purchasing goods from the dealer availing this composition scheme.

5. That for failure to pay the composite tax in time, the dealer shall besides being liable to penalty under the provisions of the Act, also forfeit his claim of benefit of the composite tax scheme and be liable to tax under section 13 of the Act for the year in which such default/offence is committed.

6. That in case a brick kiln is intended to be closed for the whole year, the dealer who is liable to pay the composite tax shall inform the Assessing Authority concerned in writing 15 days before the closure.

7. That in case of failure to furnish information about closure of Kiln in the manner prescribed in stipulation 6 above it shall be presumed that the kiln has been functioning normally and the dealer shall be liable to pay composite tax as usual; and

8. That the Government may at anytime withdraw the facility of payment of composite tax in lieu of tax.

This notification shall come into force with immediate effect.

By order of the Government of Jammu and Kashmir.