Section 6(5) in The Kerala Value Added Tax Act, 2003
(5)Notwithstanding anything contained in sub-section (1), but subject to Sub-section (2), any registered dealer not being,(a)an importer; or(b)a dealer making any sale in the course of interstate trade or commerce or export; or(c)a dealer registered under the Central Sales Tax Act, 1956 (Central Act 74 of 1956); or(d)a dealer effecting first taxable sale of goods within the State; or(e)a dealer covered by sub-section (1A); or(f)a contractor,whose total turnover for a year is below fifty lakh rupees, may, at his option, pay tax at the rate of half per cent of the turnover of sale of taxable goods as presumptive tax instead of paying tax under subsection (1):Provided that a dealer holding stock of goods purchased in the course of interstate trade on the date of coming into force of the Act, will have the option to pay tax under this sub-section from the beginning of the quarter following the quarter in which he has sold such goods in the state and paid tax under sub- section (1) of section 6 and his registration under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) is cancelled:Provided further that any dealer covered by sub- section (1A) may, at his option pay tax under this sub-section from such period as may be prescribed:Provided also that a dealer shall not be eligible to opt for payment of tax under this sub-section if his total turnover in respect of goods to which this Act applies, whether under this Act or under the Kerala General Sales Tax Act, 1963 (15 of 1963) had exceeded fifty lakh rupees during the year preceding the year to which such option relates.Provided also that a dealer shall not be liable to pay presumptive tax under this sub section, if his total turnover is less than ten lakh rupees. Provided also that dealers covered under his sub- section whose total turnover for a year is below rupees twenty lakhs, may pay a lump sum amount of rupees three thousand annually as presumptive tax, and the payment shall be at the rate of rupees seven hundred and fifty per quarter along with a statement as may be prescribed. Such dealers shall also file an annual declaration as may be prescribed.Explanation. - "First taxable sale" for the purpose of this sub- section shall mean the sale of taxable goods effected by a registered dealer immediately after the import of such goods into the State or its manufacture in the State as the case may be, but shall not include the sale of goods in respect of which tax under section 5 or under subsection (4) of section 59 of the Kerala General Sales Tax Act 1963 (15 of 1963) had been paid and which are held as opening stock on the date of coming into force of the Act.
