(1)    Subject to the provisions of this section, there shall be charged, levied and paid turnover tax at the rate of two per cent of the taxable turnover by any manufacturer or producer and retailer who is making taxable supplies in the course or furtherance of any taxable activity carried on by him, provided that total turnover of that manufacturer or producer and that retailer does not exceed two and a half million rupees and five million rupees, respectively, in any period during the last twelve months:

Provided that the provisions of this section shall not apply to :-

(i)  a manufacturer or producer who is making zero rated supplies; and

(ii) a manufacturer or producer or retailer who is a limited company itself or is owned by a limited company:

Provided further that the Federal Government may, by notification in the Official Gazette, fix any amount of annual total turnover for the application of turnover tax under this rule.

Explanation.- For the purposes of this section, "taxable turnover" means the total value of all taxable supplies of goods other than goods taxable at the rate of zero per cent.

(2)    Any person who is liable to pay turnover tax under sub-section (1) shall apply for enrollment. The application for enrollment as turnover tax-payer shall be made to the Collector in such form and such manner as may be specified by the Board.

(3)    Notwithstanding the provisions of sub-section (1), a manufacturer or producer and a retailer whose taxable turnover does not exceed two and a half million rupees or five million rupees, respectively, may, after voluntary registration under section 18, opt for paying tax under section 3 instead of paying turnover tax under this section subject to the condition that he shall not there after be entitled to be deregistered until the expiry of two years from the date of such registration.

(4)    Subject to such modifications as the Board may specify, all provisions of this Act shall apply to the charge, levy, payment, collection and enforcement of the turnover tax, as if it were sales tax under section 3.