Government of Rajasthan
Commercial Taxes Department

No.F.16 (1174)VAT/Tax/CCT/2015-16/ 2950

Dated: 26 May, 2017

Clarification u/s 91(4) of the RV AT Act, 2003

The State Government has issued Composition Scheme for Gems and Stones, 2006 vide notification No. F.12(63)FD/Tax/2005-37 dated 06.05.2006, as amended from time to time. Further, vide notification No. F.12(14)FD/Tax/2017-86 dated 08.03.2017, the State Government has exempted from payment of tax payable by any dealer who has opted for payment of lump sum in lieu of tax under notification No. F.12(63)FD/Tax/2005-37 dated 06.05.2006, as amended from time to time and have failed to deposit the Composition amount, interest or late fee within the period specified under the said notification or the condition that such dealer has deposited exemption fee of rupees one thousand six hundred for every rupees two lac or part thereof of the turnover of the goods mentioned in the said notification along with an amount equal to the amount of interest leviable on the amount which has not been deposited in the manner and within the time prescribed under the said notification upto 31.05.2017.

Certain doubts have been raised regarding computation of exemption fee of rupees one thousand six hundred as mentioned in the notification dated 08-03-2017, for every rupees two lac or part thereof of the turnover of the goods mentioned in the notification dated 06-05-2006, should be calculated for the turnover of the whole year or for the turnover of the quarter, for which the default has been committed.

The issue has been examined and it is found that the computation of exemption fee shall be made on basis of the annual turnover of the goods mentioned in the notification dated 06-05-2006. Therefore, in exercise of the powers conferred under Section 91(4) of the RVAT Act, 2003, it is hereby clarified that the computation of exemption fee under notification numbers F.12(14)FD/Tax/2017-85 and No. F. 12(14)FD/Tax/2017-86, dated 08-03-2017, shall be calculated on the basis of the annual turnover of the goods. It is further clarified that where any amount has already been deposited by the dealer for the period for which he opted for exemption under the notification dated 08-03-2017, shall be adjusted against the amount of exemption fee to be deposited by the dealer.