Download Arunachal Pradesh VAT FORM FF-05 Application for Withdrawal from Simplified Accounting Scheme As per Rule 11 of the Arunachal Pradesh Goods Tax Rules, 2005 Simplified Accounting Methods – General. (Section 17):
(1) Eligibility. In addition to the requirements in subsection (3) of section 17, a dealer shall only be eligible to use the accounting method set out in this section if –
(a) the dealer is registered under this Act;
(b) the dealer sells goods to people who buy them for private or domestic use or consumption;
(c) the proportion of the turnover of the retailer in respect of retail sales is greater than 50% of his total turnover; and
(d) the dealer sells on a regular basis goods which are dealt with in one of the Schedules to the Act and also goods which are dealt with under another Schedule to the Act. Provided that a Works Contractor would be eligible for the simplified method prescribed in sub-rule (10) of rule 12 even if he may not meet the criteria (b), (c) or (d).
(2) Time for making election. A person who satisfies the conditions in sub-rule (1), may elect to employ any one of the three Simplified Accounting Methods. The election may be made at the time of registration or at any time during the year, and –
(a) the election shall take effect from the beginning of the next tax period; and
(b) the retailer shall continue to apply that same Simplified Accounting Method for at least the next 12 months.
(3) Notice of making election. The making of the election to use a Simplified Accounting Method shall be notified to the Commissioner in FF-04.
(4) Cessation. An election to employ a Simplified Accounting Method shall cease to have effect from the start of the next tax period if the dealer ceases to be eligible to use any Simplified Accounting Method or if the dealer elects to cease applying the Simplified Accounting Method by notifying to the Commissioner in Form FF-05. Provided that, no election to discontinue applying the Simplified Accounting Method may be made in contravention of sub-rule (2)(b).
(5) Conditions on use of Simplified Accounting Methods. Notwithstanding anything in rule 12, a dealer may not use nor elect
to use –
(a) the Sample Method if the item (t – tc) in the formula in sub-rule (3) of rule 12 for the sample period is a negative number;
(b) the Stock Purchase Method if the dealer substantially processes or manufactures the goods its purchases for the purpose of re-sale;