Rajasthan Government has, by Notification No. F.12(11) FD/Tax/2016-182 S.O. 251, dated 8-3-2016 (effective from 1-4-2016), amended Rajasthan Value Added Tax Rules, 2006. A new sub-rule (1A) has been inserted in Rule 17A which states that a developer or builder who as a works contractor, undertakes the construction of premises and transfers them along with goods and land or interest underlying the land in pursuance of an agreement, may opt for payment of tax in lump sum as per Section 5. An application in Form VAT-69A has to be filed electronically within thirty days from the commencement of the project and separate application has to be made for each project. An explanation has also been inserted in Rule 17 A (1A) to explain “Commencement of Project”.
Further, a new sub-rule (8A) has also been added in Rule 17A which states that a developer or builder shall not be allowed to opt out in respect of the project(s) for which an option has been exercised by him. However, the developer or builder who had opted for payment of tax in lump sum in lieu of tax prior to 1-4-2016 , may opt-out upto 30-4-2016, otherwise, the certificate for payment of tax in lump sum issued earlier shall remain in force for the projects already undertaken by him.