LexThe Delhi Value Added Tax, 2004
Delhi · state statute
Open in Lexace · Ask the AI about this actDELHI VALUE ADDED TAX ACT, 2004
(as on 5" March 2014)
(Delhi Act 3 of 2005)
As passed by the Legislative Assembly of the National Capital Territory of Delhi on
the 22nd December 2004 and received the assent of the President of India on
15th February 2005
The Act has come into force with effect from Ist 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 Ist April 2005 vide Notification No. F.101(318)/2005-
Fin. (A/Cs) (ti)/8592, dated 30th March 2005 and subsequent amendments
THE DELHI VALUE ADDED TAX ACT, 2004
AN
ACT
to consolidate and amend the law relating to levy of tax on sale of goods, tax
on transfer of property involved in execution of works contracts, tax on transfer of
right to use goods and tax on entry of motor vehicles by way of introducing a value
added tax regime in the local areas of the National Capital Territory of Delhi.
BE it enacted by the Legislative Assembly of the National Capital Territory of Delhi
in the Fifty-fifth Year of the Republic of India as follows:-
(1)
Sec. 1 Delhi VAT Act as on 5" March 2014
CHAPTER I
Preliminary
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.
2 Definitions
| Rules: 2(5), 44, 19,20 | Forms: 04, 07
(1) In this Act, unless the context otherwise requires, -
(a) “accountant” means —
(4) a chartered accountant within the meaning of the Chartered
Accountant’s Act, 1949 (Act 38 of 1949);
(41) 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
'[Gii) a cost accountant within the meaning of the Cost and Works
Accountants Act, 1959 (23 of 1959); or]
“T(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 -
*T(i)_ the provision of any services, but excluding the services provided by an
employee; ]
' Inserted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated 28.03.2005
w.e.f. 01.04.2005.
* Re-lettered from “(iii)” to “(iv)” vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-
2005/112, dated 28.03.2005 w.e.f. 01.04.2005.
* Substituted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112 dated 28.03.2005
w.e.f. 01.04.2005.
(1)
Delhi VAT Act as on 5" March 2014 Sec. 2
(41) any trade, commerce or manufacture;
(i411) 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 concer;
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;
(41) 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;
'T(e) “business premises” includes -
(i) _ the address of a dealer, registered with the Commissioner,
(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;
(iii) any place from where a dealer carries on business through an agent (by
whatever name called), the place of busine. ch agent; and
a warehouse, godown or suc r place where a dealer stores his
goods.] [Rule: 19]
*T(f) “capital goods” means plant, machinery and equipment used, directly or
indirectly, in the process of trade or manufacturing or for execution of works contract
in Delhi; ]
(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;
' Substituted vide DVAT (Amendment) Act, 2013 (05 of 2013); No.F.14(5)/LA-2013/
com.2law/65, dated 9.9.2013 read with No.F.3(14)/Fin.(Rev.-1)/2013-14/dsVI/703, dated
11.9.2013 w.e.f. 12.09.2013; earlier read as, “(e) “business premises” means - (i) the
address of a dealer, registered with the Commissioner; and (i1) 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”.
* Substituted vide DVAT (Second Amendment) Act, 2005; No.F.14(29)/LA/2005/333, dated
16.11.2005 w.e.f. 16.11.2005, earlier read as, “(f) “capital goods” means plant, machinery
and equipment used in the process of trade or manufacturing;”.
(2)
Sec. 2 Delhi VAT Act as on 5" March 2014
(h) “Commissioner” means the Commissioner of Value Added Tax
appointed under sub-section (1) of section 66 of this Act;
Gi) “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;
'lG) “dealer” means any person who, for the purposes of or consequential to his
engagement in or in connection with or incidental to or in the course of his business, buys
or sells goods in Delhi directly or otherwise, whether for cash or for deferred payment or
for commission, remuneration or other valuable consideration and includes, -
(4) a factor, commission agent, broker, del credere agent or any other
mercantile agent by whatever name called, who for the purposes of or consequential
to his engagement in or in connection with or incidental to or in the course of the
business, buys or sells or supplies or distributes any goods on behalf of any principal
or principals whether disclosed or not ;
(41) a non-resident dealer or as the case may be, an agent, residing in the
State of a non-resident dealer, who buys or sells goods in Delhi for the purposes of or
' Substituted vide DVAT (Second Amendment) Act, 2005; No.F.14(29)/LA/2005/333, dated
16.11.2005 w.e.f. 16.11.2005. Earlier read as :-
“(j) “dealer” means any person who carries on business in Delhi and includes—
(1) 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;
(111) 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 Delhi where
such firm, company, association of persons is a dealer under any other sub-clause of
this definition;
(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;
(vil) 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;
(vill) 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;”.
(3)
Delhi VAT Act as on 5" March 2014 Sec. 2
consequential to his engagement in or in connection with or incidental to or in the
course of the business;
(111) a local branch of a firm or company or association of persons, outside
Delhi where such firm company, association of persons is a dealer under any other
sub-clause of this definition;
(iv) 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;
(v) an auctioneer, who sells or auctions goods whether acting as an agent or
otherwise or, who organizes the sale of goods or conducts the auction of goods
whether or not he has the authority to sell the 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;
(vi) acasual trader ;
(vil) any person who, for the purposes of or consequential to his engagement
in or in connection with or incidental to or in the course of his business disposes of
any goods as unclaimed or confiscated, or as unserviceable or scrap, surplus, old,
obsolete or as discarded material or waste products by way of sale.
Explanation.- For the purposes of this clause, each of the following
persons, bodies and entities who sells any goods whether in the course of his
business, or by auction or otherwise, directly or through an agent for cash or for
deferred payment or for any other valuable consideration, shall, notwithstanding
anything contained in clause (d) or any other provision of this Act, be deemed to be a
dealer, namely:-
(14) Customs Department of Government of India administering
Customs Act, 1962 (52 of 1962);
(41) Departments of Union Government, State Governments and
Union territory Administrations;
(11) Local authorities, Panchayats, Municipalities, Development
Authorities, Cantonment Boards;
(iv) Public Charitable Trusts;
(v) Railway Administration as defined under the Indian Railways
Act, 1989 (24 of 1989) and Delhi Metro Rail Corporation Limited;
(vi) Incorporated or unincorporated societies, clubs or other
associations of persons;
(vil) Each autonomous or statutory body or corporation or company or
society or any industrial, commercial, banking, insurance or trading undertaking,
corporation, institution or company whether or not of the Union Government or any
of the State Governments or of a local authority;
(viii) Delhi Transport Corporation;
(ix) Shipping and construction companies, air transport companies,
airlines and advertising agencies. ]
(4)
Sec. 2 Delhi VAT Act as on 5" March 2014
(k) “Delhi” means the National Capital Territory of Delhi;
(1) “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
(41) 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 '/or immovable] 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 Delhi” means taking, receiving, bringing, carrying,
transporting, or causing to bring or receive goods into Delhi from any place outside
Delhi;
Explanation.- In the case of goods arriving in Delhi from a foreign country
through Customs, the “import of the goods in Delhi” occurs at the place where the
goods are cleared by Customs for home consumption;
(q) “importer” means -
(i) | aperson who brings his own goods into Delhi; or
(41) a person on whose behalf another person brings goods into Delhi; or
(111) 1m 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;
(tr) “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;
*I(ra) “manufacture” with its grammatical variations and cognate expressions,
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 may be prescribed;] /Rule: 2(5)]
' Inserted vide DVAT (Amendment) Act, 2013 (05 of 2013); No.F.14(5)/LA-2013/
com.2law/65, dated 9.9.2013 read with No.F.3(14)/Fin.(Rev.-1)/2013-14/dsVI/703, dated
11.9.2013 w.e.f. 12.09.2013.
* Inserted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated 28.03.2005
w.e.f. 01.04.2005.
(5)
Delhi VAT Act as on 5" March 2014 Sec. 2
(s) “net tax” means the amount calculated for a tax period under section 11
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 Delhi;
(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 (referred to in this definition as a
“dealer’’) if the person -
(i) isarelative of the dealer;
(41) 18 a partnership of which the dealer is a partner;
(411) 1s 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) 1s 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) 1s 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;
(i) 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;
(6)
Sec. 2 Delhi VAT Act as on 5" March 2014
(111) 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;
(vil) 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 '[(vii)] of clause (j) of
this *Tsub-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;
(41) im 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;
(411) 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) *Tamount 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 Delhi
' Substituted for number “(ix)”, vide Notification No. F.14(4)/LA-2013/cons2law/11, dated
28.3.2013 read with No.3(17)/Fin.(Rev.-1)/2012-13/dsvi/263; dated 30.3.2013 w.e.f. 1.4.2013.
* Substituted for the word “section”, vide Notification No. F.14(4)/LA-2013/cons2law/11, dated
28.3.2013 read with No.3(17)/Fin.(Rev.-1)/2012-13/dsvi/263; dated 30.3.2013 w.e.f. 1.4.2013.
* Substituted for the words, “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”, vide Notification No.
F,.14(4)/LA-2013/cons2law/11, dated 28.3.2013 read with No.3(17)/Fin.(Rev.-1)/2012-13/
dsvi/263; dated 30.3.2013 w.e.f. 1.4.2013.
(7)
Delhi VAT Act as on 5" March 2014 Sec. 2
Excise Act, 2009 (Delhi Act 10 of 2010) 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 recetvable whether by way of separate
agreement or not, in connection with, or incidental to or ancillary to the sale of goods;
(vil) 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;
1 pear]
“peer
' The provisos which read as -
“PROVIDED that an amount equal to the increase in the prices of petrol and diesel
(including the duties and levies charged thereon by the Central Government) taking effect
from the 6" June, 2006 shall not form part of the sale price of petrol and diesel sold on and
after the date of the commencement of the Delhi Value Added Tax (Amendment) Act, 2006
till such date as the Government may, by notification in the official Gazette, direct:
PROVIDED FURTHER that the first proviso shall not take effect till the benefit is passed
on to the consumer.”
have ceased to be effective vide No. F.3(8)/Fin.(T&E)/2007-08/dsfte/428, dated 5.6.2007 w.e.f.
5.6.2007. Earlier inserted vide Delhi Value Added Tax (Amendment) Act, 2006 (No. F.14(23)/
LA-2006/LJ/06/7441, dated 24.11.2006 w.e.f. 20.6.2006. (Originally inserted vide Delhi Value
Added Tax (Amendment) Ordinance, 2006; Ordinance No. 1 of 2006, dated 20.6.2006.)
The provisos which read as -
“PROVIDED that an amount equal to the increase in the price of diesel (HSD) (including
the duties and levies charged thereon by the Central Government) taking effect from the
25" June, 2011 shall not form part of the sale price of diesel (HSD) sold on or after the date
of the commencement of the Delhi Value Added Tax (Second Amendment) Act, 2011 tll
such date as the Government may, by notification in the official Gazette, direct or if the
price of diesel (HSD) falls below the sale price prior to 25" June, 2011, whichever is earlier:
PROVIDED further that if the price of diesel (HSD) further increases from the level of price
as on 25"" June, 2011, the first proviso shall not have any effect on such further increase:
PROVIDED also that if the price of diesel (HSD) declines but remains above the price
prevailing prior to 25" June, 2011, the first proviso shall have effect to the extent of the
remaining increase:
PROVIDED also that the first proviso shall not take effect till the benefit is passed on to
the consumers.”
have ceased to be effective vide DVAT (Second Amendment) Act, 2012; No.F.14(6)/LA-
2012/cons2law/61, dated 15.06.2012 read with No.F.3(6)/Fin.(Rev.-1)/2012-13/SSF/92
dated 16.06.2012 w.e.f. 18.06.2012. Earlier inserted vide DVAT (Second Amendment) Act,
2011; No. F.14(6)/LA-2011/claw/193, dated 28.09.2011 read with notification No.
F,3(15)/Fin.(Rev-D/201 1-12/ssf/113 dated 30.09.2011 w.e.f. 25.06.2011.
2
(8)
Sec. 2 Delhi VAT Act as on 5" March 2014
1 pear]
*[PROVIDED that where the dealer makes sale of goods imported into
the territory of India, the sale price shall be greater of the following:
(a) the valuable consideration received or receivable by the dealer;
(b) value determined by the Custom authorities for payment of
custom duty at the time of the import of such goods. ]
*[Explanation-1.]- A dealer’s sale price always includes the tax payable
by it on making the sale, if any; /Rule: 4A]
*[Explanation.-2 - The amount received or receivable by oil marketing
companies for the sale of diesel and petrol shall be deemed to be equivalent to the
price on which the retail outlets will sell these commodities to the consumer. |
(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 of this Act;
(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; [Rule 26]
' The provisos which read as —
“PROVIDED that an amount equal to the increase in the price of petrol (including the
duties and levies charged thereon by the Central Government) taking effect from the 3
June, 2012 shall not form part of the sale price of petrol sold on or after the date of the
commencement of the Delhi Value Added Tax (Third Amendment) Act, 2012 till such
date as the Government may, by notification in the official Gazette, direct or if the price of
petrol falls below the sale price prior to 3“ June, 2012, whichever is earlier:
PROVIDED further that if the price of petrol further increases from the level of price as
on 3rd June, 2012, the aforesaid proviso shall not have any effect on such further increase:
PROVIDED also that if the price of petrol declines but remains above the price prevailing
prior to 3rd June, 2012, the aforesaid proviso shall have effect to the extent of the
remaining increase:
PROVIDED also that the aforesaid proviso shall not take effect till the benefit is passed on
to the consumers.”
have ceased to be effective vide notification No.F.14(13)/LA-2012/cons2law/179 dated
28.12.2012 read with No.F.3(9)/Fin.(Rev.-1)/2012-13/dsvi/34-39 dated 15.01.2013 w.e.f.
16.01.2013. Earlier inserted vide No. F.14(4)/LA-2012/cons2law/71 dated 15.06.2012 read
with No.F.3(7)/ Fin.(Rev.-1)/2012-13/SSF/93 dated 16.06.2012 w.e.f. 18.06.2012.
* Inserted vide Notification No. F.14(4)/LA-2013/cons2law/11, dated 28.3.2013 read with
No.3(17)/Fin.(Rev.-1)/2012-13/dsvi/263; dated 30.3.2013 w.e.f. 1.4.2013.
> Re-numbered from “Explanation” to “Explanation-1” vide notification No.F.14(13)/LA-
2012/cons2law/179 dated 28.12.2012 read with No.F.3(9)/Fin.(Rev.-1)/2012-13/dsvi/34-39
dated 15.01.2013 w.e.f. 16.01.2013.
* Inserted vide notification No.F.14(13)/LA-2012/cons2law/179 dated 28.12.2012 read with
No.F.3(9)/Fin.(Rev.-1)/2012-13/dsvi/34-39 dated 15.01.2013 w.e.f. 16.01.2013.
(9)
Delhi VAT Act as on 5" March 2014 Sec. 2
(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, 'Texcluding] 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.
' Substituted for the word “including” vide DVAT (Amendment) Act, 2012; No.F.14(19)/LA-
201 1/Iclaw/5, dated 13.02.2012 read with notification no.F.3(25)/Fin.(Rev.-D/2011-12/
DSII/288 dated 28.03.2012 w.e.f. 01.04.2012.
(10)
Sec. 3 Delhi VAT Act as on 5" March 2014
CHAPTER II
Imposition of Tax
3 Imposition of tax
|Rule: Nil Form: Nil
(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 at the rates specified in section 4 of
this Act on every sale of goods effected by him —
(a) while he is a registered dealer under this Act; or
(b) —onand from the day on which he was required to be registered under this Act.]
*1(3) The amount of tax payable under this Act by a dealer, is the dealer’s net tax
for the tax period calculated under section 11 of this Act.]
*1(4) The net tax of a dealer shall be paid within twenty one days of the
conclusion of each calendar month.
Explanation.- The obligation to pay the tax 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. ]
(5) Tax shall be paid in the manner specified in section 36 of this Act.
' Substituted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated
28.03.2005 w.e.f. 01.04.2005.
* Substituted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated
28.03.2005 w.e.f. 01.04.2005.
* Substituted vide Notification No. F.14(4)/LA-2013/cons2law/11, dated 28.3.2013 read with
No.3(17)/Fin.(Rev.-1)/2012-13/dsvi/263; dated 30.3.2013 w.e.f. 1.4.2013, for the words, -
(4) the net tax of a dealer shall be paid within #[twenty-one] days of the conclusion of the
dealer’s tax period:
PROVIDED that the Commissioner may, by an order, prescribe that irrespective of the tax
period of a dealer or class of dealers, the net tax of a dealer or a class of dealers shall be paid
within ##[21] days of the conclusion of a period shorter than the tax period that may be
specified in the order.”
# Substituted for the words, “twenty-eight” vide DVAT (Amendment) Act, 2012;
No.F.14(19)/LA-2011/Iclaw/5 dated 13.2.2012 read with notification no.F.3(25)/
Fin.(Rev.-D/2011-12/DSITI/288 dated 28.3.2012 w.e.f. 1.4.2012.
## Substituted for the number “28” vide DVAT (Amendment) Act, 2012; No.F.14(19)/LA-
2011/Iclaw/5, dated 13.02.2012 read with notification no.F.3(25)/Fin.(Rev.-D/2011-12/
DSIII/288 dated 28.03.2012 w.e.f. 01.04.2012.
(1)
Delhi VAT Act as on 5" March 2014 Sec. 3
(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.
'T(10) If any person who, whether as principal, agent or in any other capacity
organizes any exhibition-cum-sale in Delhi and fails —
(a) to furnish any information in respect of the goods brought or kept in stock
or sold by any participant before or during or after the exhibition-cum-sale; or
(b) to ensure that all the participants in the exhibition-cum-sale have obtained
registration under this Act and paid due tax; or
(c) to permit inspection of the business premises or goods or account and
records of the participants; or
(d) to permit inspection of the accounts and records of the organizer in respect
of the exhibition-cum-sale;
then, without prejudice to any other action which may be taken against
such participant, a presumption may be raised that the goods of the participant who
fails to obtain registration under this Act or the goods in respect of which the
' Inserted vide DVAT (Second Amendment) Act, 2005; No.F.14(29)/LA/2005/333, dated
16.11.2005 w.e.f. 16.11.2005.
(2)
Sec. 4 Delhi VAT Act as on 5" March 2014
participant has failed to furnish information or failed to permit inspection, are owned
by the organizer and are held by him for sale in Delhi and the provisions of this Act
shall apply accordingly. ]
4 Rates of tax
|Rule: 7B Form: Nil
(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;
'T(b) in respect of goods specified in the Third Schedule, at the rate of five paise
in the rupee:
“TRY
(c) imrespect of goods specified in the Fourth Schedule, at the rate of twenty
paise in the rupee; *[***]
“I(d)_ in respect of the goods involved in the execution of the works contract, at
the rate of twelve and a half paise in the rupee; and]
°>[PROVIDED that tax shall be paid at the rate of “Tfive] paise in the rupee
of the turnover of the dealer pertaining to declared goods, as defined from time to
time in the Central Sales Tax Act, 1956 (74 of 1956), involved in the execution of
works contract if such goods are transferred from the contractor to the contractee in
the same form in which they were purchased by the contractor:
PROVIDED FURTHER that in respect of the works contracts which are
in the nature of printing works, the rate of tax shall be five] paise in the rupee. ]
' Substituted vide DVAT (Amendment) Act, 2009; No.F.14(16)/LA-2009/LJ/10/vlaw/1, dated
06.01.2010 and No. F.3(23)/Fin(T&E)/2009-10/JSF/15-25, dated 13.01.2010 wee-f.
13.01.2010, earlier read as, “(b) in respect of goods specified in the Third Schedule, at the
rate of four paise in the rupee;”
* Omitted the words “PROVIDED that tax shall be paid at the rate of four paise in the rupee of
the taxable turnover of the dealer pertaining to declared goods, as defined from time to time
in the Central Sales Tax Act, 1956 (74 of 1956);” vide DVAT (Second Amendment) Act,
2011; No. F.14(6)/LA-201 1/Iclaw/193, dated 28.09.2011 w.e.f. 01.10.2011 vide notification
No. F.3(15)/Fin.(Rev-D/2011-12/ssf/113 dated 30.09.2011.
* Omitted the word “and” vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112,
dated 28.03.2005 w.e.f. 01.04.2005.
“Inserted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated 28.03.2005
w.e.f. 01.04.2005.
> Inserted vide DVAT (Second Amendment) Act, 2005; No. F.14(29)/LA/2005/333, dated
16.11.2005 w.e.f. 01.04.2005, retrospectively.
° Substituted for the word “four” vide DVAT (Second Amendment) Act, 2011; No.
F,14(6)/LA-201 1/Iclaw/193, dated 28.09.2011 w.e.f. 01.10.2011 vide notification No.
F.3(15)/Fin.(Rev-D/2011-12/ssf/113 dated 30.09.2011.
’ Substituted for the word “four” vide DVAT (Amendment) Act, 2010; No.F.14(5)/LA-2010/
vlaw/359, dated 31.12.2010 read with No. F.3(29)/Fin.(T&E)/2009-10/asf/6, dated 31.01.11,
w.e.f. 1.2.2011.
(3)
Delhi VAT Act as on 5" March 2014 Sec. 5
'T(e)] 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.
5 Taxable turnover
|Rule: 3 | Form: Nil
(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 therefrom -
(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.
*1(2) In the case of turnover arising from the execution of a works contract, the
amount included in taxable turnover is the total consideration paid or payable to the
dealer under the contract excluding the charges towards labour, services and other
like charges, subject to such conditions as may be prescribed:
PROVIDED that where the amount of charges towards labour, services and
other like charges is not ascertainable from the books of accounts of the dealer, the
amount of such charges shall be calculated at the prescribed percentages. |
6 Sale exempt from tax
|Rule: Nil Form: Nil
(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.
' Re-lettered from “(d)” to “(e)” vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-
2005/112, dated 28.03.2005 w.e.f. 01.04.2005.
* Substituted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated
28.03.2005 w.e.f. 01.04.2005.
(4)
Sec. 7 Delhi VAT Act as on 5" March 2014
7 Certain sales not liable to tax
Rule: Nil Form: Nil
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) inthe course of inter-state trade or commerce; or
(b) outside Delhi; or
(c) inthe course of import of the goods into or export of the goods out of, the
territory of India.
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.
'T(d) in accordance with the notification issued by the Central Government in
exercise of its powers under section 3 of the Foreign Aircraft (Exemption from Taxes
and Duties on Fuel) Act, 2002 (36 of 2002), no tax shall be levied on sales of the fuel
and lubricants which are filled into receptacles forming part of any aircraft registered
in a country other than India, if-
(i) the said country is a party to the Convention on International and Civil
Aviation, 1944; and
(ii) | the said country has entered into an Air Services agreement with India;
and
(111) the aircraft is operating on a scheduled or non-scheduled service to or
from India. ]
8 Adjustments to tax
Rule: 7A Form: Nil
(1) [Subject to such conditions as may be prescribed, 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;
"Inserted vide DVAT (Second Amendment) Act, 2005; No. F.14(29)/LA/2005/333, dated
16.11.2005 w.e.f. 01.04.2005, retrospectively.
* Substituted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated
28.03.2005 w.e.f. 01.04.2005.
(5)
Delhi VAT Act as on 5" March 2014 Sec. 8
'T(d) the goods or part of the goods sold have been returned to the dealer within
six months of the date of sale; or]
(ce) 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 -
G) A-(AxB/OC); or
(Gi) 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 sub-section (4) of section 9 of this Act;
C= the amount of the tax credit before reduction under sub-section (4)
of section 9 of this Act.
' Substituted vide DVAT (Second Amendment) Act, 2005; No. F.14(29)/LA/2005/333, dated
16.11.2005 w.e.f. 16.11.2005, earlier read as, “(d) the goods or part of the goods solExcerpt shown. Open the full act in Lexace.