Insertion of new section 14C and 14D

In the principal Act, after section 14B, the following sections shall be inserted, namely :- 14C.

1. (1) Subject to the conditions specified in sub-sections
2. (2) to
3. (5) of this section any dealer other than a casual trader or an agent of a non-resident dealer or a dealer who is registered under section 7 of the Central Sales Tax Act, 1956 (Central Act 47 of 1956) whose total turnover does not exceed rupees five lakhs for the assessment year concerned, may at his option, pay the amount of tax at the rate of two per cent of the total turnover, in lieu of tax payable under the other provisions of this Act.
4. (2) The provisions of this section shall not apply to dealers dealing in such commodities as may be notified by the Government from time to time.
5. (3) No dealer shall be eligible to pay tax under sub-section
6. (1) for three years from the date of registration under this Act.
7. (4) If in any one of the preceding three years, the total turnover of a dealer exceeds rupees five lakhs, he shall not be eligible to opt to pay tax under sub-section (1).
8. (5) Any dealer who is in arrears in the payment of tax to the Government and any dealer against whom proceedings are pending or action was taken under section 14
9. (4) of the Act, in any of the preceding three years, shall not be entitled to opt to pay tax under sub-section (1).
10. (6) The assessment of tax under sub-section
11. (1) shall be deemed to have been completed when the dealer files his return in such manner and with such particulars and proof as may be prescribed.
12. (7) If the return filed by a dealer under sub-section
13. (1) appears to be incorrect or incomplete, or the dealer has not paid in full the tax payable under sub-section (1), the authority prescribed shall cancel the option exercised and also the assessment that was deemed to have been completed under sub-section
14. (6) and proceed to assess the total turnover under section 14 of the Act. 14-D.
15. (1) Every dealer (other than a casual trader or a dealer who opted for payment of tax under section 14-C or agent of a non-resident dealer) whose total turnover in a year does not exceed rupees twenty five lakhs, in addition to the returns to be filed under section 13 shall within thirty days of the close of the year, submit to the assessing authority concerned a return of his total and net turnovers and tax due, thereon, at all places of his business in the preceding year, in such form and in such manner, as may be prescribed along with the tax due.
16. (2) Every such dealer liable to submit a return of self assessment under sub-section
17. (1) shall assess the correct amount of tax due on the turnover liable to tax: Provided that no dealer shall be eligible to assess tax under this section due for three years from the date of registration under this Act.
18. (3) Among the cases where the return is filed under sub-section
19. (1) the assessing authority shall take up assessment under section 14 in respect of the following cases, namely :-
    • (i) where the return filed by the dealer under sub-section
20. (1) does not appear to be correct and complete; or the dealer has not paid the tax due under sub-section
21. (1) in full; or
    • (ii) where the increase in net taxable turnover during assessment year is less than twenty five per cent over such turnover of the preceding year; or
    • (iii) where in any one of the preceding three years the total turnover of a dealer exceeds rupees twenty five lakhs; or
    • (iv) where a dealer is in arrears of tax to the Government; or
    • (v) where on inspection of the business premises of a dealer or otherwise there is reason to believe that the dealer has suppressed a part or whole of the turnover of his business or that the dealer is evading payment of tax; or
    • (vi) where in any one of the three preceding years, any proceedings are pending or action was taken under section 14
22. (4) or section 18 of the Act; or
    • (vii) where the dealer fails to furnish the details of usage of statutory forms like Way Bills, C-Forms, F-Forms, H-Forms and G-Forms during the relevant year.
23. (4) It shall be competent for the assessing authority to take up the returns filed by such number of dealers for assessment under section 14 as it may deem necessary for detailed scrutiny and verification.
24. (5) In all the cases where a return filed under sub-section
25. (1) is not taken up for assessment either under sub-section
26. (3) or sub-section (4), the return so filed shall be deemed to have been accepted and orders shall be passed in the manner prescribed.
27. (6) The provisions of sub-section
28. (4) of section 14 shall mutatis mutandis apply to the assessment under this section.