Payment of tax at compounded rates

(1) Notwithstanding anything contained in sub-section (1) of section 5,— (i) every dealer (other than a dealer in cooked food including coffee, tea and like articles served in a hotel, restaurant or any other place) whose total turnover in a year is not less than ten thousand rupees but not more than twenty-five thousand rupees may, at his option instead of paying the tax in accordance with the provisions of that sub-section, pay tax at the following rates: (a) Where the total turnover is not less than ten thousand rupees but is less than fifteen thousand rupees: One per cent on the taxable turnover. (b) Where the total turnover is not less than fifteen thousand rupees but is not more than twenty-five thousand rupees: One and a half per cent on the taxable turnover. (ii) every dealer in cooked food including coffee, tea and like articles served in a hotel, restaurant, or any other place, whose total turnover in respect of such food is not less than twenty thousand rupees but is not more than fifty thousand rupees, may, at his option, instead of paying the tax in accordance with the provisions of that sub-section in respect of the turnover relating to such food, pay tax at the following rates: (a) Where the total turnover is not less than twenty thousand rupees but is less than twenty-five thousand rupees: Rs. 360 (b) Where the total turnover is not less than twenty-five thousand rupees but is less than thirty thousand rupees: Rs. 480 (c) Where the total turnover is not less than thirty thousand rupees but is less than forty thousand rupees: Rs. 600 (d) Where the total turnover is not less than forty thousand rupees but is not more than fifty thousand rupees: Rs. 720 (2) Any dealer whose estimated total turnover for a year is within the limits specified in clause (i) or clause (ii) of sub-section (1) may apply to the assessing authority to be permitted to pay the tax under this section and on being so permitted he shall pay the tax due in advance during the year in monthly or other prescribed instalments and for that purpose shall submit such returns and in such manner as may be prescribed. The application shall be submitted to the assessing authority within such time and in such manner as may be prescribed: Provided that the assessing authority may, for sufficient reasons, condone the delay in case of late application. (3) It shall be open to the assessing authority to reject any such application for permission for good and sufficient reasons to be recorded in writing after giving the dealer a reasonable opportunity of being heard. (4) Notwithstanding anything contained in clause (i) of sub-section (1), if under any of the other provisions of this Act the sale or purchase of any goods by a dealer is subject to tax only at a lower rate, the tax payable under the said sub-section on his turnover, in so far as the turnover or any part thereof relates to the sale or purchase of such goods, shall be calculated only at such lower rates. (5) Notwithstanding anything contained in clause (i) of sub-section (1),— (i) a dealer whose total turnover in a year relates only to goods specified in the First or Second Schedule or a casual trader or agent of a non-resident dealer shall not be entitled to exercise the option under the said clause; and (ii) a dealer whose turnover relates to the goods specified in the First or Second Schedule and also to goods other than those specified in the said Schedules shall be entitled to exercise the option under clause (i) of sub-section (1) only in respect of the turnover relating to the goods other than those specified in the First or Second Schedule, and in respect of the turnover relating to the goods specified in the First or Second Schedule, he shall be liable to pay the tax under section 5. (6) The tax paid under sub-section (2) shall be subject to such adjustments as may be prescribed on the completion of the final assessment in the manner prescribed.