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 "Composition Scheme for registered Tent Dealers, 2011" (hereinafter referred to as 'the scheme') and permits such dealers to opt for composition amount in lieu of their tax liability under the Act, on payment of composition amount and subject to the conditions as specified hereunder, namely:-

1. Date of Commencement. - This Scheme shall be deemed to have come into force with effect from April 1, 2009.

2. Applicability. -

2.01 The Scheme shall be applicable to the registered tent dealers;

Explanation: - For the purpose of this scheme tent dealer means dealer leasing out tent and their accessories, decorative articles and exhibits, sound amplifier & public address system.

2.01 This Scheme shall be applicable only if the opting dealer makes purchases of taxable goods covered under the scheme from a registered dealer of the State.

3. Composition Amount.-

3.1 The composition amount to be paid per annum per dealer in lieu of tax shall be rupees five hundred for every rupees two lac or part thereof, of the turnover of goods covered under the Scheme in the relevant year.

3.2 The composition amount in any case shall not be less than the composition amount for the previous year.

4. Manner of payment of composition amount.-

4.01 The composition amount shall be paid in four quarterly installments. The installment for each quarter shall be paid by 7th day of the immediately succeeding month of the relevant quarter i.e. by July 7th, October 7th, January 7th and April 7th for the 1st, 2nd, 3rd and 4th quarter respectively. The difference if any, as per the actual turnover of the whole of the year shall be calculated and the balance of the composition amount, if any, shall be deposited by April 30 of the immediately succeeding year.

4.02 The installments of the composition amount already fallen due for the year 2009-10 and 201-11 and the tax collected or charged prior to the issuance of the scheme shall be deposited within 30 days of the publication of this notification in the Official Gazette. The remaining quarterly installments shall be paid by the dealer in accordance with the scheme.

4.03 Where a dealer commences business during the financial year, the composition amount shall be equal to the proportionate deposited and proof thereof shall be enclosed along with the application for exercising option under the Scheme.

4.04 Where a dealer commencement business during the financial year the composition amount shall be equal to the proportionate of the composition amount calculated by annualizing the turnover for the relevant year.

5. Composition Certificate. -

5.01 Registered dealer opting for this Scheme shall submit an application on a plain paper to his assessing authority within thirty days of the publication of this notification in the official gazette or the commencement of the year or within thirty days of the issuance of registration certificate, whichever is later, stating therein the name, address, status, registration numbers, gross annual turnover of the goods covered under the scheme and tax paid in immediately preceding year, if any, in respect of them, and such other information as may be relevant for the implementation of this scheme. Such application shall be submitted along with the proof of deposit of composition amount fallen due on the date of submitting the application.

5.02 On receipt of the application, the assessing authority shall issue the composition certificate in Form TS-2011 appended to this notification. The composition certificate shall initially be valid for one year.

5.03 Where a dealer has failed to opt for the scheme within the stipulated period, he shall be allowed to avail the benefits of the scheme on fulfillment of the following conditions, namely:-

(i) 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;

(ii) he shall also deposit a late fee, amounting to twenty five percent of the due composition amount required to be deposited under the Scheme where he exercises this option within three months of the due date, thereafter he shall not be eligible for the benefits under the scheme; and

(iii) he shall deposit the complete amount of tax charged or collected, if any, to the State Government before making application under the scheme.

5.04 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:-

(i) 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

(ii) he shall also deposit a late fee, amounting to twenty five percent of the due composition amount required to be deposited under the scheme where he deposits the due installments within three months of due date, and this late fee shall be fifty percent of due amount if he deposits the due installments after aforesaid period of three months, and thereafter he shall not be eligible for the benefits under the scheme.

6. The composition certificate may be renewed annually by submitting an application to the assessing authority on plain paper before thirty days of the expiry of the composition period. The composition certificate shall be enclosed with application along with the details of the turnover and the deposit of composition amount in the immediately preceding year.

7. The dealer shall file annual return in VAT-11, along with the copy of the challans in support of the payment of composition amount. The dealer would be self assessed on the basis of such return.

8.0 Conditions:

8.1 Save as provided in the scheme, the dealer opting for composition of tax under this scheme shall be subject to all the provisions of the Rajasthan Value Added Tax Act, 2003 and rules made thereunder.

8.2 The dealer shall not charge or collect any tax during the composition period, however, tax charged or collected by the dealer before opting for the scheme shall have to be deposited forthwith and the tax already deposited shall not be refunded.

8.3 The dealer shall not be entitled to claim any input tax credit or refund in respect of purchases made by him.

8.4 The registered dealer, who opts to pay composition amount under the Scheme, the credit of input tax availed, if any, by him of the goods in stock on the date of exercise of such option shall be reversed forthwith.

8.5 The dealer, who opts to pay composition amount under the scheme, shall not be entitled to claim input tax credit in respect of the goods in stock on the date of exercise of such option.

8.6 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.

8.7 Where during the composition period, the dealer violates any of the conditions of the scheme or aids or abets the evasion of tax, the assessing authority, after affording reasonable opportunity of being heard, may cancel the composition certificate. This will be without prejudice to the action, penal or otherwise, for which such dealer shall be liable under the provisions of the Rajasthan Value Added Tax Act, 2003 and rules made there under.

8.8 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 or any other levy, accordingly.

8.9 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 TS- 2011

COMPOSITION CERTIFICATE

"Composition Scheme for Registered Tent Dealers, 2011"

Under the "Composition Scheme for Registered Tent Dealers, 2011", I hereby permit M/s ................... (address) ............................ Registration No. (TIN)..................... to deposit composition amount in lieu of tax for the year........... on the transfer of right to use all types of tents with their accessories and other related goods, in accordance with the provisions of the said Scheme. The quarterly installments are to be paid in accordance with the Scheme.

This certificate shall be initially valid for one year subject to its further renewable or cancellation or the Scheme is revoked.

This notification shall remain in force up to 31.3.2012.

By Order of the Governor,

(Bhavani Singh Detha)

Dy. Secretary to Government