Composition of Tax

Composition of Tax.—(1) Subject to such conditions as may be prescribed, the Commissioner may, if a dealer so elects, accept in lieu of the amount of tax payable by him under this Act, by way of composition, a lump sum amount at the rate of four per cent of his total amount of valuable consideration paid or payable to him for the execution of the works contract whether wholly or partly under the terms of the contract.

1. (2) Where in respect of sale price referable to any works contract whether involving both transfer of property in goods and labour and service, or involves only labour and service but the dealer is unable to produce accounts to the satisfaction of the assessing authority or, as the case may be, he does not maintain proper accounts of the actual value of labour and services, he shall, after giving the dealer a reasonable opportunity of being heard, calculate the lump sum amount at such rate as may be appropriate: Provided that where any deduction has been made by a contractor from the payments made to his sub-contractor in accordance with sub-section
2. (3) of section 7, the amounts so deducted shall be deducted from the amount on which composition is to be made under this sub-section.