Compounded rate scheme for works contractors: section 6(2) filing requirement examined as mandatory or directory under Tamil Nadu VAT law.

Section 6(2) of the Tamil Nadu VAT Act, 2006 is examined on whether the option to pay tax under the compounded rate scheme for works contractors had to be exercised only along with the first monthly return, or whether that requirement was merely directory. The note identifies the decisive statutory condition as the dealer not making purchases or imports from outside the State, and states that this condition was satisfied. It also records that the dealer filed monthly returns in Form L under section 6 and that no prescribed form existed for exercising the option.

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Issues: Whether the requirement under section 6(2) of the Tamil Nadu Value Added Tax Act, 2006 to apply along with the first monthly return was mandatory or directory for availing tax under the compounded rate scheme for works contractors.

Analysis: The decisive statutory condition under section 6 was the absence of purchases or imports from outside the State, and that condition stood satisfied. The dealer had also filed monthly returns in Form 'L' under section 6, and there was no prescribed form for exercising the option. In that setting, the use of the expression

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