Amendment status not verified — confirm the current text below against the official source.
Compoundillg oftax liability in certain cases - (1) Nolwithstanding anything to the contrary contained in this AcL tl'le State Govemment may' by notificaiion andsubjectlo such conditions andiestdctioDs as may beprescribed' permitany c]assollegisleleddealelswhosegfosstumoveldoesnotexceedthelimitspecit.iedinthe notificaiion lo pay in licu offie lax payable by them. an amount calculated at such rate not excecdiog tbur'percent ofhis gross tlnnover as may be specified in the notil'lcadon issued in rfl. behi{[: Provideal that no such Pcrmission shall be granted to a manufacturer or a person who impo s any goods lrom any place outsidij the State for tl'le puryose ofhis businessl provided fufiher that rhe amount so specitied shall be in addition to any tax that may be payable by the dealer under section 10. (2) Dealers to whom the provisions ofsub-seclion (i) apply shall'- (a) nolcharge any tax or the saleofgoods specified in Schedule I (b) not charge in excess ollhe rates specified in the nolification issued under sub-section ( lJ' and (c) rotbeentitled to issuetax invoices in respectofsales effected by them (3) Ifreasonable groundsexists tobelieve thal the deal er was noteligible Lopaytax al afixedrate under sub-seclion (1), the assessing authority shall' withoutp'ejudlce to any action which is or may be taken under section 81, impose a pcnalty equivalent to three times the amount oftax arrived al after applying the rate specified under section l2 to the gross turnover ofthe dealer after deducting ti'le value ofsales ofgoods mentioned in Schedule I ofthat sectionl provided thatno orderunderthis sub-section shallbe passed without giving the dealer a rcasonable opportunity olbcing head. 1?. Compounding oftax liahility in c'se of Works Contract (l) Nolwithstanding anything conlained in sections 9' 11' 12 or 13' every contractor rcfened to in clause (xi) ofsection 2 may, subject to such restrictions and conditions and in such rnanner as may be prescribed' at his option, instead ofpaying tax in accoldance wjlh section 12 pay' 0n the totallalue ofeach ofthe works contnct executed by him, a lump sum tax' by way of 15 composition, attherateoftwo pelrentorat such rcte notexceeding litteen percent, as thc 5nte L,overnment mry. ltom trme tu l' nc. by rtutirii.rtion. spccrty: Provided that in case ofcancellation ofthe permission gLanted tbr payment 0f lumpsum tax by wlly ofcomposition, the provisions olsections 9. 10, 11 and 12 and rules made thereunder shall apply. A contr actor, exercising option under sub-sectio,1(1) shall, so long as the option remarns rn folce, not be required to maintain accounts ofhis business underthis Actorlhe rules made tliereunderexcept the records in original of the wor-ks contract, extent oftheirexeculion and payments received or receivable in rclation to sllch works conlract executed or under execution. The State Govefinentrnay plescribe thatevery person or any specif'1ed class ofpersons, making any payment 1o contaclor who has exercised option underthis section. shall deduct towards paymentoflump sum ta-r, by way ofcornposition at the prescribed late or mtes fuoln the contl actor on account ofthe works contracl executed by him and remit the amounts so deducted to the State Golernment. lfany personfailsto deductorhaving dedocledlails to remil tothe State Government widrin the prescdbed time, the amountdedlrctible under sub-section (l ) and sub-section (3), shall be liable tbrpenaity ofa sum notexceeding twice Lhe amount deductible. The amountdeductjble and actuallydeductcd under s ub-section (3) anclsub-sectiou (4) shdl be deemed to be a tax for the pu[ose ofthe Sikkim (Co]iection ot'Taxes and Prevenlion ot' Evasion of Payment of?rxes) Act, 1987 (7 of 19E7). The assessing authority may,1br the purpose olascertaining the deduction ol paymenl ol't.x ill appropriate manner and tbr evaluation thercof, rcqllire any contractor, including a conractor not registered under this Act, to produce before him any oftherclevani documents maintained by the contactorand or to fun]ish any jnfolmation connected with thc wor'ks executed by such conl.actor', subject to sub-section (2) ofthis sectlon, and the conractor shall comply with such requirementi. Subject as aforesaid, the relevant documents shall, at all reasonable times, be open to inspec t ion, search ard seizure, ifneed be, by the assessing authodty or any percon rppoirted lo assist him under sub-section (3, ol5ection J. E : i : !I (3) (6) (2) (4) (5) (7) t6