Rule 26 - Tax Period (Section 3, 26 & 36) - Delhi Value Added Tax Rules, 2005

CHAPTER 6 Tax Period and Tax Returns 26. Tax Period (Section 3, 26 36) 8 [ (1) Subject to sub-rule(2) of this rule, the tax period for all the dealers shall be a quarter. ] (2) The tax period of a dealer who ceases to be registered, shall ceases- (a) if the registration is cancelled by the Commissioner, on the date specified by the Commissioner as the date on which the dealer's registration ceases to have effect; (b) where the dealer dies or is wound up, on the date of death or winding up; (c) in any other case, on the date of cancellation of the registration. 9 [(3) ***] 10 [(4) ***] 7 [ (5) For a dealer, to whom a certificate of registration has been granted for the first time, his tax period, till the end of the year of registration, shall be a quarter and his first tax period shall commence from the date of his liability. ] (6) For the purpose of sub-rule (1), the "turnover" of a dealer shall not include turnover from: (a) the sale 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. Explanation : For the purposes of this sub-rule, adequate proof of a dealer's turnover shall be a copy of the following documents-: (i) the annual audited accounts of the dealer for the three previous years or the annual accounts duly certified by the dealer where the accounts of the dealer are not required to be audited under any law for the time being in force (ii) income tax returns furnished by the dealer for the three previous years duly certified by him or his Accountant; --------------------------------------------- Notes:- 1. Substituted vide Notification No. F. 3(59)/Fin (T E)/2005-06/923Kha, Dated: 30.11.2005 , before it was read as:- (1) Subject to sub-rules (2) and (3) of this rule, the tax period for a dealer whose turnover in the preceding year- (a) is at or below five corore rupees, shall be, at option of the dealer, either one month or a quarter; and (b) exceed five crore rupees, shall be one month. . 2. Substituted vide Notification No.F.3(27)/Fin(Rev-I)/2011-12/DSIII/353, Dated : 25/04/2012, Prior it was read as;- (a) is at or below ten lakh rupees, shall be one year; or (b) is at or below fifty lakh rupees but exceeds ten lakh rupees, shall be six months; or (c) is at or below five crore rupees but exceeds fifty lakh rupees, shall be a quarter; or (d) exceeds five crore rupees, shall be one month: 3. Substituted vide Notification No.F.3(27)/Fin(Rev-I)/2011-12/DSIII/353, Dated : 25/04/2012, w.e.f. 25.0.2012. Prior it was read as;- of one month or a quarter or six months or one year 4. Substituted vide Notification No.F.3(27)/Fin(Rev-I)/2011-12/DSIII/353, Dated : 25/04/2012, Prior it was read as;- A dealer to whom - (a) clause (a) of sub-rule (1) applies, can opt the tax period of six months or a quarter or one month; or (b) clause (b) of sub-rule (1) applies, can opt the tax period of a quarter or one month; or (c) clause (c) of sub-rule (1) applies, can opt the tax period of one month, and the option so exercised by him during a particular year by furnishing an intimation in accordance with sub-rule (4) of this rule, shall not be changed during that year: 5. Substituted vide Notification No. F. 3(59)/Fin (T E)/2005-06/923Kha, Dated 30.112005 . Before it was read as:- (4) Where the tax period applying to a dealer was one month, the dealer shall continue to have tax period of one month unless- (a) the dealer s turnover during each of the last three months was less then forty lakhs rupees; and (b) the dealer s turnover during remainder of the year is likely to be less than five crore rupees. 6. Time limit extended to 31.01.2006 vide order F.3(15)/P-II/VAT/Misc./2005/1206 dated 26.12.2005 7. Substituted vide Notification No. F. 3(59)/Fin (T E)/2005-06/923Kha, Dated 30.11.2005 , before it was read as:- (5) Where- (a) a dealer has a tax period of the month; (b) the dealer is not prohibited from having a tax period of a quarter under sub-rule (4) above; (c) the dealer elects to have a tax period of a quarter, the election shall take from first day of the next quarter. 8. Substituted vide Notification No.F.3(15)/Fin.(Rev-I)/2012-13/dsVI/264 Dated 30/03/2013. Before it was read as, 1 [ (1) Subject to sub-rule (2) of this rule, the tax period for a dealer whose turnover in the preceding year - 2 [ (a) is at or below five crore rupees, shall be a quarter; (b) exceeds five crore rupees, shall be one month: ] Provided that for the year 2005-06, the tax period of a dealer whose turnover does not exceed ten lakh rupees shall be six months, commencing from first day of October 2005: Provided further that where the turnover of a dealer during the current year increases or decreases beyond the turnover limits specified in this sub-rule, he shall be liable to change his tax period from the first day of the following year: Provided also that the Commissioner may, by an order in writing, prescribe a tax period 3 [ other than the applicable tax period ] for a dealer or a class of dealers irrespective of his or their turnover. ] 9. Omitted vide Notification No.F.3(15)/Fin.(Rev-I)/2012-13/dsVI/264 Dated 30/03/2013. Before it was read as, 4 [ (3) A dealer to whom clause (a) of sub rule (1) applies, can opt the tax period of one month and the option so exercised by him during a particular year by furnishing an intimation in accordance with sub-rule (4) of this rule, shall not be changed during that year. ] Provided that for the year 2005-06, an option to change the tax period may be exercised with effect from the first day of October, 2005. 10. Omitted vide Notification No.F.3(15)/Fin.(Rev-I)/2012-13/dsVI/264 Dated 30/03/2013. Before it was read as, 5 [ (4) An intimation for change in tax period in accordance with sub-rule (1) or sub-rule (3) of this rule shall be furnished to the Commissioner in Form DVAT 55 within 15 days from the first day of the year in which tax period is being changed: Provided that for the year 2005-06, intimation for change of tax period shall be furnished within fifteen days from the date of notification of these rules 6 : Provided further that any delay in furnishing the intimation under this rule shall not be condonable. ]