TMI BlogTHE DELHI VALUE ADDED TAX (SECOND AMENDMENT) ACT, 2005X X X X Extracts X X X X X X X X Extracts X X X X ..... Act may be called the Delhi Value Added Tax (Second Amendment) Act, 2005. (2) It extends to the whole of the National Capital Territory of Delhi. (3) Except for the provisions of sections 4 and 5, clause (a) of section 7, sections 9, 32 and 33 which shall be deemed to have come into force with effect from the 1st day of April, 2005, the remaining provisions of this Act shall come into force with effect from the date of the publication of this Act in the official Gazette. 2. Amendment of section 2. In the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005))(hereinafter referred to as "the principal Act"), in section 2, in sub-section (1) - (a) for clause (f), the following shall be substituted, namely:- "(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;"; (b) for clause (j), the following shall be substituted, namely:- "(j) 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, whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms Act, 1962 (52 of 1962); (ii) Departments of Union Government, State Governments and Union territory Administrations; (iii) 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; (vii) 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." 3. Amendment of section 3. In the principal Act, in section 3- (a) for sub-section (4), the following shall be substituted, namely:- "(4) the net tax of a dealer shall be paid within twenty-eight days of the conclusion of the dealer's tax period: Provided that the Commissioner ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (c), the following shall be inserted, namely:- "(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 (iii) the aircraft is operating on a scheduled or non-scheduled service to or from India." 6. Amendment of section 8. In the principal Act, in section 8, in sub-section (1), for clause (d), the following shall be substituted, namely:- "(d) the goods or part of the goods sold have been returned to the dealer within six months of the date of sale; or" 7. Amendment of section 9. In the principal Act, in section 9 - (a) in sub-section (2), for clause (f), the following shall be substituted, namely:- "(f) to the dealers or class of dealers specified in the Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 15, - (a) in sub-section (1), for clause (c), the following shall be substituted, namely:- "(c) the goods were purchased either as trading stock for re-sale in an unmodified form or otherwise or as raw material for incorporation or division into trading stock;"; (b) to sub-section (2), the following Explanations shall be inserted, namely:- "Explanation I.- For the purpose of this sub-section, the words "input tax borne" means the tax paid by the resident seller under the Delhi Sales Tax Act, 1975 (Act 43 of 1975) or under this Act and the word "tax fraction" shall be construed accordingly.Explanation II.- This section shall apply only if the resident seller had purchased goods in Delhi.". 10. Amendment of section 16. In the principal Act, in section 16 - (a) in sub-section (1), the words "exceeds the taxable quantum under this Act, but" occurring after the clause (b) reading as "turnover in the current year," and before the words "does not exceed fifty lakh rupees" shall be omitted; (b) in sub-section (3), in clause (b), the words "exceeds the taxable quantum under this Act, but" occurring after the words "commencement of this Act" and before the words "d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aler 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. (2) Notwithstanding anything contained in sub-section (1), the Commissioner may require a dealer or class or classes of dealers, as may be notified by him by special or general order, to file, in addition to the returns required to be filed under sub-section (1), the returns in such electronic forms from such date and within such time and in such manner as may be prescribed. (3) Without prejudice to the provisions of sub-section (1) , any person, being a company or being a person other than a company, required to furnish a return under sub-section(1), may, at his option, on or before the due date, furnish a return in accordance with such scheme as may be specified by the Government in this behalf by notification in the official Gazette and subject to such conditions as may be specified therein, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and in the manner as may be specified in that scheme, and in such case, the return furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n referred to in sub-section (5) fails to furnish to the contractor the certificate of tax deduction at source within seven days of making payment or discharge, the person shall be liable to pay, by way of penalty, a sum of one hundred rupees per day from the day of making payment to the contractor or discharge until the failure is rectified: Provided that the amount of penalty payable under this sub-section shall not exceed twenty thousand rupees.". 15. Amendment of section 38. In the principal Act, in section 38 - (a) in sub-section (3), for clause (a), the following shall be substituted, namely:- " (a) refunded to the person, - (i) within one month after the date on which the return was furnished or claim for the refund was made, if the tax period for the person claiming refund is one month; (ii) within two months after the date on which the return was furnished or claim for the refund was made, if the tax period for the person claiming refund is a quarter; or "; (b) for sub-section (7), the following shall be substituted, namely : - "(7) For calculating the period prescribed in clause (a) of sub- section (3), the time taken to - (a) furnish the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct is recoverable in accordance with the provisions of clause (b) of sub-section (3), the Commissioner may prepare a recovery certificate (hereinafter referred to as "certificate") under his signature specifying the amount of such tax, interest or penalty, composition money or other amount due from the dealer, casual dealer, transporter, carrier or transporting agent, owner or lessee or occupier of warehouse, owner of any goods or any other person (hereinafter referred to as the "certificate-debtor") and he shall cause the said certificate to be served upon the certificate debtor, in such manner and form as may be prescribed and proceed to recover from the certificate-debtor the amount specified in the certificate by one or more of the following modes in accordance with the rules as may be prescribed:- (a) attachment and sale of movable property of the certificate debtor; (b) attachment and sale of immovable property of the certificate- debtor; (c) arrest of the certificate-debtor and his detention in prison for a period of fifteen days; (d) appointing a receiver for the management of the movable and immovable properties of the certificate-debtor. (7) The Commissioner may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. (2) For the purpose of sub-section (1) - (a) The Additional Commissioner of Value Added Tax and the Joint Commissioner of Value Added Tax shall have and exercise all the powers and perform all the duties of the Deputy Commissioner under the Delhi Land Reforms Act, 1954 (Delhi Act 8 of 1954); (b) The Deputy Commissioner of Value Added Tax shall have and exercise all the powers and perform all the duties of Revenue Assistant under the said Act; (c) The Value Added Tax Officers and the Assistant Value Added Tax officers shall have and exercise all the powers and perform all the duties of Tehsildar and Assistant Collector of the First Grade under the said Act. 19. Amendment of section 45 In the principal Act, in section 45 - (a) in clause (b), after sub-clause (ii), the following shall be inserted, namely:- "(iii) any recovery proceedings initiated on the basis of an assessment or notice of demand served upon a person before the disposal of such objection or appeal, may be continued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd fixed deposits in the banks, vehicles, furniture and fixture to the extent to which any of the assets aforesaid does not form part of the stock in trade of the business of the person. 22. Insertion of new section 47A In the principal Act, after section 47, the following shall be inserted, namely:- 47A. Liability under this Act to be the first charge. - Notwithstanding anything contained in any contract to the contrary, but subject to any provision regarding creation of first charge in any Central Act for the time being in force, any amount of tax, penalty, interest, composition money, sum forfeited, fine or any other sum payable by a dealer or any other person under this Act, shall be the first charge on the property of the dealer or, as the case may be, the person. 23. Amendment of section 74 In the principal Act, in section 74, in sub-section (1) after the fourth proviso, the following shall be inserted, namely:- "Provided also that no objection shall be made to the Commissioner against an order made under section 84 or section 85 of this Act if the Commissioner has not delegated his power under the said sections to other Value Added Tax authorities." 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortunity of being heard, pass an order to the best of its judgment, where necessary. (3) If the Commissioner has initiated any proceeding before an appropriate forum against an issue which is decided against the revenue by an order of the Tribunal, then the Commissioner may, in respect of any order, other than the order which is the subject matter of the order of the Tribunal, call for the record, conduct an examination as aforesaid, record his findings, call for the said books of account and other evidence and pass an order as provided for under this section as if the issue was not so decided against the revenue, but shall stay the recovery of the dues including the interest or penalty, insofar as they relate to such issue until the decision by the appropriate forum and after such decision, may modify the order of revision, if necessary. (4) No proceedings under this section shall be entertained on any application made by a dealer or a person. 74B.Rectification of mistakes and Review [Rule 36B] - (1) Notwithstanding anything contained to the contrary in section 34, the Commissioner may, at any time within four years from the end of the year in which any order passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -motu or upon an application made in that behalf: Provided that, before any order which is likely to affect any person adversely is passed, such person shall be given a reasonable opportunity of being heard. 26.Amendment of section 79 In the principal Act, in section 79, in sub-section (1)- (a) in clause (i), the word "or" occurring at the end thereof, shall be omitted- (b) in clause (j), for the concluding words "Appellate Tribunal or a court", the words "Appellate Tribunal or a court; or", shall be substituted- (c) after the clause (j) as so amended and before the brackets and words "(in this Act referred to as "non-appealable orders")", the following shall be inserted, namely:- "(k) a notice served on the person under sub-section (10) of section 84." 27. Amendment of section 81 In the principal Act, in section 81, in sub-section (2), in clause (a), after the words "received by the commissioner or" and before the words "the other party;"; the words "served upon" shall be inserted. 28.Amendment of section 86 In the principal Act, in section 86- (a) for sub-section (4), the following shall be substituted, namely;- (4) Where a person who is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny 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 such 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 ; such person shall be liable to pay, by way of penalty, a sum equal to fifty thousand rupees or a sum equal to the amount of tax payable on such goods if such goods were sold in Delhi, whichever is greater. 29. Amendment of section 95 In the principal Act, in section 95- (a) For the title words, "Dealer to declare name of manager of business", the words "Dealer to declare the name of the manager of business and permanent account number" shall be substituted; (b) After sub-section (2), the following shall be inserted, namely:- (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the said certificate is to be recovered. (ii) for clause (ze), the following shall be substituted namely;- (ze)the form and manner in which an objection under section 74 of this Act or an application for review under section 74B of this Act may be filed and the fee payable in respect thereof; (iii) in clause (zk), for the words "the declaration" occurring after the words "manner in which" and before the words "under section", the words "the declaration or the communication" shall be substituted (b) after sub-section (2), the following shall be inserted, namely;- (2A)Without prejudice to any provision made in this behalf, any rule made under this Act may be made so as to be retrospective to any date not earlier than the date of commencement of this Act: Provided that no rule shall be given effect retrospectively if it would have the effect of prejudicially affecting the interests of a dealer 32. Amendment of section 103 In the principal Act, in section 103- (i) for the word "prospectively" occurring after the words "Seventh Schedules," and before the words "and thereupon", the words "either retrospectively or prospectively", shall be substituted. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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