Amends the Delhi Value Added Tax Rules, 2005 - F. 3(59)/Fin (T&E)/2005-06/923Kha - Delhi Value Added Tax

Amends the Delhi Value Added Tax Rules, 2005 GOVERNMENT OF NATIONALCAPITALTERRITORY OF DELHI FINANCE (ACCOUNTS) DEPARTMENT DELHI SACHIVALAYA, I. P. ESTATE : NEW DELHI-02 No. F. 3(59)/Fin (T E)/2005-06/923Kha Dated: 30.11.2005 NOTIFICATION In exercise of the powers conferred by section 102 of the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005) , the Lt. Governor of the National Capital Territory of Delhi, hereby makes the following rules to further amend the Delhi Value Added Tax Rules, 2005 , namely:- RULES 1. Short title and commencement (1) These rules may be called the Delhi Value Added Tax (Fifth Amendment) Rules, 2005 (2) They shall come into force with immediate effect. 2. Amendment of rule 7 In the Delhi Value Added Tax Rules, 2005 (hereinafter referred to as "the principal Rules"), in rule 7, in sub-rule (2), the words "or the goods processed or manufactured out of the goods as originally transferred" shall be inserted at the end thereof. 3. Insertion of new rule 7B In the principal Rules, after rule 7A, the following shall be inserted, namely:- " 7B.Adjustment of tax due to retrospective reduction of tax liability by virtue of the Delhi Value Added Tax (Second Amendment) Act, 2005 (Sec 4, 15 105(4)) A dealer, in consequence of the retrospective operation of - a) the reduced rates of tax on the turnover pertaining to declared goods involved in the execution of works contracts and the works contracts which are in the nature of printing works in accordance with the provisions of section 4; or b) the eligibility to claim input tax credit on purchase of second hand goods from the resident seller under sub-section (2) of section 15; or c) the discharge of tax liability on works contracts in accordance with the provisions of sub-section (4) of section 105, shall re-compute his tax liability and shall make adjustments on account of excess amount of tax deposited under the Act, if any, in the first return which is due to be filed after the date of notification of the Delhi Value Added Tax (Fifth Amendment) Rules, 2005: Provided that the dealer shall not make the adjustments of the excess amount of tax deposited unless such excess amount has been refunded to the purchaser: Provided further that the dealer shall submit the proof of the amount so refunded to the purchaser along with his return mentioned above. " 4. Amendment of rule 9 In the principal Rules, in rule 9, for sub rule (2), the following shall be substituted, namely:- "(2) No input tax credit shall be claimed under section 15 by a registered dealer on purchase of second hand goods unless the dealer has in his possession original invoice or cash memo issued under the Act or under the Delhi Sales Tax Act, 1975 (43 of 1975) (since repealed) for purchase of said goods in Delhi by the resident seller." 5. Amendment of rule 18 In the principal Rules, in rule 18, after sub-rule (2), the following shall be inserted, namely:- "(3) A declaration under sub-section (3) of section 95, shall be furnished in Form DVAT 52 to the Commissioner - a. before 31 st December, 2005, by a dealer who is deemed to have been registered under sub-section (1) of section 24; b. within fifteen days of obtaining the Permanent Account Number, if the said number is obtained at any time after applying for the certificate of registration." 6. Amendment of rule 26 In the principal Rules, in rule 26 - (a) for sub-rule(1), the following shall be substituted, namely:- "(1) Subject to sub-rule (2) of this rule, the tax period for a dealer whose turnover in the preceding year - (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: 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 of one month or a quarter or six months or one year for a dealer or a class of dealers irrespective of his or their turnover." (b) for sub-rule(3), the following shall be substituted, namely:- "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: 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." (c) for sub-rule(4), the following shall be substituted, namely:- "(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: Provided further that any delay in furnishing the intimation under this rule shall not be condonable." (d) for sub-rule(5), the following shall be substituted, namely:- "(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." 7. Amendment of rule 28 In the principal Rules, in rule 28, - (a) for sub-rule (3), the following shall be substituted, namely:- "(3) A return under sub-rule (1) and sub-rule (2) shall be accompanied by proof of payment of tax, interest or any other sum in Form DVAT-20 and documents as may be specified in the return. Such return shall be furnished within- (a) seventy five days from the end of the dealer's tax period by the dealers having tax period of one year; (b) forty five days from the end of the dealer's tax period by the dealers having tax period of six months; (c) twenty eight days from the end of the dealer's tax period by the dealers having tax period of a quarter or one month, as the case may be. Provided that a dealer who has been registered for the first time under the Act shall furnish the return(s), the date of furnishing of which has already been expired on the date of grant of registration certificate, within seven days from the date of such grant." (b) for sub-rule (4), the following shall be substituted, namely:- "(4) Where a dealer's registration is cancelled under the Act and subsequently restored, the dealer shall furnish within 28 days after the restoration, all returns relating to the tax periods during which his registration remained inoperative and the date of furnishing of which has already expired on the date of restoration, and before furnishing such returns he shall deposit the tax due according to these returns in the same manner as he would have done if the registration was not so cancelled." 8. Insertion of new rule 30A In the principal Rules, after rule 30, the following shall be inserted, namely:- 30A. Discharge of liability in respect of a continuing works contract (Section 105(4)). (1) A dealer, registered under the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) (hereinafter referred to in this section as "the repealed Act"), who is eligible and liable to discharge his tax liability under the Act in accordance with the provisions of sub-section (4) of section 105, he shall furnish the details of all partly executed contracts as on 31 st March, 2005 to the Commissioner, in a statement in Form DVAT 53 along with his first return due to be filed after the notification of the Delhi Value Added Tax (Fifth Amendment) Rules, 2005 along with the documents and information as specified in the said Form DVAT 53 and such dealer shall compute his tax liability in the manner as given in the statement in Form DVAT 54: Provided that where a dealer fails to furnish a statement in Form DVAT 53, complete in all respects, within the time so prescribed, his liability to pay tax shall not be discharged in accordance with the provisions of sub-section (4) of section 105 and he shall be liable to pay tax at the rates specified in section 4. (2)The dealer who is eligible and liable to discharge his tax liability under the Act in accordance with the provisions of sub-section (4) of section 105 and has submitted the statement in Form DVAT 53 in accordance with provisions of sub-rule (1), he shall furnish information in Form DVAT 54 along with his return in Form DVAT-16 for each and every tax period ending up to 31 st March 2007: Provided that a return furnished for any tax period in the absence of duly filled in, signed and completed Form DVAT 54 shall be treated as invalid and incorrect. 9. Amendment of rule 34 In the principal Rules, in rule 34- (a) for sub-rule (3), the following shall be substituted, namely:- " (3) The Commissioner may, for reasons to be recorded in writing, issue notice to any person claiming refund to furnish security under sub-section (5) of section 38 in Form DVAT 21A, of an amount not exceeding the amount of refund claimed, specifying therein the reasons for prescribing the security." (b) in sub-rule (7), the following proviso shall be inserted, namely:- "Provided that the Commissioner may transfer the amount of refund through Electronic Clearance System (ECS) in the bank account of the dealer." 10. Amendment of rule 36 In the principal rules, in rule 36, after sub-rule (2), the following shall be inserted, namely:- "(3)The Commissioner shall, at the time of making an assessment under section 32, calculate the interest payable under sub-section (2) of section 42 for the period commencing from the date of such default for so long as the dealer continues to make default in payment of the amount tax, penalty or other amount due under the Act. (4) The amount of interest payable under the preceding sub-rule, shall be included in the notice of assessment in Form DVAT 24. (5) At the time of issue of the recovery certificate, the Commissioner shall calculate the interest payable under sub-section (2) of section 42 for the period from the date of default till the date of issue of recovery certificate and the amount shall be indicated separately in the recovery certificate. Explanation. - For the purpose of this rule, "the date of the recovery certificate" shall mean the date on which the said certificate is signed and dated by the appropriate authority irrespective of the date on which it is issued to the Collector or the certificate-debtor." 11. Insertion of new rules 36A and 36B In the principal Rules, after rule 36, the following shall be inserted, namely:- "36A.Form of notice for revision The notice for the purposes of sub-section (2) of section 74A shall be in Form DVAT 24B." 36B.Rectification of mistakes and review (1) The application for rectification of a mistake in any order shall be filed in Form DVAT 38B. (2) The application for review of an assessment or reassessment or order shall be in Form DVAT 38C. (3) No application for review under sub-section (5) of section 74B of an assessment or reassessment or an order shall be entertained if the application is not presented within thirty days from the date of such assessment or reassessment or order. (4) The Commissioner or any person appointed under section 66 shall be competent under sub-section (5) of section 74B to review any assessment or reassessment or order made by his predecessor in office. (5) Where a person has made an application for review of an assessment or reassessment or an order under the provisions of section 74B, the Commissioner shall not be prevented from enforcing the payment of any amount in dispute in that order. (6) Where a person, who has made an application for review of assessment or reassessment or an order, intends to file an objection under section 74 or an appeal under 76, the person shall withdraw his application for review before filing the objection or the appeal. (7) The Commissioner shall not review any assessment or reassessment or an order where an objection under section 74 or an appeal under section 76 against such assessment or reassessment or order is pending for decision." 12. Substitution of new rule for rule 37 In the principal Rules, for rule 37, the following shall be substituted, namely:- 37. Recovery of Government dues (1) In case of any amount recoverable in terms of clause (a) of sub-section (3) of section 43, the Commissioner may issue to the Collector a Certificate in Form DVAT-25: Provided that the Commissioner may encash the security furnished by any person, if capable of being encashed simultaneously with the issue of certificate to the Collector and shall notify the Collector of the amount so realised. (2) The Collector shall intimate to the Commissioner the amount recovered by him together with the date thereof and provide such other details as the Commissioner may require. (3) The certificate referred to in sub-section (6) of section 43 shall be in form DVAT-25A and shall be served upon the certificate-debtor by the Value Added Tax Inspector functioning under the control of the Commissioner, along with a Writ of Demand as prescribed in the Delhi Land Reforms Rules, 1954. (4) The procedure laid down in the rules made under the Delhi Land Reforms Act, 1954 (Act No.8 of 1954) and the provisions thereof relating to the recovery of arrears of land revenue in general and relating to attachment and sale of movable and immovable property, arrest and detention in prison for a period of 15 days, in particular, shall apply mutatis mutandis for the purposes of recovery from the certificate-debtor under sub-section (6) of section 43. (5)The amount of interest payable under section 36 for the period commencing immediately after the date of the recovery certificate till realisation, shall be calculated by the Collector or the Commissioner, as the case may be, and recovered along with the amount of tax, penalty or other sums mentioned in the said recovery certificate issued by the Commissioner. (6) Where movable or immovable property is attached, the Commissioner may, instead of directing a sale of the property, appoint a person as a receiver to manage such property. (7) Where any movable or immovable property is attached and taken under management, the receiver shall, subject to the control of the Commissioner, have such powers as may be necessary for the proper management of the property and the realization of the profits, or rent and profits, thereof. (8) The profits, or rents and profits, of such movable or immovable property, shall, after defraying the expenses of management, be adjusted towards discharge of the arrears, and the balance, if any, shall be paid to the defaulter: Provided that where the balance cannot be paid to the defaulter due to any reason, the said balance shall be deposited in the Government treasury. (9) The attachment and management of movable and immovable properties may be withdrawn at any time at the discretion of the Commissioner, or if the arrears are discharged by receipt of such profits and rents or are otherwise paid. (10) There shall be recoverable, in the proceedings in execution of every certificate, all charges incurred in respect of - (a) the service of notice upon the defaulter to pay the arrears, and the warrants and other processes, and (b) all other proceedings taken for realising the arrears. (11)Without prejudice to the provisions of sub-section (4) of section 57, if at any time after the recovery proceedings commenced by the Collector or the Commissioner, as the case may be, the defaulter dies, the recovery proceedings shall be continued against the legal representatives. (12) Any amount recoverable under Chapter VII of the Act, shall be recovered in the same manner as provided in this rule." 13. Insertion of new rule 49A In the principal Rules, after rule 49, the following shall be inserted, namely:- "49A. Power to extend time. Where in these rules a period is prescribed for doing a certain act, the Commissioner may, for reasons to be recorded in writing, extend that period as may be specified by him." 14. Amendment of rule 59 In the principal rules, in rule 59, in sub-rule (2), for the words and figures "28 days" appearing after the words "to the contractor within" and before the words "from the end of the month", the words "fifteen days" shall be substituted:- 15. Substitution of new Form for Form DVAT 21A In the principal Rules, in the Forms appended thereto, for the Form DVAT 21A occurring after the Form DVAT 21 and before the Form DVAT 22, the following Form shall be substituted, namely:- FORM DVAT 21A (See rule 34 ) Reference No.____________________ Date_______________ To _______________ (Name of the dealer) _______________ (Address of the dealer) _______________ (TIN) Notice for furnishing security for granting refund This is in response to your application for refund submitted in form DVAT-21 on ____________(Date of deposit of form), claiming a refund of Rs. ____________ (in figures) ________________________________(in words) ; and The said application has been examined by the Department. However, the refund of Rs. _________________ can only be granted to you upon furnishing a security/ additional security of Rs. ________________ (in figures) __________________________________________ (in words), which i s required due to the following reasons:- 1. ___________________________________________________________ 2. ___________________________________________________________ 3. ___________________________________________________________ 4. ___________________________________________________________ You are hereby directed to furnish the security for the above-mentioned amount by_______________(Date) and provide proof thereof to the undersigned so that the refund can be processed accordingly. Place________________ Signature_________________ Date_________________ Designation_________________ Note: Please quote your TIN while communicating with the Department in this matter or in any other matter whatsoever. 16. Insertion of new Forms DVAT 24B, DVAT 25A, DVAT 38B, DVAT 38C, DVAT 52, DVAT 53, DVAT 54 and DVAT 55 In the principal Rules, in the Forms appended thereto, (a) after Form DVAT 24A, the following Form shall be inserted namely:- FORM DVAT 24B (See rule 36A) Notice under sub-section (2) of section 74A To M/s……………………… ………………………….. ………………………….. (TIN……………………... ) Whereas it appears that in the order No………..dated………… passed under section………. by……………………………………….. for the period from ………………..to…………………… in your case, - (i) a certain turnover of sales which has not been brought to tax or has been brought to tax at lower rate or has been incorrectly classified, or any claim is incorrectly granted or that the liability to tax is understated, or (ii) the order is erroneous , in so far as it is prejudicial to the interest of revenue; And whereas it has been decided to revise the above stated order under section 74A of the Delhi Value Added Tax Act, 2004. Therefore, in view of the above, you are hereby directed to furnish the following documents along with books of accounts before the undersigned at…………….(place) on……………………(date) at………..(time). 1………………………… 2………………………… 3………………………… 4………………………… Place Signature Date Designation SEAL (b) after Form DVAT 25, the following Form shall be inserted namely:- FORM DVAT 25A Certificate to be served upon the certificate-debtor under section 43(6) {Please refer this Form in Volume I of this Book} (c) after Form DVAT 38A, the following Forms shall be inserted namely:- FORM DVAT 38B Application for rectification under section 74B {Please refer this Form in Volume I of this Book} FORM DVAT 38C A pplication for review under section 74B {Please refer this Form in Volume I of this Book} (d) after Form DVAT 51, the following Forms shall be inserted namely:- FORM DVAT 52 Declaration of Permanent Account Number under section 95 {Please refer this Form in Volume I of this Book} FORM DVAT 53 Statement of Partly Executed Works Contracts as on 31st March 2005, where the contracts were inclusive of tax payable under the Delhi Sales Tax on Works Contract Act, 1999 {Please refer this Form in Volume I of this Book} FORM DVAT 54 Details of partly executed contracts as on 31 ST March 2005 which have been executed during the tax period ending ……………. {Please refer this Form in Volume I of this Book} FORM DVAT 55 Intimation for change of tax period {Please refer this Form in Volume I of this Book}