COMPOSITION SCHEME

COMPOSITION SCHEME

6. LUMP SUM SCHEME IN RESPECT OF RETAILERS.

Applicability

A retailer is a dealer registered who sells goods exclusively within the State after purchasing them from VAT dealers or other retailers in the State or after purchasing them in the course of inter-State trade or commerce from outside the State.

A retailer, in whose case aggregate of purchases of taxable goods made, and value of goods received for sale, by him during the last year does not exceed Rs. 40,00,000, may, at any time, opt for payment of lump sum tax scheme.

Rates

Lump sum tax applicable shall be:

• Lump sum tax for a quarter shall be computed at the rate of 1% of the aggregate of purchases of taxable goods made from registered dealers in the State during the quarter. Subject to a minimum of Rs.900/- per month (or part thereof); plus
• Lump sum computed on the value of taxable goods purchased in the course of inter - State trade or commerce from outside the State during the quarter at the same rates as the rates of tax applicable if such goods were to be sold in the State:

Conditions/ Steps

• Application in form A (given below) to be made by retailer who is opting for this scheme of lump sum tax. A retailer who makes an application for registration may also exercise such option by making an application in form B(given below).

Application in form A Form of application under rule 52 of the Haryana Value Added Tax Rules, 2003 (For a dealer who is already registered under the Act) To, The Assessing Authority District ...................... I/We _______________ proprietor/partner/director/manager of M/s __________________ district _____________________ holding TIN .________________ opt for payment of lump sum in lieu of tax from the beginning of the year ___________________- in terms of the provisions of rules 46 and 52 of the Haryana Value Added Tax Rules, 2003. 2. The business concern is a retailer and deals in mainly following commodities:- 3. The aggregate of purchases made in the last year was about Rs_____ lakh. 4. The stock of goods, which have not been subjected to tax under the Act or the Act of 1973, is valued at Rs. _________, and that purchased in the course of inter-State trade or commerce from outside the State is valued at Rs. ________. (Give value of stock of such goods taxable at different rates of tax separately) Place:                                  Signature of the person making the application Date                                    Status

Application in form B Form of application under rule 52 of the Haryana Value Added Tax Rules, 2003 (For a dealer who is simultaneously making application for registration under the Act) To, The Assessing Authority District ________________ I/We____________________ proprietor/partner/director/manager of M/s ____________ district _____________ am/are applying for registration under the Act and opt for payment of lump sum in lieu of tax from the commencement of the business (date of becoming liable to pay tax) in terms of rules 46 and 52 of the Haryana Value Added Tax Rules, 2003. 2. The gross turnover of the business is likely to be Rs. __________ in a full year of operation. Place._____________ Signature of the person making the application. Date_____________ Status. _____________

• Retailer who deals in aerated water/drinks or medicines shall not be eligible to opt for payment of lump sum.
• The application made shall be, subject to the correctness of the information furnished therein. Application once approved would be allowed from the date of the application.
• The retailer whose application has been allowed shall furnish returns in Form VAT-R7 and shall pay lump sum at quarterly intervals within one month of the close of the quarter.
• However lump sum retailer shall, within 1 month of his application having been allowed, pay a lump sum on the value goods, not purchased in the State on payment of tax or received or brought from outside the State, held in stock by him on the date of application, calculated at the rate of tax applicable on sale of such goods in the State: Provided further that purchase value of goods for the purpose of computing lump sum shall be the invoiced price including all taxes and charges shown in the invoice.
• Lump sum retailer shall keep regular account of purchases made by him, separately in respect of exempted and taxable goods.
• Lump sum retailer shall not be required to keep account of sales but if he makes a sale of goods price whereof exceeds Rs. 10,000 or in case the purchaser requests for the goods to be invoiced, he shall issue a retail sale invoice to the purchaser and shall keep record of all such invoices.
• The lump sum retailer shall be authorised to make purchase of goods on declarations in Central form C from outside the State but he shall not be authorised to make use of declaration in Form F. He shall be required to make use of declarations in Form VAT-D3 for carrying goods. He shall declare the use of both declarations in Central form C and Form VAT-D3 in his returns.
• Lump continue to pay lump sum during that year and composition of tax in his case shall cease to sum retailer whose aggregate of value of taxable goods purchased in a year exceeds [1][forty lakh rupees] shall have effect only from 1st April next. Such retailer shall be entitled to claim the credit of input tax on the stock of goods in trade held by him at the close of 31st March subject to furnishing information relating to such goods held in stock with his return for the quarter ending 31st March.
• Goods and service tax the lump sum scheme is to be applied differently in case of various players.

General principles/ conditions of this scheme

• Lump sum tax payable shall be deemed to be tax for the purpose of application of provisions relating to assessment, use of declarations and maintenance of record relating thereto, levy of interest, imposition of penalties for offences committed under the Act, and recovery.
• Once an option to pay lump sum has been exercised it shall not be withdrawn until
• the rate of lump sum is revised; or
• the rate of tax on goods which the lump sum dealer deal in are revised
• and the lump sum dealer makes an application within 15 days of the date of the publication of the notification that he does not wish to pay lump sum at the revised rate [exception under rule 49]
• A lump sum dealer shall not issue a tax invoice as defined in section 2(1)(zl).
• The input tax in respect of goods purchased by any dealer from a lump sum dealer shall be nil.
• Notwithstanding anything contained in this Chapter, the State Government may at any time withdraw the facility of making payment of lump sum in lieu of tax from anyone or more or all classes of dealers.
• No Surcharge under section 7A shall be applicable in this case.

[1] Substituted for words “twenty five lakh rupees” vide S.O. 15/H.A.6/2003/S.60/2004 Dated 4.2.2004 w.e.f. 1.2.2004.

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