Section 16 in Daman and Diu Value Added Tax Regulation, 2005
16. Composition scheme for specified dealers.
(1)Notwithstanding anything contained in this Regulation, every dealer, whose turnover in the year immediately preceding the commencement of this Regulation or in any subsequent year exceeds the taxable quantum under this Regulation but does not exceed twenty five lakh rupees or such other amount as may be specified by the Government by notification, shall have an option to pay tax under this section:Provided that this section shall not apply to any dealer, who is registered as a dealer under the Central Sales Tax Act, 1956 (74 of 1956) or who procures goods from any place outside the Daman and Diu or sells or supplies goods to any place outside the Daman and Diu during the year in which he opts to pay tax under this section.(2)Every dealer, referred to in sub-section (1), at the time of making an application for grant of certificate of registration under section 19, shall be required to specify whether he intends to pay tax under this section:Provided that in case a dealer opts to pay tax under this section, he may, by an application made to the Commissioner within such time and in such manner as may be prescribed, withdraw his option at any time after the end of the year in which such option was made:Provided further that in a case where a dealer withdraws his option to pay tax under this section, he shall be entitled to claim credit of the tax paid under this Regulation on the trading stock, raw material and packaging material held by him in the Daman and Diu on the date when such option was made subject to the condition or conditions specified in section 20 and applicable to such dealer.(3)In case a person who intends to pay tax under this section and -(a)who was registered under the Daman and Diu Sales Tax Act, 1964 (4 of 1964), at the time of the commencement of this Regulation;(b)whose turnover in the year preceding the commencement of this Regulation or any subsequent year exceeds the taxable quantum under this Regulation but does not exceed twenty five lakh rupees or such other amount as may be specified by the Government by notification,he shall specify his intention, within such time and in such manner as may be prescribed, to pay tax under this section.(4)Where a dealer opts or intends to pay tax under this section, net tax payable by the dealer shall be the amount determined at the rate of one per cent. of the turnover of the dealer.(5)A dealer, who opts or intends to pay tax under this section shall, -(a)not compute his net tax under section 11;(b)not be entitled to claim credit under section 9 or section 14 or section 15;(c)not be entitled to issue tax invoice;(d)not collect any amount by way of tax under this Regulation; and(e)retain tax invoices and retail invoices for all of his purchases, as required under section 48.(6)Every dealer, who opts or intends to pay tax under this section, shall be required to pay tax on the trading stock, raw material, packaging material (in this sub-section referred to as "opening stock") and finished goods,-(a)in the case of a dealer referred to in sub-section (3), held on the date of the commencement of this Regulation; or(b)in the case of any other dealer, on the date on which he exercises his option or specifies intention under this section,at the rates specified in section 4 on the fair market value of such opening stock and finished goods where no tax has been paid which was payable on such opening stock and finished goods under the Daman and Diu Sales Tax Act, 1964 (4 of 1964), repealed by section 106 or under this Regulation.(7)Every dealer shall pay the tax due under sub-section (6) at any time before he opts to pay tax under this section.(8)Every dealer, who opts or intends to pay tax under this section, shall furnish to the Commissioner 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.
