Provided that such registered dealer can again exercise such option for subsequent years also subject to satisfaction of terms and conditions laid down in this rule.

(2) A registered dealer opting to pay tax under sub-section (4) of section 18 for a year shall not -

(a) have any goods in stock which were brought from outside the State on the day he exercises his option to pay tax by way of composition and shall not use any goods brought from outside the State in the execution of works contract, after such date;

(b) be a dealer who has claimed input tax credit on stock in hand of goods, as on the date on which he opts to pay tax under sub-section (4) of section 18;

(c) be a dealer involved in transfer of property in goods in the execution of works contract in the course of inter-State trade or commerce; and

(d) be a dealer who despatches his goods otherwise than by way of sale to outside or within the state for execution of works contract.

(3) A registered dealer may, in exercise of his option under sub-section (4) of section 18, pay tax for a year at the compounded rate of 2% of the aggregate amount received or receivable in respect of such works contract in lieu of tax payable for such year on his taxable contractual transfer price at the rates specified under sub-section (1) of section 18 in respect of the year.

(5) If the concerned Additional Commissioner or the Deputy Commissioner, as the case may be, after making such enquiry as he deem necessary, is satisfied that the application is in order and fulfils conditions laid down in sub-section (4) of section 18, he shall grant permission within fifteen days from the date of receipt of such application to the applicant dealer for making payment at compounded rate for that year and inform. him in Form No. 17 accordingly.