54. General Provision in the state of lump sum dealers. -

(1) Any lump sum payable under the Act and these rules shall be deemed to be tax for the purpose of application of provisions relating to assessment, use of declarations and maintenance of record relating thereto, levy of interest, imposition of penalties or offences committed under the Act, and recovery.

(2) The rates of lump sum applicable under the schemes of composition of tax made under Act 11 of 1967 by the Amendment Act, 2001, or notification under the said Act shall continue to be in force upto the appointed day, and thereafter with changes as maybe made under this rule.

(3) Option to pay lump sum once exercised shall not be withdrawn until the rate(s) of lump sum is/are revised, and the lump sum dealer makes an application within 15 days of the date of the publication of the notification(s) issued in this behalf that he does not wish to pay lump sum at the revised rate(s) or continue under the lump sum scheme, as the case maybe.

(4) A lump sum dealer shall.- (a) not issue a tax invoice as defined in clause (xxx) of section 2,

(b) not compute his net tax under section 16 of the Act,

(c) not be allowed to claim credit under section 17 of the Act and rule 43,

(d) not be allowed to collect any amount by way of tax under the Act, and

(e) continue to retain tax invoices and retail invoices for all his purchases as required under section 54 of the Act.

(5) Notwithstanding anything contained in this chapter, the State Government may, at any time, withdraw the facility of making payment of lump sum in lieu of tax from anyone or more or all class(s) of dealers.

(6) Lump sum payment of tax by retail dealer.- A retail dealer may be permitted under section 53 of the Act to compound the amount of tax payable by him for the following year a lump sum in lieu thereof -

(a) if his business is on a small scale and its nature is such that proper maintenance of account is not practicable, or

(b) on any other sufficient ground

(7) A retail dealer for the purpose of this rule is a dealer registered under the Act who sells goods exclusively within the state after purchasing them from VAT dealers or other retailers in the state.

(8) Subject to other provisions of this rule, a retailer in whose case aggregate of sales of taxable goods made by him during the last year does not exceed ten lakh rupees, may at any time, opt for payment of lump sum calculated in accordance with the provisions of sub-rule (6) by making an application in Form VAT-A given below, and a retailer who makes an application for registration may also exercise such option by making an application in Form VAT-B given below simultaneously.

Provided that a retailer who deals in second hand goods or medicines shall not be eligible to opt for payment of lump sum:

Application in Form VAT-A

Form of Application under rule 54 of the Nagaland Value Added Tax Rules, 2005 (For a dealer who is already registered under the Act)

To,

The Assessing Authority

District................

I/we .............. proprietor/partner/director/manager of M/s.... District.... holding TIN.... opt for payment of lump sum in lieu of tax from the month following the month in which my/our application for lump sum payment is allowed in terms of the provisions of rule 54.

2. The business concern is a retailer and deals in mainly in the following commodities:-

3. The aggregate of sales made during the last year was about ... Lakh.

4. The stock of goods, which have not been subjected to tax under the Act of the earlier laws is valued at Rs.. (give value of stock of such goods taxable at different rates of tax separately).

Application in Form B

Form of application under rule 54 of the Nagaland Value Added Tax Rules, 2005 (For a dealer who is simultaneously making application for registration under the Act)

To,

The Assessing Authority

District...........................

I/We................proprietor/partner/director/manager of M/s........ district....... am/are applying for registration under the Act and opt for payment of lump sum in lieu of tax from the commencement of the business (date of becoming liable to pay tax) in terms of rule 54 of the Nagaland Value Added Tax Rules, 2005.

The gross turnover of the business is likely to be Rs.. in a full year of operation.

(9) The application made under sub-rule (8) shall, subject to the correctness of the information furnished therein, be allowed from the date of the application. The option shall be valid for a year, on the expiry of which it shall cease to have any effect unless it is renewed on an application by the retailer made at least two months before its expiry.

(10) The retailer whose application has been allowed (hereinafter referred to as the 'lump sum retailer') under the foregoing sub-rule shall furnish returns in Form VAT-11 and shall pay lump sum at quarterly intervals within one month of the close of the quarter. The lump sum for a quarter shall be computed at the rate of 1% of the aggregate of sales of taxable goods made in the State during the quarter.

(11) The lump sum retailer shall keep regular account of purchases made by him separately in respect of exempted and taxable goods. He shall not be required to keep account of sales. But if he makes a sale of goods the price whereof exceeds ten thousand rupees, or in case the purchaser requests for such goods to be invoiced, he shall issue a retail sales invoice to the purchaser and shall keep record of all such invoices.

(12) The lump sum retailer whose aggregate value of taxable sales in a year exceeds ten lakh rupees shall continue to pay lump sum during that year and composition of tax in his case shall cease to have effect only from 1^st April next. Such retailer shall be entitled to claim the credit of input tax on the stock of goods in trade held by him at the close of 31^st March, subject to furnishing information relating to such goods held in stock with his return for the quarter ending 31^st March.