THE DELHI VALUE ADDED TAX
ACT 2004
The Act has come in to force
with effect from 1st April 2005 vide notification No.
F.101(318)/2005-Fin (A/Cs)(i)/8581, dated 30th March 2005
As amended
by Delhi Value Added Tax (Amendment) Act 2005(1 of 2005) which came into effect
from 1st April 2005 vide notification No. F.101 (318)/2005-Fin
(A/Cs)(ii)/8592 dated 30th March 2005.
BE it
enacted by the Legislative Assembly of the National Capital Territory of Delhi
in the Fifty‑fifth Year of the
Sec.1.Short title, extent and commencement
(1) This
Act may be called the Delhi Value Added Tax Act, 2004.
(2) It
extends to the whole of the National Capital Territory of Delhi.
(3)
It shall come into force on such date as
the Government may, by notification in the official Gazette, appoint:
PROVIDED
that different dates may be appointed for different provisions of this Act and
any reference in any such provision to the commencement of this Act shall be
construed as a reference to the coming into force of that provision.
(1) In this Act, unless the context otherwise requires, ‑
(a) "Accountant" means
(i) a
chartered accountant within the meaning of the Chartered Accountant's Act, 1949
(Act 38 of 1949);
(b)
a person who by virtue of the provisions of sub‑section
(2) of section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be
appointed to act as an auditor of companies registered; or
(c)
a cost accountant within the meaning of the
cost and works accountant Act. 1959(23 of 1959)
(iv) a person referred to in
section 619 of the Companies Act, 1956 (1 of 1956);
(b) "Adequate
proof" means such documents, testimony or other evidence as may be
prescribed;
(c) "Appellate
Tribunal" means the Appellate Tribunal constituted under section 73 of
this Act;
(d) "Business" includes
(i) the
provision of such services, as may be prescribed (and excludes services provided
by an employee);
(ii) any trade, commerce or
manufacture;
(iii) any adventure or concern in
the nature of trade, commerce or manufacture;
(iv) any transaction in
connection with, or incidental or ancillary to, such trade, commerce,
manufacture, adventure or concern; and
(v) any occasional transaction
in the nature of such service, trade, commerce, manufacture, adventure or
concern whether or not there is volume, frequency, continuity or regularity of
such transaction;
Whether
or not such service, trade, commerce, manufacture, adventure or concern is
carried on with a motive to make gain or profit and whether or not any gain or
profit accrues from such service, trade, commerce, manufacture, adventure or
concern;
Explanation.‑For
the purpose of this clause
(i) any transaction of sale or
purchase of capital assets pertaining to such service, trade, commerce,
manufacture, adventure or concern shall be deemed to be business;
(ii) purchase
of any goods, the price of which is debited to the business and sale of any
goods, the proceeds of which are credited to the business shall be deemed to be
business;
(e) "business premises" means
(i) the address of a dealer,
registered with the Commissioner; and
(ii) any building or place used
by a person for the conduct of his business, except for those parts of the
building or place used principally as a residence;
(f) "Capital
goods" means plant, machinery
and equipment used in the process of trade or manufacturing;
(g) "casual trader"
means a person who, whether as principal, agent or in any other capacity
undertakes occasional transactions in the nature of business involving buying,
selling, supply or distribution of goods or conducting any exhibition‑cum‑sale
in Delhi whether for cash, deferred payment, commission, remuneration or other
valuable consideration;
(h) "Commissioner" means the Commissioner of Value Added Tax
appointed under sub‑section (1) of section 66 of this Act;
(i) "In the course
of" includes activities done for the purposes of, in connection with,
or incidental to and activities done as part of the preparation for the
activity and in the termination of, the activity;
(j) "Dealer"
means any person who carries on business in
(i) any person who, for the
purposes of or in connection with or incidental to or in the course of his
business buys, sells, goods directly or otherwise, whether for cash or for
deferred payment or for commission, remuneration or other valuable consideration;
(ii) any department of the
Central Government or a State Government, a local authority, Panchayat,
Municipality, Development Authority, Cantonment Board and each autonomous or
statutory body or an industrial, commercial, banking, insurance or trading
undertaking whether or not of the Central Government or any of the State
Governments or of a local authority, if it buys, sells, supplies or distributes
goods, in the course of specified activities which may be prescribed from time
to time;
(iii) a factor, commission agent,
broker, del credere agent, or any
other mercantile agent by whatever name called, who carries on the business of
buying, selling, supplying or distributing goods on behalf of any principal,
whether disclosed or not;
(iv) an agent of a non‑resident
(where such non‑resident is a dealer under any other sub‑clause of
this definition);
(v) a local branch of a firm or
company or association of persons, outside
(vi) a club, association,
society, trust, or cooperative society, whether incorporated or unincorporated,
which buys goods from or sells goods to its members for price, fee or
subscription, whether or not in the course of business;
(vii) an auctioneer, who sells or
auctions goods belonging to any principal, whether disclosed or not and whether
the offer of the intending purchaser is accepted by him or by the principal or
a nominee of the principal;
(viii) a casual trader; or
(ix) any person who, for the
purposes of or in connection with or incidental to or in the course of his
business disposes of any goods as unclaimed or confiscated, or unserviceable or
scrap, surplus, old, obsolete or as discarded material or waste products by way
of sale;
(k) "
(l) "fair market value" means the value at which goods of
like kind and quality are sold or would be sold in the same quantities between
unrelated parties in the open market in Delhi;
(m) "Goods"
means every kind of moveable property (other than newspapers, actionable
claims, stocks, shares and securities) and includes
(i) livestock, all materials,
commodities, grass or things attached to or forming part of the earth which are
agreed to be severed before sale or under a contract of sale; and
(ii) property in goods (whether as
goods or in some other form) involved in the execution of a works contract,
lease or hire‑purchase or those to be used in the fitting out, improvement
or repair of movable property;
(n) "Goods vehicle"
means a motor vehicle, vessel, boat, animal and any other form of conveyance
used for carrying goods;
(o) "Government"
means the Lieutenant Governor of the National Capital Territory of Delhi
appointed by the President under article 239 and designated as such under
article 239AA of the Constitution;
(p) "Import of goods into
Explanation.‑ In the case of goods arriving in
(q) "Importer" means ‑
(i) a person who brings his own
goods into
(ii) a person on whose behalf
another person brings goods into
(iii) in the case of a sale
occurring in the circumstances referred to in sub‑section 2 of section 6
of the Central Sales Tax Act, 1956 (74 of 1956), the person in Delhi to whom
the goods are delivered;
(r) "Input tax"
in relation to the purchase of goods, means the proportion of the price paid by
the buyer for the goods which represents tax for which the selling dealer is
liable under this Act;
(ra) “Manufacture” with
its grammatical variations and cognate expression, means producing. Making,
extracting, Altering, ornamenting, finishing or otherwise processing, treating
or adapting any goods, but does not include any such process or mode of
manufacture as maybe prescribed
(s) "Net tax" means the amount
calculated for a tax period under section I I of this Act;
(t) "Non‑creditable
goods" means the goods
listed in the Seventh Schedule;
(v) "Non‑resident" means a
person who has no fixed place of business or residence in
(w) "Notified"
means notified by the Commissioner in the official Gazette;
(x) "Official
Gazette" means the Delhi Gazette;
(y) "Prescribed"
means prescribed by rules made under this Act;
(z) "Registered dealer" means a
dealer registered under this Act;
(za) a person is "related" to another person (refer‑red to in this
definition as a "dealer") if the person
(i) is a relative of the dealer;
(ii) is a partnership of which
the dealer is a partner;
(iii) is a company in which the
dealer (either alone or in conjunction with another person who is, or persons
who are, related to the dealer under another sub‑clause of this clause)
directly or indirectly holds forty per cent or more of outstanding voting stock
or shares;
(iv) is a person who (either
alone or in conjunction with another person who is, or other persons who are,
related to the person under another sub‑clause of this clause) directly or
indirectly owns forty per cent or more of outstanding voting stock or shares of
the dealer;
(v) is a company in which forty
per cent or more of outstanding voting stock is held directly or indirectly by
a person (either alone or in conjunction with another person who is, or other
persons who are, related to the person under another sub‑clause of this
clause) who also holds forty per cent or more of the outstanding voting stock
or shares of the dealer; or
(vi) is controlled by the
dealer, a person whom the dealer controls, or is a person who is controlled by
the same person who controls the dealer;
(zb) "relative" means a relative as defined in clause 41 of
section 2 of the Companies Act, 1956 (lof 1956);
(zc) "sale" with
its grammatical variations and cognate expression means any transfer of
property in goods by one person to another for cash or for deferred payment or
for other valuable consideration (not including a grant or subvention payment
made by one government agency or department, whether of the central government
or of any state government, to another) and includes
(i) a transfer of goods on hire
purchase or other system of payment by installments, but does not include a
mortgage or hypothecation of or a charge or pledge on goods;
(ii) supply of goods by a
society (including a co‑operative society), club, firm, or any
association to its members for cash or for deferred payment or for commission,
remuneration or other valuable consideration, whether or not in the course of
business;
(iii) transfer of property in
goods by an auctioneer referred to in sub-clause (vii) of clause (j) of this section, or sale of goods in the course of
any other activity in the nature of banking, insurance who in the course of
their main activity also sell goods repossessed or re‑claimed;
(iv) transfer, otherwise than in
pursuance of a contract, of property in any goods for cash, deferred payment or
other valuable consideration;
(v) transfer of property in
goods (whether as goods or in some other form) involved in the execution of a
works contract;
(vi) transfer of the right to
use any goods for any purpose (whether or not for a specified period) for cash,
deferred payment or other valuable consideration;
(vii) supply, by way of or as
part. of any service or in any other manner whatsoever, of goods, being food or
any other article for human consumption or any drink (whether or not
intoxicating), where such supply or service is for cash, deferred payment or
other valuable consideration;
(viii) every disposal of goods
referred to in sub‑clause (ix) of clause 0) of this section and the words
"sell", buy" and "purchase" wherever appearing with
all their grammatical variations and cognate expressions, shall be construed
accordingly;
(zd) "sale
price" means the amount paid or payable as valuable consideration for
any sale, including
(i) The amount of tax, if any,
for which the dealer is liable under section 3 of this Act;
(ii) In relation to the delivery
of goods on hire purchase or any system of payment by installments, the amount
of valuable consideration payable to a person for such delivery including hire
charges, interest and other charges incidental to such transaction;
(iii) In relation to transfer of
the right to use any goods for any purpose (whether or not for a specified
period) the valuable consideration or hiring charges received or receivable for
such transfer;
(iv) Any sum charged for
anything done by the dealer in respect of goods at the time of, or before, the
delivery thereof,
(v) Amount of duties levied or
leviable on the goods under the Central Excise Act, 1944 (1 of 1944) or the
Customs Act, 1962 (52 of 1962), or the Punjab Excise Act, 1914 (1 of 1914) as
extended to the National Capital Territory of Delhi whether such duties are
payable by the seller or any other person; and
(vi) Amount received or
receivable by the seller by way of deposit (whether refundable or not) which
has been received or is receivable whether by way of separate agreement or not,
in connection with, or incidental to or ancillary to the sale of goods;
(vii) In relation to works
contract means the amount of valuable consideration paid or payable to a dealer
for the execution of the works contract; less ‑
(a) Any sum allowed as discount
which goes to reduce the sale price according to the practice, normally,
prevailing in trade;
(b) the cost of freight or
delivery or the cost of installation in cases where such cost is separately
charged; and the words "purchase price" with all their grammatical variations
and cognate expressions, shall be construed accordingly;
Explanation.‑ A
dealer's sale price always includes the tax payable by it on making the sale,
if any;
(ze) "Schedule" means a Schedule
appended to this Act;
(zf) "Tax"
means tax payable under this Act;
(zg) "Taxable quantum" means the
amount defined in sub‑section (2) of section 18;
(zh) "Tax invoice" means the
document defined in section 50 of this Act;
(zi) "Tax period" means the
period prescribed in the rules made under this Act;
(zj) "Tax
fraction" means the fraction calculated in accordance with formula,
r / (r+100)
Where
r is the percentage rate of tax applicable to the sale under this Act;
(zk) "Transporter" means any person who, for the purposes of
or in connection with or incidental to or in the course of his business
transports or causes to transport goods, and includes any person whose business
consists of or includes operating a railway, shipping company, air cargo
terminal, inland container depot, container freight station, courier service or
airline;
(zl) "Turnover of
purchases" means the aggregate of the amounts of purchase price paid
or payable by a person in any tax period, including any input tax;
(zm) "Turnover"
means the aggregate of the amounts of sale price received or receivable by the
person in any tax period, reduced by any tax for which the person is liable
under section 3 of this Act;'
(zn) "Value of goods"
means the fair market value of the goods at that time including insurance charges,
excise duties, countervailing duties, tax paid or payable under the Central
Sales Tax Act, 1956 (74 of 1956) in respect of the sale, transport charges,
freight charges and all other charges incidental to the transaction of the
goods;
(zo) "Works contract"
includes any agreement for carrying out for cash or for deferred payment or for
valuable consideration, the building construction, manufacture, processing,
fabrication, erection, installation, fitting out, improvement, repair or
commissioning of any moveable or immovable property;
(zp) "Year" means the financial
year from the first day of April to the last day of March;
(2) Unless otherwise specified in this Act
(a) Words importing the
masculine gender shall include the feminine gender;
(b) Words in singular shall
include their plural and vice versa;
(c) expressions referring to
"writing" shall include printing, typing, lithography, photography
and other methods of representing or reproducing words in a visible form; and
(d) With reference to a person
who is unable to sign his name, the words "signature" shall include
his thumb impression or other mark duly attested to signify his signature.
IMPOSITION
OF TAX
(1) Subject to other provisions of this Act, every dealer who is
(a) registered under this Act; or
(b) required
to be registered under this Act; shall be liable to pay tax calculated in
accordance with this Act, at the
time and in the manner provided in this Act.
(2) Every dealer shall be liable to pay tax on
every sale of goods effected by him
(a) while he is a registered dealer under this Act;
or
(b) on and from the day on which he was required to
be registered under this Act.
Explanation.‑ For the purpose of clause (b)
above, the liability to pay tax shall be on the sales effected after he exceeds
the taxable quantum.
(3) The amount of tax payable
under this Act by a person in respect of the sale of any goods, is the person's
net tax for the tax period calculated under section II of this Act.
(4) The net tax of a dealer shall be paid within
Twenty Eight days of the conclusion of the dealer's tax period.
Explanation.‑The net tax of a
dealer (which is the dealer's tax reduced by tax credits and with adjustments)
shall be paid at the same time as prescribed for furnishing a return, but the
obligation to pay arises by virtue of this provision and is not dependent on
furnishing a return, nor on the issue of a notice of assessment to the dealer.
(8)
Tax shall be paid in the manner specified in
section 36 of this Act.
(6) Every dealer who has become
liable to pay tax under this Act on the sale of goods shall continue to be so
liable unless his taxable turnover during the preceding twelve months (and such
further period as may be prescribed) has remained below the taxable quantum and
on the expiry of the twelve months or such further period his liability to pay
tax shall cease:
PROVIDED
that any dealer whose liability to pay tax under this Act ceases for any other
reason may apply earlier for the cancellation of his registration, and on such
cancellation, his liability to pay tax shall cease:
PROVIDED
FURTHER that a dealer shall remain liable to pay tax until the date on which
his registration is cancelled.
(7) Every dealer whose liability
to pay tax under this Act has ceased or whose registration has been cancelled,
shall, if his turnover calculated from the commencement of any year, including
the year in which the registration has been cancelled, again exceeds the
taxable quantum on any day within such year be liable to pay such tax on and
from the date on which his turnover again exceeds the taxable quantum, on all
sales effected by him on and after that day.
(8) Where it is found that any
person registered as a dealer ought not to have been so registered, then
notwithstanding anything contained in this Act, such person shall be liable to
pay tax for the period during which he was registered.
(9) If any person who transports
goods or holds goods in custody for delivery to or on behalf of any person, on
being required by the Commissioner so to do, fails
(a) to furnish any information
in his possession in respect of the goods; or
(b) fails to permit inspection
thereof, then without prejudice to any other action which may be taken against
such person, a presumption may be raised that the goods in respect of which he
has failed to furnish information or permit inspection, are owned by him and
are held by him for sale in Delhi and the provisions of this Act shall apply
accordingly.
(1) The rates of tax payable on the taxable turnover of a dealer shall
be
(a) in respect of goods specified in the Second
Schedule, at the rate of one paisa in the rupee;
(b) in respect of goods specified in the Third
Schedule, at the rate of four paise in the rupee;
(c) in respect of goods specified in the Fourth
Schedule, at the rate of twenty paise in the rupee; and
(d) in respect of the goods
involve in the execution of the works contract, at the rate of twelve and a
half paise in the rupee:
(1)
in the case of any other goods, at the rate of
twelve and a half paise in the rupee:
PROVIDED
that the rate of tax on packing materials or containers shall be the same as
the rate at which the goods sold are chargeable to tax.
(2) The Government may, if it
deems necessary, reduce the rates of tax as specified in sub‑section (1),
by a notification to that effect in the official Gazette.
(1) For the purposes of this
Act, taxable turnover means that part of dealer's turnover arising during the
tax period which remains after deducting there from -
(a) the turnover of sales not subject to tax under section 7 of this
Act; and
(b) the turnover of sales of goods declared exempt under section 6 of
this Act.
(2) In the case of turnover
arising from the execution of a works contract, the amount included in taxable
turnover is so much of the dealer's turnover from the works contract as
represents the charges towards goods, subject to such conditions as may be
prescribed:
PROVIDED
that where the amount of charges towards goods in such contract is not
ascertainable from the terms and conditions of the contract, the amount of such
charges shall be calculated as the sale price stipulated in the contract
reduced by the prescribed percentage.
(1) The sale of goods listed in
the First Schedule shall be exempt from tax subject to the conditions and
exceptions set out therein.
(2) The dealers or class of
dealers specified in the Fifth Schedule shall be exempt from payment of tax on
all sales of goods effected by them subject to such conditions as may be
prescribed.
(3) Where a dealer sells capital
goods which he has used since the time of purchase exclusively for purposes
other than making non‑taxed sale of goods, and has not claimed a tax
credit in respect of such capital goods under section 9, the sale of such
capital goods shall be exempt from tax.
Sec. 7. Certain Sales not Liable to
Tax
Nothing
contained in this Act or the rules made thereunder shall be deemed to impose or
authorise the imposition of tax on any sale of goods when such sale takes place
(a) in the course of inter‑state trade or commerce; or
(b) Outside
(c) in the course of import of the goods into or
export of the goods out of, the
Explanation.
‑Sections
3, 4 and 5 of the Central Sales Tax Act, 1956 (74 of 1956) shall apply for determining
whether or not a particular sale takes place in the manner indicated in clause
(a), clause (b) or clause (c) of this section.
(1) This section shall apply where, in relation to
the sale of goods by any dealer
(a) that sale has been cancelled;
(b) the nature of that sale has been fundamentally
varied or altered;
(c) the previously agreed
consideration for that sale has been altered by agreement with the recipient,
whether due to the offer of a discount or for any other reason;
(d) the goods or part of the
goods sold have been returned to the dealer; or
(e) the whole or part of the
price owed by the buyer for the purchase of the goods has been written‑off
by the dealer as a bad debt;and the dealer has –
(i) provided a tax invoice in relation to that sale
and the amount shown therein as tax charged on that sale is not the tax
properly chargeable on that sale; or
(ii) furnished a return in
relation to a tax period in respect of which tax on that sale is attributable,
and has accounted for an amount of tax on that sale that is not the amount
properly chargeable on that sale.
(2) Where a dealer has accounted
for an incorrect amount of tax as contemplated in sub‑section (1), that dealer
shall make an adjustment in calculating the tax payable by that dealer in the
return for the tax period during which it has become apparent that the tax is
incorrect, and if
(a) The
tax payable in relation to that sale exceeds the tax actually accounted for by
the dealer, the amount of that excess shall be deemed to arise in the tax
period in which the adjustment is made, and shall not be attributable to any
prior tax period; or
(b) the tax actually accounted
for exceeds the tax payable in relation to the sale, the amount of that
deficiency shall be subtracted from the tax payable by the dealer in the tax
period in which the adjustment is made, and shall not be attributable to any
prior tax period.
(3) Where a dealer sells goods that have been used in part for making
(a) sales that are subject to tax under this Act or
sales that are not liable to tax under section 7; and
(b) partly for other purposes, the amount of tax on
the sale of the goods shall be the greater of ‑
(i) A ‑ (A * B / C); or
(ii) A ‑ B;
Where
A = the tax for which the dealer would be liable
in respect of the sale apart from this section;
B = the amount by which the tax credit of the
dealer in respect of the goods was reduced under subsection (4) of section 9;
C = the amount of the tax credit before reduction
under subsection (4) of section 9.
(1) Subject to sub‑section
(2) of this section, a dealer who is registered or is required to be registered
under this Act shall be entitled to a tax credit in respect of the turnover of
purchases occurring during the tax period where the purchase arises in the
course of his activities as a dealer and the goods are to be used directly or
indirectly by him for the purpose of making
(a) sales which are liable to tax under section 3 of this Act; and
(b) sales which are not liable to tax under section 7 of this Act.
Explanation.‑Sales which are not
liable to tax under section 7 of this Act involve exports from
(2) No tax credit shall be allowed
(a) in the case of the purchase
of goods for goods purchased from a person who is not a registered dealer;
(b) for the purchase of non‑creditable
goods;
(c) for the purchase of goods
which are to be incorporated into the structure of a building owned or occupied
by the person;
Explanation.‑This
sub‑section does not prevent a tax credit arising for goods and building
materials that are purchased either for the purpose of re‑sale in an
unmodified form, or for the performance of a works contract on a building owned
or occupied by another;
(d) for goods purchased from a
dealer who has elected to pay tax under section 16 of this Act;
(10)
for goods purchased from a casual trader
(11)
to the dealers or class of dealers specified in
the Fifth Schedule.
(3) The amount of the tax credit
to which a dealer is entitled in respect of the purchase of goods shall be the
amount of input tax arising in the tax period reduced in the manner described
in sub‑sections (4) and (6)
(4) Where a dealer has purchased
goods and the goods are to be used partly for the purpose of making the sales
referred to in sub‑section (1) of this section and partly for other
purposes, the amount of the tax credit shall be reduced proportionately.
(5) The method used by a dealer
to determine the extent to which the goods are used in the manner specified in
sub‑section (4) of this section, shall be fair and reasonable in the
circumstances:
PROVIDED that the
Commissioner may
(a) after giving reasons in
writing, reject the method adopted by the dealer and calculate the amount of
tax credit; and
(b) prescribe methods for
calculating the amount of tax credit or the amount of any adjustment or
reduction of a tax credit in certain instances.
Explanation.‑A person may object in
the manner referred to in section 74 of this Act to a decision of the
Commissioner to reject a method of
calculating a tax credit.
(6) Where ‑
(a) a dealer has purchased goods
(other than capital goods) for which a tax credit arises under sub‑section
(1) of this section;
(b) the goods or goods
manufactured out of such goods are to be exported from
(i) non‑resident consignment agent; or
(ii) non‑resident branch of the dealer; and
(c) the transfer will not be by
way of a sale made in
(7) For the removal of doubt, no tax credit shall be allowed for
(a) the purchase of goods from
an unregistered dealer;
(b) the purchase of goods which
are used exclusively for the manufacture, processing or packing of goods
specified in the First Schedule.
(1)
The tax credit may be claimed by a dealer only
if he holds a tax invoice at the time the prescribed return for the tax period
is famished.
(2)
(a) notwithstanding anything contained to the
contrary in sub section (1) and (3) and subject to sub section (2) tax credit
in respect of capital goods shall be allowed as follows:-
1.
1/3rd of the input tax on such
capital goods arising in the tax period, in the same tax period
2.
balance 2/3rd of such input tax, in
equal proportions in two immediately successive financial year:
PROVIDED
that, where the dealer sells such capital goods, the dealer shall be allowed as
tax credit, the balance amount of the input tax, if any respect of such capital
goods as has not been earlier availed as tax credit, such tax credit shall be
allowed in the tax period in which such capital goods are sold and only after
adjusting the out put tax payable by him:
PROVIDED
that where the dealer export from
PROVIDED
also that no tax credit in respect of capital goods shall be allowed if such
capital goods are used exclusively for the purpose of making sale of exempted
goods specified in the first schedule:
PROVIDED
ALSO that no tax credit in respect of capital goods shall be allowed on that
part of the value of such capital goods which represent the amount of input tax
on such capital goods’ which the dealer claims as depreciation under section 32
of the income tax Act, 1961 (43 of 1961)
(b) if any capital goods in respect of which tax credit is allowed
under clause (a) of this sub-section in transferred to any other person
otherwise than by sale at the fair market value before the expiry of period of
five years from the date of purchase, the tax credit claimed in respect of such
purchase shall be reduced in the tax period during which such transfer takes
place.
Sec. 10. Adjustment to Tax Credit
(1) Where any purchaser has been
issued with a credit note or debit note in terms of section 51 of this Act or
if he returns or rejects goods purchased, as a consequence of which the tax
credit claimed by him in any tax period in respect of which the purchase of
goods relates, becomes short or excess, he shall compensate such short or
excess by adjusting the amount of the tax credit allowed to him in respect of
the tax period in which the credit note or debit note has been issued or goods
are returned.
(2) If goods which have been
purchased were ntended to be used for the purposes specified under sub‑section
(1) of section 9 of this Act and are subsequently used, fully or partly, for
purposes other than those specified under the said sub‑section; or
(b) intended for purposes other
than those specified under sub‑section (1) of said section 9, and are
subsequently used, fully or partly, for the purposes specified in the said sub‑section; the tax credit claimed in respect
of such purchase shall be reduced or increased (as the case may be) for the tax
period during which the said utilization otherwise has taken place.
(1)
Where
(a) goods were purchased by a
dealer;
(b) the dealer claimed a tax
credit in respect of the goods, and did not reduce the tax credit by the
prescribed percentage; and
(c) the goods are exported from
(4) If goods which have been purchased by a dealer were
(a) intended to be used for the
purposes specified under sub‑section (1) of section 9 of this Act; and
(b) are subsequently
incorporated into the structure of a building owned or occupied by the person; the tax credit claimed in respect of
such purchase shall be reduced in the tax period during which such
incorporation takes place.
(1) The net tax payable by a dealer for a tax
period shall be determined by the formula:
Net Tax = 0 ‑ I ‑
C
where
O = the
amount of tax payable by the person at the rates stipulated in section 4 of
this Act in respect of the taxable turnover arising in the tax period, adjusted
to take into account any adjustments to the tax payable required by section 8
of this Act.
I = the amount of the tax credit arising in the tax
period to which the person is entitled under section 9 of this Act, adjusted to
take into account any adjustments to the tax credit required by section 10 of
this Act.
C = the
amount, if any, brought forward from the previous tax period under sub‑section
(2) of this section.
(2) Where the net tax of a
dealer calculated under sub‑section (1) of this section amounts to a
negative value, the dealer shall
(a) adjust the said amount in
the same tax period against the tax payable by him under the Central Sales Tax
Act, 1956 (74 of 1956), if any; and
(b) be entitled to claim a
refund of any surplus amount and the Commissioner shall deal with the refund
claim in the manner described in section 38 and section 39 of this Act.
Explanation.‑The
dealer may elect to adjust the refund as a tax credit in the next tax period.
Sec. 12. Time at which Turnover, Turnover of
Purchases and Adjustments Arise
(1) Subject to sub‑sections
(2), (3) and (4) of this section, the amount of the turnover and the turnover
of purchases of a dealer which arises during any tax period shall be the amount
recorded in the accounts of the dealer where those accounts are regularly and
systematically prepared and maintained, give a true and fair view of his
dealings, and are employed by the dealer in determining the turnover of the
dealer's business for commercial or income tax purposes.
(2) The Commissioner may by notification
(a) permit certain classes of dealer to record
turnover based on amounts paid or received; and
(b) require certain classes of dealer to record
turnover based on amounts payable or receivable.
(3) Where a dealer wishes to
change the method of determining the turnover and turnover of purchases, he may
only make the change with the consent of the Commissioner and on such terms and
conditions as the Commissioner may impose.
(4) The Government may prescribe
the time at which a dealer shall treat the
(a) turnover;
(b) turnover of purchases; and
(c) adjustment of tax or adjustment to a tax credit; as arising for a
class of transactions
Where
a provision in this Chapter is inconsistent with a provision in Chapter 11, the
provision in this Chapter shall, to the extent of the inconsistency, prevail.
(1) Within a period of four
months of the commencement of this Act, all registered dealers wishing to claim
the credit referred to in sub‑section (2) of this section, shall furnish
to the Commissioner a statement of their trading stock, raw materials and
packaging materials for trading stock (in this section referred to as
"opening stock") which
(a) is held in
(b) was purchased by the dealer after the first day
of April 2004; in such form as may be prescribed.
(2) If ‑
(a) the dealer has furnished the
statement referred to in sub‑section (1) of this section;
(b) the opening stock has home
tax under the Delhi Sales Tax Act, 1975 (43 of 1975) at the point specified by
the Government under section 5 of the said Act; and
(c) the opening stock has been
purchased by the dealer from a registered dealer for such purposes as are
specified in sub‑section (1) of section 9 of this Act, the amount of tax
home under the Delhi Sales Tax Act, 1975 (43 of 1975) on such opening stock,
determined in such manner and subject to such conditions and restrictions and
up to the extent as may be prescribed, shall be credited to the registered
dealer as a tax credit under section 9 of this Act:
PROVIDED that no tax
credit under this section shall be allowed unless the dealer has in his
possession, invoices issued by a dealer registered under the Delhi Sales Tax
Act, 1975 (43 of 1975) in respect of the purchases of the said goods:
PROVIDED FURTHER that the
dealer shall claim the entire amount of credit to which he is entitled in a single
statement, which accompanies a return furnished under this Act.
(3) For the avoidance of doubt, no tax credit
under sub‑section (2) of this section can be claimed
(a) for finished goods
manufactured out of tax paid raw material or capital goods;
(b) for any goods that were
taxable at last point under the Delhi Sales Tax Act, 1975 (43 of 1975) held at
the time of the commencement of this Act;
(c) in a statement furnished
more than four months after the commencement of this Act; or
(d) for opening stock which is
held outside
(4) Every
dealer wishing to claim a tax credit for opening stock in excess of one lakh
rupees shall furnish with the statement a certificate signed by an accountant
in the prescribed form certifying that the net credit claim made is true and
correct.
(5) Notwithstanding section 3, if
(a) a person was registered as a
dealer under the Delhi Sales Tax Act, 1975 (43 of 1975);
(b) the person is not registered
as a dealer under this Act pursuant to section 24, and the person has not
applied to be registered as a dealer within one month of the date of the
commencement of this Act; and
(c) on the date of the
commencement of this Act, the dealer held opening stock of finished goods which
had not home tax under the Delhi Sales Tax Act, 1975 (43 of 1975); the person
shall be liable to pay tax under this
Act at the rates specified in
section 4 of this Act on the fair market value of the opening stock and
finished goods held on the date of the commencement of this Act.
(6) The tax due under sub‑section (5) of
this section shall be paid within two months of the commencement of this Act.
(1) This section applies where
(a) a registered dealer sells second‑hand
goods;
(b) the registered dealer has purchased goods from
a resident seller who was not registered under this Act;
(c) the
goods were purchased either as trading stock for re‑sale in an unmodified
form, or as raw materials for
incorporation or division into trading stock;
(d) the registered dealer will
be liable to tax under section 3 of this Act on the sale of the goods or the
goods into which they were incorporated, as the case may be; and
(e) the registered dealer has adequate proof of the
amount paid for the goods.
(2) In the circumstances
mentioned in subsection (1), the registered dealer will be entitled to a tax
credit for the purposes of section 9 of this Act of the least of
(a) the input tax borne by the resident seller when
he purchased the goods;
(b) the tax fraction of the original cost of the
goods to the resident seller;
(c) the tax fraction of the fair market value of
the goods at the time of their purchase by the registered dealer; or
(d) the tax fraction of the consideration paid by the
registered dealer for the goods.
(3) Where the amount paid by the
registered dealer for the goods exceeds two thousand rupees, the tax credit
shall be allowed in the tax period when the goods are sold by the registered
dealer or the goods into which they have been incorporated are sold by the
registered dealer.
48
Notwithstanding anything contained in
this Act, every dealer whose
(a) turnover in the year preceding the
commencement of this Act; or
(b) turnover
in the current year, exceeds the taxable quantum under this Act, but does not
exceed twenty five lakh rupees or such other amount as may be specified by the
Government by notification in the official Gazette, shall have an option to pay
tax under this section:
PROVIDED
that this section shall not apply to dealers procuring goods from any place
outside Delhi or selling or supplying goods to any place outside Delhi at any
time during the year in which he opts to pay tax under this section or if he is
registered under the Central Sales Tax Act, 1956 (74 of 1956).
(2) At the time of making
application for registration under section 19 of this Act, the dealer covered
under subsection (1) shall be required to specify if he intends to pay tax under
this section:
PROVIDED that once the
dealer chooses to pay tax under this section, the option may be reversed only
after the end of the year for which the option is made, by application to the Commissioner
within such time and in such manner as may be prescribed:
PROVIDED FURTHER that
where a dealer chooses to reverse his option to pay tax under this section, be
shall be eligible to claim credit of the tax paid under this Act on the trading
stock, raw material and packaging material held by him in Delhi on the date
when such reversal takes effect subject to the conditions contained in section
20 of this Act in so far as they are applicable.
(3) In case a person who intends to pay tax under this section
(a) who is registered under the
Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract
Act, 1999 (Delhi Act 9 of 1999), at the time of the commencement of this Act;
and
(b) whose turnover in the year
preceding the commencement of this Act exceeds the taxable quantum under this
Act but does not exceed twenty five lakh rupees or such other amount as may be
specified by the Government by notification in the official Gazette, he shall
be required to specify the intention to pay tax under this section within such
time and in such manner as may be prescribed.
(4) Where a dealer chooses to
pay tax under this section, the dealer's net tax shall be the amount determined
at the rate of one paisa in the rupee of the turnover of the dealer.
(5) A dealer who elects to pay tax under this
section shall
(a) not purchase goods from a person who is not
registered under this Act
(b) not compute his net tax under section I I of
this Act;
(c) not be allowed to claim credit under section 9,
section 14 and section 15 of this Act;
(d) not be entitled to issue tax invoice;
(1)
not be allowed to collect any amount by way of
tax under this Act; and
(2) continue to retain tax invoices and retail
invoices for all of his purchases as required under section 48 of this Act.
(6) In case a person
(a) who is registered under the Delhi Sales Tax Act, 1975 (43 of 1975)
or the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999), at
the time of the commencement of this Act;
(b) whose turnover in the year preceding the commencement of this Act
exceeds the taxable quantum under this Act but does not exceed twenty five lakh
rupees or such other amount as may be specified by the Government by
notification in the official Gazette; and
(c) who has opted to pay tax
under this section in terms of sub‑section (3) of this section, he shall
be required to pay tax on the trading stock, raw material, packaging material
(in this sub‑section referred to as "opening stock") and
finished goods held on the date of the commencement of this Act at the rates
specified in section 4 of this Act on the fair market value of such opening
stock and finished goods where such opening stock and finished goods have not
home tax under the Delhi Sales Tax Act, 1975 (43 of 1975).
(7) The tax due under sub‑section
(6) of this section shall be paid at any time before the person specifies his
intention to pay tax under this section.
(8) The proof of payment of tax
referred to in sub‑section (6) of this section along with a statement of
opening stock and finished goods in such form as may be prescribed shall be
furnished to the Commissioner at the time the person specifies his intention to
pay tax under this section.
(9) Subject to the other
provisions of this section, where a registered dealer pays tax at the rates
specified in section 4 of this Act, be may choose to pay tax under this section
only from the beginning of the following year:
PROVIDED
that such registered dealer shall be required to pay tax at the rates specified
in section 4 of this Act on the trading stock, raw material, packaging material
and finished goods held by him on the first day of the said following year.
(10) If
the turnover of the dealer who elect to pay tax under this section exceed 50
Lacs Rupees or such other amount as may be
specified by the government by notification in the official gazette, he
shall be liable to pay tax u/s 3 of this Act on and from the day he taxable
turnover exceed 50 Lacs rupees or such other amount as may be specified by the
government by notification in the official gazette and shall be entitled to
claim credit of the input tax paid under this act on trading stock. Raw
materials and packaging material held by him in
PROVIDED That such dealer has intimated the
commissioner within 7 days of his becoming liable to pay tax u/s 3 of this act
in the prescribed form and has furnished such other information to the
commissioner as may be prescribed.
(11) The Commissioner may notify
a dealer or a class of dealers who shall not be entitled to opt for payment of
tax under this section.
Sec. 16a. Special Provisions Relating to Casual Traders
(1)
Notwithstanding
anything contained to the contrary in this act, a casual trader shall –
a.
at least three days before commencing business
in
b.
deposit security in cash or in the form of bank
draft as may be fixed by the commissioner which shall not exceed estimated
liability to pay tax for 7 days or such lesser period for which casual trader
is conducting the business in Delhi
c.
pay tax Daily on the sales may during the
previous day
d.
furnish to the commissioner, immediately after
conclusion of his business in
e.
not issue any tax invoice.
(2)
The
Commissioner shall. After verification of information furnished to him under
clause
a.
of sub-section (1) and after getting security
under clause
b.
of that sub-section, shall register the casual
trader.
(3)
Upon
registration of casual trader, the commissioner may issue the required forms to
him for use as the declaration referred to in sub-section (2A) of section 61 of
this Act for bringing goods for sale in Delhi and for tacking the unsold goods
out of Delhi and casual trader shall render complete account of the used forms
and surrender the unused forms along with the return referred to in clause (d)
of sub-section(1).
(4)
The
commissioner shall, after examination of the return furnished by the casual
trader under clause (d) of sub-section(1), the forms referred to in sub-section
(3) and the account maintained by him including the retail invoices issued,
assess him to tax within 5 days and shall serve upon him a notice of assessment
and after adjusting any tax and other dues payable under this act, refund the
balance amount of security to him in case security is deposited in the form of
cash deposit.
(5)
The
casual trader shall pay immediately the amount mentioned in the notice of
assessment.
(6)
On
being satisfied that the amount due has been paid, the commissioner shall
release the security or balance security, as the case may be.
(7)
Notwithstanding
anything contained in this act the taxable quantum in respect of a casual
trader shall be NIL
If -
(a) a registered dealer sells or
gives goods to a related person;
(b) the terms or conditions of
the transaction have been influenced by the relationship; and
(c) the related person had
purchased the goods, the related person would not be entitled to a tax credit
for the purchase, or the amount of the tax credit would be reduced under sub‑section
(3) of section 9 of this Act; the transaction shall be deemed to be a sale made
by the registered dealer and the sale price of the goods shall be deemed
(1) Every dealer is required to apply for registration under this Act
if
(a) the dealer's turnover in the
year preceding the commencement of this Act exceeded the taxable quantum; or
(b) the dealer's turnover in the
current year exceeds the taxable quantum; or
(c) the dealer is liable to pay
tax, or is registered or required to be registered under Central Sales Tax Act,
1956 (74 of 1956):
PROVIDED that a dealer
dealing exclusively in goods mentioned in the First Schedule shall not be
required to register.
Explanation.‑ For the purposes of this section, in case of dealers involved in execution of works
contracts, the taxable quantum shall be calculated with reference to the total
contract amount received.
(2) For the purposes of this
Act, "taxable quantum" of a dealer shall be five lakh rupees, or such
other amount as may be specified by the Government by notification in the
official Gazette: I
PROVIDED that a dealer who
imports for sale any goods into Delhi, the taxable quantum shall be
"Nil" or such other amount as may be specified by the Government by
notification in the official Gazette.
(3) The taxable quantum of a dealer shall not
include turnover from
(a) sales of capital assets;
(b) sales made in the course of
winding up the dealer's activities; and
(c) sales made as part of the
permanent diminution of the dealer's activities.
(4) Any person who is not
required by sub‑section (1) to be registered but who
(a) is a dealer; or
(b) intends from a particular
date to undertake activities which would make him a dealer, may apply for
registration.
(1) An application for registration
shall be made in the prescribed form, within such time, containing such
particulars and information and accompanied by such fee, security and other
documents as may be prescribed.
Explanation.‑ The Commissioner may, by
order to be published in the official Gazette, specify certain classes of
persons who may not be required to furnish a security.
(2) Where
(a) an applicant furnishes a
security in the prescribed form and for the prescribed amount, and
(b) all other forms and evidence
required by and prescribed under this Act are complete and in order, the
Commissioner shall register the applicant.
(3) Where the Commissioner has
not registered the person within fifteen days from the date on which the
application is made, the Commissioner shall, after conducting such inquiries as
he deems fit, either
(a) register the person
forthwith as a registered dealer; or
(b) issue a notice to the
applicant, clearly stating the grounds on which his application is proposed to
be rejected and permitting him to show cause in writing, within fifteen further
days, why his application should not be rejected:
PROVIDED that where the
Commissioner has not registered the person or issued a notice by the required
date, the applicant shall be deemed to be registered for the purposes of this
Act, and the Commissioner shall issue a certificate of registration to such
person.
(4) Where, pursuant to clause
(b) of sub‑section (3), the applicant furnishes a reply to the notice,
the Commissioner may, either accept the application and register the person, or
reject the application for reasons to be recorded in writing.
(5) If the applicant fails to
respond to the notice issued under clause (b) of sub‑section (3) of this
section within the stipulated time, the application for registration shall
stand rejected.
(6) Where a registered dealer
has furnished a security as a condition of registration, such security shall be
required for the continuance in effect of registration, unless otherwise
provided by the Commissioner.
Explanation.- The decision of the
Commissioner not to register a person may be the subject of an objection under
section 74 of this Act.
(1) If at the time at which an unregistered dealer's
registration takes effect after the commencement of this Act and
(a) the dealer holds trading
stock for the purpose of sale, or for use as raw materials for the production
of trading stock;
(b) the dealer has home input
tax on the purchase of the trading stock or raw materials;
(c) the dealer furnishes a
statement of its trading stock and raw materials in the prescribed form to the
Commissioner; and
(d) the dealer holds adequate
proof of the amount of input tax in
respect of the purchases; the dealer shall be entitled to a tax credit for
the trading stock or raw materials held by the dealer on the date that the
dealer's registration takes effect;
PROVIDED that the dealer
must claim the entire amount of tax credit to which he is entitled in a single
claim, which accompanies the first return furnished by the dealer under this
Act.
Explanation
I‑This
section applies where goods have home tax imposed after the commencement of
this Act;
Explanation II.‑ Section
14 deals with goods which have home sales tax prior to the commencement of this
Act.
(2) For the purposes of sub‑section (3) of
section 9, the amount of the tax credit
shall be the least of
(a) the amount of input tax
disclosed in the proof referred to in clause (d) of sub‑section (2) of
this section;
(b) the tax fraction of the cost
of the goods;
(c) the tax fraction of the fair
market value of the goods at the time of registration; or
(d) such amount as may be
prescribed.
(3) Where the registered dealer accounts
for turnover on the basis of amounts received and amounts paid, he shall
exclude from his turnover
(a) any amount received after he is registered in
respect of sales made while he was unregistered; and
(b) any amount paid after he is registered in
respect of purchases made while he was unregistered.
(1) A registered dealer shall inform the
Commissioner in the prescribed manner within one month, if he
(a) sells or otherwise disposes
of his business or any part of his business or any place of business, or
effects or comes to know of any other change in the ownership of the business;
or
(b) discontinues his business or
changes his place of business or warehouse, or opens a new place of business,
or closes the business for a period of more than one month; or
(c) changes the name, style,
constitution or nature of his business; or
(d) enters into partnership or
other association in regard to his business or adds, deletes or changes the
particulars of the persons having interest in business; and if any such
registered dealer dies, his legal representative shall, in like manner, inform
the said authority.
(2) The Commissioner may, after
considering any information famished under this Act or otherwise received and
after making such inquiry as he may deem fit, amend from time to time any
registration.
(3) An amendment of the
registration made under sub‑section (2) shall take effect from the date
of contingency which necessitates the amendment whether or not information in
that behalf is furnished within the time prescribed under sub‑section (1)
of this section.
(4) Any amendment of a
registration under this section shall be without prejudice to any liability for
tax or penalty imposable or for any prosecution for an offence under this Act.
(5) For the removal of doubts it
is hereby declared that where a registered dealer
(a) effects a change to the
nature of the goods ordinarily sold;
(b) is a firm and there is a change
in the constitution of the firm without dissolution thereof‑, or
(c) is a trustee of a trust and
there is a change in the trustees thereof‑, or
(d) is a Hindu undivided family and the business
of such family is converted into a partnership business with all or any of the
members of the family as partners thereof‑, or
(e) is
a firm or a company or a trust or other organization, and a change occurs in
the management of the organization,
then, merely by reason of the
circumstances aforesaid, it shall not be necessary for the registered dealer to
apply for a fresh certificate of registration and on information being
furnished the registration shall be amended.
(1) Where ‑
(a) a registered dealer who is required to
furnish security under the provisions of this Act has failed to furnish or
maintain such security;
(b) a registered dealer has ceased to carry on
any activity which would entitle him to be registered as a dealer under this
Act;
(c) an incorporated body is closed down or
otherwise ceases to exist;
(d) the owner of a proprietorship business dies
leaving no successor to carry on the business;
(e) in the case of a firm or association of
persons, it is dissolved;
(f) registered dealer has ceased to be liable to
pay tax under this Act;
(g) a registered dealer knowingly furnishes a
return which is misleading or deceptive in a material particular;
(h) a registered dealer has committed one or more
offences or contravened the provisions of this Act and the offence or
contravention is, in the opinion of the Commissioner, of such magnitude that it
is necessary to do so; or
(i) the Commissioner, after conducting proper
inquiries, is of the view that it is necessary to do so; the Commissioner may, after service
of a notice in the prescribed form and after providing the dealer an
opportunity of being heard, cancel the registration of the dealer with effect
from the date specified by him in the notice.
(2) Where ‑
(a) a registered dealer has ceased to carry on
any activity which would entitle him to be registered as a dealer under this
Act;
(b) an incorporated body is closed down or
otherwise ceases to exist;
(c) the owner of a proprietorship business dies
leaving no successor to carry on business;
(d) in the case of a firm or association of
persons, it is dissolved; or
(e) a registered dealer has ceased to be liable
to pay tax under this Act; the registered dealer or the dealer's legal
representative in case of clause (c) above, shall apply for cancellation of his
registration to the Commissioner in the manner and within the time prescribed.
Explanation.‑For
the purpose of this sub‑section "legal representative' has the meaning
assigned to it in clause (11) of section 2 of the code of Civil Procedure, 1908
(5 of 1908).
(3) On receipt of such
application, if the Commissioner is satisfied that the dealer has ceased to be
entitled to be registered, he may cancel the registration.
(4) If a registered dealer
ceases to be registered, the Commissioner shall cancel the dealer's
registration with effect from a specified date.
(5) If a dealer's registration
which has been cancelled under this section is reinstated as a result of an
appeal or other proceeding under this Act, the registration of the dealer shall
be restored and he shall be liable to pay tax as if his registration had never
been cancelled.
(6) If
any registered dealer whose registration has been restored under sub‑4
section (5) of this Act satisfies the Commissioner that excess tax has been
paid by him during the period his registration was inoperative which but for
the cancellation of his registration he would not have paid, then the amount of
such tax shall be adjusted or refunded in such manner as may be prescribed.
(7) Every registered dealer who
applies for cancellation of his registration shall surrender with his
application the certificate of registration granted to him and every registered
dealer whose registration is cancelled otherwise than on the basis of his
application shall surrender the certificate of registration within seven days
of the date of communication to him of the cancellation.
(8) The Commissioner shall, at
intervals not exceeding three months, publish in the official Gazette such
particulars as may be prescribed, of registered dealers whose registration has
been cancelled.
(9) The cancellation of
registration shall not affect the liability of any person to pay tax due for
any period and unpaid as on the date of such cancellation or which is assessed
thereafter notwithstanding that he is not otherwise liable to pay tax under
this Act.
(1) Every person whose
registration is cancelled shall pay in respect of all goods held on the date of
cancellation an amount equal to the higher of
(a) the tax that would be
payable in respect of those goods if the goods were sold at their fair market
value on that date; or
(b) the tax credit previously
claimed in respect of those goods.
(2) Where the dealer has
accounted for turnover on the basis of amounts received and amounts paid, he
shall include in the turnover of his final return
(a) any amount not yet received
in respect of sales made while he was registered; and
(b) any amount not yet paid in
respect of purchases made while he was registered.
(1) Every dealer
(a) Who is registered under the
Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract
Act 1999 (Delhi Act 9 of 1999), at the time of commencement of this Act; and
(b) Whose turnover in the year
ending March, 31, 2005 exceeds the taxable quantum; shall be deemed to be
registered under this Act with effect from the first day of April, 2005.
(2) The security furnished);d by
a dealer registered under the Delhi Sales Tax Act, 1975 (43 of 1975) or the
Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) under the
said Acts and valid on the date of the commencement of this Act, shall be
deemed to have been furnished under this Act and shall be deemed to be valid
under this Act for a period of six months from the commencement of this Act or
till the time a fresh security as required under sub‑section (3) of this
section is furnished, whichever is later.
(3) Within a period of six
months of the commencement of this Act, every dealer covered under sub‑section
(1) of this section shall be required to furnish a fresh security under this
Act:
PROVIDED that the
Commissioner may, by notification, exempt a class or classes of dealers from
the requirement of furnishing a fresh security under this sub‑section.
(1) The Commissioner may as a condition of
(a) registering a person as a dealer;
(b) making a refund under section 38 of this Act;
require a person or prescribed class of persons to furnish security for the
proper performance of their responsibilities under this Act or under the
Central Sales Tax Act, 1956 (74 of 1956) in the prescribed amount, in the
prescribed manner and within such time as may be prescribed.
(2) Notwithstanding sub‑section
(1), the Commissioner may increase, vary, reduce or waive the prescribed amount
of the security, having regard to
(a) the nature and size of the
business activities of the person;
(b) the
amount of any tax, interest or penalty for which the person may be or is likely
to become liable at any time under this Act;
(c) the creditworthiness of the
person;
(d) the nature of the security;
and
(e) any other matter which the
Commissioner considers relevant.
(3) Where the security or additional security
furnished by a person is in the form of a surety bond and the surety dies or
becomes insolvent, the person shall within one month of the occurrence of such
event, inform the Commissioner and shall within three months of such
occurrence, execute a fresh surety bond.
(4) Where the surety bond has been executed by
another registered dealer and the dealer's registration is either cancelled or
he has closed down his, business, the person shall furnish a fresh security as
may be prescribed and in the, manner as stated in sub‑section (3) of this
section.
(5) The Commissioner may, for good and sufficient
cause, order the forfeiture of the whole or any part of the security furnished
by a person.
(6) Where the security furnished by any person is
forfeited in whole or is rendered insufficient, he shall furnish a fresh
security of the requisite amount or., as the case may be, shall make up the
deficiency in such manner and within such period as may be specified.
(1) Every
registered dealer who is liable to pay tax under this Act shall furnish to the
Commissioner such returns for each tax period and by such dates as may be
prescribed and in the prescribed form.
In addition to the returns specified
in section 26 of this Act, the Commissioner may require any person, whether a
registered dealer or not, to furnish (whether on that person's own behalf or as
an agent or trustee) him with such other returns in the prescribed form as and
when the Commissioner requires.
(1) If, within four years of the making of an
assessment, any person discovers a mistake or error in any return furnished by
him under this Act, and he has as a result of the mistake or error paid less
tax than was due under this Act, he shall, within one month after the
discovery, furnish a revised return and pay the tax owed and interest thereon.
(2) If, within four years of the making of an
assessment, any person discovers a mistake or error in any return furnished by
him under this Act, and he has as a result of the mistake or error paid more
tax than was due under this Act, he may lodge an objection against the
assessment in the manner and subject to the conditions stipulated in section 74
of this Act.
Sec. 29.Signing Returns
(1) Every return
under this Chapter shall be signed and verified ‑
(a) in the case of an individual, by the individual
himself, and where the individual is absent from India, either by the
individual or by some person duly authorized by him in this behalf and where
the individual is mentally incapacitated from attending to his affairs, by his
guardian or by any other person competent to act on his behalf,
(b) in
the case of a Hindu Undivided Family, by a Karta and where the Karta is absent
from
(c) in the case of a company or local authority,
by the principal officer thereof,
(d) in the case of a firm, by any partner thereof,
not being a minor;
(e) in the case of any other association, by any
member of the association or persons;
(f) in the case of a trust, by the trustee or any
trustee; and
(g) in the case of any other person, by some
person competent to act on his behalf
Explanation 1‑ For the purposes of this section the
expression "principal officer" shall have the meaning assigned to it
under sub‑section (35) of section 2 of the Income Tax Act, 1961 (43 of
196 1).
Explanation 2.‑ For the purposes of this Act, any return signed
by a person who is not authorized under this section shall be treated as if no
return has been furnished.
ASSESSMENT AND PAYMENT OF TAX, INTEREST AND
No claim may be made by the
Commissioner for the payment by a person of an amount of tax, interest or
penalty or other amount in the nature of tax, interest or penalty due under
this Act except by the making of an assessment for the amount.
(a)
Where
a return is furnished by a person as required under section 26 or section 27 of
this Act which contains the prescribed
information and complies with the requirements of this Act and the rules
–
(a) the
Commissioner is taken to have made, on the day on which the return is
furnished, an assessment of the tax payable of the amount specified in the
return;
(b) the
return is deemed to be a notice of the assessment and to be under the hand of
the Commissioner; and
(1)
the notice referred to in clause (b) is deemed
to have been served on the person on the day on which the Commissioner is
deemed to have made the assessment.
(2) No assessment shall arise
under sub‑section (I) of this section, if the Commissioner has already
made an assessment of tax in respect of the same tax period under another
section of this Act.
(1) If any person -
(a) has not famished returns
required under this Act by the prescribed date; or
(b) has furnished incomplete or
incorrect returns; or
(c) has furnished a return which
does not comply with the requirements of this Act; or
(d) for any other reason the
Commissioner is not satisfied with the return furnished by a person; the
Commissioner may for reasons to be recorded in writing assess or re‑assess
to the best of his judgment the amount of net tax due for a tax period.
(1A) If, upon the information
which has come into his possession, the commissioner is satisfied that any
person who has been liable to pay tax under this act in respect of any period
or periods, has failed to get himself registered, the commissioner may for
reasons to be recorded in writing, assess to the best of his judgment the
amount of net tax due for such tax period or tax periods and all subsequent tax
periods
(2) Where the Commissioner has
made an assessment under this section, the Commissioner shall forthwith serve
on that person a notice of assessment of the amount of any additional tax due
for that tax period.
(3) Where the Commissioner has
made an assessment under this section and further tax is assessed as owed, the
amount of further tax assessed is due and payable on the same date as the date
on which the net tax for the tax period was due.
Explanation.‑A person may, if he
disagrees with the notice of assessment, file an objection under section 74 of
this Act.
(1) Where the Commissioner has
reason to believe that a liability to pay a penalty under this Act has arisen,
the Commissioner, after recording the reason in writing, shall make and serve
on the person a notice of assessment of the penalty that is due under this Act.
(2) The amount of any penalty
assessed under this section is due and payable on the date on which the notice
of assessment is served by the Commissioner.
(3) Any assessment made under
this section shall be without prejudice to prosecution for any offence under
this Act.
Explanation.‑ A person may, if he disagrees
with the notice of assessment, file an objection under section 74 of this Act.
Sec. 34. Limitation on Assessment and Re‑Assessment
(1) No assessment or re‑assessment
under section 32 of this Act shall be made by the Commissioner after the expiry
of four years from
(a) the date on which the person
furnished a return under section 26 or sub‑section (1) of section 28 of
this Act; or
(b) the date on which the
Commissioner made an assessment of tax for the tax period, whichever is the
earlier:
PROVIDED
that where the Commissioner has reason to believe that tax was not paid by
reason of concealment, omission or failure to disclose fully material
particulars on the part of the person, the said period shall stand extended to
six years.
(2) Notwithstanding sub‑section
(1), the Commissioner may make an assessment of tax within one year after the
date of any decision of the Appellate Tribunal or court where the assessment is
required to be made in consequence of, or to give effect to, the decision of
the Appellate Tribunal or court which requires the re‑assessment of the
person.
Sec. 35. Collection of Assessed Tax and Penalties
(1) Subject to sub‑sections
(2) and (4) of this Act, where an amount of tax or penalty has been assessed
under sections 32 or 33 of this Act, the Commissioner may not proceed to
enforce payment of the amount assessed until two months after the date of
service of the notice of assessment.
(2) Where a person has made an
objection to an assessment or part of an assessment in the manner provided in
section 74 of this Act, the Commissioner may pot enforce the payment of any
amount in dispute under that assessment until the objection is resolved by the
Commissioner.
(3) Nothing
in this section shall stay any proceedings by the Commissioner or before a
court for the recovery of
(a) any amounts due under this Act that are not
the subject of a dispute before the Commissioner; or
(b) any amounts due under this Act where the
person has made an appeal to the Appellate Tribunal.
(4) Notwithstanding sub‑section
(1), where an amount of tax or penalty has been assessed by the Commissioner
and he is satisfied that there is a likelihood that it may not be possible to
recover the amount assessed if collection is delayed, the Commissioner may
specify a date in the notice of assessment as the date on which collection of
the amounts due and payable may commence which is earlier than two months after
the date of service of the notice of assessment.
Every
person liable to pay tax, interest, penalty or any other amount under this Act
shall pay the amount to the Government Treasury of Delhi, the Reserve Bank of
India or a branch in Delhi of a bank prescribed under the rules, or at such
other place or in such other manner as may be prescribed.
Sec. 36a Tax Deducted at Source
(1)
Any
person, not being an individual or a hindu undivided family, who is responsible
for making payment to any dealer (hereinafter in this section referred to as “
the contractor” ) for discharge of any liability on account of valuable
consideration payable for the transferred of property in goods ( whether as
goods or in some other forms) in pursuance of a works contract, shall, at the
time of credit of such sum to the account of the contractor or at a time of
payment thereof in cash or by any other mode, whichever is earlier, deduct tax
thereon @ 2%
(2)
Where,
on an application being made by the contractor in this behalf, the commissioner
is satisfied that any works contract involve both transfer of property in goods
and labour and service, or involves only labour and service and accordingly,
justifies deduction of tax on a part of the sum in respect of the work contract
or, as the case may be, justifies no deduction of tax, he shall, after giving
the contractor a reasonable opportunity of being heard, grant him such
certificate and for such period as may be appropriate:
PROVIDED That
nothing in the said certificate shall affect liability of the contractor to pay
tax under this act
(3) Where any such certificate
is granted, the person responsible for
making payment under sub‑section (1) shall, until such certificate
is cancelled by the Commissioner, deduct tax at the rate specified in such
certificate or deduct no tax, as the case may be.
(4) The amount deducted under
this section shall be deposited into the appropriate Government treasury by the
person making such deduction before the expiry of twenty eight days following
the month in which such deduction is made in the manner as may be prescribed.
(5) The person making such
deduction under this section shall, at the time of payment or discharge,
furnish to the contractor from whose bills or invoices such deduction is made,
a certificate as may be prescribed in respect of the amount deducted, the rate
at which it has been deducted and the details of deposit into the Government
treasury.
(6) Any deduction made in
accordance with the provisions of this section and credited into the
appropriate Government treasury shall be treated as payment of tax on behalf of
the person from whose bills or invoices the deduction has been made, and he
shall claim the adjustment towards the payment of output tax of the amount so
deducted in his return for the tax period in which certificate of such
deduction was issued to him.
(7) A dealer claiming adjustment in his tax return of the amount deducted under
this section shall preserve the certificate issued to him for a period
of seven years and shall produce the same to the Commissioner on demand.
(8) If any person as is referred
to in this section fails to make the deduction or, after deducting falls to
deposit the amount so deducted as required in this section, the Commissioner
may, by order in writing, direct that such person shall pay, by way of penalty,
a sum not exceeding twice the amount deductible under this section besides tax
deductible but not so deducted and, if deducted., not so deposited into the
appropriate Government treasury.
(9) Without prejudice to the
provisions of sub‑section (8), if any person fails to make deduction or,
after deducting, fails to deposit the amount so deducted, he shall be liable to
pay simple interest at the annual rate to be notified by the Government on the
amount deductible under this section but not so deducted, and if deducted, not
so deposited from the date on which such amount was deductible to the date on
which such amount is actually deposited into the appropriate Government
treasury.
(10) Where the amount has not
been deposited after deduction such amount together with interest and penalty
referred to in sub‑section (8) and sub‑section (9) shall be a
charge upon all the assets of the person concerned and recoverable as arrears
of land revenue.
(11) Every person responsible for
making deduction of tax under this section shall apply to the Commissioner for
a Tax Deduction Account Number within the prescribed time and in the prescribed
form and shall also furnish a return in the prescribed form within the
prescribed period:
PROVIDED
that, unless intimated otherwise by the Commissioner, every person having obtained
Tax Deduction Account Number under the Delhi Sales Tax on Works Contract Act,
1999 (Delhi Act 9 of 1999) shall be deemed to have obtained a Tax Deduction
Account Number under this Act and shall use the same Tax Deduction Account
Number under this Act.
(3)
any
person who fails to comply with the requirement under sub-section (11) shall be
liable to pay, by way of penalty, a sum of Rs.
200/= per day
from the day on which requirement arose until the failure is rectified;
PROVIDED That
the amount of penalty payable under this sub-section shall not exceed Rs.
20,000/=
EXPLATIONS: nothing contained in this section
shall apply to works contract executed in the course of inter-state trade or
commerce or outside the state, or in the course of import in to or export out
of
Where
a person owes to the Commissioner tax, interest, or penalty and the person pays
to the Commissioner or the Commissioner recovers some but not all of the
amounts owed by the person, the amounts shall be treated as reducing the
person's obligations to pay
(a) interest, penalty and tax owed under this
Act; and
(b) interest, penalty and tax owed under the
Central Sales Tax Act, 1956 (74 of 1956); in the above order.
(1) Subject to the other
provisions of this section and the rules, the Commissioner shall refund to a
person the amount of tax, penalty and interest, if any, paid by such person in
excess of the amount due from him.
(2) Before making any refund,
the Commissioner shall first apply such excess towards the recovery of any
other amount due under this Act, or under the Central Sales Tax Act, 1956 (74
of 1956).
(3) Subject to sub‑section
(4), any amount remaining after the application referred to in sub‑section
(2) of this section shall be at the election of the dealer, either
(a) refunded to the person
within one month after the date on which the return was furnished or claim was
made for the refund; or
(b) carried forward to the next
tax period as a tax credit in that period.
(4) Where the Commissioner has
issued a notice to the person under section 58 of this Act advising him that an
audit, investigation or inquiry into his business affairs will be undertaken,
the amount shall be carried forward to the next tax period as a tax: credit in
that period.
(5) The Commissioner may, as a
condition of the payment of a refund, demand security from the person pursuant
to the powers conferred in section 25 of this Act.
(6) The Commissioner shall grant
refund within 15 days from the date the dealer furnishes the security to his
satisfaction under sub-section (5).
(7) for calculating the period
of 1 month clause (a) of sub-section(3), the time taken to furnish the security
under sub-section (5) to the
satisfaction of the commissioner shall be excluded .
(8) Notwithstanding anything
contained in this section, where
(a) a registered dealer has sold
goods to an unregistered person; and
(b) the price charged for the
goods includes an amount of tax payable under this Act;
(c) the dealer is seeking the
refund of this amount or to apply this amount under clause (b) of sub‑section
(3) of this section no amount shall be refunded to the dealer or may be applied
by the dealer under clause (b) of sub‑section (3) of this section unless
the Commissioner is satisfied that the dealer has refunded the amount to the
purchaser.
(9) Where
(a) a registered dealer has sold
goods to another registered dealer; and
(b) the price charged for the
goods expressly includes an amount of tax payable under this Act, the amount
may be refunded to the seller or may be applied by the seller under clause (b)
of sub‑section (3) of this section and the Commissioner may reassess the
buyer to deny the amount of the corresponding tax credit claimed by such buyer,
whether or not the seller refunds the amount to the buyer.
(10) Where a registered dealer
sells goods and the price charged for the goods is expressed not to include an
amount of tax payable under this Act the amount may be refunded to the seller
or may be applied by the seller under clause (b) of subsection (3) of this
section without the seller being required to refund an amount to the purchaser.
(11) notwithstanding anything
contain to the contrary in sub-section (3) of this section, no refund shall be
allowed to a dealer who has not filed any return due under this act.
Sec. 39.Power to Withhold Refund in Certain Cases
(1) Where a person is entitled
to a refund and any proceeding under this Act, including an audit under section
58 of this Act, is pending against him, and the Commissioner is of the opinion
that payment of such refund is likely to adversely affect the revenue and that
it may not be possible to recover the amount later, the Commissioner may for
reasons to be recorded in writing, either obtain a security equal to the amount
to be refunded to the person or withhold the refund till such time the
proceeding or the audit has been concluded.
(2) Where a refund is withheld
under sub‑section (1) of this section, the person shall be entitled to
interest as provided under sub‑section (1) of section 42 of this Act if
as a result of the appeal or further proceeding, or any other proceeding he
becomes entitled to the refund.
Sec. 40. Collection of Tax Only by Registered Dealers
(1) No person who is not a registered dealer shall collect
in respect of any sale of goods by him in Delhi any amount by way of tax under
this Act and no registered dealer shall make any such collection except in
accordance with this Act and the rules made thereunder and at the rates
specified under this Act.
(2) Tax collected by a person who is not a registered
dealer shall not be refunded and shall stand forfeited.
Sec. 41.Refund of Tax for Embassies, Officials, International and
Public Organizations
(1) The bodies listed in the
Sixth Schedule shall be entitled to claim a refund of tax paid on goods
purchased in Delhi, subject to such restrictions and conditions as may be
prescribed,
(2) Any person entitled to a
refund under sub‑section (1) may apply to the Commissioner in the manner
and within the time prescribed.
Sec. 42. Interest
(13) A
person entitled to a refund under this Act, shall be entitled to receive, in
addition to the refund, simple interest at the annual rate notified by
Government from time to time, computed on a daily basis from the later of -
(a) the date that the refund was due to be paid to
the person; or
(b) the date that the overpaid amount was paid by
the person,
until the date on which the refund is
given.
PROVIDED
that the interest shall be calculated on the amount d refund due after
deducting therefrom any tax, interest, penalty or any other dues under this
Act, or under the Central Sales Tax Act, 1956 (74 of 1956):
PROVIDED
FURTHER that if the amount of such refund is enhanced or reduced, as the case
may be, such interest shall be enhanced or reduced accordingly.
Explanation.‑ If the delay in granting the
refund is attributable to the said person, whether wholly or in part, the
period of the delay attributable to him shall be excluded from the period for
which the interest is payable.
(2) When a person is in default
in making the payment of any tax, penalty or other amount due under this Act,
he shall, in addition to the amount assessed, be liable to pay simple interest
on such amount at the annual rate notified by the Government from time to time,
computed on a daily basis, from the date of such default for so long as he
continues to make default in the payment of the said amount.
(3) Where the amount of tax
including any penalty due is wholly reduced, the amount of interest, if any,
paid shall be refunded, or if such amount is varied, the interest due shall be
calculated accordingly.
(4) Where the collection of any
amount is stayed by the order of the Appellate Tribunal or any court or any
other authority and the order is subsequently vacated, interest shall be
payable for any period during which such order remained in operation.
(5) The interest payable by a
person under this Act may be collected as tax due under this Act and shall be
due and payable once the obligation to pay interest has arisen.
(1) The amount of any tax,
interest, penalty or other amount due under this Act shall be paid in the
manner specified in section 36 of this Act and a notice of assessment served on
the person for such an amount shall constitute a demand for payment of the
amount stated in the assessment by the time stipulated in the notice of
assessment.
(2) On an application made
before the expiry of the due date under section 35 of this Act, the Commissioner
may, in respect of any dealer or person and for reasons to be recorded in
writing, extend the time for payment or allow payment by instalments, subject
to such conditions as he may think fit to impose in the circumstances of the
case.
(3) Any amount of a tax,
interest or penalty, composition money or other amount due under this Act which
remains unpaid, shall be recoverable as arrears of land revenue.
(4) Where security, other than
in the form of surety bond, has been furnished under the Act, the Commissioner
may, for reasons to be recorded in writing, recover any amount of tax,
interest, penalty, composition money or other amount due or part thereof by
ordering the forfeiture of the whole or any part of the security.
(5) Where any security tendered
for the purposes of this Act is to be sold, it shall be sold in the manner
stipulated in section 63 of this Act.
For
the purposes of recovery of any amount recoverable as arrears of land revenue
under this Act, the provisions of the Delhi Land Reforms Act, 1954 (Delhi Act
of 1954), as to the recovery of arrears of land revenue shall notwithstanding
anything contained in that Act or in any other enactment, be deemed to be in
force throughout Delhi and the provisions of the Revenue Recovery Act, 1890 (1
of 1890) shall have effect accordingly.
Sec. 45.Continuation of Certain Recovery
Proceedings
Where
an assessment or notice of demand in respect of any tax, penalty or other
amount payable under this Act (hereinafter in this section referred to as
"government dues") is served upon any person and any objection or
appeal is initiated by the person against the assessment or demand for such
government dues then
(a) if the objection or appeal
is disallowed in whole or in part, any recovery proceedings taken for the
recovery of such government dues before the making of the objection or appeal,
may, without the service of any fresh assessment or notice of demand, be
continued from the stage at which such recovery proceedings stood immediately
before the person made the objection or appeal; and
(b) where such government dues
are reduced in any objection or appeal
(i) it shall not be necessary
for the Commissioner to serve upon the person a fresh assessment or notice of
demand; and
(ii) the Commissioner shall give
intimation of such reduction to him and t the person with whom recovery
proceedings are pending.
(1) Notwithstanding anything
contained in any law or contract to the contrary, the Commissioner may, at any
time or from time to time, by notice in writing, a copy of which shall be forwarded
to the person at his last known address, require,
(a) any person from whom any
amount of money is due, or may become due, to the person (in this section
called "the taxpayer") liable to pay tax, interest or penalties under
section 45 of this Act, or
(b) any person who holds or may
subsequently hold money for or on account of the taxpayer, to pay to the
Commissioner, either forthwith upon the money becoming due or being held or
within the time specified in the first mentioned notice (but not before the
money becomes due or is held as aforesaid) so much of the money as is
sufficient to pay the amount due by the taxpayer in respect of the arrears of
tax, interest and penalty under this Act, or the whole of the money when it is
equal to or less than that amount.
Explanation.‑ For the purposes of this sub‑section,
the amount of money due to a taxpayer from, or money held for or on account of
a taxpayer by any person, shall be calculated by the Commissioner after
deducting therefrom such claims, if any, lawfully subsisting, as may have
fallen due for payment by such taxpayer to such person.
(2) The Commissioner may amend
or revoke any such notice or extend the time for making any payment in
pursuance of the notice.
(3) Any person making any
payment in compliance with a notice under this section shall be deemed to have
made the payment under the authority of the taxpayer, and the receipt thereof
by the Commissioner shall constitute a good and sufficient discharge of the liability
of such person to the extent of the amount specified in the receipt.
(4) Any person, discharging any:
liability to, the taxpayer, after receipt of the notice referred to in this
section, shall be personally liable to the Commissioner to the extent of the
liability discharged or to the extent of the liability of the dealer for tax
and penalty, whichever is less,
(5) Where a person to whom a
notice under this section is sent, proves to the satisfaction of the
Commissioner that the sum demanded or any part thereof is not due to the
taxpayer or that he does not hold any, money, for, or on account of the taxpayer, then, nothing contained in this
section shall be deemed; to require such, person to pay any such sum or part
thereof , as the case may be, to the Commissioner.
(6) Any
amount of money which the aforesaid person is required to pay to the
Commissioner, or for which he is personally liable to the commissioner under
this section shall, if it remains unpaid, be recoverable as if arrears of land
revenue.
(7) The
Commissioner may apply to the court in whose custody there is money belonging
to the taxpayer for payment to him of the entire amount of such, money or if it
is more than the tax, interest and penalty, if any, due, an amount sufficient to
discharge such tax and the penalty.
Where, during the pendency of any
proceedings for the recovery of an amount owed by a person under this Act, that
person creates a charge on or parts with the possession by way of sale,
mortgage, gift or exchange or any other mode of transfer whatsoever, any of his
assets in favour of any other person, such charge or transfer shall be void
against any claim by the Commissioner in respect of the amount which is the
subject of proceedings, unless the other person
(a) acted bona fide and
without notice of the recovery proceedings
(b) has paid the fair market value for the assets.
ACCOUNTS AND RECORDS
Every –
dealer;
person on whom a notice has been served
to furnish returns under section 27 of this Act; shall prepare and retain
sufficient records to allow the Commissioner to readily ascertain the amount of
tax due under this Act, and to explain all transactions, events and other acts
engaged in by the person that are relevant for any purpose of this Act.
(2) Notwithstanding
the generality of sub‑section (1) of this section
(a) Every
registered dealer shall preserve a copy of all tax invoices issued by him;
(b) Every
dealer shall preserve the original of all tax invoices received by him; and
Every person who has paid an amount of tax,
interest, penalty or other amount owed under this Act, shall preserve a copy of
the challan evidencing the making of the payment.
(3) The
Commissioner may prescribe the manner and form in which accounts and records
are to be prepared.
(4) If
the Commissioner considers that such records are not sufficiently clear and
intelligible to enable him to make a proper check of the obligations required
of the person under this Act, he may require such person by notice in writing
to keep such accounts (including records of purchase and sales) as may be
specified therein.
(5) The
Commissioner may, by notification in the official Gazette, direct any class of
dealers, transporters or operators of warehouses to keep such accounts
(including records of purchases and sales) as may be specified in the
notification.
(6) Every
person required to prepare or preserve records and accounts shall retain the
required records and accounts for, at least, seven years after the conclusion
of the events or transactions which they record unless any proceedings in
respect of that year are pending in which case they shall be preserved till the
final decision in those proceedings. Any loss thereof shall be reported to the
Police and the Commissioner within a period of fifteen days from the date of
occurrence.
Sec. 49. Accounts to be Audited in Certain Cases
If in respect of any particular year, the gross
turnover of a dealer exceeds forty lakh rupees or such other amount as may be
prescribed, then, such dealer shall get his accounts in respect of such year
audited by an accountant within Nine months from the end of that year and
obtain within that period a report of such audit in the prescribed form duly
signed and verified by such accountant and setting forth such particulars as
may be prescribed U/s 44 AB of the Income Tax Act 1961 (43 of 1961) as amended
from time to time and a true copy of such report shall be furnished by such
dealer to the Commissioner within 28 days from the end of the tax period ending
on 31st December of the following year:
PROVIDED That in a case where the dealer is
required u/s 44 AB of the Income Tax Act 1961 (43 of 1961) to get his account
audited, it shall be sufficient compliance with the provisions of this section
if such dealer gets his accounts audited under the said section u/s 44 AB of
the Income Tax Act 1961 (43 of 1961) and the rules framed there under and
furnishes to the commissioner a true copy of the report of such audit in the
prescribed form duly signed and verified by such accountant and setting forth
such particulars as may be prescribed u/s u/s 44 AB of the Income Tax Act 1961
(43 of 1961);
PROVIDED
FURTHER that the commissioner may require a dealer or class or classes of
dealers to get his or their accounts audited by an accountant and obtain report
of such audit duly signed and verified by such accountant and setting forth
such particulars and in such format as may be notified by the commissioner and
furnish copy of such report to the commissioner by the date notified by him.
(1) A
registered dealer making a sale liable to tax under this Act shall, at the
request of the purchaser, provide the purchaser at the time of sale with a tax
invoice containing the particulars specified in sub‑section (2) of this
section and retain a copy thereof.
PROVIDED that a tax invoice shall not be
issued by a dealer who ‑
(a) is
specified in the Fifth Schedule;
(b) elects to pay tax under section 16 of this
Act; or
(c) is
making the sale in the course of interstate trade or commerce or export:
PROVIDED FURTHER that not more than
one tax invoice shall be issued for each sale:
PROVIDED FURTHER that if an invoice has been issued
under the provisions of the Central Excise Act, 1944 (1 of 1944), it shall be
deemed to be a tax invoice if it contains the particulars specified in sub‑section
(2) of this section.
Explanation.‑ For removal of doubts, a
registered dealer shall be authorized to issue tax invoices only after a
certificate of registration is issued by the Commissioner.
(2) The
tax invoice issued under sub‑section (1) of this section shall contain
the following particulars on the original as well as copies thereof.
(a) the
words 'tax invoice' in a prominent place;
(b) the
name, address and registration number of the selling registered dealer;
(c) the
name and address of the purchaser and his registration number, where the purchaser
is a registered dealer;
(d) an
individual pre‑printed serialized number and the date on which the tax
invoice is issued;
PROVIDED That a dealer may maintain separate
numerical series, with distinct codes either, as prefix or suffix, for each place
of business in case the dealer has more than one place of business in
(e) description,
quantity, volume and value of goods sold and services provided and the amount
of tax charged thereon indicated separately;
(f) the
signature of the selling dealer or his servant, manager or agent, duly
authorized by him; and
(g) the
name and address of the printer and first and last serial number of tax
invoices printed and supplied by him to the dealer.
(3) A
tax invoice in respect of a sale shall be issued in duplicate; the original
shall be issued to the purchaser (or the person taking the delivery, as the
case may be) and the duplicate shall be retained by the selling dealer.
(4) Except
when a tax invoice is issued under sub‑section (1) of this section, if a
dealer sells any goods exceeding such amount in value as may be prescribed, in
any one transaction to any person, he shall issue to the purchaser a retail
invoice containing the particulars specified in sub‑section (5) of this
section and retain a copy thereof
(5) The
retail invoice issued under sub‑section (4) of this section shall contain
the following particulars on the original as well as copies thereof‑.
(a) the
words 'retail invoice' or 'cash memorandum' or 'bill' in a prominent place;
(b) the
name, address and registration number of the selling dealer, if registered;
(c) in case
the sale is in the course of inter-state trade or commerce, the name,
registration number and address of the purchasing dealer and type of statutory
form, if any, against which the sale has been made;
(d) an
individual pre-printed serialized number and the date on which the retail
invoice is issued;
(e) description,
quantity, volume and value of goods sold and services provided, inclusive of
amount of tax charged thereon; and
(f) the
signature of the selling dealer or his servant, manager or agent duly
authorized by him.
(6) Retail
invoice shall be issued in duplicate, the original shall be issued to the
purchaser and the copy shall be retained by the selling dealer.
(7) The
Commissioner may, by notification in the official Gazette, specify the manner
and form in which the particulars on a tax invoice or retail invoice are to be
recorded.
(8) If
a purchaser claims to have lost the original tax invoice, the selling dealer
may, subject to such conditions and restrictions as may be prescribed, provide
a copy clearly marked as a duplicate.
Where
a tax invoice has been issued in respect of a sale and-
the
amount shown as tax in that tax invoice exceeds the tax payable in respect of
the sale, the dealer shall provide the purchase with a credit note, containing
such particulars as may be prescribed; or
the tax payable in respect of the sale exceeds the
amount shown as tax on the tax invoice, the dealer shall provide the purchase
with a debit note, containing such particulars as may be prescribed.
LIABILITY
IN SPECIAL CASES
Sec. 52. Liability in Case of Transfer of Business
Where
a dealer liable to pay tax under this Act transfers his business in whole or in
part, by sale, gift, lease, leave or licence, hire or in any other manner
whatsoever, the dealer and the person to whom the business is so transferred
shall jointly and severally be liable to pay the tax, interest or penalty due
from the dealer up to the time of such transfer, whether such amount has been
assessed before such transfer, but has remained unpaid or is assessed
thereafter.
Where
the transferee or the lessee of a business referred to in sub-section (1) of
this section carries on such business either in his own name or in some other
name, he shall be liable to pay tax on the sale of goods effected by him with
effect from the date of such transfer and shall, if he is registered as a
dealer, apply within the time specified in section 21 of this Act for the
amendment of his registration.
Every
person-
who is
a liquidator of any company which is being wound up, whether under the orders
of a court or otherwise; or
who
has been appointed the receiver of any assets of a company (hereinafter
referred to as the “liquidator”);
shall,
within one month after he has become such liquidator, give notice of his
appointment as such to the
Commissioner.
(2) The Commissioner shall,
after making such inquiries or calling for such information as he may deem fit,
notify the liquidator within three months form the date on which he received
notice of the appointment of the liquidator, the amount which, in the opinion
of the Commissioner, would be sufficient to provide for any tax, interest or
penalty which is then, or is likely thereafter, to become payable by the
company.
The
liquidator shall not part with any of the assets of the company or the
properties in his hand until he has been notified by the Commissioner under
sub-section (2) of this section and on being so notified, the liquidator shall
set aside an amount equal to the amount notified and, until he so sets aside
such amount, he shall not part with any of the assets of the company or the
properties in his hand.
PROVIDED
that nothing contained in this sub-section shall debar the liquidator from parting
with such assets or properties in compliance with any order of a court or for
the purpose of the payment of the tax and penalty, if any, payable by the
company under this Act or for making any payment to secured creditors whose
debts are entitled under law to priority of payments over debts due to
government on the date of liquidation or for meeting such costs and expenses of
the winding up of the company as are in the opinion of the Commissioner
reasonable.
If
the liquidator fails to give notice in accordance with sub-section (1) of this
section or fails to set aside the amount as required by sub-section (3) of this
section or parts with any assets of the company or the properties in his hand
in contravention of the provisions of that sub-section, he shall be personally
liable for the payment of tax and penalty, if any, which the company would be
liable to pay under this Act:
PROVIDED that if the
amount of tax and penalty, if any, payable by the company is notified under
sub-section (2) of this section the personal liability of the liquidator under
this sub-section shall be to the extent of such amount.
(5) Where there is more than one
liquidator, the obligations and liabilities attached to a liquidator under this
section shall attach to all the liquidators jointly and severally.
(6) When any private company is
wound up and any tax and penalty, if any, assessed under this Act on the
company for any period, whether before or in the course of or after its
liquidation, cannot be recovered, then every person who was a director of the
private company at any time during the period for which the tax is due, shall
be jointly and severally liable for the payment of such tax and penalty, if
any, unless he proves to the satisfaction of the Commissioner that non.
recovery cannot be attributed to any gross neglect, misfeasance or breach of
duty on his part in relation to the affairs of the company.
(7) The provisions of this
section shall have effect notwithstanding anything to the contrary contained in
any other law for the time being in force.
(8) For the purposes of this
section, the expressions "company" and "private company"
shall have the meanings respectively assigned to them under clauses (i) and
(ii) of sub‑section (1) of section 3 of the Companies Act, 1956 (1 of
1956).
Notwithstanding
any contract to the contrary, where any firm is liable to pay any tax, interest
or penalty under this Act, the firm and each of the partners of the firm shall be
jointly and severally liable for such payment:
PROVIDED
that where any such partner retires from the firm, he shall intimate the date
of his retirement to the Commissioner by a notice to that effect in writing and
he shall be liable to pay tax, interest or penalty remaining unpaid at the time
of his retirement and any tax, interest or penalty due up to the date of his
retirement though unassessed on that date:
PROVIDED
FURTHER that if no such intimation is given within fifteen days from the date
of retirement, the liability of the partner under the first proviso shall
continue until the date on which such intimation is received by the
Commissioner.
Sec. 55 Liability Of Guardians, Trustees Etc.
Where
the business in respect of which tax is payable under this Act is carried on
by, or is in the charge of any guardian, trustee or agent of a minor or other
incapacitated person on his behalf and for the benefit of such minor or other
incapacitated person, the tax, interest or penalty shall be levied upon arid
recoverable from such guardian, trustee or agent, as the case may be, in like
manner and to the same extent as it would be assessed upon and recoverable from
any such minor or other incapacitated person, if he were of full age and of
sound mind and if he were conducting the business himself, and all the
provisions of this Act shall, so far as may be, apply accordingly.
SEC. 56.Liability of Court Of Wards, Etc.
Where the estate or any portion of the estate
of a dealer owning a business in respect of which tax is payable under this Act
is under the control of the Court of Wards, the Administrator‑General,
the Official Trustee or any receiver or manager (including any person, whatever
be his designation, who in fact manages the business) appointed by or under any
order of a court, the tax, interest or penalty shall be levied upon and be
recoverable from such Court of Wards, Administrator‑General, Official
Trustee, receiver or manager in like manner and to the same extent as it would
be assessable upon and be recoverable from the dealer if he were conducting the
business himself, and all the provisions of this Act shall, so far as may be,
apply accordingly.
(1) Where
a dealer is a firm or an association of persons or a Hindu Undivided Family,
and such firm, association or family has discontinued business
(a) the
tax payable under this Act, by such firm, association or family up to the date
of such discontinuance may be assessed as if no such discontinuance had taken
place; and
(b) every
person who was at the time of such discontinuance a partner of such firm, or a
member of such association or family, shall, notwithstanding such
discontinuance be liable jointly and severally for the payment of tax assessed
and penalty imposed and payable by such firm, association or family, whether
such tax, interest or penalty has been assessed prior to or after such
discontinuance, and subject as aforesaid, the provisions of this Act shall, so
far as may be, apply as if every such person or partner or member were himself
a dealer:
PROVIDED that where the partner of a firm liable to pay such tax,
interest or penalty dies, the provisions of sub‑section (4) of this
section shall, so far as may be, apply.
(2) Where
a change has occurred in the constitution of a firm or an association of
persons, the partners of the firm or members of the association as it existed
before and as it exists after its reconstitution shall, without prejudice to
the provisions of section 54 of this Act, jointly and severally be liable to
pay tax, interest or penalty due from such firm or association for any period
before its re‑constitution.
(3) The
provisions of sub‑section (1) of this section shall, so far as may be,
apply where the dealer, being a firm or association of persons is dissolved or,
being a Hindu undivided family, has effected partition with respect to the
business carried on by it and accordingly references in that sub‑section
to discontinuance shall be construed as references to dissolution or, as the
case may be, to partition.
(4) Where
a dealer liable to pay tax under this Act dies, then –
(a) if
a business carried on by the dealer is continued after his death by his legal
representative or any other person, such legal representative or other person,
shall be liable to pay then tax, interest or penalty due from the dealer under
this Act, whether such tax, interest or penalty had been assessed before his
death but has remained unpaid, or is assessed after his death,
if
the business carried on by the dealer is discontinued after his death, his
legal representative shall be liable to pay out of the estate of the deceased,
to the extent the estate is capable of meeting the charge, the tax, interest or
penalty due from the dealer under this Act, whether such tax, interest or
penalty had been assessed before his death but has remained unpaid, or is
assessed after his death: and the provisions of this Act shall, so far as may
be, apply to such legal representative or other person as if he were the dealer
himself.
Explanation –For the purposes of this section “legal
representative” has the meaning assigned to it in clause (11) of section 2 of
the Code of Civil Procedure, 1908 (5 of 1908).
AUDIT,
INVESTIGATION AND ENFORCEMENT
The Commissioner may serve on any person in the prescribed manner a
notice informing him that an audit of his
business affairs shall be performed and where applicable, that an assessment
already concluded under this Act may be reopened.
Explanation- A notice may be served
notwithstanding the fact that the person may already have been assessed under sections
31,32 or 33 of this Act.
(1) A notice served under
sub-section (1) of this section may require the person on whom it is served, to
appear on a date and place specified therein, which may be at his business
premises or at a place specified in the notice, to either attend and produce or
cause to be produced the books of accounts and all evidence on which the dealer
relies in support of his returns (including tax invoices, if any), or to
produce such evidence as is specified in the notice.
(2) The person on whom a notice
is served under sub-section (1) shall provide all co-operation and reasonable assistance to the Commissioner as may be
required to conduct the proceedings under this section at his business premises.
(3) The Commissioner shall, after
considering the return, the evidence furnished with the returns, if any, the
evidence acquired in the course of the audit, if any, or any information
otherwise available to him, either-
(a) confirm the assessment
under review; or
(b) serve
a notice of the assessment or re-assessment of the amount of tax, interest and
penalty if any pursuant to sections 32 and 33 of this Act.
Any
assessment pursuant to an audit of the person’s business affairs shall be
without prejudice to prosecution for any
offence under this Act.
(1) If, at any stage of the
proceeding under this Act, the Commissioner, having regard to the nature and
complexity of the business of a dealer and the interest of the revenue, is of
the opinion that it is necessary so to do, he may direct the dealer by a notice
in writing to get his records ,including books of accounts, examined and
audited by an accountant or a panel of accountants or any other professional or
panel of professionals nominated by the Commissioner in this behalf and to
furnish a report of such examination and audit in the format that he may
specify, duly signed and verified by such accountant or panel of accountants or
professional or panel of professionals and setting forth such particulars as
may be specified.
(2) The
provision of sub‑section (1) shall have effect notwithstanding that the
accounts of the dealer have been audited under any other provision of this Act
or any other law for the time being in force or otherwise.
(3) Every report under sub‑section
(1) shall be furnished by the dealer to the Commissioner within such period as
may be specified by the Commissioner:
PROVIDED that the Commissioner may,
on an application made in this behalf by the dealer and for any good and sufficient
reason, extend the said period by such further period or periods as he thinks
fit:
PROVIDED
FURTHER that the aggregate of the period originally fixed and the period or
periods so extended shall not, in any case, exceed one hundred eighty days from
the date on which the direction under sub‑section (1) is received by the
dealer.
(4) The expenses of, and
incidental to, the examination and audit of records under sub section (1)
(including the remuneration of the accountant or a panel of accountants or
professional or panel of professionals) shall be paid by the dealer as
determined by the Commissioner and that determination shall be final and
default in such payment shall be recoverable from the dealer as tax and in the
manner provided for the recovery of arrears of tax under this Act.]
All
records, books of accounts, registers and other documents, maintained by a
dealer, transporter or operator of a warehouse shall, at all reasonable times,
be open to inspection by the Commissioner.
(2) The Commissioner may, for
the proper administration of this Act and subject to such conditions as may be
prescribed, require-
any dealer; or
any other person, including a banking company, post officer, a person
who transports goods or holds goods in custody for delivery to, or on behalf of
any dealer, who maintains or has in his possession any books of accounts,
registers or documents relating to the business of a dealer, and, in the case
of a person which is an organization, any officer thereof;
to-
produce
before him such records, books of account, registers and other documents;
answer
such questions; and
prepare and furnish such additional information; relating to his
activities or to the activities of any other person as the Commissioner may
deem necessary.
(3) The
Commissioner may require a person referred to in sub-section (2) above, to-
prepare and provide any documents; and
verify
the answer to any question; in the manner specified by him.
(4) The Commissioner may retain, remove, take copies or extracts, or
cause copies or extracts to be made of
the said records, books of account, registers and documents without fee by the
person in whose custody the records, books of account, registers and documents
are held.
(1) All
goods kept at any business premises by a dealer, transporter or operator of a
warehouse shall at all reasonable times be open to inspection by the
Commissioner.
(2) Where the Commissioner, upon information in
his possession or otherwise has reasonable grounds to believe that any person
or dealer is attempting to avoid or evade tax or is concealing his tax
liability in any manner and for the purposes of administration of this Act, it
is necessary so to do, the Commissioner may
(a) enter
and search any business premises or any other place or building;
(b) break
open the lock of any door, box, locker, safe, almirah or other receptacle for
exercising the powers conferred by clause (a) where the keys thereof are not
readily available;
(c) seize
and remove any records, books of account, registers, other documents or goods;
(d) place
marks of identification on any records, books of account registers and other
documents or make or cause to be made extracts or copies thereof without
charge;
(e) make
a note or any inventory of any such money or goods found as a result of such
search or place marks of identification on such goods; and
(f) seal
the premises including the office, shop, go down, box, locker, safe, almirah or
other receptacle.
(3) Where
it is not feasible to remove any records, books of account, registers, other documents
or goods, the Commissioner may serve on the owner and any person who is in
immediate possession or control thereof, an order that he shall not remove or
part with or otherwise deal with them except with the previous permission of
the Commissioner.
(4) Where
any premises have been sealed under clause (f) of sub‑section (2), of
this section or an order made under sub‑section (3) of this section, the
Commissioner may, on an application made by the owner or the person in
occupation or in charge of such shop, go down, box, locker, safe, almirah or
other receptacle, permit the de‑scaling or release thereof (as the case
may be) on such terms and conditions including furnishing of security for such
sum in such form. and manners as may be directed.
(5) The
Commissioner may requisition the services of any police officer or any public
servant, or of both, to assist him for all or any of the purposes specified in
sub‑section (2) of this section.
(6) Save
as otherwise provided in this section, every search or seizure made under this
section shall as far as possible be carried out in accordance with the
provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to
searches or seizures made under that Code.
Explanation.‑ The
powers under this section may also be exercised in respect of a dealer or a
third party for the purposes of undertaking an audit or to assist in recovery.
(1) To enable
proper administration of this Act, the Commissioner may, at any cheek‑post
or barrier or at any other place, require the driver or person in charge of a
goods vehicle to stop the vehicle and keep it stationary so long as may be
required to search the vehicle, examine the contents therein and inspect all
records relating to the goods carried, which are in the possession of such
driver or person in charge.
(2) The
owner Driver or person in charge of a goods vehicle shall carry with him such
records as may be prescribed in respect of the goods carried in the goods
vehicle and produce the same before any officer in charge of a check post or
barrier or any other officer or any agent maybe empowered by the Commissioner.
(2A) The
owner Driver or person in charge of a goods vehicle entering or leaving Delhi
shall also file a declaration containing such particulars in the prescribed,
form obtainable from the commissioner and in such manner as may be prescribed,
before the officer in charge of a check post or Barrier or before any other
officer or agent empowered as aforesaid;
PROVIDED That where the owner, Driver or person in charge of a goods
vehicle, after filing the declaration at the time of entering Delhi that the
goods are meant to be carried to a place outside Delhi, fails, without
reasonable cause, to carry such goods outside Delhi within the prescribed
period, he shall, in addition to the payment of tax, if any, be liable to a
penalty not exceeding two and a half time the tax that would have been payable
had the goods being sold inside Delhi or Rs. 1000/=, whichever is more.
(3) The
(Owner) driver or person in charge of the goods vehicle shall, if required,
inform the Commissioner of ‑
(a) his name and
address;
(b) the name and
address of the owner of the vehicle;
(c) the name and
address of the consignor of the goods;
(d) the name and
address of the consignee of the goods; and
(e) the name and
address of the transporter.
(4) If,
on an examination of the contents of a ' goods vehicle or the inspection of
documents relating to the goods carried, the Commissioner has reason to believe
that the owner or person in charge of such goods vehicle is not carrying the
documents as required by sub‑section (2) of this section or is not carrying
proper and genuine documents or is attempting to evade payment of tax due under
this Act, he may, for reasons to be recorded in writing, do any one or more of
the following, namely:
(a) refuse
to allow the goods or the goods vehicle to enter
(b) seize
the goods and any documents relating to the goods; and
(c) seize
the goods vehicle and any documents relating to the goods vehicle.
(5) Where the
owner or the person in charge of the goods vehicle ‑
(a) requests
time to adduce evidence of payment of tax in respect of the goods to be
detained or impounded; and
(b) furnishes
security to the satisfaction of the Commissioner in such form and in such
manner as may be prescribed for the prescribed amount; the goods vehicle, the
goods and the documents so seized may be released.
PROVIDED That Where the owner or his agent, driver or person in charge
of the goods vehicle exercises the option of paying by way of penalty, a sum
equal to three and half times the tax, which in the opinion of the
commissioner, would be leviable on such goods, if such goods were sold in
Delhi, the commissioner instead of detaining or impounding the goods or the
goods vehicle or the documents relating to the goods and goods vehicle shall
release the same.
(6) The
Commissioner may permit the owner or person in charge of goods vehicle to
remove any goods or goods vehicle seized under sub‑section (4) subject to
an undertaking
that the goods and goods
vehicle shall be kept in the office, go down or other place within
that the goods shall not be
delivered to the consignor, consignee or any other person without the approval
in writing of the Commissioner, and for this purpose the person in charge of
the goods vehicle shall furnish an authorization from the owner of the goods
vehicle authorizing him to give such undertaking on his behalf.
(7) Save as otherwise provided in this section, every search or seizure
made under this section shall as far as possible be carried out in accordance
with the provisions of the Code of Criminal Procedure, 1973 (2 or 1974)
relating to searches or seizures made under that Code.
Nothing contained in this
section shall apply to the rolling stock as defined in the Railway Act 1989 (24
of 1989)
Where the Commissioner seizes any books
of accounts or other documents, he shall give the dealer or the person present
on his behalf, as the case may be, a receipt for the same and obtain
acknowledgement of the receipt so given to him.
PROVIDED
that if the dealer or person from whose custody the books of accounts or other
documents are seized refuses to give an
acknowledgement, the Commissioner may leave the receipt at the premises and
record this fact.
The Commissioner shall keep in his
custody the books of accounts, registers, other documents seized under section
60 of this Act for a period not exceeding one year, and thereafter shall return
the dealer or person from whose custody or power they were seized;
PROVIDED
that the Commissioner may, before returning the books of accounts, registers
and other documents, require the dealer or
the person, as the case may be, to give a written undertaking that the books of
accounts, registers and other documents shall be presented whenever required by
the Commissioner for any proceedings under this Act:
PROVIDED
FURTHER that the Commissioner shall, when requested, allow the person whose
books of accounts, registers and documents have been seized, reasonable access
to the books of accounts, registers and documents for the purpose of inspection and shall allow the person the
opportunity to make copies thereof at the person’s own expense.
PROVIDED
ALSO that the period of custody of the books of accounts, registers and other
documents seized under section 60 of this Act may be extended beyond one year
if any proceedings under this Act are pending or for reasons to be recorded by the Commissioner in writing.
Where the Commissioner seizes any
goods or goods vehicle, he shall give the dealer, person in charge of the goods
vehicle or a person present on his behalf, as the case may be, a receipt for
the same and obtain acknowledgement of the receipt so given to him:
PROVIDED
that if the person from whose custody the goods or goods vehicle are seized
refuses to give an acknowledgement, the Commissioner may leave the receipt in
his presence and record this fact.
The Commissioner –
shall keep any goods or goods vehicle seized under section 61 in his
custody;
may retain them for such time as he considers reasonable; and
subject
to sub-section (3) of this section, shall return the goods or goods vehicle to
the dealer or other person from whose custody or power they were seized.
Where the Commissioner –
has
seized any goods;
has
seized a goods vehicle; or
holds
any goods as security for the performance of an obligation under this Act;the Commissioner may, not sooner than one month after the service of notice on –
the
person from whom the goods were seized;
the
person from whom the goods vehicle was seized;
the
person for whom the security was given; and
any
person against whom the security is to be enforced;
as
the case may be, of his intention to sell the goods, direct the auction of such
goods or goods vehicle to meet any arrears of tax, interest or penalty owed
under this Act.
An auction of goods or a goods vehicle shall
be carried out in the manner prescribed for the sale of property held be the
Commissioner.
If any person on being required by the
Commissioner, fails to give any information in
respect of any goods in his possession or
fails to permit the inspection
thereof, the Commissioner may seize any goods in his custody or possession in
respect of which the default is committed.
The
seizure shall remain in force until it is revoked or the person concerned
furnishers the information required or makes proper arrangements for the
inspection of the goods, whichever occurs first.
Every person
shall provide all co‑operation and reasonable assistance to the
Commissioner as may be required to conduct the Commissioner's activities under
the Act.
(1) For
carrying out the purposes of this Act, the Government shall appoint a person to
be the Commissioner of Value Added Tax.
(2) To
assist the Commissioner in the administration of this Act
(a) the Government
may appoint as many Additional Commissioners of Value Added Tax, Value Added
Tax Officers and such other persons with such designations as the Government
thinks necessary; and
(b) the
Commissioner may, with the previous sanction of the Government, engage and
procure the engagement of other persons to assist him in the performance of his
duties; in this Act referred to as "Value Added Tax Authorities".
(3) The
Commissioner and the Value Added Tax authorities shall exercise such powers as
may be conferred, and perform such duties as may be required, by or under this
Act.
(4) The
powers exercised by the Value Added Tax authorities for the making of
assessments of tax, the computation and imposition of penalties, the
computation of interest due or owed, the computation of the entitlement and the
amount of any refund, the determination of specific questions under section 84,
the making of general rulings under section 85, and the conduct of audit or
investigations shall, for the purposes of this Act, be the administrative
functions.
(1) The
Commissioner shall have responsibility for the due and proper administration of
this Act and shall have jurisdiction over the whole of
(2) Subject
to sub‑section (3) of this section, the Commissioner may, from time to
time, issue such orders, instructions and directions to any Value Added Tax
authorities as he thinks fit for the due and proper administration of this Act
and all such persons engaged in the administration of this Act shall observe
and follow such orders, instructions and directions of the Commissioner.
(3) No
order, instruction or direction may be issued by the Commissioner to a person
exercising the power to determine
(a) a
particular objection made or to be made under section 74 of this Act; or
(b) a
particular question under section 84 of this Act; so as to require the person
to determine the objection or answer the question of a particular person in a
particular manner,
(4) Nothing
in sub‑section (3) shall prevent the Commissioner issuing general orders,
instructions and directions to any person who determines objections under
section 74 or answers questions under section 84 of this Act about the manner
of determining classes of objections or answering classes of questions.
(1) Subject
to such restrictions and conditions ~s may be prescribed, the Commissioner may
delegate any of his powers under this Act to any Value Added Tax authorities.
(2) Where
the Commissioner delegates his powers under Chapter X, the delegate shall carry
and produce on demand evidence in the prescribed form of the delegation of
these powers when exercising the powers.
(3) Where
the Commissioner has delegated a power to a Value Added Tax Authority, the
Commissioner may supervise, review and rectify any decision made or action
taken by that Authority.
Explanation.‑ The exercise of this power of supervision,
review or rectification will not lead to the issue of an assessment or re‑assessment
after the expiry of the time referred to in section 34 of this Act.
(4) Notwithstanding
any law or doctrine to the contrary, the power delegated by the Commissioner to
a person to determine an objection under section 74 of this Act may be
exercised by that person, even though the person determining the objection is
equal in rank to the person whose decision is under objection.
Whenever in respect of any proceeding under this
Act the Commissioner or any Value Added Tax authority is succeeded by another
person
(a) no
delegation of power made by the former incumbent shall be revoked by virtue of
the succession; and
(b) the
person so succeeding may continue the proceeding from the stage at which the
proceeding was left by his predecessor.
(1) The
Commissioner may notify and publish any forms which may be necessary for the reporting
of information to the Value Added Tax authorities.
(2) Where
the Commissioner has notified a form for a particular purpose, all persons
shall be required to report the information using the form.
Where
in his opinion it is necessary or convenient to do so, the Commissioner may
issue notifications for carrying out the purposes of this Act:
PROVIDED that any notification shall
not be inconsistent with this Act or any rules or regulations made pursuant to
it.
In
particular and without prejudice to the generality of the foregoing power, a
notification issued by the Commissioner may stipulate all or any of the matters
which in the opinion of the Commissioner are necessary or convenient for the
proper administration of this Act.
Failure
to comply with a requirement in a notification may be punishable with fine
provided that the amount of the fine does not exceed five hundred rupees or
such other amount as may be prescribed.
Every
notification issued by the Commissioner under this Act shall be published in
the official Gazette, and shall not have any effect prior to such publication.
The Commissioner, all Value Added
Tax authorities and all members of the Appellate Tribunal shall be deemed to be
public servants within the meaning of section 21 of the Indian Penal Code, 1860
(45 of 1860).
No suit shall be brought in any civil
court against the Government, the Commissioner, any Value Added Tax
authorities, or member of the Appellate Tribunal for anything done or intended
to be done in good faith under this Act or the rules made there under.
(1) The Government shall, as
soon as may be after the commencement of this Act, constitute an Appellate
Tribunal consisting of one or more
members, as it thinks fit, to exercise the powers and discharge the functions
conferred on the Appellate Tribunal by or under this Act:
PROVIDED that where the Appellate
Tribunal consists of one member, that member shall be person who has held a
civil judicial post for at least ten years or who has been a member of the
Indian Legal Service (not below Grade III) for at lease three years or who has
been in practice as an advocate for at least ten years, and where the Appellate
Tribunal consists of more than on member, one such member shall be a person
qualified as aforesaid.
(2) Where the number of members
of the Appellate Tribunal Is more than one, the Government shall appoint one of
those members to be the Chairperson of the Appellate Tribunal.
(3) Subject
to the provisions of sub‑section (1) of this section, the qualifications
and other conditions of service of the member or members constituting the
Appellate Tribunal and the period for which such member or members shall hold
office, shall be such as may be determined by the Government.
(4) Any
vacancy in the membership of the Appellate Tribunal shall be filled up by the
Government as soon as practicable.
(5) Where
the number of members of the Appellate Tribunal is more than one and if the
members differ in opinion on any point, the point shall be decided according to
the opinion of the majority, if there is a majority, but if the members are
equally divided, the decision of the Chairperson of the Appellate Tribunal
thereon shall be final.
(6) Subject
to the previous sanction of the Government, the Appellate Tribunal shall, for
the purpose of regulating its procedure and disposal of its business, make
regulations consistent with the provisions of this Act and the rules made there‑under.
(7) The
regulations made under sub‑section (6) shall be published in the official
Gazette.
(8) The
Appellate Tribunal shall, for the purpose of discharging its functions, have
all the powers which are vested in the Commissioner under section 75 of this
Act and any proceeding before the Appellate Tribunal shall be deemed to be a
judicial proceeding within the meaning of sections 193 and 228, and for the
purposes of section 196 of the Indian Penal Code, 1860 (45 of 1860) and the
Appellate Tribunal shall be deemed to be a Civil Court for all the purposes of
section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of
1974).
(1) Any
person who is dissatisfied with ‑
(a) an
assessment made under this Act (including an assessment under section 33); or
(b) any other
order or decision made under this Act; may make an objection against such assessment, or order or
decision, as the case may be, to the Commissioner;
PROVIDED that no objection may be made
against a non‑appeal able order as defined in section 79 of this Act:
PROVIDED FURTHER that no objection
against an assessment shall be entertained unless the amount of tax, interest
or penalty assessed that is not in dispute has been paid:
PROVIDED ALSO that only one
objection may be made by the person against any assessment, decision or order.
PROVIDED ALSO that in the case of an
objection to an amended assessment, order, or decision, an objection may be
made only to the portion amended.
(2) A
person who is aggrieved by the failure of the Commissioner to reach a decision
or issue any assessment or order, or undertake any other procedure under this
Act, within six months after a request in writing was served by the person, may
make an objection against such failure.
(3) An
objection shall be in writing in the prescribed form and shall state fully and
in detail the grounds upon which the objection is made
(4) The
objection shall be made
(a) in
the case of an objection made under sub‑section (1 within two months of the
date of service of the assessment, or order or decision, as the case may be,;
or
(b) in
the case of an objection made under sub‑section (2) of this section, no
sooner than six months and no later than eight months after the written request
was served by the person;
PROVIDED
that where the Commissioner is satisfied that the person was prevented for
sufficient cause from lodging the objection within the rime specified, he may
accept an objection within a further period of two months.
(5) The
Commissioner shall conduct its proceedings by an examination of the assessment,
or order or decision, as the case may be,, the objection and any other document
or information as may be relevant:
PROVIDED that where the person
aggrieved, requests a hearing in person, the person shall be afforded an
opportunity to be heard in person.
(6) Where
a person has requested a hearing under sub‑section (5) of this section
and the person fails to attend the hearing at the time and place stipulated,
the Commissioner shall proceed and determine the objection in the absence of
the person.
(7) Within
three months after the receipt of the objection, the Commissioner shall either
(a) accept
the objection in whole or in part and take appropriate action to give effect to
the acceptance (including the remission of any penalty assessed either in whole
or in part); or
(b) refuse
the objection or the remainder of the objection, as the case may be;
and in either case, serve on the person
objecting, a notice in writing, of the decision and the reasons for it,
including a statement of the evidence on which it is based:
PROVIDED
that where the Commissioner within three months of the making of the objection
notifies the person in writing, he may continue to consider the objection for a
further period of two months:
PROVIDED FURTHER that the person
may, in writing, request the Commissioner to delay considering the objection
for a period of up to three months for the proper preparation of its position,
in which case the period of the adjournment shall not be counted towards the
period by which the Commissioner shall reach his decision.
(8) Where
the Commissioner has not notified the person of his decision within the time
specified under sub‑section (7) of this section, tile person may serve a
written notice requiring him to make a decision within fifteen days.
(9) If
the decision has not been made by the end of the period of fifteen days after
being given the notice referred to in sub‑section (8) of this section,
then, at the end of that period, the Commissioner shall be deemed to have
allowed the objection.
(10) Where
on the date of commencement of this Act a dispute under the Delhi Sales Tax
Act, 1975 (43 of 1975) has been pending before a sales tax authority referred
to in section 9 of the Delhi Sales Tax Act, 1975 (43 of 1975), the dispute
shall be disposed of within a period of five years from the date of the
commencement of this Act.
(11) Where
the dispute referred to in sub‑section (10) of this section has not been
decided within the time required, the dispute shall be deemed to have been
resolved in favour of the dealer.
Sec. 75. Power of commissioner and other authorities to take evidence on
oath, etc.
(1) The
Commissioner or any person determining objections under section 74 of this Act,
for the purposes of this Act, have the same powers as are vested in a court
under the Code of Civil Procedure, 1908 (5 of 1908) when trying a suit, in
respect of the following matters, namely: ‑
(a) enforcing
the attendance of any person and examining him on oath or affirmation;
(b) compelling
the production of accounts and documents; and
(c) issuing
commissions for the examination of witnesses; and any proceeding under this Act
before the Commissioner or person determining objections under section 74 of
this Act shall be deemed to be a judicial proceeding within the meaning of
sections 193 and 228 and for the purposes of section 196 of the Indian Penal
Code, 1860 (45 of 1860).
(2) Subject
to any rules made in this behalf, the Commissioner or any person determining
objections under section 74 of this Act may impound and retain in his custody,
any books of accounts or other documents produced before him in any proceedings
under this Act until such proceedings are concluded:
PROVIDED that the Commissioner or the person determining a objection
under section 74 shall not impound any books of accounts or other documents
without recording in writing his reasons for so doing.
(1) Any
person aggrieved by a decision made by the Commissioner under section 74 of
this Act may appeal to the Appellate Tribunal against such decision:
PROVIDED that no appeal may be made against a non‑appealable order
under section 79 of this Act.
Explanation.‑ The Commissioner does not appeal to the Appellate
Tribunal. The Commissioner may make a further assessment of tax where he is of
the opinion that further tax is owed.
(2) Subject
to the provisions of section 77 of this Act, no appeal shall be entertained
unless it is made within two months from the date of service of the decision
appealed against.
(3) Every
appeal made under this section shall be in the prescribed fount, verified in
the prescribed manner and shall be accompanied by such fee as may be
prescribed.
(4) No appeal
against an assessment shall be entertained by the Appellate Tribunal unless the
appeal is accompanied by satisfactory proof of the payment of the amount in
dispute and any other amount assessed as due from the person:
PROVIDED that the Appellate Tribunal may, if it
thinks fit, for reasons to be recorded in writing, entertain an appeal against
such order without payment of some or all of the amount in dispute, on the
appellant furnishing in the prescribed manner security for such amount as it
may direct:
PROVIDED FURTHER that no appeal shall be
entertained by the Appellate Tribunal unless it is satisfied that such amount
as the appellant admits to be due from him has been paid.
(5) In
proceedings before the Appellate Tribunal
(a) the
person aggrieved shall be limited to disputing only those matters stated in the
objection;
(b) the
person aggrieved shall be limited to arguing only those grounds stated in the
objection; and
(c) the
person aggrieved may be permitted to adduce evidence presented to the
Commissioner for good and sufficient reasons.
(6) The
Appellate Tribunal shall -
(a) in
the case of an assessment, confirm, reduce, or annul the assessment (including
any penalty and interest imposed);
(b) in
the case of any other decision of the Commissioner, affirm or reject the
decision; or
(c) pass
such other order for the determination of the issue as it thinks fit:
PROVIDED that the Appellate Tribunal
shall give reasons in writing for its decision which shall include its findings
on material questions of fact and the evidence or other material on which those
findings were based.
(7) The
Appellate Tribunal shall use its best endeavours to make a final resolution of
the matter before it and for this purpose may make a decision in substitution
for the order in dispute, including the exercise or re‑exercise of any
discretion or power vested in the Commissioner.
(8) The
Appellate Tribunal shall not set aside an assessment and remit the matter to
the Commissioner for a further assessment, unless it has first ‑
(a) advised the aggrieved person of the
proposed order;
(b) offered the person the
opportunity to adduce such further evidence before it as might assist the
Appellate Tribunal to reach a final determination.
(9) Where
the Appellate Tribunal sets aside an assessment and remits the matter to the
Commissioner for a further assessment, the Appellate Tribunal shall at the same
time order the Commissioner to refund to the person some or all of the amount
in dispute:
PROVIDED that where no order is made, it
shall be presumed that the Appellate Tribunal has ordered the refund of the
amount in dispute.
(10) Where
a person has failed to attend the hearing at the time and place stipulated, the
Appellate Tribunal may adjourn the proceedings, strike out the appeal or
proceed to make an order determining the objection in the absence of the
person.
(11) Save
as provided in section 81 and sub‑section (12) of this section, an order
passed by the Appellate Tribunal on an appeal shall be final.
(12) The
Appellate Tribunal may rectify any mistake or error apparent from the record of
its proceedings.
(1) The
Appellate Tribunal may admit an appeal under section 76 of this Act after the
period of limitation laid down in that section, if the appellant satisfies the
Appellate Tribunal that he had sufficient cause for not preferring the appeal
within such period.
(2) In
computing the period laid down under sections 76 and 81 of this Act, the
provisions of sections 4 and 12 of the Limitation Act, 1963 (36 of 1963),
shall, so far as may be, apply.
(3) In
computing the period of limitation prescribed by or under any provision of this
Act, or the rules made there under, other than sections 76 or 81 of this Act,
any period during which any proceeding is stayed by an order or injunction of
any court shall be excluded.
The burden of proving any matter in
issue in proceedings under section of this Act, or before the Appellate
Tribunal which relates to the liability to pay tax or any other amount under
this Act shall lie on the person alleged to be liable to pay the amount.
Explanation.‑ The
burden of proof in criminal prosecutions is unaffected by this section.
(1) No
objection or appeal shall lie against
(a) a decision
of the Commissioner to make an assessment of tax or penal~;
(b) a notice
requiring a person to furnish a return;
(c) a notice
issued under section 58 and 59 of this Act;
(d) a decision
of the Commissioner to notify any matter;
(e) a
notice asking a dealer to show cause why he should not be prosecuted for an
offence under this Act;
(f) a
decision relating to the seizure or retention of books of account registers and
other documents;
(g) a decision
sanctioning a prosecution under this Act;
(h) an interim
decision made in the course of any proceedings;
(i) a
decision of the Commissioner touching on the internal administrative of the
Value Added Tax authorities;
(j) a
determination or ruling of the Commissioner under section 84 section 85 of this
Act; or
(k) an
assessment issued by the Commissioner to give effect to an order of the
Appellate Tribunal or a court.
(in this
Act referred to as "non‑appeal able orders").
(2) Save
as provided in clause (k) of sub‑section (1) of this section, nothing in
sub‑section (1) shall prevent the person from objecting to the amount or
the obligation to pay any amount assessed by the Commissioner under section 74
of this Act.
No
assessment, notice, summons or other proceedings made or issued or taken or
purported to have been made or issued or taken in pursuance of any of the
provisions of this Act or under the earlier law shall be invalid or shall be
deemed to be invalid merely by reason of any mistake, defect or omission in
such assessment, notice, summons or other proceedings, if such assessment,
notice, summons or other proceedings are in substance and effect in conformity
with of according to the intent and purposes of this Act or any earlier law.
(2) The
service of any notice, order or communication shall not be called in question
if the said notice, order or communication, as the case may be, has already
been acted upon by the dealer or person to whom it is issued or which service has
not been called in question at or in the earliest proceedings commenced,
continued or finalised pursuant to such notice, order or communication.
(3) No
assessment made under this Act shall be invalid merely on the ground that the
action could also have been taken by any other authority under any other
provisions of this Act.
(1) An appeal shall lie to the High Court from every order passed by the Appellate
Tribunal in appeal under this Act, if the High Court is satisfied that the case
involves a substantial question of law.
(2) The Commissioner or the other party aggrieved
by any order passed by the Appellate Tribunal may file an appeal to the High
Court and such appeal under this sub‑section shall be
(a) filed within sixty days from the date an
which the order appealed against is received by the Commissioner or the other
party.
(b) in the form of a memorandum of appeal
precisely stating therein the substantial question of law involved.
(3) Where
the High Court is satisfied that a substantial question of law is involved in
any case, it shall formulate that question.
(4) The appeal shall be heard only on the question
so formulated, and the respondents shall, at the hearing of the appeal, be allowed
to argue that the case does not involve such question:
PROVIDED that nothing in this sub‑section
shall be deemed to take away or abridge the power of the court to hear, for
reasons to be recorded, the appeal on any other substantial question of law not
formulated by it, if it is satisfied that the case involves such question.
(5) The High Court shall decide the question of
law so formulated and deliver such judgment thereon containing the grounds on
which such decision is founded and may award such cost as it deems fit.
(6) The High Court may determine any issue which
(a) has not been determined by the Appellate
Tribunal;
(b) has
been wrongly determined by the Appellate Tribunal, by reason of a decision on
such question of law as is referred to in sub‑section (1).
(7) Where an appeal has been filed before the High
Court, it shall be heard by a bench of not less than two judges of the High
Court, and shall be decided in accordance with the opinion of such judges or of
the majority, if any, of such judges.
(8) Where
there is no such majority, the judges shall state the point of law upon which
they differ and the case shall, then, be heard upon that point only by one or
more of the other judges of the High Court and such point shall be decided
according to the opinion of the majority of the judges who have heard the case
including those who first heard it.
(9) Save as other‑wise provided in this Act,
the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to
appeals to the High Court shall, as far as may be, apply in the case of appeals
under this section.]
(1) Any person, who is entitled or required to
attend before any authority in connection with any proceedings under this Act,
may attend
(a) by a person authorized by him in writing in
this behalf, being a relative or a person regularly employed by him; or
(b) by a legal practitioner or chartered accountant
[or cost accountant] who is not disqualified by or under sub‑section (2)
of this section; or
(c) by
a Value Added Tax practitioner who possesses the prescribed qualifications and
is entered in the list, which the Commissioner shall maintain in that behalf,
and who is not disqualified by or under sub‑section (2) of this section.
(2) The
Commissioner may, for reasons to be recorded in writing, disqualify for a
period from appearing before any such authority, any legal practitioner,
chartered accountant or Value Added Tax practitioner
(a) who has been dismissed from government
service; or
(b) who, being a legal practitioner or chartered
accountant, [or cost accountant] is found guilty of misconduct in connection
with any proceedings under this Act by an authority empowered to take
disciplinary action against the members of the profession to which he belongs;
or
(c) who, being a Value Added Tax practitioner, is
found guilty of such misconduct by the Commissioner.
(3) Any person who is disqualified under this
section may, within one month of the date of disqualification, appeal to the
Government to have the disqualification cancelled.
(4) The
decision of the Commissioner shall not take effect until one month of the
making thereof or when an appeal is preferred, until the appeal is decided.
(5) The Commissioner may, at any time, suo moto or
on an application made to him in this behalf, revoke any decision made against
any person under sub‑section (2) of this section and thereupon such
person shall cease to be disqualified.
Explanation-A decision made
by the Commissioner under this section may also be the subject of an objection
under section 74 of this Act.
No suit shall be brought in any civil court to
set aside or modify any assessment made or any order passed under this Act or
the rules made there under.
Sec. 84. Determination of Specific
Questions
(1) If
any determinable question arises, otherwise than in proceedings before a court,
a person may apply in the prescribed manner to the Commissioner for the
determination of that question.
(2) Subject
to sub‑section (3) of this section, an application for the determination
of a determinable question may be made in respect of a proposed transaction, a
transaction that is being undertaken, or a transaction has been concluded.
(3) An
application for the determination of a determinable question may not be made
after
(a) the
Commissioner has commenced the audit of the person pursuant to section 58 of
this Act; or
(b) the
Commissioner has issued an assessment for the tax period in which the
transaction that is the subject of the determinable question occurred.
Explanation.‑ For the purposes of this
sub‑section, the Commissioner shall be deemed to have commenced the audit
of a person under section 58 of this Act when the Commissioner serves a notice
to this effect.
(4) For
the purposes of this section, the following shall be determinable questions:
(a) whether
any person, society, club or association or any firm or any branch or
department of any firm is or would be a dealer;
(b) whether
any dealer is or would be required to be registered under this Act;
(c) the
amount of the taxable quantum of a dealer for a period;
(d) whether
a transaction is or would be a sale, or requires an adjustment to be made under
section 8 of this Act arising out of a sale;
(e) whether
a transaction is or would be in the nature of works contract, or transfer of
right to use any goods;
(f) whether
a sale is not liable to tax under section 7 of this Act;
(g) whether
a sale is exempt from tax under section 6 of this Act;
(h) the
sale price of a transaction;
(i) the
proportion of the turnover or turnover of purchases of a dealer which arises in
a tax period, and the time at which an adjustment to tax or tax credit arises;
(j) whether
any transaction is or would be the import of goods;
(k) the
value of any goods imported into
(l) the
rate of tax that is payable on a sale or import of goods and the classification
of the goods under the Schedules;
(m) whether
a transaction is the purchase of goods, or requires an adjustment to be made
under section 10 of this Act arising out of a purchase;
(n) the
amount of any tax credit to which the dealer is entitled in respect of a
purchase or import of goods;
(o) the
amount of any tax credit in respect of any used goods purchased by a dealer;
(p) the
location of any sale or purchase;
(q) the
application of a composition scheme in the circumstances of the dealer; or
the tax period of a dealer.
(5) The
Commissioner shall make the determination within such period as may be
prescribed.
(6) Where
(a) the
Commissioner fails to make a determination under this section within the time
prescribed under sub‑section (5) of this section;
(b) the
person thereafter implements the transaction which is the subject of the
application and in the manner described in the application; and
(c) the
person has, in the application for the determination of the determinable question,
indicated the answer to the determinable question which the person believes to
be correct (in this section called the "proposed determination"); the
Commissioner shall be deemed for the purposes of this Act to have made and
issued to the person on the day after the expiry of the prescribed period, a
determination of the determinable question in the terms of the proposed
determination.
(7) The
Commissioner may
(a) direct
that the determination shall not affect the liability of any person under this Act
with respect to any transaction effected prior to the determination;
(b) limit
the period for which the determination will apply;
(c) limit
the transactions to which the determination will apply; and
(d) impose
such other limitations or restrictions on the determination as seem
appropriate.
(8) If
any such question arises from any order already passed under this Act or under
the Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works
Contract Act, 1999 (Delhi Act 9 of 1999) or the Delhi Tax on Entry of Motor
Vehicles into Local areas Act, 1994 (Delhi Act 4 of 1995), as then in force in
Delhi, no such question shall be entertained for determination under this
section but such question may be raised in an objection or appeal against such order.
(9) Where
(a) the
Commissioner has issued to a person a determination in respect of a particular
transaction; and
(b) the
person implements the transaction based on the determination issued to him
under this section and in the manner described in the application; no
assessment may be raised by the Commissioner against that person which is
inconsistent with the determination and no penalty may be imposed on the person
if the determination is later held incorrect.
(10) The
Commissioner may, by notice served on the person, withdraw or qualify a
determination issued under this section but such withdrawal or qualification
shall not affect the entitlement of any person to rely on the determination
with respect to any transaction or action which he has commenced or which he
has completed prior to the withdrawal or qualification.
(1) The
Commissioner may, by notification in the official Gazette, publish his ruling on
the answer to any question involving the interpretation of this Act or
application of this Act to a class of persons or class of transactions.
(2) A
ruling issued by the Commissioner under this section may be issued subject to
such restrictions and conditions as the Commissioner may deem fit.
(3) The
ruling shall be treated as coming into effect on the date stated in the ruling
(which may be a date prior to the publication of the ruling) or, if no date is
stated in the ruling, on the date of publication of the official Gazette.
(4) Where
(a) the
Commissioner has published a ruling in respect of a class of persons or
transactions;
(b) a
person implements a transaction or
undertakes any action based on the ruling;
(c) the
ruling has, at the time of implementing the transaction or undertaking the
action, not been withdrawn by the Commissioner; and
(d) according
to the terms of the ruling, the ruling purports to apply to the transaction or
action undertaken by the person; no assessment which is inconsistent with the
ruling, may‑be raised by the Commissioner against that person and no
penalty may be imposed on the person if the ruling is later held incorrect.
Explanation.‑ A
person may rely on the Commissioner's ruling or on the determination made under
section 84 of this Act.
(5) The
Commissioner may, by notification published in the official Gazette, withdraw
or qualify a ruling already issued under this section but such withdrawal or qualification
shall not affect the entitlement of any person to rely on the ruling with
respect to any transaction or action commenced or completed by him prior to
such withdrawal or qualification.
(1) In
this section 'lax deficiency" means the difference between the tax
properly payable by the person in accordance with the provisions of this Act
and the amount of tax paid by the person in respect of a tax period.
(2) The
Government may, from time to time, if it deems it necessary, vary the amount of
any penalty due under this section by a notification to that effect in the
official Gazette:
PROVIDED that any penalty which is
increased under this section shall have effect only for offences or failures
occurring after the date of such notification;
PROVIDED FURTHER that the penalty
imposed under this section can be remitted where a person is able to prove
existence of a reasonable cause for the act or omission giving rise to penalty
during objection proceedings under section 74 of this Act.
(3) Where
two or more penalties arise under this Act in respect of the same conduct of a
person, the person shall be liable to pay only the greater penalty.
(4) Where
a person who is required to be registered under this Act has failed to apply
for registration within one month from the day on which the requirement arose,
the person shall he liable to pay, by way of penalty, an amount equal to one
thousand rupees per day, from the day on which the requirement arose until the
person makes an application for registration in the prescribed form, containing
such particulars and information and accompanied by such fee, security and
other documents as may be prescribed:
PROVIDED that the amount of penalty payable
under this sub‑section shall not exceed one lakh rupees.
(5) If,
a registered dealer fails to comply with the provisions of sub‑section
(1),4 of section 21, the person shall be liable to pay, by way of penalty, a
sum of one hundred rupees per day of default subject to a maximum of five
thousand rupees.
(6) If a
registered dealer
(a) fails
to comply with the provisions of sub‑section (2) of section 22 of this
Act; or
fails to surrender his certificate of
registration as provided in subsection (7) of section 22 of this Act; the
registered dealer shall be liable to pay, by way of penalty, a sum equal to one
hundred rupees for every day of default subject to a maximum of five thousand
rupees.
(7) If
any person falsely represents that he is registered as a dealer under this Act,
he shall be liable to a penalty equal to the amount of tax wrongly collected or
one lakh rupees, whichever is the greater.
(8) Where
a person
(a) has applied
for registration under sub‑section (4) of section 18 of this Act;
(b) has been
registered; and either ‑
(i) has
failed to undertake activities which would make the person a dealer within the
period specified in his application; or
(ii) has
failed to comply with any of the restrictions or conditions subject to which
such registration was granted, the person shall be liable to pay a penalty of
ten thousand rupees.
(9) If a person
required to furnish a return under Chapter V
(a) fails
to furnish any return by the due date; or
(b) fails
to furnish with a return any other document that is required to be furnished
with the return; or
being required to revise a return
already furnished, fails to furnish the revised return by the due date; the
person shall be liable to pay, by way of penalty, a sum of one hundred rupees
per day from the day on which the requirement arose until the failure is
rectified:
PROVIDED
that the amount of penalty payable under this sub‑section shall not exceed
ten thousand rupees.
(10) Any
person who
(a) Furnishes
a return under this Act which is false, misleading or deceptive in a material
particular; or
(b) omits
from a return furnished under this Act any matter or thing without which the
return is false, misleading or deceptive in
a material particular; shall be liable to pay, by way of penalty, a sum
of ten thousand rupees or the amount of the tax deficiency, whichever is the
greater.
(11) Any
dealer who ‑
(a) has
claimed tax credit under section 14 of this Act to which he is not entitled; or
has claimed a greater tax credit under
section 14 than is allowed; shall be liable to pay, by way of penalty, an
amount equal to the amount of tax credit so claimed or ten thousand rupees,
whichever is the greater.
(12) Where a tax deficiency arises in relation to a person, the person
shall be liable to pay, by way of penalty a sum equal to one percent tax
deficiency per week or a sum equal to rupees one hundred per week, whichever is
higher, for the period of default'.
Where a person is required under this Act to
(a) prepare
records or accounts; or
prepare records or accounts in a prescribed manner; or
retain records or accounts; and the
person ‑
(i) fails
to prepare the required records and accounts; or
fails to prepare records and accounts
in (lie prescribed manner; or
fails to retain the records and
accounts for the prescribed period; the person shall be liable to
pay, by way of penalty, a sum of fifty
thousand rupees or twenty per cent of the tax deficiency, if any, whichever is
greater.
(14) Any person who fails to comply with the requirement under sub‑section
(2) or sub‑section (3) of section 59 of this Act shall be liable to pay,
by way of penalty, a sum of fifty thousand rupees.
(15) Where
a person who is required to prepare records and accounts under this Act,
prepares records and accounts in a manner that is false, misleading or
deceptive, the person shall be liable to pay, by way of penalty, a sum of one
lakh rupees or the amount of the tax deficiency, if any, whichever is greater.
(16) Where
a person
(a) has
issued a tax invoice or retail invoice with incomplete or incorrect
particulars; or
(b) having
issued a tax invoice or retail invoice, has failed to account it correctly in
his books of account; the person shall be liable to pay,
by way of penalty, an amount of five thousand rupees or twenty per cent of the
tax deficiency, if any, whichever is greater.
(17) Where
a person who is not authorised under this Act to issue a tax invoice has issued
a tax invoice for a sale, the person shall be liable to pay, by way of penalty,
an amount of one lakh rupees or the tax deficiency, if any, whichever is greater.
(18) If
any dealer liable to have his accounts audited tinder section 49 of this Act
fails to furnish a true copy of such report within the prescribed time, the
person shall be liable to pay, by way of penalty, a sum of ten thousand rupees.
(19) Where
goods are being carried by a transporter without the documents or without
proper and genuine documents or without being properly accounted for in the
documents referred to in sub‑section (2) of section 61 of this Act, the
transporter shall be liable to a penalty equal to the amount of tax payable on
such goods.
(20) Any
person who ‑
(a) makes
a statement to the Commissioner which is false, misleading or deceptive in a material particular; or
(b) omits
from a statement made to the Commissioner any matter or thing without which the
statement is false, misleading or deceptive in a material particular; the
person shall be liable to pay, by way of penalty, a sum of fifty thousand
rupees, or the amount of the tax deficiency, whichever is greater.
Explanation.‑ The liability to pay a penalty and the amount of the penaltyinay be the
subject of an objection under section 74 of this Act.
(1) Where
as a result of any proceedings the amount of tax with respect to which a
penalty was levied has been wholly reduced, the penalty levied shall be
cancelled and if the penalty has been paid, it shall be refunded.
(2) If
(a) a
person is liable to pay a penalty under clause (b), (c) or (d) of subsection
(12) of section 86 of this Ad; and
(b) the
person voluntarily discloses to the Commissioner in writing the existence of
the tax deficiency before the Commissioner informs the person that an audit of
the person's tax obligations is to be carried out; the amount
of the penalty otherwise due shall be reduced by eighty per cent of the
penalty.
(3) If
(a) a
person is liable to pay a penalty under clause (b), (c) or (d) of subsection
(12) of section 86 of this Ad; and
(b) the
person voluntarily discloses to the Commissioner in writing the existence of
the tax deficiency after the Commissioner informs the person that an audit of
the person's tax obligations is to be carried out;
the amount of the penalty due shall be reduced
by fifty per cent of the penalty.
(4) If
(a) a
person is liable to pay a penalty under clause (b), (c) or (d) of subsection
(12) of section 86 of this Ad;
(b) the
tax deficiency arose because the person treated this Act as applying to the
person in a particular way; and
(c) the
decision to adopt that treatment was made by the person relying on a
determination given to the person by the Commissioner under section 84 of this
Act or a ruling issued by the Commissioner under section 85 of this Act; the
amount of the penalty otherwise due shall be reduced to nil.
'However no clause as (b), (c) or (d)
in section 86(12) have been specified.
(5) Where
(a) penalty
under this Act has been assessed;
(b) the
penalty has not been remitted in full after objection; and
(c) the
person is subsequently assessed to a further penalty in respect of the same or
a substantially similar failure occurring on another occasion (in this section
called the "subsequent offence"); the penalty
otherwise due under this Act shall be increased by
(i) in
the case of the first subsequent offence, fifty per cent of the specified
penalty; and
(ii) in the case of the second and any further
subsequent offence, one hundred per cent of the specified penalty.
(1) The
penalties specified under this Act are owed notwithstanding that no assessment
of tax owed under this Act has been made.
(2) Any penalty imposed under this Act shall be
without prejudice to any prosecution for any offence under this Chapter.
(1) Whoever
(a) not
being a registered dealer, falsely represents that he is or was a registered
dealer at the time when he sells or buys goods;
(b) knowingly
keeps false account or does not keep the account of the value of the goods
bought or sold by him in contravention of section 48,; or
(c) issues
to any person a false invoice, bill, cash‑memorandum, voucher or other
document which he knows or has reason to believe to be false; shall,
on conviction, be punished with rigorous imprisonment for a term which may
extend to six months, and with a fine.
(2) Whoever
knowingly
(a) furnishes
a false return;
(b) produces
before the Commissioner, false bill, cash‑memorandum, voucher,
declaration, certificate, tax invoice or other document for claiming deduction
on tax credit; or
(c) produces
false accounts, registers or documents or knowingly furnishes false
information; shall
(i) in
case where the amount of tax which could have been evaded if the false return,
bill, cash‑memorandum, voucher, declaration, certificate, tax invoice or
other document for claiming deduction on tax credit, accounts, registers or
documents or false information, as the case may be, had been accepted as true
exceeds fifty thousand rupees, with rigorous imprisonment for a term which may
extend to six months ; and
(ii) in
any other case, with rigorous imprisonment for a term which which may extend to
six months, and with a fine.
(3) Whoever,
wilfully attempts, in any manner whatsoever, to evade payment of tax, penalty
or interest or all of them under this Act, shall, on conviction, be punished
(a) in
any case where the amount involved exceeds fifty thousand rupees during the
period of a year, with rigorous imprisonment for a term which may extend to six
months, and with a fine; and
(b) in
any other case, with rigorous imprisonment for a term which may extend to six
months, and with a fine.
(4) Whoever
(a) carries
on business as a dealer without being registered in willful contravention of
sub‑section (1) of section 18 of this Act;
(b) fails
without sufficient cause to furnish any information required under section 21
of this Act;
(c) fails
to surrender his certificate of registration as provided in subsection (7) of
section 22 of this Act;
(d) fails
without sufficient cause to furnish any returns as required under section 27 of
this Act by the date or in the manner prescribed;
(e) without
reasonable cause, contravenes any of the provisions of section 40 of this Act;
(f) without
sufficient cause fails to issue invoice
as required under section 50 of this Act;
(g) fails
without sufficient cause, when directed so to do under section 48 of this Act
to keep any accounts or record, in accordance with the directions;
(h) fails
without sufficient cause, to comply with any requirements made of him under
section 59 of this Act, or obstructs any officer making inspection or search or
seizure under sections 60 and 61 of this Act;,
(i) obstructs
or prevents any officer performing any function under Chapter X of this Act;
(j) being
owner in charge of a goods vehicle fails, neglects or refuses to comply with
any of the requirements contained in section 61 of this Act; or
(k) interferes
with or obstructs the Commissioner or any officer exercising any other power
conferred under this Act;
shall, on conviction, be punished with imprisonment for a term which may
extend to six months, and with a fine.
(5) Whoever
aids or abets any person in the commission of any act specified in sub‑sections
(1) to (3) of this section shall, on conviction, be punished with rigorous
imprisonment which may extend to six months, and with a fine.
(6) Whoever
commits any of the acts specified in sub‑sections (1) to (5) of this
section and the offence is a continuing one under any of the provisions of
these sub‑sections, shall, on conviction, be punished with a fine of not
less than one hundred rupees per day during the period of the continuance of
the offence, in addition to the punishments provided under this section.
(7) Notwithstanding
anything contained in sub‑sections (1) to (5) of this section, no person
shall be proceeded under these sub‑sections if the total amount involved
is less than two hundred rupees during the period of a year.
(8) Where
a dealer is accused of an offence specified in sub‑sections (1), (2) or
(3) or in clauses (a), (h), (c), (d), (e), (f), (g), (h) and (i) of sub‑section
(4), or sub section (6) of this section the person deemed to he the manager of
the business of such dealer under section 95 shall also be deemed to be guilty
of such offence, unless he proves that the offence was committed without his
knowledge or that he exercised all due diligence to prevent the commission
thereof.
Sec. 90. Offences by Companies, Etc.
(1) Where
an offence under this Act or the rules has been committed by a company, every
person who, at the time the offence was committed, was in charge of, and was
responsible to the company for the conduct of the business of the company, as
well as the company shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly:
PROVIDED that nothing contained in this sub‑section shall render
any such person liable to any punishment provided in this Act if he proves that
the offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding
anything contained in sub‑section (1) of this section, where an offence
under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is
attributable to any neglect on the part of any director, manager, secretary or
other officer of the company, such director, manager, secretary or other
officer shall also be deemed to be guilty of that offence and shall be liable
to be proceeded against and punished accordingly.
Explanation. ‑ For the
purpose of this section
(a) "company"
means a body corporate, and includes a association of individuals; and
(b) "director"
in relation to a firm means a partner in the firm firm or other
(3) Where
an offence under this Act has been committed by a Hindu undivided family, the
Karta thereof shall be deemed to be guilty of the offence and shall be liable
to be proceeded against and punished accordingly:
PROVIDED that nothing contained in this sub‑section shall render
the Karta liable to any punishment if he proves that the offence was committed
without his knowledge or that he had exercised all due diligence to prevent the
commission of such offence:
PROVIDED FURTHER that where an offence under this Act has been committed
by a Hindu undivided family and it is proved that the offence has been
committed with the consent or connivance of or is attributable to any neglect
on the part of any adult member of the Hindu undivided family, such member
shall also be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.
Sec. 91.Cognizance of Offences
(1) No
court shall take cognizance of any offence under this Act or rules made there
under except with the previous sanction of the Commissioner, and no court
inferior to that of a Metropolitan Magistrate shall try any such offence.
(2) Notwithstanding
anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) all
offences punishable under this Act or the rules made there under shall be
cognizable and bailable.
Sec. 92. Investigation of Offences
(1) Subject
to such conditions as may be prescribed, the Commissioner may authorise either
generally or in respect of a particular case or class of cases any officer or
person subordinate to him to investigate all or any of the offences punishable
under this Act.
(2) Every
officer or person so authorised shall, in the conduct of such investigation,
exercise the powers conferred by the Code of Criminal Procedure, 1973 (2 of
1974) upon an officer in charge of a police station for the investigation of a
cognizable offence.
Sec. 93. Compounding
of Offences
(1) The
Commissioner may, before the institution of proceedings for any offence
punishable under sub‑section (4) of section 89 of this Act or under any
rules made under this Act, accept from any person charged with such offence by
way of composition of offence, a sum not exceeding fifty thousand rupees or a
sum not exceeding three times the amount of tax which would thereby have been
avoided, whichever is higher.
(2) On
payment of such sum as may be determined by the Commissioner under sub‑section
(1) of this section, no further proceedings shall be taken against such person
in respect of the same offence.
Sec. 94. Chapter Xxxvi of the Code of Criminal Procedure, 1973, Not To App
to Certain Offences
Nothing in Chapter XXXVI of the Code of
Criminal Procedure, 1973 (2 1974) shall apply to
(a) any
offence punishable under this Act; or
(b) any
other offence which under the provisions of that Code may be trice along with such
offence; and every offence referred to in clause (a) or clause (b) above may be
take recognizance of by the court having jurisdiction under this Act as if the
provisions of that Chapter were not enacted.
(1) Every
dealer being a Hindu undivided family or an association of persons or club or
society or firm or company or any person or body who s. engaged in business as the
guardian or trustee or otherwise on behalf of another person, and who is liable
to pay tax under this Act, shall, within the period prescribed, furnish a
declaration in the manner prescribed, stating the name of the person or persons
who shall be deemed to be the manager or managers of such person's business for
the purposes of this Act.
(2) The
declaration furnished under sub‑section (1) of this section may revised
from time to time as required.
(1) Where
a Hindu undivided family has been partitioned, notices under Act shall he
served on the person who was the last manager of the Hindu undivided family, or
if such person cannot be found, then, on all adults who were, members of the
Hindu undivided family, immediately before the partition.
(2) Where
a firm or an association of persons is dissolved, notices under this Act may be
served on any person who was a partner (not being a minor) of the firm or
member of the association, as the case may be, immediately before its
dissolution
Where an assessment is to be made in respect of
business which has bet discontinued, a notice under this Act shall be served in
the case of a firm or association of persons or any person who was a member of
such firm association at the time of its discontinuance or in the case of a
company on the principal officer thereof.
Sec. 98. Returns, etc. To
be confidential
(1) All
particulars contained in any statement made., ‑return furnished or
accounts or documents produced in accordance with this Act, or in any record of
evidence given in the course of any proceedings under this ' Act, other than
proceedings before a criminal court, shall, save as provided in sub‑section
(3) of this section, be treated as confidential, and notwithstanding anything
contained in the Indian Evidence Act, 1872 (1 of 1872), no court shall, save as
aforesaid, be entitled to require any servant of the Government to produce
before it any such statement, return, account, document or record or any part
thereof, or to give evidence before it in respect thereof.
(2) If,
save as provided in sub‑section (3) of this section, any servant of the
Government discloses any of the particulars referred to in sub‑section
(1) of this section, he shall be punishable with imprisonment which may extend
to six months, and shall also be liable to a fine.
(3) Nothing in
this section shall apply to the disclosure ‑
(a) of
any of the particulars referred to in sub‑section (1) of this section for
the purposes of investigation or prosecution under this Act or the Indian Penal
Code 1860 (45 of 1860) or any other enactment for the time being in force;
(b) of
such facts to an officer of the Central Government or any State Government as
may be necessary for verification of such facts or for the purposes of enabling
that Government to levy or realise any tax imposed by it;
(c) of
any such particulars where such disclosure is occasioned by the lawful
employment under this Act of any process for the service of any notice or the
recovery of any demand;
(d) of
any such particulars to a civil court in any suit or proceeding to which the
Government or any Value Added Tax authority is a party and which relates to any
matter arising out of any proceeding under this Act or under any other law for
the time being in force authorising any Value Added Tax authority to exercise
any powers thereunder;
(e) of
any such particulars by any public servant where the disclosure is occasioned
by the lawful exercise by him of his powers under the Indian Stamp Act, 1899 (2
of 1899) to impound an insufficiently stamped document;
(f) of
any such particulars to the Reserve Bank of India as are required by that Bank to
enable it to compile financial statistics of international investment and
balance of payment;
(g) of
any such particulars to any officer appointed by the Comptroller and Auditor‑General
of India for purpose of audit of tax receipts or refunds;
(h) of
any such particulars relevant to any inquiry into a charge of misconduct in
connection with income‑tax proceedings against a legal practitioner or
chartered accountant, to the authority empowered to take disciplinary action
against members of the profession to which he belongs;
(i) of
such particulars to the officers of the Central Government or any State
Government for such other purposes, as the Government may, by general or
special order, direct; or
(j) of
any information relating to a class of dealers or class of transactions, if, in
the opinion of the Commissioner it is desirable in the public interest k
publish such information.
(1) Notwithstanding
anything contained in this Act, if the Government is of the opinion that it is
necessary or expedient in the public interest to publish n disclose the names
of any dealers or other persons and any other particulars relating to any
proceedings under this Act in respect of such dealers and persons it may
publish or disclose or cause to be published or disclosed such names ad
particulars in such manner as it thinks fit.
(2) No
publication or disclosure under this section shall be made in relation to any
tax levied or penalty imposed or interest levied or any conviction for any
offence connected with any proceeding under this Act, until the time f~
presenting an appeal to the appropriate appellate body has expired without an
appeal having been presented or the appeal, if presented has been disposed of
Explanation.‑ In
the case of a firm, company or other association 9 persons, the names of the
partners of the firm, the directors, managing agog secretaries, treasurers or
managers of the company or the members of ~ association, as the case may be,
may also be published or disclosed, if, in h opinion of the Government, the
circumstances of the case justify it.
(1) If
the Commissioner considers that for the purposes of the be administration of
this Act it is necessary so to do, he may by notification in Official Gazette,
direct that statistics be collected relating to any matter de with, by or in
connection with this Act.
(2) Upon
such direction being made, the Commissioner or any person persons authorised by
him in this behalf may call upon all dealers or any class dealers or persons to
furnish such information or statements as may be stand therein relating to any
matter in respect of which statistics are to be collected and the form in which
the persons to whom or, the authorities to which, su4 information or returns
should be furnished, the particulars which they should contain, and the
intervals in which such information or returns should NR furnished, shall be
such as may be prescribed:
PROVIDED that the call for information may be made by notification the
official Gazette, by notice in newspapers or in such other manner as, in 11
opinion of the Commissioner or the said person, is best calculated to bring to
the attention of dealers and other persons.
(3) Without
prejudice to the generality of the foregoing provisions, the Government may by
rules provide that every dealer or, as the case may be, any class of dealer
shall furnish such statements as may be prescribed, with the self assessment,
and different provisions may be made for different classes of dealers.
The Government may, by notification in the
official Gazette, set up check-posts or barriers, or both, at any place in
(1) The
Government may, by notification in the official Gazette, make rules for
carrying out the purposes of this Act.
(2) In
particular and without prejudice to the generality of the foregoing power, such
rules may provide for :
(a) documents,
testimony or other evidence constituting adequate proof under the Act,
(b) services
which may constitute business under clause (i) of sub‑clause (d) of sub‑section
(1) of section 2 of this Act,
(c) activities
referred to under clause (ii) of sub‑clause 0) of sub‑section (1)
of section 2 of this Act,
(d) tax
period referred to under sub‑clause (zi) of sub‑section (1) of
section 2 of this Act,
(e) time
within which the return maybe furnished,
(f) the
further period referred to under sub‑section (6) of section 3 of this
Act,
(g) the
conditions and method subject to which the amount to be included in the turnover
of a dealer engaged in works contract may be determined under section 5 of this
Act,
(h) conditions
subject to which the dealers specified under the Fifth Schedule may be exempt
from payment of tax under section 6 of this Act,
(ha) the
conditions subject to which a dealer can make adjustment to tax in relation to
the sale of goods u/s 8 of this Act
(i) the
method to be used by a dealer to calculate the amount of tax credit under
section 9 or section 10 of this Act,
(j) the
time at which the turnover, turnover of purchase or adjustment of tax or tax
credit may arise under sub‑section (4) of section 12 of this Act,
(k) form
of statements, manner, conditions and restriction subject to which credit may
be claimed for stock brought forward during transition under section 14 of this
Act,
(l) the
circumstances and the conditions subject to which, a dealer may be permitted to
pay tax by way of composition under section 16 of this Act,
(la) the
procedure and forms relating to casual dealer u/s 16A of this act.
(m) the
procedure for and other matters incidental to registration of dealers under
section 19 of this Act,
(n) form
in which the statement of trading stock is to be furnished under sub‑section
(2) of section 20 of this Act,
(o) the
amount of tax credit allowed to a dealer under sub‑section (3) of section
20 of this Act,
(p) matters relating to amendment of registration
certificate under section 21
of
this Act, 9
(q) matters
relating to cancellation of registration certificate under section 22 of this
Act,
(r) the
conditions, amount, manner, time within which and other matters incidental to
the security required under section 25 of this Act,
(s) the
manner in which, the time by when, the information to be included and the form
in which the returns under section 26 or section 27 of this Act are to be
furnished,
(t) the
manner in which any tax, interest, penalty or any other amount due under this
Act is to be paid,
(u) the
restrictions and conditions subject to which and the manner and the time within
which the application for refund may be made under section 41 of this Act,
(v) the
manner and form in which the accounts and records are to be 11 prepared under
sub‑section (3) of section 48 of this Act,
(w) the
turnover, the form of the audit report, the particulars to be set forth in such
report and the time of furnishing such report under section 49 of this Act,
(x) the
amount referred to in sub‑section (4) of section 50 or the conditions and
restrictions referred to in sub‑section (8) of section 50 of this Act,
(y) the
particulars to be contained in the debit or credit notes under section 51 of
this Act,
(z) the
conditions subject to which the Commissioner may require any person to produce
records, books of account, registers and other documents, answer questions or
prepare and furnish additional information under sub‑section (2) of
section 59 of this Act,
(za) records
that an owner or person in charge of a goods vehicle shall carry with him in
respect of the goods carried in the goods vehicle under sub‑section (2)
of section 61 and form, manner and amount of security under sub‑section
(5) of section 61 of this Act,
(zb) the
manner in which an auction of goods or a goods vehicle shall be carried out
under section 63 of this Act,
(zc) the
restrictions and conditions subject to which the Commissioner may delegate his
powers, and the form of evidence of such delegation under section 68 of this
Act,
(zd) amount
of fine prescribed under sub‑section (5) of section 70 of this Act,
(ze) the
form and manner in which an objection may be made under section 74 of this Act,
(zf) the
form and manner in which appeals may be filed under section 76 of this Act, the
manner in which such appeals shall be verified and the fees payable in respect
thereof,
(zg) amount
of fee under section 81 of this Act,
(zh) qualifications
to be possessed by a Value Added Tax practitioner under section 82 of this Act,
(zi) manner
in which an application may be made and the period within which the
determination shall be made under section 84 of this Act,
(zj) conditions
subject to which, the Commissioner may authorise any officer or person
subordinate to him to conduct investigations under section 92 of this Act,
(zk) period
within which and the manner in which the declaration under section 95 of this
Act is to be furnished,
(zl) the
manner in which, and the time within which, applications shall be made
(including fees payable in respect thereof), information furnished, securities
given and notices served under this Act,
(zm) any
other matter which is required to be, or may be, prescribed.
(3) In
making any rules under this section, the Government may direct that a breach
thereof shall be punishable with fine not exceeding five thousand rupees and,
when the offence is a continuing one, with a fine not exceeding two hundred
rupees per day during the continuance of such offence.
(4) Every
rule made under this Act shall be laid, as soon as may be after it is made,
before the Legislative Assembly of Delhi, while it is in session, for a total
period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, the House agrees in
making any modification in the rule or the House agrees that the rule should
not be made, the rule shall have effect only in such modified form or be of no
affect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously
done under that rule.
If the Government is of opinion that it is
expedient in the interest of general public so to do, it may, by notification
in the official Gazette, add to, or omit from, or otherwise amend, the First,
the Second, the Third, the Fourth, the Fifth, the Sixth, or the Seventh
Schedules, prospectively, and thereupon the said Schedules shall be deemed to
have been amended accordingly.
(1) If
any difficulty arises in giving effect to the provisions of this Act, the
Government may, by general or special order published in the official Gazette,
make such provisions not inconsistent with the provisions of this Act as appear
to it to be necessary or expedient for the removal of the difficulty:
PROVIDED that no such order shall be made after the expiration of two years from the commencement of
this Act.
(2) Every
order made under sub‑section (1) of this section shall be laid, as soon
as may be after it is made, before the Legislative Assembly of Delhi.
(1) The
tax imposed by section 3 of this Act applies to every
(a) sale,
including an instalment sale and hire purchase of goods, made on and after
1st April, 2005;
(b) sale
in the form of the transfer of a right to use goods, to the extent that the
right to use goods is exercised after
1st April, 2005.
(2) Tax credits
arising under section 9 of this Act shall be allowed only for
(a) a
purchase, including a purchase under an instalment sale and hire purchase of
goods, made on and after 1st April, 2005; and
(b) a
purchase occurring in the form of the acquisition of a right to use goods, to
the extent that the right to use goods is exercised after 1st April 2005,
Explanation.‑ This
provision does not prevent the person claiming the special tax credit allowed
under section 14 of this Act.
(3) Where
an amount is paid or received prior to I` April, 2005 in respect of a sale or
purchase occurring after 1st April, 2005, and the person calculates
his turnover or turnover of purchases based on amounts paid and received, the amount
shall be treated as forming part of the person's turnover or turnover of purchases in the tax period in which
the sale occurs.
(1) The
Delhi Sales Tax Act, 1975 (Act 43 of 1975), the Delhi Tax on Entry of Motor
Vehicles into Local Areas Act, 1994 (Delhi Act 4 of 1995), the Delhi Sales Tax
on Works Contract Act, 1999 (Delhi Act 9 of 1999), and the Delhi Sales Tax on
Transfer of Right to Use Goods Act, 2002 (Delhi Act 13 of 2002) as in force in
Delhi (referred to in this section as the "said Acts"), are hereby
repealed.
(2) Notwithstanding
sub‑section (1) of this section, such repeal shall not affect the
previous operation of the said Acts or any right, title, entitlement obligation
or liability already acquired, accrued or incurred there under.
(3) For
the purposes of sub‑section (2) of this section, anything done or any
action taken including any appointment, notification, notice, order, rule, form
or certificate in the exercise of any powers conferred by or under the said
Acts shall be deemed to have been done or taken in the exercise of the powers
conferred by or under this Act, as if this Act were in force on the date on
which such thing was done or action was taken, and all arrears of tax and other
amounts due at the commencement of this Act may be recovered as if they had
accrued under this Act.
(See
section 6)
|
SI. No. |
COMMODITY
|
|
|
Agricultural implements manually operated or animal
driven |
|
|
Aids and implements used by handicapped persons |
|
|
Ambar charakha |
|
|
Animal hair |
|
|
Aquatic feed, poultry feed and cattle feed including
grass, hay and straw |
|
|
Aquatic products when not cured or frozen |
|
|
|
|
|
Atta |
|
|
Ban |
|
|
Bangles made of shell, Glass, Lac or Plastics |
|
|
Besan |
|
|
Betel leaves |
|
|
Bindi Alta |
|
|
Blood – human and blood plasma |
|
|
Books, Periodicals, Newspapers and Maps |
|
|
Bread – Branded and un branded |
|
|
Butter milk |
|
|
Cattle feed |
|
|
Charakha, Ambar Charakha, handlooms and handloom
fabrics and Gandhi Topi |
|
|
Cheques loose in book form |
|
|
Charcoal |
|
|
Coarse grains other than paddy, rice and wheat |
|
|
Coconut – tender green |
|
|
Coconut in shell and separated kernel of coconut |
|
|
Compressed natural gas |
|
|
Condoms and Contraceptives |
|
|
Cotton and silk yam in hank |
|
|
Curd, Lussi, butter milk and separated milk |
|
|
Earthen pot |
|
|
Eggs |
|
|
Electricity energy |
|
|
Firewood |
|
|
Fishnet and fishnet fabrics |
|
|
Fabrics handloom |
|
|
Flour, Atta, Maida, Suji, Besan Ect. |
|
|
Fish when not cured or frozen |
|
|
Fresh milk and pasteurized milk |
|
|
Fresh plants, saplings and fresh flowers |
|
|
Fresh vegetables and fruits |
|
|
Garlic and ginger |
|
|
Glass bangles |
|
|
Human blood and blood plasma |
|
|
Indigenous handmade musical instruments |
|
|
Kumkum, bindi alta and sindur |
|
|
Meat, fish, prawn and other aquatic products when not
cured or frozen; eggs and livestock and animal hair |
|
|
National Flag |
|
|
Organic manure |
|
|
Non-judicial
stamp paper sold by Government Treasuries; postal items like envelope, post
card etc- sold by Government; rupee note,
when sold to the Reserve Bank of |
|
|
Raw wool |
|
|
Semen including frozen semen |
|
|
Silk worm laying, cocoon and raw silk |
|
|
Slate and slate pencils |
|
|
Tender green coconut |
|
|
Toddy, Neera and |
|
|
Unbranded bread |
|
|
Unprocessed and unbranded salt |
|
|
Water other than (i) aerated, mineral, distilled,
medicinal, ionic, battery, de-mineralized water, and (i) water sold in sealed container3 |
(See
section 4)
|
SI. No. |
COMMODITY
|
|
1 |
Bullion |
|
2 |
Articles of
Gold, Silver and Precious Metals including Jewellery made from gold, silver
and precious metals |
|
3 |
Precious Stones and Semi-Precious Stones |
(See
section 4)
List of Goods Taxed at 4%
|
SI. No. |
COMMODITY
|
|
|
Agricultural
implements not operated manually or not driven by Animal |
|
|
Aam papar |
|
|
Aerials and
parts |
|
|
Agarbatti |
|
|
Alloys |
|
|
Aluminium and
its extrusions |
|
|
Amla |
|
|
Aniseed |
|
|
Antennas and
parts |
|
|
Answering
machine – telephone and parts thereof |
|
|
Ararote Kirana
items |
|
|
All equipments
for communications such as, Private Branch Exchange (PBX) and Electronic
Private Automatic Branch Exchange (EPABX) etc. |
|
|
All intangible
goods like copyright, patent, rep license, goodwill etc, |
|
|
All kinds of
bricks including fly ash bricks, refractory bricks and asphaltic roofing,
earthen tiles |
|
|
All types of
yam other than cotton and silk yam in hank and sewing thread |
|
|
Aluminium
utensils and enamelled utensils |
|
|
Arecanut
powder and betel nut |
|
|
Bags – school having MRP up to Rs. 300/= |
|
|
Bahera |
|
|
Bamboo |
|
|
Bark |
|
|
Bearings |
|
|
Beedi leaves |
|
|
Beltings |
|
|
Betel-nut |
|
|
Bicycles,
tricycles, cycle rickshaws and parts |
|
|
Bitumen |
|
|
Bone meal |
|
|
Bran of
cereals |
|
|
Bran Oil |
|
|
Bricks – all Kinds |
|
|
Bulk drugs |
|
|
Cables – Industrials (High voltage cables, elpes cables, jelly cables,
optical fibres) |
|
|
Cables – optical fibre |
|
|
Calculators – electronics |
|
|
Calendars |
|
|
Capacitors – Electrical, fixed, variable and parts |
|
|
Castings |
|
|
Cathode ray
oscilloscopes, spectrum analysers, signal
analysers |
|
|
Cellular
phones and accessories |
|
|
Centrifugal,
monobloc and submersible pumps and parts thereof |
|
|
Chappal
hawai |
|
|
Coffee beans
and seeds, cocoa pod, green tea leaf and chicory |
|
|
CI Pipes |
|
|
Circuits
printed |
|
|
Coal including
coke in all its forms but excluding charcoal (As defined in section 14 (ia)
of CST Act. 1956.) |
|
|
Communication all
equipments such as private branch exchange PBX, Electronic private automatic
branch exchange(EPABX) Ect. |
|
|
Computer
systems and peripherals, Electronic Diaries,
|
|
|
Computers |
|
|
Connectors,
switches relays for up to 5 AMPS |
|
|
Copper and its
extrusions |
|
|
Copyright |
|
|
Crude Oil as
defined u/s 14 (iic) of CST Act 1956 |
|
|
Cumin Seed |
|
|
Cycle,
Rickshaws and Parts |
|
|
Chemical
fertilizers, pesticides, weedicides and insecticides |
|
|
Coir and coir products
excluding coir mattresses |
|
|
Cotton and
cotton waste |
|
|
Crucibles |
|
|
D C Micro
motors, Stepper Motors of 37.5 Watts ( Being I T Products) |
|
|
Data/Graphic
Display Tubes other than picture tubes and parts |
|
|
Declared goods
as specified in section 14 of the Central Sales Tax Act-1956 |
|
|
De-oiled cake |
|
|
Dhupbati |
|
|
Dhupkathi |
|
|
Diary |
|
|
Diodes,
transistors and similar semi conductor devices |
|
|
Display tubes – data / graphic other than picture tubes and parts |
|
|
Drugs and
medicines including bulk drugs |
|
|
Dry chillies |
|
|
Dry Plant and
Dry Root |
|
|
Ductile pipes |
|
|
Earthen tiles |
|
|
Edible oils,
oil cake and de-oiled cake |
|
|
Edible variety
of rub Gur |
|
|
Electrical
apparatus for line telephone or line telegraphy |
|
|
Electrical
capacitors, fixed, variable and parts |
|
|
Electrical
resistors |
|
|
Electronics
Calculators |
|
|
Electronic
Diaries |
|
|
Electronic integrated
circuits and micro – assemblies |
|
|
Electronic
EAPBX |
|
|
ELPE cables |
|
|
Embroidery and
Zari Items |
|
|
Enamelled
utensils |
|
|
Energy – renewable devices and spare parts |
|
|
Electrodes |
|
|
Exercise book,
graph book and laboratory note book |
|
|
Ferrous and
non-ferrous metals and alloys; non-metals such as aluminium, copper, zinc and
extrusions of those |
|
|
Fabrics Silk |
|
|
Ferrous metals |
|
|
Fertilizer – Chemical |
|
|
Fibers of all types
and fiber waste |
|
|
Fish – processed |
|
|
Fly ash bricks |
|
|
Footwear -
Plastics |
|
|
Fruits – Processed or preserved |
|
|
Flour, atta,
maida, suji, besan, etc. |
|
|
Fried grams |
|
|
Garments – Readymade |
|
|
G I Pipes |
|
|
Gingili oil |
|
|
Gola (Being
Kirana Items) |
|
|
Goley ka
Burada (Being Kirana Items) |
|
|
Goodwill |
|
|
Grams – fried |
|
|
Graph Book |
|
|
Green Tea Leaf |
|
|
Guchchi (Being
Kirana Items) |
|
|
Gur, jaggery,
and edible variety of rub gur |
|
|
Hand pumps and
spare parts |
|
|
Harrad |
|
|
Harvesters and
attachment and parts thereof |
|
|
Hawai Chappal |
|
|
Head phones |
|
|
Heeng (Being
Kirana Items) |
|
|
Hides and
skins whether in a raw or dressed state (as specified u/s 14 (iii) of CST Act
1956 |
|
|
Herb, bark,
dry plant, dry root, commonly known as jari booti and dry flower |
|
|
High voltage
cable |
|
|
Hose pipes |
|
|
Hosiery goods |
|
|
HSM 84.69,
84.70 and 84.71 – parts and accessories thereof
(list of items attached as per annex. I) |
|
|
HSN 85.01 – parts thereof (list of items attached as per annex. I) |
|
|
Husk and bran
of cereals |
|
|
Ice |
|
|
Incense sticks
commonly known as, agarbatti, dhupkathi or dhupbati |
|
|
Industrial cables
(High voltage cables, ELPE Cables, jelly filled cables, optical fibres) |
|
|
Ink – printing [excluding toner and cartridges] |
|
|
Insecticides |
|
|
Intangible
Goods – all like copyright, patent, REP License, Goodwill
ect. |
|
|
Iron & Steel
(as specified u/s 14 (iv) of the CST Act 1956) |
|
|
IT products
including computers, telephone and parts thereof, Tele printer
and wireless equipment and parts thereof |
|
|
I T products notified
by the ministry of IT as specified in the entry No. 41A of the III Sech. |
|
|
Jaggery |
|
|
Jari booti and
dry flower being medical herbs including amla, harrad, bahera, sikakai,
katha, supari, rattanjot and khusk pudina, bark dry plant, dry root. |
|
|
Jelly filled
cables |
|
|
Jute (As
specified u/s 14(v) of CST Act 1956) |
|
|
Kala Namak
(Being Kirana Items) |
|
|
Kata |
|
|
Kerosene oil
sold through PDS |
|
|
Kesar (Being
Kirana Items) |
|
|
Khumba (Being
Kirana Items) |
|
|
Khusk pudina |
|
|
Knitting wool |
|
|
Kuttu and
their Atta (Being Kirana Items) |
|
|
Laboratory
note book |
|
|
LCD Panels,
LED panels and Parts |
|
|
Liquid crystal
devices, flat panel display device and parts |
|
|
Leaf plates
and cups |
|
|
Machines – sewing |
|
|
Magaj all kind
of kirana items |
|
|
Magnet-
permanent and articles |
|
|
Meat
(Processed) |
|
|
|
|
|
Medicinal
herbs including amla, harrad, bahera, sikakai, katha, supari, rattanjot and khusk
pudina, bark, dry plant, dry root commonly known as jari booti and dry flower
|
|
|
Medicines |
|
|
Mehendi – pisi (Being Kirana Items) |
|
|
Mehendi patti
(Being Kirana Items) |
|
|
Metals – ferrous and non ferrous |
|
|
Microphones, multimedia
speakers, headphones etc |
|
|
Milk (skimmed)
powder |
|
|
Minerals |
|
|
Monobloc and
parts thereof |
|
|
Mungafali dana
(Being Kirana Items) |
|
|
Mushrum (Being
Kirana Items) |
|
|
Murmuralu,
pelalu, atukulu, puffed rice, muri |
|
|
Namak – Kala (Being kirana Items) |
|
|
Namak – Sendha (Being kirana Items) |
|
|
Newars |
|
|
Napa Slabs
(Rough flooring stones) |
|
|
Non – ferrous Metals |
|
|
Non-Metals
such as aluminium, copper, zink and extrusions of those |
|
|
Oil cake |
|
|
Oil seeds as
specified u/s 14 (vi) of CST ACT 1956 |
|
|
Optical fibre
and optical fibre bundles, Cables |
|
|
Optical fibre
cables |
|
|
Optical fibres |
|
|
Ores and
minerals |
|
|
Pagers – radio |
|
|
Panels and
parts – LCD, LED |
|
|
Paddy, rice, wheat
and pulses |
|
|
Paper and
newsprint |
|
|
Patent |
|
|
Pesticides |
|
|
Pipes of all
varieties including GI pipes, CI pipes, ductile pipes and PVC pipes |
|
|
Pisi Mehendi
(Being kirana Items) |
|
|
Plastic
footwear |
|
|
Plastics
Granules |
|
|
Postdana
(Being kirana Items) |
|
|
Poultry – processed |
|
|
Prepared un
recorded media for sound recording |
|
|
Printed
circuits |
|
|
Printed
material including diary, calendar etc. |
|
|
Private branch
exchange (PBX) |
|
|
Processed meat,
poultry, fish and processed or preserved vegetables and fruits |
|
|
Printing ink
excluding toner and cartridges |
|
|
Processed and
branded salt |
|
|
Pulp of
bamboo, wood and paper |
|
|
Pumps – submersibles and parts thereof |
|
|
PVC pipes |
|
|
Radio
communication receivers |
|
|
Radio pagers |
|
|
Rai (Being
kirana Items) |
|
|
Rail coaches
engines and wagons |
|
|
Rattanjot |
|
|
Readymade
garments |
|
|
Refractory
bricks |
|
|
Relays,
switches, connectors for up to 5 Amp |
|
|
Renewable energy
devices and spare parts |
|
|
REP license |
|
|
Resistors
electrical |
|
|
Roli (Being
kirana Items) |
|
|
Sabudana
(Being kirana Items) |
|
|
Safety matches |
|
|
School bags
having MRP up to Rs. 300/= |
|
|
Seeds |
|
|
Seik narial (Being
kirana Items) |
|
|
Sendha namak
(Being kirana Items) |
|
|
Sewing
machines |
|
|
Ship and other
water vessels |
|
|
Signal
generators and parts |
|
|
Sikakai |
|
|
Silk fabrics |
|
|
Singhara
(Being kirana Items) |
|
|
Skimmed milk
powder |
|
|
Skins and
hides whether in a raw or dressed state (as specified u/s 14 (iii) of CST ACT
1956) |
|
|
Software IT or
any media |
|
|
Solvent oils
other than organic solvent oil |
|
|
Speakers – multimedia, headphones ect. |
|
|
Spices of all varieties
and forms including cumin seed, aniseed, runneric and dry chillies |
|
|
Sports goods
excluding apparels and footwear |
|
|
Starch |
|
|
Steel and iron
as defined u/s 14 (iv) of CST Act 1956 |
|
|
Submersible
pumps and parts thereof |
|
|
Supari |
|
|
Switches,
connectors, Relays for up to 5 Amp |
|
|
Sugar and
khandsari |
|
|
Tea |
|
|
Tea leaf – green |
|
|
Telephone and
parts |
|
|
Telephone
answering machine and parts thereof |
|
|
Tele printer
and parts |
|
|
Til (being kirana
items) |
|
|
Tamarind |
|
|
Tractors,
threshers, harvesters and parts thereof |
|
|
Transistor,
diodes and similar semi – conductor devise |
|
|
Transmission
towers |
|
|
Tricycles and
parts |
|
|
Turmeric |
|
|
Type writer – electronic |
|
|
Umbrella
except garden umbrella, |
|
|
Uninterrupted
power supply |
|
|
Utensils – aluminium and enamelled |
|
|
Vanaspati
(Hydrogenated vegetable oil) |
|
|
Vegetable oil
including gingili oil and bran oil |
|
|
Vegetable – processed or preserved |
|
|
Wagons |
|
|
Water vessels |
|
|
Weedicides |
|
|
Wireless
equipments and parts |
|
|
Wool knitting |
|
|
Word
processing machine |
|
|
Writing
instruments |
|
|
Yarn – all types other then cotton and silk yarn in hank and sewing thread
[cotton yarn is also declare goods and covered u/s 14 (iib) of the CST Act
1956 and entry no. 24 of III sech.] |
|
|
Zari and
embroidery items |
|
|
Zinc and its
extrusions |
(See section 4)
List of Goods Taxed at 20%
|
SI. No. |
Commodity
|
|
1 |
Petroleum
Products other than liquid petroleum gas, Compressed Netural Gas and Kerosene
such as (i)
Naphtha; (ii)
Aviation Turbine Fuel; (iii)
Spirit; (iv)
Gasoline; (v)
Diesel (High Speed Diesel, Super Light Diesel
Oil, Light Diesel Oil); (vi)
Furnace Oil; (vii)
Organic Solvent; (viii)
Coal Tar; (ix)
Wax (except Petroleum wax used for
manufacture of candles); (x)
Mixture and combination of above products. |
|
2 |
Liquor
(Foreign and Indian Made Foreign Liquor). |
|
3 |
Country
Liquor. |
|
4 |
Narcotics
(Bhaang). |
|
5 |
Molasses. |
|
6 |
Rectified
Spirit. |
|
7 |
Lottery
Tickets. |
|
8 |
Brake Fluid. |
|
9 |
Aviation
Turbine Fuel [Aviation Turbine Fuel when sold to a turbo – prop aircraft is declared goods and covered u/s 14 (IID) of the CST
Act and should be covered under entry no. 24 of III Sech. And not in this
entry] |
(See section 6)
List of dealers exempted from
paying tax on sale of goods
|
Sl. No. |
Description of the dealer |
Not yet specified
(See section 41)
List of organisations who can
claim refund
|
Sl. No. |
ORGANISATION
|
|
1 |
(a) H.E.
Ambassador of (b) The
Embassy of (c) The
Diplomatic Officers (including their spouses) of the Embassy of Afghanistan. |
|
2 |
AFRO-ASIAN
RURAL RECONSTRUCTION ORGANISATION |
|
3 |
The Embassy of
Democratic and Popular |
|
4 |
The Embassy of
Angola in |
|
5 |
APOSTOLIC NUNCIATURE |
|
6 |
EMBASSY OF |
|
7 |
EMBASSY OF |
|
8 |
ASIAN AFRICAN
LEGAL CONSULTIVE COMMITTEE |
|
9 |
ASIAN DEVELOPMENT BANK |
|
10 |
THE HIGH
COMMISSION IN |
|
11 |
(a) The Embassy of Austria in (b) The Diplomatic Officers of the Embassy of
Austria in |
|
12 |
(a) The High Commission for the (b) The Diplomatic Officers (including their spouses)
of the High Commission for the Peoples Republic of Bangladesh in |
|
13 |
The Embassy of
|
|
14 |
(a) H.E. the Ambassador of (b) The Embassy of (c) The Diplomatic Officers of the |
|
15 |
(a) The
Royal Bhutan Mission in (b) The
Representative of Bhutan in (c)
The Diplomatic Officers of the Royal Bhutan
Mission in |
|
16 |
(a) The
Embassy of the Federative (b) The
Diplomatic Officers (including their spouses) of the Embassy of Federative
Republic of Brazil in |
|
17 |
(a) The
High Commission for (b) The
Diplomatic Officers (including their spouses) of the High Commission for |
|
18 |
|
|
19 |
(a) H.E.
the Ambassador of the (b) The
Embassy of the (c) The
Diplomatic Officers (including their spouses) of the Embassy of the Peoples
Republic of Bulgaria in |
|
20 |
(a) H.E.
the High Commissioner for Canadian in (b) The
Diplomatic Officers of the (c) The
Canadian High Commission |
|
21 |
|
|
22 |
(a) H.E.
the Chinese Ambassador in (b) The
Embassy of the (c) The
Diplomatic officers of the Chinese Embassy in |
|
23 |
The Embassy of
|
|
24 |
COMBODIA (a) H.E.
the ambassador of Combodia in (b) The
Embassy of Combodia in (c) The
Diplomatic Officers (including their spouses) of the Embassy of Combodia in |
|
25 |
(A)
OFFICIALS OF THE COMMISSION OF THE EUROPEAN COMMUNITIES FOR SETTING
UP THEIR OFFICE. (B)
Personal of the delegation holding diplomatic
status (other than Indian nationals and person permanently resident in India
Employed by the said commission). |
|
26 |
COMMON EDUCATIONAL MEDIA CENTRE FOR Common
Educational Media Centre on the purchase made for official use and by its
President and Vice-President for personal use. |
|
27 |
The Congolese
Embassy and their Diplomatic Officers. |
|
28 |
Embassy of |
|
29 |
(a) The Embassy of the (b) The Diplomatic Officers (including their
spouses) of the |
|
30 |
(a) The
Cyprus High Commission in (b) The
Diplomatic Officers (including their spouses of the Cyprus High Commission in
|
|
31 |
Embassy of by its
diplomats for official as well as for personal use of their officials. |
|
32 |
(a) The
Royal Danish Embassy in (b) The
Diplomatic Officers (including their spouses) of the Royal Danish Embassy in |
|
33 |
(a)
The High Commission for the (b)
The Diplomatic Officials of the High
Commission for the |
|
34 |
(a) The
Embassy of the (b) The
Diplomatic officers (including their spouses) of the Embassy of the Arab
Republic of Egypt in |
|
35 |
ETHOPIA (a) The
Ethopia Embassy in (b) The
Diplomatic Officers of the Ethopian Embassy in |
|
36 |
Embassy of Items made by
its diplomats for official purpose, 1
Construction materials as well commodities to be used for the interior
decoration and furnishing of building. 2 Commodities used in representation
functions. 3 Motor
vehicles as well as spare parts and equipment for Motor vehicles. 4 Work performances concerning the premises of a mission or office and the commodities referred to in items 1 to 3 or the rental of those commodities. 5 Telecommunication services, energy commodities and fuel purchased for the building of a mission or office. 6 Fuels for motor vehicles. |
|
37 |
The Embassy of
France in |
|
38 |
FRG (a) The Embassy of the Federal Republic of German
in (b) The Diplomatic Officers of the
|
|
39 |
GDR (a) The Embassy of the German Democratic Republic in (b) The Diplomatic Officers (including their spouses) of the Embassy
of the German Democratic Republic in |
|
40 |
(a) The
High Commissioner for (b) The
Diplomatic officers (including their spouses) of the High Commissioner for |
|
41 |
(a) The
Royal Greek Embassy in (b) The
Diplomatic Officers (including their spouses) of the Royal Greek Embassy in |
|
42 |
The High
Commission for Officers
(including their spouses). |
|
43 |
(a) H.E.
The Ambassador of the (b) The
Embassy of the Hungarian peoples Republic in (c) The
Diplomatic officers (including their spouses) iof the Embassy of the |
|
44 |
The Embassy of Purchases made
by its officials for their personal use.- |
|
45 |
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT IN INTERNATIONAL BANK
FOR RECONSTRUCTION AND DEVELOPMENT IN |
|
46 |
INTERNATIONAL
CENTRE FOR GENETIC ENGINEERING AND
BIOTECHNOLOGY, OFFICIAL
PURCHASE51 |
|
47 |
(A) OFFICE
OF THE INTERNATIONAL COURT OF JUSTICE AT NEW DELHI (FOR SALES INTENDED FQR
OFFICIAL –UM (B) Dr.
Nagendra Singh an elected judge of the |
|
48 |
INTERNATIONAL
LABOUR OFFICE |
|
49 |
(a) The
Embassy of (b) The
Diplomatic officers (including their spouses) of the Embassy of Iran in |
|
50 |
(a) H.E.
the Ambassador of the (b) The
Embassy of (c) The
Diplomatic Officers (including their spouses) of the Embassy of Iraq in |
|
51 |
(a) The
Embassy of (b) The
Diplomatic Officers (including their spouses) of the Embassy of Ireland in |
|
52 |
The Embassy of
Israel in |
|
53 |
Embassy of |
|
54 |
The Embassy of
|
|
55 |
(a) The
Embassy of Hashemite Kingdom of Jordon in (b) The
Diplomatic Officers (including their spouses) of the Embassy of the Hashemite
Kingdom of Jordon in |
|
56 |
The Embassy of
Kazakhstan in |
|
57 |
For official
use as well as Diplomatic Officers (including their spouses) of the Kenya
High Commission in |
|
58 |
(a) H.E.
the Ambassador of (b) Embassy
of the (c) The
Diplomatic Officers (including their spouses) of the spouses of the Embassy
Republic of Korea. |
|
59 |
(a) H.E.
The Ambassador of the Democratic (b) Embassy
of the Democratic (c) The Diplomatic Officers (including their
spouses) of the Embassy of the Democratic Peoples Republic of Korea. |
|
60 |
(a) H.E.
the Ambassador of the State of (b) The
Embassy of the state of (c) The
Diplomatic officers of the Embassy of the State of Kuwait in |
|
61 |
KYRGHYSTANThe Embassy of
Kyrghystan in |
|
62 |
(a) The
Royal Embassy of (b) The
Diplomatic Officers (including their spouses) of Royal Embassy of Laos in |
|
63 |
LEAGUE OF ARAB STATES (a) League
of Arab States (b) Chief
Representative, Deputy Chief representative, their spouses and minor children
of the league of Arab States Mission. |
|
64 |
(a) H.E.
the Ambassador of (b) The
Embassy of (c) The
Diplomatic Officers (including their spouses) of the Embassy of Lebanon. |
|
65 |
Embassy of |
|
66 |
(a) The
Embassy of the (b) The
Diplomatic Officers (including their spouses) of the Embassy of the |
|
67 |
Embassy of
Grand Duchy of Luxembourg in New Delhi in respect of gods purchased by them
for official use only. |
|
68 |
(a) The
High Commissioner for (b) The
Diplomatic Officer (including their spouses) of the High Commissioner for |
|
69 |
The High
Commission of |
|
70 |
(a) The
Embassy of (b) The
Diplomatic Officers (including their spouses) of the Embassy of Mexico in |
|
71 |
(a) H.E.
the Ambassador of the (b) The
Embassy of the The diplomatic
officers of the embassy of the Mongolian peoples republic in |
|
72 |
Embassy of Diplomats for
official as well as personal use. |
|
73 |
High
Commission of the respect of
goods purchased by them for official use only. |
|
74 |
(a) The
Embassy of the Republic of the The diplomatic
officers (including their spouses) of the embassy of the union of |
|
75 |
Namibian High
Commission in |
|
76 |
(a) The
Royal Nepalese Embassy in (b) The
Diplomatic Officers (including their spouses) of the Royal Nepalese Embassy
in |
|
77 |
(a) The
Royal (b) The
Diplomatic Officers (including their spouses) of the Royal Netherlands
Embassy in |
|
78 |
The Embassy of
Nicaragua in |
|
79 |
(a) H.E.
the High Commission of the (b) The
High Commission for the (c) The
Diplomatic Officers of the High Commission for the |
|
80 |
(a) H.E.
the Norwegian Ambassador in (b) The
Royal Norwegian Embassy in (c) The
Diplomatic Officers (including their spouses) of the Royal Norwegian Embassy
in |
|
81 |
The Embassy of
Sultanate of |
|
82 |
(a) The
Embassy of (b) The
Diplomatic Officers (including their spouses) of the Embassy of Pakistan in |
|
83 |
The Embassy of
Panama and its Diplomatic Officers in |
|
84 |
(a) H.E.
the Ambassador of the (b) The
Embassy of (c) The
Diplomatic Officers (including their spouses) of the Embassy of the |
|
85 |
PLO (a) The
Embassy of the Palestine Liberation Organisation in (b) The
Diplomatic Officers (including their spouses) of the Embassy of the Palestine
Liberation Organisation in |
|
86 |
The Embassy of
the |
|
87 |
(a) The
Embassy of (b) The
Diplomatic Officers (including their spouses) of the Embassy of Portugal in |
|
88 |
(a) The
Embassy of the State of (b) The
Diplomatic Officers of the Embassy of the State of Qatar, |
|
89 |
(a) H.E.
the Ambassador of the (b) The
Embassy of the (c) The
Diplomatic Officers (including their spouses) of the Embassy of the Socialist
Republic of Romania. |
|
90 |
The Embassy of
the Purchases made
by the Diplomats for official and personal use. |
|
91 |
Embassy of diplomatic and
administrative/ technical personnel for official as well as
personal use. |
|
92 |
SAHRAWI ARAB DEMOCRATIC REPUBLIC (a) The
Embassy of Sahrawi Arab Democratic Republic. (b) The
Diplomatic Officers of the Embassy of Sahrawi Arab Democratic Republic. |
|
93 |
(a) H.E.
the Ambassador of (b) The
Embassy of (c) The
Diplomatic Officers (including their spouses) of the Embassy of Saudi Arabia
in |
|
94 |
(a) The
Embassy of Republic of the (b) The
Diplomatic Officers (including their spouses) the Embassy of the |
|
95 |
(a) The
High Commission for (b) Their
Diplomatic Officers. |
|
96 |
EMBASSY OF PURCHASE MADE BY
ITS DIPLOMATS FOR OFFICAL AS WELL AS FOR PERSONAL USE OF THEIR OFFICIALS. |
|
97 |
(a) The
Embassy of Somalai in (b) The
Diplomatic Officers (including their spouses) of the Embassy of the Somali in
|
|
98 |
Embassy of |
|
99 |
SOUTH WEST AFRICAN PEOPLES ORGANISATION (SWAPO) Embassy of South
West African Peoples Organisation (SWAPO) – on all its official
purchases and the purchases made by its officials for their personal use. |
|
100 |
(a) H.E.
the Ambassador of (b) The
Embassy of (c) The
Diplomatic Officers of the Embassy of |
|
101 |
The High
Commission for the Democratic Socialist Republic of Sri Lanka in |
|
102 |
(a) The
Embassy of Democratic (b) The
Diplomatic Officers (including their spouses) of the Embassy of the
Democratic Republic of Sudan in (Exemption
extended to purchases from places other than bonded stocks) |
|
103 |
The Embassy of
Republic of Suriname in |
|
104 |
(a) The
Royal Swedish Embassy in (b) The
Diplomatic Officers of the Royal Swedish Embassy in |
|
105 |
Embassy of |
|
106 |
The Embassy of
the |
|
107 |
(a) The
Royal Thai Embassy in (b) The
Diplomatic Officers (including their spouses) of the Royal Thai Embassy in |
|
108 |
(a) The
High Commission for (b) The
members of the Diplomatic Staff of the said High Commission. (Exemption
restricted to (i) sale intended for the official use of the Commission and
(ii) sale intended for personal use) |
|
109 |
The Embassy of
Tunisia in |
|
110 |
Embassy of Diplomats for
official as well as for personal use. |
|
111 |
UAE (a) The
Embassy of the (b) The
Diplomatic Officers of the Embassy of the |
|
112 |
(a) The
High Commission for the (b) The
Diplomatic officers (including their spouses) of the High Commission for the |
|
113 |
Embassy of is diplomats
for official as well as for personal use. |
|
114 |
UNITED NATIONS DEVELOPMENT PROGRAMME |
|
115 |
THE REGIONAL
OFFICE FOR NATIONS
ECONOMI COMMISSION FOR |
|
116 |
UNITED NATIONS
EDUCATION SCIENTIFIC & CUTURAL ORGANISATION |
|
117 |
UNITED NATIONS
EDUCATIONAL SCIENTIFIC CULTURAL ORGANISATION RESEARCH CENTRE ON SOCIAL &
ECONOMIC DEVELOPMENT IN S UTHERN |
|
118 |
UNITED NATIONS
FOOD AND AGRICULTURAL ORGANISTION |
|
119 |
UNITED N TIONS HIGH COMMISSION FOR
REFUGEES (Exemption for
official use only) |
|
120 |
UNITED NATIONS INFORMATION CENTU |
|
121 |
UNITED NATIONS
INTERNALTIONAL CHILDREN'S EMERGENCYFUND |
|
122 |
UNITED NATIONS
MILITARY OBSERVERS GROUP IN |
|
123 |
UNITED NATIONS OFFICE FOR POPULATION STUDM |
|
124 |
(A) THE
REGIONAL OFFICE OF THE UNITED NATIONS WORLD HEALTH ORGANISATION FOR (B) The
Regional Director (including his spouses) of the United Nations World Health
Organisation for South East Asia, |
|
125 |
UNITED STATES
AGENCY FOR INTERNATIONAL DEVELOPMENT United States Agency
for International Development Mission and Employees other than the locally
recruited staff of the United States Agency for International Development
Mission. |
|
126 |
(a) H.E.
the Ambassador of the (b) The
Embassy of the (c) The
Diplomatic Officers (including their spouses) of the Oriental Republic of
Uruguay in |
|
127 |
(a) The
embassy of the (b) H.E.
the Ambassador of the (c) The
Diplomatic Officers (including their spouses and dependents) of the Embassy
of U.S.A. in |
|
128 |
(a) H.E.
The Ambassador of the (b) The
Embassy of the (c) The
Diplomatic Officers of the Embassy of |
|
129 |
The Embassy of
Purchase made
by its diplomats for official as well as for personal use. |
|
130 |
(a) H.E.
the Ambassador of the Democratic (b) The
Embassy of the Democratic (c) The
Diplomatic Officers (including their spouses) of the Embassy of the
Democratic Republic of Vietnam in |
|
131 |
(a) The
Counsel General of the (b) The
Consulate General of the (c) The
Consular Officer of the Consulate General of the |
|
132 |
(a) The
Embassy of (b) The
Diplomatic Officers (including their spouses) of the Embassy of Venezuela in |
|
133 |
(a) The
Embassy of the peoples Democratic Republic of Yemen in (b) The
Diplomatic Officers (including their spouses) of the Embassy of Peoples Democratic
Republic of Yemen in |
|
134 |
(a) The
Embassy of the (b) The
Diplomatic Officers (including their spouses) of the Embassy of Federal
Republic of Yugoslavia in |
|
135 |
(a) H.E.
the Ambassador of the (b) The
Embassy of the (c) The
Diplomatic Officers (including their spouses) of the Embassy of the |
|
136 |
(a) The
High Commission of Zambia in (b) The
Diplomatic Officers (including their spouses) of the Zambian High Commission
in (exemption is
restricted to goods manufactured or produced in |
|
137 |
ZIMBABVE The Zimbabve High Commission for its official purchases only upon
certification of the Head of Mission Charged Affairs. |
(See
section 9)
List of Non‑Creditable Goods
|
SI.
No. |
Description of Non-Creditable Goods
|
|
1 |
Subject to
clauses 2 and 3, the following goods a goods" for the purposes of this
Act: (i)
Motor vehicles designed for transporting
fewer than 8 passengers, motor cycles, motor scooters and other motorised two-wheeled
vehicles; (ii)
Fuels in the form of petrol, diesel and kerosene, LPG, CNG, coal; (iii)
Conventional clothing and footwear, clothing
fabrics; (iv)
Food for human consumption; (v)
Beverages for human consumption; (vi)
Goods designed, and used predominantly for,
the provision of entertainment including video cassette players, radios,
stereo systems, audio cassette player, CD players, DVI) players, computer
game consoles and computer games, cameras of any kind; (vii)
Air conditioners other than those used for
manufacturing purposes; and (viii)
Tobacco in any form and tobacco products. |
|
2 |
Any item in
clause 1 [other than Item (ii)] is
not to be treated as Non-creditable
goods if the item is
purchased by a registered dealer for the purpose of re-sale in an unmodified
form or use as raw material for processing or manufacturing of goods for sale
by him in Delhi in the ordinary course of his business. |
|
3 |
Fuel [Item
(ii) of clause 1] is not to be treated as non-creditable goods if the purchaser
is licensed as a dealer in fuel products and purchases the
fuel in commercial quantities for resale. |