Insection 53 of the Nagaland Value Added Tax Act 2005, after sub-section

3, the following shall be inserted, namely:- “(4) Notwithstanding anything contained in this Act, the Government may, by notification, publish in the official gazette and subject to such conditions and restrictions, if any, as may be specified theicin, permit any dealer liable to pay tax on sales effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, to pay, at his option in lieu of the amount of the tax payable by him under this Act, an amount by way of composition at the rate as may be specified in the said notification but not exceeding four per centum of the total contract value of the works contract.

1. (5) Notwithstanding anything contained in this Act, the Government may, by notification, publish in the official gazette and subject to such conditions and restrictions as may be specified therein, permit any class of dealer to pay in lieu of the tax payable under this Act, for any period, an amount linked with the production capacity or the extent of the business, or calculated at a fixed rate of gross receipts of business or such other thing, to be determined by the Government by way of composition, and to be paid at such intervals and in such manner as may be prescribed, and the Government for the purpose of this Act may, in respect of such class of dealers, prescribe a simplified system of maintenance of accounts and filing of returns which shall remain in force during the period of such composition.
2. (6) A dealer in whose case composition under this section is in force, shall not:-
   • (i) Beentitled to any claim of ITC in respect of the purchase of any goods by him in the State;
   • (i) Charge any tax on the invoices in respect of sales of goods made by him; and
   • (iii) Issue tax invoices to any dealer who has purchased to goods from him.”