Section 14. Option for payment of lumpsum tax in lieu of tax on sales

(1) (a) Notwithstanding anything contained in this Act, the Commissioner may, in such circumstances and subject to such conditions as may be prescribed, permit any dealer,  whose total turnover has not exceeded  seventy- five lakhs in the previous year, to pay lump sum tax in lieu of the amount of tax payable under section 7 of this Act.

Provided that the Commissioner shall not grant permission to pay lump sum tax under sub-section (1) to a dealer who,-

(i) sells the goods in the course of inter- State trade and commerce or exports goods out of the territory of India,

(ii) purchases the goods in the course of inter-State trade and commerce or imports goods from a place out of the territory of India.

(iii) dispatches the goods to his branch or his consigning agent outside the State or receives the goods from his branch situate outside the State or from consigning agent outside the State.

(iv) engaged in the activity of the manufacture  other than such activity as State Government may, by order in writing specify.

(v) effects the sales or purchases through the commission agent,

(vi) effects the sales falling under sub-clause (b) or (d) of clause (23) of section 2, or

(vii) purchases goods from or sells goods to, the dealer who has been granted permission to pay lump sum tax under this section.";

Explanation.—For the purpose of permission under this clause, for the year commencing on the 1st April, 2006 and ending on the 31st March, 2007, the total turnover shall be calculated with reference to the Gujarat Sales Tax Act, 1969.”;

(b)The permission granted under clause (a) shall remain valid so long as the total turnover of the registered dealer does not exceed rupees seventy- five lakhs or the registered dealer does not undertake any of the activities mentioned in clauses (i) to (vii) of the proviso to clause (a). In case, where total turnover of a registered dealer exceeds rupees fifty lakhs or the registered dealer undertakes any of the aforesaid  activities during the course of the year, he shall be liable to pay tax under sections 7 and 9 for such tax period as may be prescribed for this purpose.

Explanation.--: For the purpose of permission under clause (a) for the year 2003-04 total taxable turnover shall be calculated with reference to the Gujarat Sales Tax Act, 1969.

(2) The State Government may, fix the rate of lump sum tax by notification in the Official Gazette.

(3) A dealer who is permitted under sub-section (1) to pay lump sum tax shall not,-

(a) be entitled to claim tax credit in respect of tax paid by him on his purchases

(b) charge any tax under this Act in his sales bill or sales invoice in respect of the sales on which lump sum tax is payable; and

(c) issue tax invoice to any dealer who has purchased the goods from him

(4) A dealer who is permitted under sub-section (1) to pay lump sum tax shall be liable to pay purchase tax leviable under sub-sections (1) and (3) of section 9, in addition to the lump sum tax under this section.