- The Luxury Tax Officer for good and sufficient reasons to be recorded in writing, may require a stockist who has applied for licence under the Act to pay by a specified date, reasonable security which in his own opinion will be equivalent to tax estimated by him as being payable by the stockist for one year. The demand of security and the payment of the security shall be in the manner as laid down in rule 8 :Provided that in case of a stockist applying for licence, the maximum security to be demanded shall not be more than -(i)five thousand rupees, if the annual turn over of stock of luxuries of a stockist does not exceed twenty-five lakh rupees;(ii)ten thousand rupees, if the annual turnover of stock of luxuries of a stockist exceeds twenty-five lakh rupees,but does not exceed fifty lakh rupees;(iii)fifteen thousand rupees, if the annual turnover of stock of luxuries of a stockist exceeds fifty lakh rupees, but does not exceed one crore rupees; and(iv)twenty thousand rupees,if the amount of turnover of stock of luxuries of a stockist exceeds one crore rupees.
