(1) Notwithstanding anything contained in this Act, every dealer, 1[other than the dealer who purchases*[or receives] goods from outside the State or imports goods from the outside the Country] may, at his option, instead of paying tax in accordance with section 5, pay, on the total value of the works contract executed by him in a year, tax calculated at the following rate, namely:-
(i) Civil works two per cent of the total contract contract: value of the civil works executed;
(ii) Civil maintenance two per cent of the total contract works contract : value of the maintenance works executed;
(iii) All other works 2[ Five] per cent of the total contract contracts: value of the works executed.
(2) Any dealer, who executes works contract, may apply to the assessing authority along with the first monthly return for the financial year or in the first monthly return after the commencement of the works contract, his option to pay the tax under sub-section (1) and shall pay the tax during the year in the monthly instalments and for this purpose, he shall furnish such return within such period and in such manner as may be prescribed.
(3) The option exercised under sub-section (1) shall be final for that financial year.
(4) A dealer, exercising option under sub-section (1) shall, so long as the option remains in force, not be required to maintain accounts of his business under this Act or the rules made there under except the records in original of the works contract, extent of their execution and payments received or receivable in relation to such works contract, executed or under execution.
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1. These words have been added by Section 3 (i) of the Amendment Act (21 of) 2007, with effect from 1st January 2007.
2. Substituted for the words ‘four’ by Section 2 of the Amendment Act (4 of) 2012, notified in No. II (2)/CTR/145©/2012-GO.No.31 dated 10th March 2012, to come into force from that date.
*. These words are inserted in sub-section (1) of Section 6 of the principal Act as per Gazette No 217 dated 14.10.2015.
(5) The dealer, who pays tax under this section, shall not 1[collect any amount by way of tax or purporting to be by way of tax and shall not ] be entitled to input tax credit on the goods purchased by him.
Explanation.- For the purpose of this section "civil works contract" includes civil works of construction of new building, bridge, road, runway, dam or canal including any lining, tiling, painting or decorating which is an inherent part of the new construction and any repair, maintenance, improvement or up gradation of such civil works by means of fixing and laying of all kinds of floor tiles, mosaic tiles, slabs, stones, marbles, glazed tiles, painting, polishing, partition, wall panelling, interior decoration, false ceiling, carpeting and extra fittings, or any manner of improvement on an existing structure 2[ 6-A Payment of tax at compounded rate by brick manufacturers.- (1)Notwithstanding anything contained in this Act, every dealer manufacturing bricks may, at his option, instead of paying tax in accordance with the provisions of sub-section (2) of Section 3, pay tax, for each year, by way of composition the lumpsum linked with production capacity of each kiln as specified in the Seventh Schedule.
(2) Every dealer, who opts for payment of tax under sub-section (1), shall apply to the assessing authority on or before the 30th day of April of the year or within thirty days of commencement of business, as the case may be and shall pay tax in advance during the year in monthly instalments and for this purpose, he shall furnish such returns, within such period and in such manner, as may be prescribed:
Provided that for the year 2009-2010, every dealer who opts for payment of tax under subsection (1) shall apply to the assessing authority within two months from the date of commencement of the Tamil Nadu Value Added Tax (Fourth Amendment) Act, 2009:
Provided further that in respect of dealers referred to in the first proviso, the total turnover for the period prior to the date of opting for payment of tax under sub-section (1), shall be treated as the total turnover for that year and the excess input tax credit, if any, on that date shall lapse to the Government.
(3) The option so exercised under sub-section (2) shall be final for that year and shall continue for subsequent years until the dealer becomes ineligible or withdraws his option in writing.
(4) The dealer who pays tax under this section shall not collect any amount by way of tax or purporting to be by way of tax and shall not be entitled to input tax credit on goods purchased by him.
(5) The dealer who purchases goods from such dealer shall not be entitled to input tax credit on the goods purchased by him.
(6) Notwithstanding the operation of a brick kiln for a part of the year, the dealer owning the kiln and opted for payment of lumpsum shall be liable to make payment of lumpsum for the whole year, except when the dealer opts for payment of lumpsum for the first time after the commencement of the business, he shall be liable to pay lumpsum from the beginning of the month in which he exercises his option.
Explanation.- For the purpose of this section, “brick manufacturer” means the manufacturer of brick specified in sub-item (a) or (b) of item (22) in Part-B of the First Schedule.”] ________________________
1. These words have been added by Section 3 (i) of the Amendment Act (21 of ) 2007, with effect from 1st January 2007.
2. Added by Tamil Nadu Amendment Act 25 of 2009, notified to come into force on 1st September 2009.
17. Levy of taxes on food and drinks - (1) Notwithstanding anything contained in this Act, but subject to the provisions of this Act,-
(a) every dealer shall pay tax on the sale of ready to eat unbranded foods including sweets, savouries, unbranded non-alcoholic drinks and beverages served in or catered indoors or outdoors by star hotels recognized as such by Tourism Department of the State Government or Government of India and restaurants attached to such hotels at the rate of 2[fourteen] and half per cent of the taxable turnover; and
(b) every dealer other than those mentioned in clause (a) 3[whose total turnover is not less than rupees ten lakhs for a year], shall pay tax on the sale of ready to eat un-branded foods including sweets, savouries, un-branded non-alcoholic drinks and beverages served in or catered indoors or outdoors by hotels, restaurants, sweet-stalls, clubs, caterers and any other eating houses, at the rate of 4[five] per cent of the taxable turnover.
Explanation I.- For the purpose of computing the total turnover under this sub-section, the purchase turnover liable to tax under section 12 of this Act, shall be added to the sales turnover.
Explanation II.- For the purpose of computing the total turnover under this sub-section, the sales turnover of all business units in a common premises sharing the common kitchen or common employees shall be added to the sales turnover of the business unit having higher turnover.
(2) The dealer, who pays tax under clause (a) of sub-section (1) shall be entitled to input tax credit on the goods specified in the First Schedule purchased by him in the State.
8 Payment of tax at compounded rate by hotels, restaurants, sweet-stalls and bakeries. - (1)(a) Notwithstanding anything contained in sub-section (1) of section 7, every dealer whose total turnover is not less than rupees ten lakhs but not more than rupees fifty lakhs for the year on the sale of ready to eat unbranded foods including sweets, savouries, unbranded non-alcoholic drinks and beverages served in or catered indoors or outdoors by hotels, restaurants, sweet-stalls, clubs, caterers and any other eating houses, may, at his option, instead of paying tax in accordance with the provisions of clause (b) of sub-section (1) of section 7, pay tax at the rate specified in the Third Schedule.
Explanation.- For the purpose of computing the total turnover under this sub-section, the purchase turnover liable to tax under section 12 shall be added to the sales turnover.
5[(b) Notwithstanding anything contained in clause (a) of subsection (1) of Section 3, every dealer in bakery products whose total turnover is not less than rupees ten lakhs but not more than rupees fifty lakhs for the year on the sale of un-branded bakery products and other ready to eat un-branded foods, may at his option, instead of paying tax in accordance with the provisions of sub-section (2) of Section 3 pay tax at the rate specified in the Third Schedule.
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1. Notification granting exemptions from levy of tax under this Section is available at page 413.
2. Substituted for the word ‘twelve’ by Section 3 of the Amendment Act (4 of) 2012, with effect from 10th March
2012.
3. These words were added by Section 4 of the Amendment Act (21 of) 2007, with effect from 1st January 2007.
4. The rate of tax has been reduced to two percent from 1st January 2007 by Notification No. II (1)/CTR/(a- 14)/2007-GO.Ms.No.12 of that date. This reduced rate is applicable also to sales of mineral water by these dealers as per Notification No. II (1)/CTR/30(a-4)/2007-GO.Ms.No.79 dated 23rd March 2007, effective from 1st January 2007.
The word ‘four’ has been substituted by the word ‘five’ by Section 3 of Amendment Act (4 of) 2012, effective from 10th March 2012, has stated in foot note 2 on page 16. The concessional rate two percent, granted by the two notifications mentioned above, has been continued by notification nos II (!)/CTR/11(a-1) and (a-2)/2012- GO.No.32 dated 10th March 2012, effective from that date, for all these goods.
5. Sun-section (1) was number as clause (a) and clause (b) was added from 1st January 2007 by Section 5 of the Amendment Act (21 of) 2007.The words ‘and bakeries’ were also added in the heading by that Amendment. See Section 2 (9) for the meaning of the term ‘branded’.
(2) Every dealer, who opts for payment of tax under sub-section (1), shall apply to the assessing authority on or before the 30th day of April of the year or within thirty days of commencement of business, as the case may be, and shall pay tax in advance during the year in monthly instalments and for this purpose, he shall furnish such returns, within such period and in such manner, as may be prescribed.
(3) The option so exercised under sub-section (2) shall be final for that year and shall continue for subsequent years until the dealer becomes ineligible or withdraws his option in writing.
(4) A dealer liable to pay tax under sub-section (1) shall not collect any amount by way of tax or purporting to be by way of tax on the sale of food and drinks.
(5) The dealer, who pays tax under this section, shall not be entitled to input tax credit on goods purchased by him.
9 Levy of tax on bullion and jewellery.-. (1) Notwithstanding anything contained in this Act, every dealer in bullion, precious stones, gold, platinum and silver jewellery including articles thereof, whatever be his turnover for the year, shall pay tax on every sale made by him within the State, at the rate specified in Part-A of the First Schedule.
(2) The dealer, who pays tax under this section, shall be entitled to input tax credit on goods specified in the First Schedule purchased by him in the State.
10 Tax on goods purchased by dealers registered under Central Sales Tax Act, 1956 (Central Act 74 of 1956)-. Notwithstanding anything contained in this Act, every dealer registered under subsection (3) of section 7 of the Central Sales Tax Act, 1956 shall, whatever be the quantum of his turnover, pay tax, for each year, in respect of the sale of goods with reference to the purchase of which he has furnished a declaration under sub-section (4) of section 8 of the said Central Act, in accordance with the provisions of this Act.
*[Omitted] 11. Levy of tax on sugar-cane.--. (1) Notwithstanding anything contained in this Act, every dealer shall pay a tax on the last purchase of sugarcane, excluding sugarcane setts, in the State, at the rate specified in the Second Schedule.
(2) The manufacturer of sugar shall not be entitled to input tax credit on the last purchase of sugarcane [Omitted] *