In exercise of powers conferred by section 85 of the Jammu and Kashmir Value Added Tax Act, 2005, the Government hereby directs that in the Jammu and Kashmir Value Added Tax Rules, 2005, the following amendment shall be made; namely :-

1. Clauses (a) and (b) of sub-rule (2) of Rule 27, except the provisos thereto, shall be recast as under:

"(a) rupees fifteen thousand for dealers having an estimated annual turnover upto rupees twenty lac; & rupees thirty thousand for dealers having an estimated annual turnover of more than rupees twenty lac, and

(b) equal to 1% of the estimated gross annual turnover in respect of a dealer who applies for registration as a turnover tax dealer or a voluntary registration dealer and equal to 1% of the estimated taxable turnover of a casual dealer provided that in no case the security so fixed shall exceed rupees twenty thousand."

2. After clause (b) to II proviso of sub-rule (2) of rule 27, the following shall be added as sub-rule (3).-

"3. If the registering authority is satisfied that due to extra-ordinary circumstances, the registered dealer needs to furnish more or additional security, he shall recommend the case to Commissioner with reasons to be recorded in writing for demanding more or additional security and the Commissioner shall fix the security as he may deem necessary keeping in view the facts of the case."

This notification shall come into force from 01.04.2013

By order of the Government of Jammu and Kashmir

Sd/-

(B. B. Vyas), IAS,

Principal Secretary to Government

Finance Department