TMI BlogNotification regarding Composition SchemeX X X X Extracts X X X X X X X X Extracts X X X X ..... 006 hereby, provides for the Composition Scheme for every registered dealer engaged exclusively in carrying out works contracts for cash or for deferred payment or for valuable consideration in Delhi as under, namely:- TABLE Category Nature of Works Contracts Composition Tax Rate [As percentage of entire turnover in relation to works contracts in Delhi] Scheme A Scheme B (1) (2) (3) (4) 1 Every registered dealer engaged in execution of works contracts of the following categories and incidental or ancillary activities in connection with or thereto: (A) Civil Contracts, such as, (i) Civil construction, improvement, modification, repair and maintenance, electrification, sanitary fittings, flooring, plastering, finishing, white washing, painting, polishing, interior decoration, etc. of any immovable property, including a building or a complex - residential or commercial. (ii) Water works and Sewerage works, including treatment plants, whether meant for individual houses/buildings/ complexes or for the general public. (iii) Fabrication fixing of shutters, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for the general composition scheme provided by Section 16(1) to 16(10) of the Act. 1 [PROVIDED FURTHER that the dealers who have already opted for the composition scheme notified on 28/02/2013 will have the option to withdraw from the scheme from the third quarter of 2013‐14 by filing Form WC‐02 by 31/10/2013. They shall in that case pay tax as normal dealers under section 3 of the Act w.e.f. 01/10/2013. ] Particular Conditions: Scheme A: A registered dealer opting to pay composition tax under this Scheme shall: (i) not purchase or procure goods from any place outside Delhi at any time during the period for which he opts to avail this Scheme; and (ii) not sell or supply goods to any place outside Delhi at any time during the period for which he opts to avail this Scheme. However, he may procure his own Plant Machinery and Equipments from outside Delhi, meant exclusively for use in execution of the works contract by him. Scheme B: A registered dealer opting to pay composition tax under this Scheme shall be entitled to make purchases of goods required for the execution of the contract under this Scheme in the course of inter-State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-contractor, as the case may be. (5) A dealer who opts to pay composition tax under the notification and executes different types of works contracts which are liable to tax at different rates under this notification, shall pay tax according to the rate applicable to each of such contracts. 5 [PROVIDED that the dealer shall be eligible to opt for only one Scheme, that is either Scheme A or Scheme B , for all categories of works contracts to be executed by him in a financial year.] (6) The term Turnover for the purposes of this composition scheme means: (i) In relation to the category at serial No. (1) and (3), in Table total consideration, received or receivable by the dealer under the contract for transfer of property in goods (whether as goods or in some other form) involved in the execution of the contract together with the charges for labour, services and other like charges. (ii) In relation to the category at serial No. 2, in Table the total consideration received or receivable by the dealer under the contract for transfer of property in goods (whether as goods or in some other form) involved in the execution of the contract, including the value of land, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esenting the value of the goods supplied by the contractee to the contractor does not form part of the contract and is not deductible from the amount payable to the contractor by the contractee for the execution of the works contract. Further, no TDS shall be deducted by the contractee on the value of goods supplied as such by it to the contractor. Modalities for availing the Scheme: (1) The dealer applying for a fresh registration can opt for this scheme by filing an application in Form WC 01 appended to this notification along with his registration application in Form DVAT 04. (2) A works contract dealer who is paying tax under section 3 of the Act, can opt for this scheme by filing an application in Form WC 01 appended to this notification within thirty days from the first day of the financial year with effect from which composition is opted,: 7 [Provided that a dealer who is paying tax under section 3 of the Act on the date of this notification or paying tax under the composition scheme notified on 28.02.2013 may opt for this scheme from the third quarter of 2013‐14 by filing an application in Form WC 01 .] Provided further that the dealer who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of challan in proof of payment of tax in DVAT 20 .] (4) Once a dealer has opted to pay tax under this scheme, he shall, except under the circumstances specified at Sl. No. (6) below, not be eligible to withdraw his option before the end of the financial year. (5) A composition dealer who, having opted to pay composition tax under this scheme for a particular year, does not intend to opt for payment of composition tax under this scheme for the following year, shall, subject to the conditions contained in section 20 of the Act, in so far as they are applicable, and further subject to furnishing of intimation regarding withdrawal from this scheme in Form WC 02 within thirty days from the end of the financial year, be eligible to claim credit of tax paid under the Act on the opening stock held by him on the first day of the year from which he opts out of the Scheme. (6) A composition dealer who has opted to pay tax under this scheme and has defaulted in furnishing the returns for two consecutive tax periods, by the prescribed due date for the latter tax period, shall, from the beginning of the tax period in respect of which the default was first committed: (i) cease to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is notification, the Commissioner may notify, by a special or general order, that any or all of the forms appended to this notification shall be filed online. (9) All the provisions contained in the DVAT Act, 2004 and DVAT Rules, 2005 which are not contrary to the provisions of the composition scheme under this notification, shall apply to the dealers opting for composition.] This notification shall come into force with effect from 1st April 2013. By order and in the name of the Lt. Governor of the National Capital Territory of Delhi, (Ravinder Kumar) Deputy Secretary-VI (Finance) No.3(13)/Fin.(Rev-I)/2012-13 Copy forwarded for information and necessary action to: (1) The Pr. Secretary (GAD), Govt. of NCT of Delhi, Delhi Sachivalaya, New Delhi with one spare copy for publication in Delhi Gazette Part-IV (extraordinary) in today s date. (2) The Pr. Secretary to the Hon ble Lieutenant Governor, Delhi. (3) The Pr. Secretary to the Hon ble Chief Minister, Government of NCT of Delhi, Delhi Sachivalaya, IP Estate, New Delhi. (4) Pr. Secretary (Finance) Finance Department, Govt. of NCT of Delhi, Delhi Sachivalaya, New Delhi. (5) Commissioner, Value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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