In exercise of the powers conferred by section 5 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003), the State Government being of the opinion that it is expedient in the public interest so to do, hereby notifies the "Compounded Levy Scheme for Mini-Cement Plants, 2006" (hereinafter referred to as the "Scheme" and permits the registered dealers having Mini Cement Plants to opt for compounding of their tax liability on the sales of cement manufactured by them within the State on payment of composition amount in the manner, to the extent and for the period as mentioned herein: -
1.0 Operation of the Scheme-
This scheme shall come into operation with effect from 1st April, 2006.
2.0 Eligibility:
This scheme shall apply to such Mini Cement Plants, -
(a) which are not availing the benefits under Incentive / Deferment Schemes of 1987 or 1989 or 1998 or any other customized package issued under the Act or under the Rajasthan Sales Tax Act, 1994 (Act no. 22 of 1994);
(b) whose installed production capacity is up to 200 TPD; and
(c) against whom cases of avoidance or evasion of tax are not pending.
3.0 Composition Amount.-
(1) Mini Cement Plants, having installed capacity upto 50 TPD shall be required to pay annual composition amount of Rs. 9.60 lacs. The annual composition amount shall be computed proportionately for capacities above 50 TPD.
(2) In case of tax rate revision, the composition amount shall be proportionately revised during the operative period.
(3) In case there is enhancement in installed capacity, the dealer shall inform in writing his assessing authority within ten days of such enhancement who will revise the composition certificate in Form MC-2, after conducting such enquiry, as he may deem appropriate.
(4) The composition amount for the year 2007-2008 and subsequent years shall be 110% of the composition amount of immediately preceding year.
(5) In case a dealer availing the benefit of the scheme opts out of it, he shall have to pay the composition amount along with interest, if any, for the whole of the year in which he so chooses to opt out, within a period of thirty days of exercising of such option.
(6) Where the dealer opts out from the scheme he shall be required to pay tax on his sales (other than under composition period) in accordance with the law.
4.0 Mode of payment of composition amount.
(1) Payment of composition amount shall be made in equal monthly installments by the 7th day of the close of every month in the Government Treasury by means of challan in Form VAT-37 or through a demand draft in favour of the Assessing Authority of the dealer.
(2) Where a dealer has failed to deposit the composition amount in the period specified under the Scheme, he shall be allowed to continue to avail the benefits of the Scheme on fulfillment of the following conditions, namely: -
(a) he shall deposit the whole of the amount which has become due under the Scheme, along with the interest thereon at the rate notified under the said Act; and
(b) in addition to the interest, he shall also deposit a late fee, amounting to five percent of the due composition amount, for each month or part thereof of such delay.
5.0 Compounded levy Certificate. -
(1) Existing Mini Cement Plant opting for the scheme shall submit an application in form MC-1, appended to this notification, to the Assessing Authority within a period of 30 days from the date of publication of this notification. A new Mini Cement Plant commencing commercial production after the date of issue of this notification, opting for the scheme, shall submit the application in form MC-1 to the Assessing Authority within a period of 30 days from the date of start of commercial production. Any Mini Cement Plant whether existing or new unit, choosing to opt for this scheme in any subsequent financial year, shall submit application in form MC-1 to the Assessing Authority within 1st April to 30th April of that financial year in which it chooses to opt for this scheme.
Provided that where a Mini Cement Plant, whether existing or new, has failed to opt for the scheme within the period stipulated in this sub-clause, it shall be allowed to submit the application in from MC-1, before the expiry of another 30 days from the stipulated period with a penalty of 50% of the annual composition amount required to be paid by such unit during the relevant financial year.
Provided further that tax charged or collected by a Mini Cement Plant before making application under this scheme to the Assessing Authority shall have to be deposited to the State Government before making application for availment of the benefit under this scheme.
Provided also that tax charged or collected for the year 2006-2007 by a Mini Cement Plant before making application under the Scheme to the assessing authority shall be deposited to the State Government within a period of three months of the date of publication of the scheme.
(2) On receipt of application in form MC-1, the Assessing Authority, if satisfied, shall determine the composition amount and shall thereafter issue the Compounded Levy Certificate in Form MC- 2, appended to this notification.
(3) For renewal of the Composition Certificate for any subsequent year, the dealer shall apply on a plain paper, to the concerned Assessing Authority along with the original Composition Certificate in form MC-2, not less than 30 days before the commencement of the subsequent financial year for which such renewal is being sought. Delay of not exceeding 30 days in exercising such option may be condoned by the Assessing Authority on submission of sufficient grounds of delay, on payment of a penalty of Rs. 1,000/- per day of delay. If the dealer fails to apply for renewal of Composition Certificate within the stipulated period in this sub-clause, he shall be deemed to have opted out of the scheme.
6.0 Assessment. -
The Compounded levy Certificate shall be deemed to be the assessment order-cum-demand notice and no separate assessment order shall be required to be passed in respect of the turnover of the Mini Cement Plant under the Scheme.
7.0 Conditions. -
(1) The dealer shall not collect or charge from its purchaser any tax on the sale of cement.
(2) The dealer shall not be entitled to claim any input tax credit or refund in respect of purchases made by him.
(3) The dealers covered under this Scheme shall be subject to all the provisions of the Rajasthan Value Added Tax Act, 2003 and rules made thereunder and the terms and conditions contained in this notification.
(4) If the dealer violates any of the conditions of the Scheme or aids or abets the evasion or avoidance of tax, the Assessing Authority, after affording him a reasonable opportunity of being heard may cancel the certificate with immediate effect. On such cancellation, the remaining amount payable under the Scheme, in addition to the evaded tax amount, along with interest, and penalties, if any, shall be recoverable from the dealer as arrears under the Rajasthan Value Added Tax Act, 2003.
(5) In cases where a dealer availing of the benefit of the Scheme opts out of it, he shall stand debarred from re-entering the scheme for two immediately succeeding financial years following the year in which such withdrawal was made.
(6) In case the dealer becomes eligible to opt for the scheme again, the annual composition amount payable by it shall be, that which would have been payable by it, if it had continued to avail benefit of this scheme.
(7) The composition amount and any other levy under the scheme shall be recoverable as arrears of land revenue under the Rajasthan Value Added Tax Act, 2003.
(8) The State Government may review the scheme at any time and may amend, any or all the provisions of the scheme as it may deem fit. On such amendment, the dealer shall pay the revised composition amount and any other charges from the beginning of the calendar month, following the month in which such amendment takes place.
(9) The State Government may review the scheme and on being satisfied that it is not in the public interest to continue the scheme, it may revoke the scheme forthwith or from such date as it may notify.
FORM M C -1
Application for sanction of Certificate under Compounded Levy Scheme for Mini Cement Plants- 2006.
To,
The Assessing Authority,
Ward............
Circle.............
I, ............................................... Prop./Partner/Manager/Director/ .................................. of M/s. ...........................................(Address)........................................ having Registration No. ........................... under the Rajasthan Value Added Tax Act, 2003, apply for compounded levy of tax on the sale of cement manufactured by the Mini Cement Plant situated at.....................
The particulars of production & tax deposit after the expiry of benefits under Incentive Scheme of 1987 / 1989 / 1998 are as under: -
1. Year in which benefit under Incentive Scheme 1987 / 1989 / 1998 was exhausted:
2. Annual installed capacity of the plant (inclusive of expansion, if any).
3. Percentage of actual production vis-à-vis installed capacity in the immediately preceding year:
4. Amount of tax liability in the immediately preceding year:
I / we accept and admit the composition amount as per clause 3 of the above Scheme as under: -
*Composition Amount: Rs. 4.80 lac up to production capacity of 50 TPD.
I / we hereby, do undertake to abide by all the terms and conditions of the Scheme and all provisions of the Rajasthan Value Added Tax Act, 2003, and the Rules made thereunder.
I / we further declare and verify that to the best of my / our knowledge and belief that the information given above is true and correct and nothing has been condoled herein.
*The composition amount is to be calculated @ Rs. 4.80 lacs per annum for a Mini Cement Plant with a capacity of 50 TPD. The annual composition amount shall be computed proportionately for capacities above 50 TPD.
FORM M C -2
COMPOSITION CERTIFICATE UNDER THE "COMPOUNDED LEVY SCHEME FOR MINI-CEMENT PLANTS-2006."
On being satisfied with the contents of MC-1 dated .................. submitted by the applicant dealer under the "Compounded Levy Scheme for Mini-Cement Plants-2006", I hereby permit M/s. ................................................ address ...................................... who/which holds R.C. No.................................. under the Rajasthan Value Added Tax Act, 2003, to pay composition amount in lieu of tax on the sale of cement manufactured by their plant situated at ................................... in accordance with the provisions of the said Scheme as follows:-
The monthly installments are to be paid by the 7th day of the close of every month. This certificate shall remain valid initially for the period from.....................of 20...............to 31st March of 20 .