Section 3(4) in Tamil Nadu Value Added Tax Act, 2006
(4)[ (a) Notwithstanding anything contained in sub-section (2), but subject to the provisions of subsection (1), every dealer, who effects second and subsequent sales of goods purchased [from the registered dealers] [This sub-section is as substituted by Section 2 of the second Amendment Act (49 of) 2008, effective from 18th June 2009, which replaced the Ordinance 1 of 2008.] within the State, whose total turnover relating to taxable goods, for a year, is less than rupees fifty lakhs, may, at his option, instead of paying tax under subsection (2), pay a tax, for each year, on his [turnover relating to taxable goods] [These words were substituted for the words 'total turnover' by Section 2 (3)(a) of the Amendment Act (21 of) 2007, with effect from 1st January 2007.] at such rate not exceeding one percent, as may be notified [by the Government. Such option shall be exercised by the dealer] [This Rate has been notified as half a percent by Notification No. II (1)/CTR/(A- 1)/2007-G.O.No.2 dated 1st January 2007, effective from that date.] , -(i)Who commences business, within thirty days from the date of commencement of the business;(ii)Whose turnover is below rupees fifty lakhs during the previous year, on or before 30th day of April of the year for which he exercises such options;(iii)For the year 2008-09, within thirty days from the date of commencement of the Tamil Nadu Value Added Tax (Second Amendment) Ordinance, 2008:Provided that such dealer shall not collect [any amount by way of tax or purporting to be by way of tax :] [These words were substituted for the words 'tax exceeding the rate notified by the Government under this sub-section', by Section 2 (3)(b) of the Amendment Act (21 of) 2007 with effect from 1st January 2007.][Inserted by Tamil Nadu Amendment Act 26 of 2009 with effect from 7th August 2009.]Provided further that such dealer shall not be entitled to input tax credit on the goods purchased by him:Provided also that the dealer who purchased goods from such dealer shall not be entitled to input tax credit on the goods purchased by him.(b)If the turnover relating to taxable goods, of a dealer paying tax under clause (a) in a year, reaches rupees fifty lakhs at any time during that year, he shall inform the assessing authority in writing within seven days from the date on which such turnover has so reached. [such dealer is liable to pay tax under sub-section (2) on all his sales of rupees fifty lakhs and above] [These words have been substituted by Section 2 of the Tamil Nadu Amendment Act 27 of 2011, from a date to be notified, by the words 'Such dealer may pay a tax for each year on this turnover relating to taxable goods upto rupees fifty lakhs at such rate not exceeding one percent as may be notified by the Government and his liable to pay tax under sub-section (2) on all his sales of taxable goods above rupees fifty lakhs'. This date has been notified as 1st April 2012 by notification no.II (2)/CTR/437(c-2)/2011-GO-No.135 dated 31st October 2011.] and he is entitled to the input tax credit on the purchases made from the date, and on the stock available with him, the purchases of which has been made within ninety days before the date, on which such turnover has reached rupees fifty lakhs:.Provided that such dealer whose turnover has reached rupees fifty lakshs during the previous year shall not be entitled to exercise such option for subsequent years..
