(1) Notwithstanding anything contrary to this Regulation, every dealer whose—
(a) turnover in the year preceding the commencement; or
(b) turnover in the current year, does not exceed five lakh rupees or such other amount as may be specified by the Government by notification in the Official Gazette, shall have an option to pay tax under this section:
Provided that this sub-section shall not apply to dealers procuring goods from any place outside Andaman and Nicobar Islands or selling or supplying goods to any place outside Andaman and Nicobar Islands at any time during the year in which he opts to pay tax under this sub-section or if he is a registered dealer in the Andaman and Nicobar Islands under the Central Sales Tax Act, 1956:
Provided further that in case the Government has notified a composition scheme for a class of dealers under sub-section (12), such dealers shall not have an option to pay tax under this sub-section.
(2) At the time of making application for registration under section 19 of this Act, the dealer covered under sub-section (1) shall be required to specify if he intends to pay tax under this section:
Provided that once the dealer chooses to pay tax under this section, the option may be reversed only after the end of the year for which the option is made, by application to the Commissioner within such time and in such manner as may be prescribed:
Provided further that where a dealer chooses to reverse his option to pay tax under this section, he shall be eligible to claim credit of the tax paid under this Regulation on the trading stock, raw material and packaging material held by him in Andaman and Nicobar Islands on the date when such reversal takes effect subject to the conditions contained in section 20 in so far as they are applicable.
(3) In case a person who elects to pay tax under this section whose turnover in the year preceding the commencement of this Regulation does not exceed five lakh rupees or such other amount as may be specified by the Government by notification in the Official Gazette, he shall be required to specify the election to pay tax under this section within such time and in such manner as may be prescribed.
(4) Where a dealer elects to pay tax under this section, the dealer’s net tax shall be the amount determined at the rate of one paisa in the rupee of the turnover of the dealer.
(5) A dealer who elects to pay tax under this section shall—
(a) not purchase goods from a person who is not registered under this Regulation;
(b) not compute his net tax under section 11;
(c) not be allowed to claim credit under section 9, section 14 and section 15;
(d) not be entitled to issue tax invoice;
Composition scheme for specified dealers.
74 of 1956.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 15
(e) not be allowed to collect any amount by way of tax under this Regulation; and
(f) continue to retain tax invoices and retail invoices for all of his purchases as required under section 48.
(6) In case a person—
(a) whose turnover in the year preceding the commencement of this Regulation does not exceed five lakh rupees or such other amount as may be specified by the Government by notification in the Official Gazette; and
(b) who has opted to pay tax under this section in terms of sub-section (3) of this section, he shall be required to pay tax on the goods held on the date of the commencement of this Regulation at the rates specified in section 4 on the fair market value of goods where such goods have not borne tax under the Port Blair Municipal Council Octroi Tax Bye-Laws.
(7) The tax due under sub-section (6) shall be paid at any time before the person specifies his intention to pay tax under this section.
(8) The proof of payment of tax referred to in sub-section (6) along with a statement of opening stock and finished goods in such form as may be prescribed shall be furnished to the Commissioner at the time the person specifies his intention to pay tax under this section.
(9) Subject to the other provisions, where a registered dealer pays tax at the rates specified in section 4, he may choose to pay tax under this section only from the beginning of the following year:
Provided that such registered dealer shall be required to pay tax at the rates specified in section 4 on the goods held by him on the first day of the said following year.
(10) If the turnover of a dealer who elects to pay tax under this section exceeds five lakh rupees or such other amount as may be specified by the Government by notification in the Official Gazette, he shall be liable to pay tax under section 3 on and from the day his taxable turnover exceeds five lakh rupees or such other amount as may be specified by the Government by notification in the Official Gazette and shall be entitled to claim credit of the input tax paid under this Regulation on goods held by him in Andaman and Nicobar Islands on such day:
Provided that such dealer has intimated the Commissioner within seven days of his becoming liable to pay tax under section 3 in the prescribed form and has furnished such other information to the Commissioner as may be prescribed.
(11) The Commissioner may notify a dealer or a class of dealers who shall not be entitled to opt for payment of tax under this section.
(12) Notwithstanding anything to the contrary contained in this Regulation, the Government may—
(a) by notification in the Official Gazette, notify schemes of composition, subject to such conditions and restrictions as may be specified therein, of tax payable by a class of dealers or classes of dealers and different types of schemes may be notified for different classes of dealers;
(b) specify, in any scheme of composition of tax payable by the class of dealers or classes of dealers, different rates of taxes for different class or classes of dealers but, in such scheme, the net tax liability of the dealer opting to pay tax thereunder shall not exceed eight paise in the rupee of the turnover of the dealer.
(13) (a) Notwithstanding anything to the contrary contained in this Regulation, a casual trader shall—
(i) at least three days before commencing business in Andaman and Nicobar Islands, inform the Commissioner of such particulars of his business in such form and manner as may be prescribed;
16 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(ii) deposit security in cash or in the form of bank draft as may be fixed by the Commissioner which shall not exceed estimated liability to pay tax for seven days or such lesser period for which the casual trader is conducting the business in Andaman and Nicobar Islands;
(iii) pay tax daily on the sales made during the previous day;
(iv) furnish to the Commissioner, immediately after conclusion of his business in Andaman and Nicobar Islands, a return in the prescribed form and manner; and
(v) not issue any tax invoice.
(b) The Commissioner shall, after verification of information furnished to him under clause (a) of sub-section (1) and after getting security under clause (b) of that sub-section, shall register the casual trader.
(c) Upon registration of casual trader, the Commissioner may issue the required forms to him for use as the declaration referred to in sub-section (3) of section 61 for bringing goods for sale in Andaman and Nicobar Islands and for taking the unsold goods out of Andaman and Nicobar Islands and the casual trader shall render complete account of the used forms and surrender the unused forms along with the return referred to in clause (d) of sub-section (1) of section 13.
(d) The Commissioner shall, after examination of the return furnished by the casual trader under clause (d) of sub-section (1), the forms referred to in sub-section (3) and the accounts maintained by him including the retail invoices issued, assess him to tax within five days and shall serve upon him a notice of assessment and after adjusting any tax and any other dues payable under this Regulation, refund the balance amount of security to him in case security is deposited in the form of cash deposit.
(e) The casual trader shall pay immediately the amount mentioned in the notice of assessment.
(f) On being satisfied that the amount due has been paid, the Commissioner shall release the security or balance security, as the case may be.
(g) Notwithstanding anything contained in this Regulation, the taxable quantum in respect of a casual trader shall be nil.
17. If—
(a) a registered dealer sells or gives goods to a related person;
(b) the terms or conditions of the transaction have been influenced by the relationship; and
(c) the related person had purchased the goods, the related person would not be entitled to a tax credit for the purchase, or the amount of the tax credit would be reduced under sub-section (3) of section 9, the transaction shall be deemed to be a sale made by the registered dealer and the sale price of the goods shall be deemed to be their fair market value.
CHAPTER IV REGISTRATION AND SECURITY