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State of Madhya Pradesh - Section

Section 31 in The M.P. Vanijyik Kar Niyam, 1995

31. Restrictions and conditions subject to which permission to make lumpsum payment of tax by way of composition may be granted under Section 19.

(1)Every registered dealer referred to in Section 19 desirous of making a lumpsum payment by way of composition in respect of the tax payable by him in relation to goods to be supplied in the execution of a works contract or contracts shall within thirty days of the commencement of the execution of the works contract or contracts, unless prevented by sufficient cause, make an application in Form 37 to the appropriate Commercial Tax Officer.
(2)On receipt of the application the appropriate Commercial Tax Officer shall verify the correctness of the application and on being so satisfied, the appropriate Commercial Tax Officer shall, by an order in writing, grant permission to the registered dealer to make lumpsum payment by way of composition and send a copy thereof to the registered dealer making the application.
(3)The amount to be paid in lumpsum by way of composition shall be determined at the rate mentioned against each type of contract specified below and shall be so determined at such rate on the total monetary consideration received or receivable by the registered dealer in respect of such works contract.
S.No. Type of contract Rate at which lumpsum shall be determined
(1) (2) (3)
1. (i) Civil works like construction of buildings excluding- 2 percent
  (a) supply and installation ofair-conditioners, air-coolers or air-conditioning equipment;  
  (b) supply and fitting ofelectrical goods, supply and fitting of electrical equipment;  
  (c) fabrication and installationof elevators (lifts) and escalators.  
  (ii) Civil works like construction of bridges, roads, dams,barrages, canals, diversions. 2 percent
  (For works mentioned at (a), (b) and (c) above, thecomposition money would be determined on the basis of ratesgiven at item 4, 3 (i) and 3 (v) below respectively)  
2. Fabrication and installation of plant and machinery. 3 per cent
3. (i) supply and fitting of electrical goods, supply andfitting of electrical equipment including transformers. 4 percent
  (ii) sanitary fitting for plumping and drainage and sewerage. 4 percent
  (iii) laying underground or surface pipelines, cables orconduits. 4 percent
  (iv) supply and erection of weighing machines and weighbridges. 8 percent
  (v) fabrication and installation of elevators (lifts) andescalators. 8 per cent
4. Supply and installation of air-conditioners, air-coolers,air-conditioning equipments including deep freezers, coldstorage plant and humidification plants. 12 per cent
5. All other contracts not specified in serial numbers 1 to 4above 4 per cent
(4)On the commencement of the execution of works contract or contracts, a registered dealer to whom permission has been granted under sub-rule (1) shall pay within thirty days of the receipt of payment on account of a running bill, into the Government Treasury, that much amount out of the amount payable by way of composition on the amount of the said running bill, which remains after deducting therefrom the amount deducted at source under the provisions of sub-section (1) of Section 35.
(5)Every such registered dealer shall within thirty days of the close of the quarter ending on 30th June, 30th September, 31st December and 31st March send a statement in Form 38 to the appropriate Commercial Tax Officer enclosing therewith the copies of the challan as also the certificates issued under sub-section (2) of Section 35 by the person making the deduction of an amount at source sub-section (1) of the said Section in proof of the payments of lumpsum amount by way of composition made during the quarter.
(6)On receipt of the statement in Form 38 the appropriate Commercial Tax Officer shall verify the correctness of the amount paid by way of composition by the registered dealer. If he is not satisfied about the correctness of the payment made, he shall, by order in writing, determine the correct amount payable by the registered dealer during the quarter and if the amount so determined is more than the amount paid by the registered dealer the appropriate Commercial Tax Officer shall require the registered dealer to pay the balance of the amount within fifteen days from the date of service of the notice of demand issued by him for this purpose. The registered dealer, on payment of the balance within the specified time, shall send a copy of the challan to the appropriate Commercial Tax Officer in proof of such payment within seven days from the date of payment.
(7)Where the registered dealer fails to pay the balance of the amount within the time specified in the notice of demand issued under sub-rule (6), or within such further time as may have been granted to him for the purpose on an application made by him in this behalf, the appropriate Commercial Tax Officer may revoke the permission granted to the registered dealer under sub-rule (2) in respect of the works contract or contracts in relation to which such default has been committed and thereupon the registered dealer shall be liable to be assessed under Section 27 in respect of such works contract or contracts in relation to which the permission has been revoked.
(8)When the permission granted to a registered dealer under sub-rule (2) is revoked under sub-rule (7), the provisions of Sections 26, 27, 42 and 43 shall apply to such registered dealer in relation to the works contract in respect o which such permission had been granted to him.