Contentssalestaxbar.com/resource/Image/DVAT2013.pdf · a warehouse, godown or such other place where a dealer stores his goods.] 3[(f) “capital goods” means plant, machinery and

Contents

DELHI VALUE ADDED TAX ACT, 2004 1-154(Delhi Act No. 3 of 2005)

DELHI VALUE ADDED TAX RULES, 2005 161-206

Delhi Tax Compliance Achievement Scheme, 2013 209-217

ACT & RULES-1 THE DELHI VALUE ADDED TAX ACT, 2004 2013

DELHI VALUE ADDED TAX ACT, 2004(Delhi Act No. 3 of 2005)

[As amended upto 30-09-2013 by the Delhi Value Added Tax (Amendment) Act, 2013 (Act No. 5 of 2013) notified vide

[Notification No. F.3(14)/Fin/(Rev-1)/2013-14/dsvi/703, dt. 11-09-2013)]

Contents

CHAPTER I - PRELIMINARY 1 1. Short title, extent and commencement 1

2. Definitions 1

CHAPTER II - IMPOSITION OF TAX 9 3. Imposition of tax (Rule 26) 9

4. Rates of tax (Rule 7B) 10

5. Taxable turnover (Rules 3, 4A and 7B) 11

6. Sale exempt from tax 11

7. Certain sales not liable to tax 11

8. Adjustments to tax (Rule 7A) 12

9. Tax credit (Rules 6, 7) 13

10. Adjustment to tax credit (Rules 6 & 7) 16

11. Net tax 17

11A. Tax on goods supplied by contractee 1712. Time at which turnover, turnover of purchases and 18 adjustments arise (Rule 4)

CHAPTER III - SPECIAL REGIMES 1813. Priority 18

14. Treatment of stock brought forward during transition (Rules 8 & 30) 18

15. Second-hand goods (Rules 7B, 9) 19

16. Composition scheme for specified dealers (Rule 5) 20

16A . Special provisions relating to casual traders (Rule 5A) 22

17. Transactions between related parties If— 23

CHAPTER IV - REGISTRATION AND SECURITY 2318. Mandatory and voluntary registration 23

19. Registration (Rules 11, 12, 13, 14, 19, 20, 21, 22(1)) 24

20. Effect of registration (Rule 10) 24

21. Amendment of registration (Rule 15) 25

22. Cancellation of registration (Rules 16 & 17) 26

23. Effect of de-registration 27

24. Registration during transition (Rule 14) 28

25. Security from certain classes of dealers and other persons 28

CHAPTER V - RETURNS 2826. Periodical payment of tax and furnishing of returns 28 (Rules 26, 27 & 28)

27. Power to require other returns (Rule 67) 28

28. Corrections of deficiencies (Rule 29) 28

29. Signing returns 28

CHAPTER VI - ASSESSMENT AND PAYMENT OF TAX, INTEREST 30 AND PENALTIES AND MAKING REFUNDS 30. Assessment of tax, interest or penalty 3031. Self assessment 3132. Default assessment of tax payable (Rule 36) 3133. Assessment of penalty (Rule 36) 3134. Limitation on assessment and re-assessment 3235. Collection of assessed tax and penalties 3236. Manner of payment of tax, penalties and interest 33 (Rules 31, 32, 33 & 33A) 36A . Tax deducted at source (Rule 59) 3337. Order of application of payments 38. Refunds (Rules 22(4) & 34) 3539. Power to withhold refund in certain cases (Rule 34(5A)) 3740. Collection of tax only by registered dealers 3740A . Agreement to defeat the intention and application of this Act to be void 3741. Refund of tax for embassies, officials, international and 38 public organizations (Rule 35)42. Interest (Rule 34(6) & 36) 38

CHAPTER VII - RECOVERY OF TAX, INTEREST AND PENALTIES 3843. Recovery of tax (Rule 37) 3844. Application of Delhi Land Reforms Act, 1954 for the purposes 40 of recovery 45. Continuation of certain recovery proceedings (Rule 38) 4046. Special mode of recovery (Rule 39) 4146A . Provisional attachment to protect revenue in certain cases 4247. Transfer of assets during pendency of proceedings void 4247A . Liability under this Act to be the first charge 42

CHAPTER VIII - ACCOUNTS AND RECORDS 4348. Records and accounts (Rule 42) 43

49. Furnishing of Audit Report 43

50. Tax invoices (Rule 44) 44

51. Credit and debit notes (Rule 45) 45

CHAPTER IX - LIABILITY IN SPECIAL CASES 4552. Liability in case of transfer of business 45

53. Liability in case of company in liquidation 46

54. Liability of partners of firm to pay tax 47

55. Liability of guardians, trustees etc. 47

56. Liability of Court of Wards, etc. 47

57. Liability in other cases 47

CHAPTER X - AUDIT, INVESTIGATION AND ENFORCEMENT 4858. Audit (Rule 46) 48

58A. Special Audit 49

59. Inspection of records 50

60. Power to enter premises and seize records and goods (Rules 22(2) & 48) 50

61. Power to stop, search and detain goods vehicles 51 (Rules 22(3), 23(3), 43, 48 & 65)

62. Custody and release of records 52

63. Custody, return and disposal of goods, goods vehicle 53 and security (Rule 41)

64. Detention of goods pending disclosure 54

65. Obligation to provide reasonable assistance 54

CHAPTER XI - VALUE ADDED TAX AUTHORITIES AND 54 APPELLATE TRIBUNAL 66. Value Added Tax Authorities (Rules 47, 48 & 49) 54

67. Powers and responsibilities of the Commissioner 54

68. Delegation of Commissioner’s powers (Rule 48) 55

69. Change of an incumbent of an office 55

70. Power of Commissioner to make notifications 55

71. Persons to be public servants 56

72. Immunity from civil suit 56

73. Appellate Tribunal 56

CHAPTER XII - OBJECTIONS, APPEALS, DISPUTES AND QUESTIONS 5774. Objections (Rules 51 to 57) 57

74A . Revision (Rule 36A) 59

74B. Rectification of mistakes and Review (Rule 36B) 60

75. Power of Commissioner and other authorities to take 60 evidence on oath, etc.

76. Appeals to Appellate Tribunal (Rules 57A to 57C) 61

77. Extension of period of limitation in certain cases 62

78. Burden of proof 62

79. Bar on appeal or objection against certain orders 63

80. Assessment proceedings, etc. not to be invalid on 63 certain grounds (Rule 40)

81. Appeal to High Court 64

82. Appearance before any authority in proceedings (Rule 64) (1) 65

83. Bar of suits in civil courts 65

84. Determination of specific questions (Rules 48 & 58) 65

85. Ruling on general questions 67

CHAPTER XIII - PENALTIES AND OFFENCES 6886. Penalties 68

87. Automatic mitigation and increase of penalties 72

88. Relationship to assessment and impact on criminal penalties 73

89. Offences and criminal penalties 73

90. Offences by companies, etc. 75

91. Cognizance of offences 76

92. Investigation of offences (Rule 50) 76

93. Compounding of offences 76

94. Chapter XXXVI of the Code of Criminal Procedure, 1973, 76 not to apply to certain offences

CHAPTER XIV - MISCELLANEOUS 7795. Dealer to declare the name of manager of business, 77 Permanent Account Number and IEC (Importer Exporter Code) (Rule 18)

96. Service of notice when family is disrupted or firm is dissolved (Rule 62) 78

97. Service of notice in the case of discontinued business (Rule 62) 78

99. Publication and disclosure of information in respect of dealers 79 and other persons in public interest

100. Power to collect statistics (Rule 67) 79

100A. Automation 80

101. Setting up of check-posts and barriers (Rule 66) 80

102. Power to make rules 80

103. Power to amend Schedules 83

104. Power to remove difficulties (Rules 60 & 61) 83

105. Application to sales and purchases (Rules 7B & 30A) 84

106. Repeal and savings (Rule 68) 84

107. Amnesty Scheme(s) 85


THE DELHI VALUE ADDED TAX ACT, 2004(Delhi Act No. 3 of 2005)

[As amended upto 30-09-2013 by the Delhi Value Added Tax (Amendment) Act, 2013 (Act No. 5 of 2013) notified vide

[Notification No. F.3(14)/Fin/(Rev-1)/2013-14/dsvi/703, dt. 11-09-2013)]

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:—

CHAPTER I PRELIMINARY

1. Short title, extent and commencement(1) This Act may be called the Delhi Value Added Tax Act, 2004.1

(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(1) In this Act, unless the context otherwise requires,—(a) “accountant” means—

(i) a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949);

(ii) 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

2[(iii) a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959); or]

3[(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;

1 W.e.f. 1-4-2005 vide Notification No. F. 101(318)/2005-Fin. (A/Cs)(i)/8581, dt. 30-3-2005.2 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.3 Existing sub-clause (iii) numbered as sub-clause (iv), vide ibid.

ACT & RULES-2 DELHI SALES TAX CASES 2013

(d) “business”includes— 1[(i) the provision of any services, but excluding the services provided by an

employee;] (ii) any trade, commerce or manufacture; (iii) 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 concern.

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;

(ii) 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;

2[(e) “businesspremises”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 business of such agent; anda warehouse, godown or such other place where a dealer stores his goods.]

3[(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) “casualtrader”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;

(h) “Commissioner”means the Commissioner of Value Added Tax appointed under sub-section (1) of section 66 of this Act;

(i) “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;

4[(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, whether for cash or for deferred payment or for commission, remuneration or other valuable consideration and includes,—

1 Substituted by Delhi Value Added Tax (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted by DVAT (Amendment) Act, 2013 (05 of 2013), w.e.f. 12.09.2013. Earlier definition read

as (e) “businesspremises”means—

(i) the address of a dealer, registered with the Commissioner; and(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;3 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005. Prior to

substitution, clause (f) read as under: “capital goods” means plant, machinery and equipment used in the process of trade or

manufacturing.”4 Substituted, vide ibid.


(i) a factor, commission agent, broker, del credere agents or any other mercantile agent by whatever name called, who for the purpose 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;

(ii) 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 consequential to his engagement in or in connection with or incidental to or in the course of the business;

(iii) 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 co-operative 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) a casual trader; (vii) 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:— (i) Customs Department of Government of India administering

Customs 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 Railways Act, 1989

(24 of 1989) and Delhi Metro Rail Corporation Limited; (vi) Incorporated or unincorporated societies, clubs or other

association 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 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.] (k) “Delhi” means the National Capital Territory of Delhi; (l) “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

(ii) 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 1[or immovable] property;

(n) “goodsvehicle”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) a person who brings his own goods into Delhi; or (ii) a person on whose behalf another person brings goods into Delhi; or (iii) in 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;

(r) “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;

2[(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;]3

(s) “net tax” means the amount calculated for a tax period under section 11 of this Act;

(t) “non-creditablegoods”means the goods listed in the Seventh Schedule;

1 Inserted by the Delhi Value Added Tax (Amendment) Act, 2013 (5 of 2013), w.e.f. 12.09.2013.2 Inserted by the Delhi Value Added Tax (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.3 Read with Rule 2(5) of DVAT Rules, 2005.


(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) “OfficialGazette” means the Delhi Gazette; (y) “prescribed” means prescribed by rules made under this Act; (z) “registereddealer” 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) is a relative of the dealer; (ii) is a partnership of which the dealer is a partner; (iii) is 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) is 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) is 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 (1 of 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

instalments, but does not include a mortgage or hypothecation of or a charge or pledge on goods;

(ii) 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;

(iii) 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;

(vii) 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-clause1 [(vii)] of clause (j) of this 2[sub-section],

and the words “sell”, “buy” and “purchase” wherever appearing with all their grammatical variations and cognate expressions, shall be construed accordingly;

(zd) “saleprice” 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; (ii) in 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;

(iii) 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;

3[(v) 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 Delhi 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 receivable whether by way of separate agreement or not, in connection with, or incidental or ancillary to, the sale of goods;

(vii) 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 Substituted for “(ix)” by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.

2 Substituted for “section”, vide ibid.3 Substituted, vide ibid. Prior to substitution, sub-clause (v) read as under: “(v) 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”


1[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 6th June, 2006 shall not form part of the sale price of petrol and diesel sold on and after the date of the promulgation of this Ordinance 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 the consumers:]

2[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 25th 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 till 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 25th June, 2011, whichever is earlier:

PROVIDED FURTHER that if the price of diesel (HSD) further increases from the level of price as on 25th 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 25th 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 :]

3[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 3rd 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 3rd 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:]

4[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.]

1 Provisos (italicised) omitted vide No. F.3(8)/Fin.(T&E)/2007-08/dsfte/428 dated 05-06-2007 w.e.f. 05-06-2007.

2 Provisos (italicised) omitted by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.3 Proviso omitted by Act 14 of 2012, dt. 24-12-2012, w.e.f. 16-1-2013, vide Notification No. F. 3(9)/Fin.

(Rev.-I)/2012-13/34-39, dt. 15-1-2013. Earlier, these provisos were inserted by Delhi Act 7 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.

4 Inserted by the Delhi VAT (Amendment) Act, 2013 (Act 1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.


1[Explanation 1] : A dealer’s sale price always includes the tax payable by it on making the sale, if any;

2[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 as defined in sub-section (2) of section

18 of this Act; (zh) “tax invoice” means the document as defined in section 50 of this Act; (zi) “tax period” means the period prescribed in the rules made under this Act;3

(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) “turnoverofpurchases” means the aggregate of the amounts of purchase price paid or payable by a person in any tax period, 4[excluding] 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) “workscontract” 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 movable 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

1 Existing Explanation re-numbered as Explanation 1 by Act 14 of 2012, dt. 24-12-2012, w.e.f. 16-1-2013.

2 Inserted, vide ibid.3 Read with Rule 26 of DVAT Rules, 2005.4 Substituted for “including” by Delhi Act 1 of 2012, w.e.f. 1-4-2012.


(d) with reference to a person who is unable to sign his name, the word “signature” shall include his thumb impression or other mark duly attested to signify his signature.

CHAPTER II IMPOSITION OF TAX

3. Impositionoftax (Rule26)(1) Subject to other provisions of this Act, every dealer who is— 3

(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) on and from the day on which he was required to be registered under this

Act.]Explanation : For the purpose of clause (b) above, the liability to pay tax shall be

on the sales effected after he exceeds the taxable quantum.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.]2[(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.(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.

1 Substituted by the Delhi Value Added Tax (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted by the DVAT (Amendment) Act, 2013 (Act 1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.

Prior to substitution, sub-section (4) read as under: “(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.

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”.


(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.

1[(10) If any person who, whether as principal, agent or in any other capacity organises 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 organiser 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 failed to obtain registration under this Act or the goods in respect of which the 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. Ratesoftax (Rule7B)

(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;2[(b) in respect of goods specified in the Third Schedule, at the rate of five

paise in the rupee: 3[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);]]

(c) in respect of goods specified in the Fourth Schedule, at the rate of twenty paise in the rupee; 4[x x x]

5[(d) in respect of goods involved in the execution of the works contract, at the rate of twelve and a half paise in the rupee:]

6[PROVIDED that tax shall be paid at the rate of 7[five] paise in the rupee of the turnover of the dealer pertaining to declared goods, as defined

1 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.2 Substituted by the Delhi Value Added Tax (Amendment) Act, 2009 (Act No. 1 of 2010), dt. 1-1-

2010, w.e.f. 13-1-2010.3 The italicised proviso omitted by Delhi Act 8 of 2011, w.e.f. 1-10-2011.4 Word “and” omitted by Delhi Value Added Tax (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.5 Inserted, vide ibid.6 Inserted by Delhi Value Added Tax (Second Amendment) Act, 2005 (10 of 2005), w.r.e.f. 1-4-2005.7 Substituted for “four” by Delhi Act 8 of 2011, w.e.f. 1-10-2011.


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 1[five] paise in the rupee.]

2[(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. Taxableturnover (Rules3,4Aand7B)

(1) For the purposes of this Act, taxable turnover means that part of dealer’5s 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. 3[(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

(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.

7. Certainsalesnotliabletotax

Nothing contained in this Act or the rules made thereunder shall be deemed to7 impose or authorise the imposition of tax on any sale of goods when such sale takes place—

(a) in the course of inter-State trade or commerce; or(b) outside Delhi; or(c) in the course of import of the goods into or export of the goods out of, the

territory of India; or

1 Substituted for “four” vide Notification No. F 14(5)/LA 2010/Law/359, dt. 31-12-2010, w.e.f. 1-2-2011.2 Existing clause (d) relettered as clause (e) by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f.

1-4-2005.3 Substituted, vide ibid.


1[(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.]

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.

8. Adjustmentstotax (Rule7A)

(1) 2[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;

3[(d) the goods or part of the goods sold have been returned to the dealer within six months of the date of sale; or]

(e) 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

1 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.r.e.f. 1-4-2005.2 Inserted by the Delhi Value Added Tax (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.3 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005. Earlier clause

(d) read as: “(d) the goods or part of goods sold have been returned to the dealer; 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—(i) A - (A x B/C); or(ii) A - B;whereA = 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;C = the amount of the tax credit before reduction under sub-section (4) of

section 9.

9. Taxcredit (Rules6,7)

1[(1) Subject to sub-section (2) of this section and such conditions, restrictions and9 limitations as may be prescribed, a dealer who is registered or is required to be registered under this Act shall be entitled to a tax credit in respect of the turnover of purchases occurring during the tax period 2[where the purchase arises] in the course of his activities as a dealer and the goods are to be used by him directly or indirectly for the purpose of making—

(a) sales which are liable to tax under section 3 of this Act; or(b) sales which are not liable to tax under section 7 of this Act. Explanation : Sales which are not liable to tax under section 7 of this Act

involve exports from Delhi whether to other States or Union territories or to foreign countries.]

(2) No tax credit shall be allowed—(a) in the case of the purchase of goods for goods purchased from a person who

is not a registered dealer;(b) for the purchase of non-creditable goods;(c) for the purchase of goods which are to be incorporated into the structure of a

building owned or occupied by the person; Explanation : This sub-section does not prevent a tax credit arising for goods

and building materials that are purchased either for the purpose of re-sale in an unmodified form, or for the performance of a works contract on a building owned or occupied by another;

(d) for goods purchased from a dealer who has elected to pay tax under section 16;

1 Substituted by the Delhi Value Added Tax (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted for “to the extent of proportion of the goods which have been put to sale” by DVAT (2nd

Amendment) Act, 2011 (Act 8 of 2011), w.e.f. 1-10-2011.


1[(e) for goods purchased from a casual trader;]2[(f) to the dealers or class of dealers specified in the Fifth Schedule except the

entry No. 1 of the said Schedule;]3[(g) to the dealers or class of dealers unless the tax paid by the purchasing dealer

has actually been deposited by the selling dealer with the Government or has been lawfully adjusted against output tax liability and correctly reflected in the return filed for the respective tax period.]

(3) The amount of the tax credit to which a dealer is entitled in respect of the purchase of goods shall be the amount of input tax arising in the tax period reduced in the manner described in sub-sections 4[(4), (6) and (10)] of this section.

(4) Where a dealer has purchased goods and the goods are to be used partly for the purpose of making the sales referred to in sub-section (1) of this section and partly for other purposes, the amount of the tax credit shall be reduced proportionately.

(5) The method used by a dealer to determine the extent to which the goods are used in the manner specified in sub-section (4) of this section, shall be fair and reasonable in the circumstances:

PROVIDED that the Commissioner may—(a) after giving reasons in writing, reject the method adopted by the dealer and

calculate the amount of tax credit; and(b) prescribe methods for calculating the amount of tax credit or the amount of

any adjustment or reduction of a tax credit in certain instances. Explanation : A person may object in the manner referred to in section 74 of

this Act to a decision of the Commissioner to reject a method of calculating a tax credit.

(6) 5[Notwithstanding anything contained to the contrary in sub-section (1)] where—

(a) a dealer has purchased goods (other than capital goods) for which a tax credit arises under sub-section (1) of this section;

(b) the goods or goods manufactured out of such goods are to be exported from Delhi by way of transfer to a— (i) non-resident consignment agent; or (ii) non-resident branch of the dealer; and

(c) the transfer will not be by way of a sale made in Delhi, the amount of the tax credit shall be reduced by the prescribed percentage.

(7) For the removal of doubt, no tax credit shall be allowed for—(a) the purchase of goods from an unregistered dealer;(b) the purchase of goods which are used exclusively for the manufacture,

processing or packing of goods specified in the First Schedule.

1 Inserted by Delhi Value Added Tax (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), dt. 16-11-2005, w.r.e.f. 1-4-2005.

Earlier, existing clause (e) was relettered as clause (f) by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005. Prior to substitution, clause (f) read as under:

“(f) to the dealers or class of dealers specified in the Fifth Schedule.”3 Inserted by DVAT (Amendment) Act, 2009 (Act 1 of 2010), dt. 06-01-2010, w.e.f. 1-4-2010.4 Substituted for “(4) and (6)” by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.5 Substituted for word “where” vide the Delhi Value Added Tax (Amendment) Act, 2005 (5 of 2005),

w.e.f. 1-4-2005.


1[(c) any purchase of consumables or of capital goods where the dealer is exclusively engaged in doing job work or labour work and is not engaged in the business of manufacturing of goods for sale by him and incidental to the business of job work or labour work, obtains any waste or scrap goods which are sold by him.]

(8) The tax credit may be claimed by a dealer only if he holds a tax invoice at the time the prescribed return for the tax period is furnished.

2[(9)(a) Notwithstanding anything contained to the contrary in sub-sections (1) and (3) and subject to sub-section (2), tax credit in respect of capital goods shall be allowed as follows:—

(i) 1/3rd of the input tax on such capital goods arising in the tax period, in the same tax period;

3[(ii) Balance 2/3rd of such input tax in, equal proportions, in corresponding tax periods, in two immediately successive financial years:]

PROVIDED that, where the dealer sells such capital goods, the dealer shall be allowed as tax credit, the balance amount of the input tax, if any, in respect of such capital goods as has not been earlier availed as tax credit, such tax credit shall be allowed in the tax period in which such capital goods are sold and only after adjusting the output tax payable by him:

4[PROVIDED FURTHER that where the dealer transfers such capital goods from Delhi otherwise than by way of sale before the expiry of three years from the date of purchase, he shall, after claiming the balance amount or input tax, if any, not availed earlier in respect of such capital goods, reduce the input tax credit by the prescribed percentage of the purchase price of such capital goods and make adjustments in the input tax credit in the tax period in which these capital goods are so transferred:

PROVIDED ALSO that where a dealer has purchased capital goods and the capital goods are to be used partly for the purpose of making sales referred to in sub-section (1) of this section and partly for other purposes, the amount of tax credit shall be reduced proportionately:]

PROVIDED ALSO that no tax credit in respect of capital goods shall be allowed if such capital goods are used exclusively for the purpose of making sale of exempted goods specified in the first schedule:

PROVIDED ALSO that no tax credit in respect of capital goods shall be allowed on that part of the value of such capital goods which represents the amount of input tax on such capital goods, which the dealer claims as depreciation under section 32 of the Income Tax Act, 1961 (43 of 1961).

(b) If any capital goods in respect of which tax credit is allowed under clause(a) of this sub-section is transferred to any other person otherwise than by way of

sale at the fair market value before the expiry of a period of 5 years from the

1 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.2 Inserted by the DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.3 Substituted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.

Prior to substitution, sub-clause (ii) read as under: “(ii) Balance 2/3rd of such input tax in equal proportions in two immediately successive financial

years:”4 Existing second proviso substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), dt. 16-

11-2005.


date of purchase, the tax credit claimed in respect of such purchase shall be 1[reversed] in the tax period during which such transfer takes place.]

2[(10) Notwithstanding anything contained to the contrary in sub-section (1), where—

(a) a dealer has purchased goods (other than capital goods) for which a tax credit arises under sub-section (1) of this section; and

(b) the goods or goods manufactured out of such goods are to be exported from Delhi by way of sale made under sub-section (1) of section 8 of the Central Sales Tax Act, 1956, the amount of the tax credit shall be reduced by the prescribed percentage.]

3[(11) Subject to sub-sections (1), (2) and (3) of this section, the tax credit of goods to be used for sale, as defined in sub-clause (vi) ofclause (zc) of sub-section (1) of section 2 of the Act, shall be allowed as follows:

(a) 1/4th of the input tax on such goods arising in the tax period, in the same tax period;

(b) balance 3/4th of such input tax, in equal proportions, in corresponding tax periods, in three immediately successive financial years.]

10. Adjustmenttotaxcredit (Rules6&7)

(1) Where any purchaser has been issued with a credit note or debit note in terms of section 51 of this Act or if he returns or rejects goods purchased, as a consequence of which the tax credit claimed by him in any tax period in respect of which the purchase of goods relates, becomes short or excess, he shall compensate such short or excess by adjusting the amount of the tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned.

(2) If goods which have been purchased were—(a) intended to be used for the purposes specified under sub-section (1) of section

9 of this Act and are subsequently used, fully or partly, for purposes other than those specified under the said sub-section; or

(b) intended for purposes other than those specified under sub-section (1) of said section 9, and are subsequently used, fully or partly, for the purposes specified in the said sub-section, the tax credit claimed in respect of such purchase shall be reduced or increased (as the case may be) for the tax period during which the said utilization otherwise has taken place.

(3) Where—(a) goods were purchased by a dealer;(b) the dealer claimed a tax credit in respect of the goods, and did not reduce the

tax credit by the prescribed percentage; and4[(c) the goods are exported from Delhi,—

(i) by way of a sale made as per the provisions of sub-section (1) of section 8 of the Central Sales Tax Act, 1956; or

(ii) other than by way of a sale, to a branch of the registered dealer or to a consignment agent,]

the dealer shall reduce the amount of tax credit originally claimed by the prescribed proportion.

1 Substituted for “reduced” by DVAT (Second Amendment) Act, 2005 (10 of 2005), dt. 16-11-2005.2 Inserted by Delhi (Second Amendment) Act, 2013 (6 of 2012), dt. 16-6-2012, w.e.f. 18-6-2012.3 Inserted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.4 Substituted for existing clause (c) by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.


(4) If goods which have been purchased by a dealer were—(a) intended to be used for the purposes specified under sub-section (1) of

section 9 of this Act; and(b) are subsequently incorporated into the structure of a building owned or

occupied by the person, the tax credit claimed in respect of such purchase shall be reduced in the tax period during which such incorporation takes place.

1[(5) Where the goods which have been purchased by a dealer are sold at a price lower than the price at which it was purchased by the dealer, the tax credit on such purchases shall be reduced proportionately in the tax period during which the goods are sold.

Explanation : The tax credit claimed on a particular purchase shall not exceed the amount of tax payable on its sale.]

11. Net tax

(1) The net tax payable by a dealer for a tax period shall be determined by the formula:

Net Tax = O - I - CwhereO = the amount of tax payable by the person at the rates stipulated in section 4 of this Act

in respect of the taxable turnover arising in the tax period, adjusted to take into account any adjustments to the tax payable required by section 8 of this Act.

I = the amount of the tax credit arising in the tax period to which the person is entitled under section 9 of this Act, adjusted to take into account any adjustments to the tax credit required by section 10 of this Act.

C = the amount, if any, brought forward from the previous tax period under sub-section (2) of this section.

2[(2) Where the net tax of a dealer calculated under sub-section (1) of this section amounts to a negative value, the dealer shall—

(a) adjust the said amount in the same tax period against the tax payable by him under the Central Sales Tax Act, 1956 (74 of 1956), if any; and

(b) be entitled to carry forward the amount remaining after application under sub-section (2)(a) to next calender month or tax period, as the case may be, of the same year, or

claim a refund of the amount remaining after application under sub-section (2)(a) at the end of a tax period of the same year and the Commissioner shall deal with the refund claim in the manner described in section 38 and section 39 of this Act.

Explanations - 1. Refund can be claimed at the end of a tax period only.2. Excess tax credit should not be carried forward to the next year.3. Refund of excess tax credit forward from previous years should be claimed in

any of the remaining tax periods of the year 2013-14 but not later that the last tax period ending on 31.03.2014.

4. Excess tax credit remaining at the end of the tax period can either be claimed as refund or carried forward to next tax period of the same year.

5. Excess payment made inadvertently shall also be treated as credit in a month or tax period as the case may be.]3[11A.Taxongoodssuppliedbycontractee

No tax shall be payable under this Act by a contractor on the amount representing the value of the goods supplied by the contractee to the contractor in the execution of

1 Inserted by DVAT (Amendment) Act, 2009 (Act No. 1 of 2010), dt. 1-1-2010, w.e.f. 1-4-2010.2 Substituted by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12-09-2013.3 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.


works contract in which the ownership of such goods remains with the contractee under the terms of contract and the amount representing 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.]

12.Timeatwhichturnover,turnoverofpurchasesandadjustmentsarise(Rule4)

(1) Subject to sub-sections (2), (3) and (4) of this section, the amount of the turnover and the turnover of purchases of a dealer which arises during any tax period shall be the amount recorded in the accounts of the dealer where those accounts are regularly and systematically prepared and maintained, give a true and fair view of his dealings, and are employed by the dealer in determining the turnover of the dealer’s business for commercial or income-tax purposes.

(2) The Commissioner may by notification—(a) permit certain classes of dealers to record turnover based on amounts

paid or received; and(b) require certain classes of dealers to record turnover based on amounts

payable or receivable.(3) Where a dealer wishes to change the method of determining the turnover

and turnover of purchases, he may only make the change with the consent of the Commissioner and on such terms and conditions as the Commissioner may impose.

(4) The Government may prescribe the time at which a dealer shall treat the—(a) turnover;(b) turnover of purchases; and(c) adjustment of tax or adjustment to a tax credit, as arising for a class of

transactions. CHAPTER III

SPECIAL REGIMES13. Priority

Where a provision in this Chapter is inconsistent with a provision in Chapter 1II3, the provision in this Chapter shall, to the extent of the inconsistency, prevail.

14.Treatmentofstockbroughtforwardduringtransition (Rules8&30)

(1) Within a period of four months of the commencement of this Act, all registere1d4 dealers wishing to claim the credit referred to in sub-section (2) of this section, shall furnish to the Commissioner a statement of their trading stock, raw materials and packaging materials for trading stock (in this section referred to as “opening stock”) which—

(a) is held in Delhi on the date of the commencement of this Act;(b) was purchased by the dealer after the first day of April 2004, in such form as

may be prescribed.(2) If—(a) the dealer has furnished the statement referred to in sub-section (1) of this

section;(b) the opening stock has borne tax under the Delhi Sales Tax Act, 1975 (43 of 1975)

at the point specified by the Government under section 5 of the said Act; and(c) the opening stock has been purchased by the dealer from a registered dealer

for such purposes as are specified in sub-section (1) of section 9 of this Act, the amount of tax borne under the Delhi Sales Tax Act, 1975 (43 of 1975) on such opening stock, determined in such manner and subject to such conditions and restrictions and up to the extent as may be prescribed, shall be credited to the registered dealer as a tax credit under section 9 of this Act:


PROVIDED that no tax credit under this section shall be allowed unless the dealer has in his possession, invoices issued by a dealer registered under the Delhi Sales Tax Act, 1975 (43 of 1975) in respect of the purchases of the said goods:

PROVIDED FURTHER that the dealer shall claim the entire amount of credit to which he is entitled in a single statement, which accompanies a return furnished under this Act.

(3) For the avoidance of doubt, no tax credit under sub-section (2) of this section can be claimed—

(a) for finished goods manufactured out of tax paid raw material or capital goods;

(b) for any goods that were taxable at last point under the Delhi Sales Tax Act, 1975 (43 of 1975) held at the time of the commencement of this Act;

(c) in a statement furnished more than four months after the commencement of this Act; or

(d) for opening stock which is held outside Delhi. 1[(4) Every dealer wishing to claim a tax credit in excess of one lakh rupees on

opening stock shall furnish with the statement a certificate signed by an accountant in the prescribed form certifying that the net credit claim made is true and correct.]

2[x x x]

15.Second-handgoods (Rules7B,9)

(1) This section applies where—(a) a registered dealer sells second-hand goods;(b) the registered dealer has purchased goods from a resident seller who was not

registered under this Act;3[(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;]

(d) the registered dealer will be liable to tax under section 3 of this Act on the sale of the goods or the goods into which they were incorporated, as the case may be; and

(e) the registered dealer has adequate proof of the amount paid for the goods. (2) In the circumstances mentioned in sub-section (1), the registered dealer will

be entitled to a tax credit for the purposes of section 9 of this Act of the least of—(a) the input tax borne by the resident seller when he purchased the goods;(b) the tax fraction of the original cost of the goods to the resident seller;(c) the tax fraction of the fair market value of the goods at the time of their

purchase by the registered dealer; or(d) the tax fraction of the consideration paid by the registered dealer for the goods.4[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 (43 of 1975) or under this Act and the words “tax fraction” shall be construed accordingly.

Explanation II : This section shall apply only if the resident seller had purchased goods in Delhi.]

(3) Where the amount paid by the registered dealer for the goods exceeds two thousand rupees, the tax credit shall be allowed in the tax period when the goods are sold by the registered dealer or the goods into which they have been incorporated are sold by the registered dealer.1 Substituted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Sub-sections (5) and (6) omitted, vide ibid.3 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005) dt. 16-11-2005, w.r.e.f. 1-4-2005.4 Inserted, vide ibid.


16. Compositionschemeforspecifieddealers (Rule5)

(1) Notwithstanding anything contained 1[to the contrary] in this Act, every dealer whose—

(a) turnover in the year preceding the commencement of this Act; or (b) turnover in the current year,

2[x x x] does not exceed 3[fifty lakh] rupees or such other amount as may be specified by the Government by notification in the Official Gazette, shall have an option to pay tax under this section:

PROVIDED that this 4[sub-section] shall not apply to dealers procuring goods from any place outside Delhi or selling or supplying goods to any place outside Delhi at any time during the year in which he opts to pay tax under this 4[sub-section] or if he is registered 5[in Delhi] under the Central Sales Tax Act, 1956 (74 of 1956):

6[PROVIDED FURTHER that in case the Government has notified a composition scheme for a class of dealers under sub-section (12) of this section, such dealers shall not have an option to pay tax under this sub-section.]

(2) At the time of making application for registration under section 19 of this Act, the dealer covered under sub-section (1) shall be required to specify if he intends to pay tax under this section:

PROVIDED that once the dealer 7[elects] to pay tax under this section, the option may be reversed only after the end of the year for which the option is made, by application to the Commissioner within such time and in such manner as may be prescribed:

PROVIDED FURTHER that where a dealer 7[elects] to reverse his option to pay tax under this section, he shall be eligible to claim credit of the tax paid under this Act on the trading stock, raw material and packaging material held by him in Delhi on the date when such reversal takes effect subject to the conditions contained in section 20 of this Act insofar as they are applicable.

(3) In case a person who 8[elects] to pay tax under this section— (a) who is registered under the Delhi Sales Tax Act, 1975 (43 of 1975) or the

Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) 9[or the Delhi Sales Tax on Right to Use Goods Act, 2002 (13 of 2002),] at the time of the commencement of this Act; and

(b) whose turnover in the year preceding the commencement of this Act 10[xxx] does not exceed 3[fifty lakh] rupees or such other amount as may be specified by the Government by notification in the Official Gazette,

he shall be required to specify the 11[election] to pay tax under this section within such time and in such manner as may be prescribed.

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Words “exceeds the taxable quantum under this Act, but” omitted by DVAT (Second Amendment)

Act, 2005 (10 of 2005), w.e.f. 16-11-2005.3 Substituted for “twenty-five lakh” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.4 Substituted for “section” by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f.

1-4-2013.5 Inserted by DAVT (Second Amendment) Act, 2005 (10 of 1005), dt. 16-11-2005, w.r.e.f. 1-4-2005.6 Inserted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.7 Substituted for “chooses” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.8 Substituted for “intends”, vide ibid.9 Inserted, vide ibid.10 Words “exceeds the taxable quantum under this Act, but” omitted by DVAT (Second Amendment)

Act, 2005 (10 of 2005), w.e.f. 16-11-2005.11 Substituted for “intention” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.


(4) Where a dealer 1[elects] to pay tax under this section, the dealer’s net tax shall be the amount determined at the rate of one paisa in the rupee of the turnover of the dealer.

(5) A dealer who elects to pay tax under this section shall— 2[(a) not purchase goods from a person who is not registered under this Act: PROVIDED that this restriction shall not apply for the purchase of goods

from an unregistered dealer dealing exclusively in goods mentioned in the First Schedule;]

3[(b)] not compute his net tax under section 11 of this Act; 3[(c)] not be allowed to claim credit under section 9, section 14 and section 15 of

this Act; 3[(d)] not be entitled to issue tax invoice; 3[(e)] not be allowed to collect any amount by way of tax under this Act; and 3[(f)] continue to retain tax invoices and retail invoices for all of his purchases as

required under section 48 of this Act. (6) In case a person— (a) who is registered under the Delhi Sales Tax Act, 1975 or the Delhi Sales

Tax on Works Contract Act, 1999 4[or the Delhi Sales Tax on Right to Use Goods Act, 2002], at the time of the commencement of this Act;

(b) whose turnover in the year preceding the commencement of this Act 5[xxx] does not exceed 6[fifty lakh] rupees or such other amount as may be specified by the Government by notification in the Official Gazette; and

(c) who has opted to pay tax under this section in terms of sub-section (3) of this section,

he shall be required to pay tax on the trading stock, raw material, packaging material (in this sub-section referred to as “opening stock”) and finished goods held on the date of the commencement of this Act at the rates specified in section 4 of this Act on the fair market value of such opening stock and finished goods where such opening stock and finished goods have not borne tax under the Delhi Sales Tax Act, 1975 (43 of 1975).

(7) The tax due under sub-section (6) of this section shall be paid at any time before the person specifies his 7[election] to pay tax under this section.

(8) The proof of payment of tax referred to in sub-section (6) of this section along with a statement of opening stock and finished goods in such form as may be prescribed shall be furnished to the Commissioner at the time the person specifies his 8[election] to pay tax under this section.

(9) Subject to the other provisions of this section, where a registered dealer pays tax at the rates specified in section 4 of this Act, he may 8[elect] to pay tax under this section only from the beginning of the following year: 1 Substituted for “intends” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005. Prior to

substitution, read as under: “(a) not purchase goods from a person who is not registered under this Act;”

3 Existing clauses (a) to (e) re-lettered as (b) to (f), by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.

4 Inserted, vide ibid.5 Words “exceeds the taxable quautum under this Act, but” omitted by DVAT (Second Amendment)

Act, 2005 (10 of 2005), w.e.f. 16-11-2005.6 Substituted for “twenty-five lakh” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.7 Substituted for “chooses”, vide ibid.8 Substituted for “choose”, vide ibid.


PROVIDED that such registered dealer shall be required to pay tax at the rates specified in section 4 of this Act on the trading stock, raw material, packaging material and finished goods held by him on the first day of the said following year.

1[(10) If the turnover of a dealer who elects to pay tax under this section exceeds fifty lakh rupees or such other amount as may be specified by the Government by notification in the Official Gazette, he shall be liable to pay tax under section 3 of this Act on and from the day his taxable turnover exceeds fifty lakh rupees or such other amount as may be specified by the Government by notification in the Official Gazette and shall be entitled to claim credit of the input tax paid under this Act on trading stock, raw material and packaging material held by him in Delhi on such day:

PROVIDED that such dealer has intimated the Commissioner within seven days of his becoming liable to pay tax under section 3 of this Act in the prescribed form and has furnished such other information to the Commissioner as may be prescribed.

(11) The Commissioner may notify a dealer or a class of dealers who shall not be entitled to opt for payment of tax under this section.]

2[(12) Notwithstanding anything to the contrary contained in this Act, the Government may—

(a) by notification in the Official Gazette, notify schemes of composition; subject to such conditions and restrictions as may be specified therein, of tax payable by a class of dealers or classes of dealers and different types of schemes may be notified for different classes of dealers;

(b) specify, in any schemes of composition of tax payable by the class of dealers or classes of dealers, different rates of taxes for different class or classes of dealers but, in such scheme, the net tax liability of the dealer opting to pay tax thereunder shall not exceed eight paise in the rupee of the turnover of the dealer.]

1[16A.Specialprovisionsrelatingtocasualtraders (Rule5A)

(1) Notwithstanding anything contained to the contrary in this Act, a casual trader shall—

(a) at least three days before commencing business in Delhi, inform the Commissioner of such particulars of his business in such form and manner as may be prescribed;

(b) deposit security in cash or in the form of bank draft as may be fixed by the Commissioner which shall not exceed estimated liability to pay tax for seven days or such lesser period for which the casual trader is conducting the business in Delhi;

(c) pay tax daily on the sales made during the previous day; (d) furnish to the Commissioner, immediately after conclusion of his business in

Delhi, a return in the prescribed form and manner; and (e) not issue any tax invoice. (2) The Commissioner shall, after verification of information furnished to him

under clause (a) of sub-section (1) and after getting security under clause (b) of that sub-section, shall register the casual trader.

(3) Upon registration of casual trader, the Commissioner may issue the required forms to him for use as the declaration referred to in sub-section (2A) of section 61 of this Act for bringing goods for sale in Delhi and for taking the unsold goods out of Delhi and the casual trader shall render complete account of the used forms and surrender the unused forms alongwith the return referred to in clause (d) of sub-section (1).

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.


(4) The Commissioner shall, after examination of the return furnished by the casual trader under clause (d) of sub-section (1), the forms referred to in sub-section (3) and the accounts maintained by him including the retail invoices issued, assess him to tax within five days and shall serve upon him a notice of assessment and after adjusting any tax and any other dues payable under this Act, refund the balance amount of security to him in case security is deposited in the form of cash deposit.

(5) The casual trader shall pay immediately the amount mentioned in the notice of assessment.

(6) On being satisfied that the amount due has been paid, the Commissioner shall release the security or balance security, as the case may be.

(7) Notwithstanding anything contained in this Act the taxable quantum in respect of a casual trader shall be nil.]

17.TransactionsbetweenrelatedpartiesIf—

(a) a registered dealer sells or gives goods to a related person;(b) the terms or conditions of the transaction have been influenced by the

relationship; and (c) the related person had purchased the goods, the related person would not be

entitled to a tax credit for the purchase, or the amount of the tax credit would be reduced under sub-section (3) of section 9 of this Act,

the transaction shall be deemed to be a sale made by the registered dealer and the sale price of the goods shall be deemed to be their fair market value.

CHAPTER IV REGISTRATION AND SECURITY

18. Mandatoryandvoluntaryregistration

(1) Every dealer is required to apply for registration under this Act if— (a) the dealer’s turnover in the year preceding the commencement of this Act

exceeded the taxable quantum; or (b) the dealer’s turnover in the current year exceeds the taxable quantum;

or (c) the dealer is liable to pay tax, or is registered or required to be registered

under Central Sales Tax Act, 1956 (74 of 1956): PROVIDED that a dealer dealing exclusively in goods mentioned in the First

Schedule shall not be required to register. Explanation : For the purposes of this section, in case of dealers involved in

execution of works contracts, the taxable quantum shall be calculated with reference to the total contract amount received.

(2) For the purposes of this Act, “taxable quantum” of a dealer shall be 1[twenty lakhs] rupees, or such other amount as may be specified by the Government by notification in the Official Gazette: PROVIDED that a dealer who imports for sale any goods into Delhi, the taxable quantum shall be “Nil” or such other amount as may be specified by the Government by notification in the Official Gazette.

(3) The taxable quantum of a dealer shall not include turnover from— (a) sales 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. 1 Substituted for “ten lakhs” by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f.

1-4-2013.


(4) Any person who is not required by sub-section (1) to be registered but who—(a) is a dealer; or (b) intends from a particular date to undertake activities which would make

him a dealer, may apply for registration.

19. Registration (Rules11,12,13,14,19,20,21,22(1))

(1) An application for registration shall be made in the prescribed form, with1in9 such time, containing such particulars and information and accompanied by such fee, security and other documents as may be prescribed.

Explanation : The Commissioner may, by order to be published in the Official Gazette, specify certain classes of persons who may not be required to furnish a security.

(2) Where—

(a) an applicant furnishes a security in the prescribed form and for the prescribed amount; and

(b) all other forms and evidence required by and prescribed under this Act are complete and in order, the Commissioner shall register the applicant.

(3) Where the Commissioner has not registered the person within fifteen days from the date on which the application is made, the Commissioner shall, after conducting such inquiries as he deems fit, either—

(a) register the person forthwith as a registered dealer; or

(b) issue a notice to the applicant, clearly stating the grounds on which his application is proposed to be rejected and permitting him to show cause in writing, within fifteen further days, why his application should not be rejected:

PROVIDED that where the Commissioner has not registered the person or issued a notice by the required date, the applicant shall be deemed to be registered for the purposes of this Act, and the Commissioner shall issue a certificate of registration to such person.

(4) Where, pursuant to clause (b) of sub-section (3), the applicant furnishes a reply to the notice, the Commissioner may, either accept the application and register the person, or reject the application for reasons to be recorded in writing.

(5) If the applicant fails to respond to the notice issued under clause (b) of sub-section (3) of this section within the stipulated time, the application for registration shall stand rejected.

(6) Where a registered dealer has furnished a security as a condition of registration, such security shall be required for the continuance in effect of registration, unless otherwise provided by the Commissioner.

Explanation : The decision of the Commissioner not to register a person may be the subject of an objection under section 74 of this Act.

20. Effectofregistration (Rule10)

(1) If at the time at which an unregistered dealer’s registration takes effect after the commencement of this Act and—


(a) the dealer holds trading stock for the purpose of sale, or for use as raw materials for the production of 1[finished goods];

(b) the dealer has borne input tax on the purchase of the trading stock or raw materials;

(c) the dealer furnishes a statement of its trading stock and raw materials in the prescribed form to the Commissioner; and

(d) the dealer holds adequate proof of the amount of input tax in respect of the purchases,

the dealer shall be entitled to a tax credit for the trading stock or raw materials held by the dealer on the date that the dealer’s registration takes effect:

PROVIDED that the dealer must claim the entire amount of tax credit to which he is entitled in a single claim, which accompanies the first return furnished by the dealer under this Act.

Explanation I : This section applies where goods have borne tax imposed after the commencement of this Act.

Explanation II : Section 14 deals with goods which have borne sales tax prior to the commencement of this Act.

(2) For the purposes of sub-section (3) of section 9, the amount of the tax credit shall be the least of—

(a) the amount of input tax disclosed in the proof referred to in clause (d) of sub-section (2) of this section;

(b) the tax fraction of the cost of the goods; (c) the tax fraction of the fair market value of the goods at the time of

registration; or (d) such amount as may be prescribed.

(3) Where the registered dealer accounts for turnover on the basis of amounts received and amounts paid, he shall exclude from his turnover—

(a) any amount received after he is registered in respect of sales made while he was unregistered; and

(b) any amount paid after he is registered in respect of purchases made while he was unregistered.

21.Amendmentofregistration (Rule15)

(1) A registered dealer shall inform the Commissioner in the prescribed manner within one month, if he—

(a) sells or otherwise disposes of his business or any part of his business or any place of business, or effects or comes to know of any other change in the ownership of the business; or

(b) discontinues his business or changes his place of business or warehouse, or opens a new place of business, or closes the business for a period of more than one month; or

(c) changes the name, style, constitution or nature of his business; or (d) enters into partnership or other association in regard to his business or

adds, deletes or changes the particulars of the persons having interest in

1 Substituted for “trading stock” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.


business, and if any such registered dealer dies, his legal representative shall, in like manner, inform the said authority.

(2) The Commissioner may, after considering any information furnished under this Act or otherwise received and after making such inquiry as he may deem fit, amend from time to time any registration.

(3) An amendment of the registration made under sub-section (2) shall take effect from the date of contingency which necessitates the amendment whether or not information in that behalf is furnished within the time prescribed under sub-section (1) of this section.

(4) Any amendment of a registration under this section shall be without prejudice to any liability for tax or penalty imposable or for any prosecution for an offence under this Act.

(5) For the removal of doubts, it is hereby declared, that where a registered dealer—

(a) effects a change to the nature of the goods ordinarily sold; (b) is a firm and there is a change in the constitution of the firm without

dissolution thereof; or (c) is a trustee of a trust and there is a change in the trustees thereof; or (d) is a Hindu undivided family and the business of such family is converted

into a partnership business with all or any of the members of the family as partners thereof; or

(e) is a firm or a company or a trust or other organisation, and a change occurs in the management of the organisation,

then, merely by reason of the circumstances aforesaid, it shall not be necessary for the registered dealer to apply for a fresh certificate of registration and on information being furnished the registration shall be amended.

22.Cancellationofregistration (Rules16&17)

(1) Where— (a) a registered dealer who is required to furnish security under the provisions

of this Act has failed to furnish or maintain such security; (b) a registered dealer has ceased to carry on any activity which would entitle

him to be registered as a dealer under this Act; (c) an incorporated body is closed down or otherwise ceases to exist; (d) the owner of a proprietorship business dies leaving no successor to carry

on the business; (e) in the case of a firm or association of persons, it is dissolved; (f) registered dealer has ceased to be liable to pay tax under this Act; (g) a registered dealer knowingly furnishes a return which is misleading or

deceptive in a material particular; (h) a registered dealer has committed one or more offences or contravened

the provisions of this Act and the offence or contravention is, in the opinion of the Commissioner, of such magnitude that it is necessary to do so; or

(i) the Commissioner, after conducting proper inquiries, is of the view that it is necessary to do so, the Commissioner may, after service of a notice


in the prescribed form and after providing the dealer an opportunity of being heard, cancel the registration of the dealer with effect from the date specified by him in the notice.

(2) Where— (a) a registered dealer has ceased to carry on any activity which would entitle

him to be registered as a dealer under this Act; (b) an incorporated body is closed down or otherwise ceases to exist; (c) the owner of a proprietorship business dies leaving no successor to carry

on business; (d) in the case of a firm or association of persons, it is dissolved; or (e) a registered dealer has ceased to be liable to pay tax under this Act,

the registered dealer or the dealer’s legal representative in case of clause (c) above, shall apply for cancellation of his registration to the Commissioner in the manner and within the time prescribed.

Explanation : For the purpose of this sub-section, “legal representative” has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908).

(3) On receipt of such application, if the Commissioner is satisfied that the dealer has ceased to be entitled to be registered, he may cancel the registration.

(4) If a registered dealer ceases to be registered, the Commissioner shall cancel the dealer’s registration with effect from a specified date.

(5) If a dealer’s registration which has been cancelled under this section is reinstated as a result of an appeal or other proceeding under this Act, the registration of the dealer shall be restored and he shall be liable to pay tax as if his registration had never been cancelled.

(6) If any registered dealer whose registration has been restored under sub-section (5) of this Act satisfies the Commissioner that excess tax has been paid by him during the period his registration was inoperative which but for the cancellation of his registration he would not have paid, then the amount of such tax shall be adjusted or refunded in such manner as may be prescribed.

(7) Every registered dealer who applies for cancellation of his registration shall surrender with his application the certificate of registration granted to him and every registered dealer whose registration is cancelled otherwise than on the basis of his application shall surrender the certificate of registration within seven days of the date of communication to him of the cancellation.

1[(8) The Commissioner shall, at intervals not exceeding three months, host on the departmental website, such particulars as may be prescribed, of registered dealers whose registration has been cancelled.]

(9) The cancellation of registration shall not affect the liability of any person to pay tax due for any period and unpaid as on the date of such cancellation or which is assessed thereafter notwithstanding that he is not otherwise liable to pay tax under this Act.

23. Effectofde-registration

(1) Every person whose registration is cancelled shall pay in respect of all goods held on the date of cancellation an amount equal to the higher of—

1 Substituted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013. Prior to substitution, it read as under:

“(8) The Commissioner shall, at intervals not exceeding three months, publish in the Official Gazette such particulars as may be prescribed, of registered dealers whose registration has been cancelled.”


(a) the tax that would be payable in respect of those goods if the goods were sold at their fair market value on that date; or

(b) the tax credit previously claimed in respect of those goods. (2) Where the dealer has accounted for turnover on the basis of amounts received

and amounts paid, he shall include in the turnover of his final return— (a) any amount not yet received in respect of sales made while he was

registered; and (b) any amount not yet paid in respect of purchases made while he was

registered.

24. Registrationduringtransition (Rule14)1[(1) Every dealer who is registered under the Delhi Sales Tax Act, 1975 (43 of

1975) or the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) or the Delhi Sales Tax on Right to Use Goods Act, 2002 (13 of 2002), at the time of commencement of this Act shall be deemed to be registered under this Act with effect from the first day of April, 2005.]

(2) The security furnished by a dealer registered under the Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) 2[or the Delhi Sales Tax on Right to Use Goods Act, 2002 (13 of 2002)] under the said Acts and valid on the date of the commencement of this Act, shall be deemed to have been furnished under this Act and shall be deemed to be valid under this Act for a period of six months from the commencement of this Act or till the time a fresh security as required under sub-section (3) of this section is furnished, whichever is later.

(3) Within a period of six months of the commencement of this Act, every dealer covered under sub-section (1) of this section shall be required to furnish a fresh security under this Act:

PROVIDED that the Commissioner may, by notification, exempt a class or classes of dealers from the requirement of furnishing a fresh security under this sub-section.

25. Securityfromcertainclassesofdealersandotherpersons(Rules22,23,24&25)

3[(1) The Commissioner may, if it appears to him to be necessary so to do, for the continuance of the certificate of registration, or for the proper realisation of tax, composition money or other dues payable under this Act or as a condition of registering a person as a dealer or as a condition of making a refund under section 38 of this Act, 4[or as a condition of de-sealing or release under sub-section (4) of section 60] require a person or prescribed class of persons to furnish security for the proper performance of their responsibilities under this Act or under the Central Sales Tax Act, 1956 (74 of 1956) in the prescribed amount, in the prescribed manner and within such time as may be prescribed.]

(2) Notwithstanding sub-section (1), the Commissioner may increase, vary, reduce or waive the prescribed amount of the security, having regard to—

(a) the nature and size of the business activities of the person; (b) the amount of any tax, interest or penalty for which the person may be or

is likely to become liable at any time under this Act; (c) the creditworthiness of the person; (d) the nature of the security; and (e) any other matter which the Commissioner considers relevant.

1 Substituted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Inserted, vide ibid.3 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.4 Inserted by DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.09.2013.


(3) Where the security or additional security furnished by a person is in the form of a surety bond and the surety dies or becomes insolvent, the person shall within one month of the occurrence of such event, inform the Commissioner and shall within three months of such occurrence, execute a fresh surety bond.

(4) Where the surety bond has been executed by another registered dealer and the dealer’s registration is either cancelled or he has closed down his business, the person shall furnish a fresh security as may be prescribed and in the manner as stated in sub-section (3) of this section.

(5) The Commissioner may, for good and sufficient cause, order the forfeiture of the whole or any part of the security furnished by a person.

(6) Where the security furnished by any person is forfeited in whole or is rendered insufficient, he shall furnish a fresh security of the requisite amount or, as the case may be, shall make up the deficiency in such manner and within such period as may be specified.

CHAPTER V RETURNS

1[26. Periodicalpaymentoftaxandfurnishingofreturns (Rules26,27&28)

(1) Every registered dealer 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[and manner.]

3[(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 under such scheme shall be deemed to be a return furnished under sub-section (1), and the provisions of this Act shall apply accordingly.]]

27. Powertorequireotherreturns (Rule67)

In addition to the returns specified in section 26 of this Act, the Commissioner may require any person, whether a registered dealer or not, to furnish (whether on that person’s own behalf or as an agent or trustee) him with such other returns in the prescribed form as and when the Commissioner requires. 4[28. Correctionsofdeficiencies (Rule29)

If a person discovers a discrepancy in a return furnished by him for a tax period under this Act, he shall remove such discrepancy and furnish a revised return within the year following the year of such tax period:

1 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.2 Inserted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.3 Sub-sections (2) and (3) omitted, vide ibid.4 Substituted by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.


PROVIDED that if, as a result of the discrepancy, the person has paid less tax than was due under this Act, he shall, pay the tax owed and interest thereon:

PROVIDED FURTHER that for the years 2008-09, 2009-10 and 2010-11, except for those returns pertaining to any tax period of 2010-11, which were scheduled to be furnished in the year 2011-12, the revised return shall be required to be furnished by 31st December, 2012.]

29. Signingreturns

(1) Every return under this Chapter shall be signed and verified—

(a) in the case of an individual, by the individual himself, and where the individual is absent from India, either by the individual or by some person duly authorised by him in this behalf and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;

(b) in the case of a Hindu Undivided Family, by a Karta and where the Karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family;

(c) in the case of a company or local authority, by the principal officer thereof;

(d) in the case of a firm, by any partner thereof, not being a minor;

(e) in the case of any other association, by any member of the association or persons;

(f) in the case of a trust, by the trustee or any trustee; and

(g) in the case of any other person, by some person competent to act on his behalf.

Explanation I : For the purposes of this section, the expression “principal officer” shall have the meaning assigned to it under sub-section (35) of section 2 of the Income Tax Act, 1961 (43 of 1961).

Explanation II : For the purposes of this Act, any return signed by a person who is not authorised under this section shall be treated as if no return has been furnished.

1[Explanation III : For the purposes of this Act, any return having digital signature as defined under clause (b) of sub-section (1) of section 2 of the Information Technology Act, 2000 (No. 21 of 2000) shall be treated as if the return has been signed as required under this Act.]

CHAPTER VI ASSESSMENT AND PAYMENT OF TAX,

INTEREST AND PENALTIES AND MAKING REFUNDS

30. Assessmentoftax,interestorpenalty

No claim may be made by the Commissioner for the payment by a person of an amount of tax, interest or penalty or other amount in the nature of tax, interest or penalty due under this Act except by the making of an assessment for the amount.

1 Inserted by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.


31.Selfassessment

(1) Where a return is furnished by a person as required under section 26 or section 27 of this Act which contains the prescribed information and complies with the requirements of this Act and the rules—

(a) the Commissioner is taken to have made, on the day on which the return is furnished, an assessment of the tax payable of the amount specified in the return;

(b) the return is deemed to be a notice of the assessment and to be under the hand of the Commissioner; and

(c) the notice referred to in clause (b) is deemed to have been served on the person on the day on which the Commissioner is deemed to have made the assessment.

(2) No assessment shall arise under sub-section (1) of this section, if the Commissioner has already made an assessment of tax in respect of the same tax period under another section of this Act.

32. Defaultassessmentoftaxpayable (Rule36)

(1) If any person— (a) has not furnished returns required under this Act by the prescribed date;

or(b) has furnished incomplete or incorrect returns; or (c) has furnished a return which does not comply with the requirements of

this Act; or (d) for any other reason the Commissioner is not satisfied with the return

furnished by a person, the Commissioner may for reasons to be recorded in writing assess or re-assess to the best of his judgment the amount of net tax due for a tax period 1[or more than one tax period by a single order so long as all such tax periods are comprised in one year].

2[(1A) If, upon the information which has come into his possession, the Commissioner is satisfied that any person who has been liable to pay tax under this Act in respect of any period or periods, has failed to get himself registered, the Commissioner may for reasons to be recorded in writing, assess to the best of his judgment the amount of net tax due for such tax period or tax periods and all subsequent tax periods.]

(2) Where the Commissioner has made an assessment under this section, the Commissioner shall forthwith serve on that person a notice of assessment of the amount of any additional tax due for that tax period.

(3) Where the Commissioner has made an assessment under this section and further tax is assessed as owed, the amount of further tax assessed is due and payable on the same date as the date on which the net tax for the tax period was due.

Explanation : A person may, if he disagrees with the notice of assessment, file an objection under section 74 of this Act.

33. Assessmentofpenalty (Rule36)

(1) Where the Commissioner has reason to believe that a liability to pay a penalty under this Act has arisen, the Commissioner, after recording the reason in writing, shall make and serve on the person a notice of assessment of the penalty that is due under this Act.

(2) The amount of any penalty assessed under this section is due and payable on the date on which the notice of assessment is served by the Commissioner.

1 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.2 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.


(3) Any assessment made under this section shall be without prejudice to prosecution for any offence under this Act.

Explanation : A person may, if he disagrees with the notice of assessment, file an objection under section 74 of this Act.

34.Limitationonassessmentandre-assessment

(1) No assessment or re-assessment under section 32 of this Act shall be made by the Commissioner after the expiry of four years from—

1[(a) the end of the year comprising of one or more tax periods for which the person furnished a return under section 26 or 28 of this Act; or]

(b) the date on which the Commissioner made an assessment of tax for the tax period,

whichever is the earlier: PROVIDED that where the Commissioner has reason to believe that tax was not

paid by reason of concealment, omission or failure to disclose fully material particulars on the part of the person, the said period shall stand extended to six years.

(2) Notwithstanding sub-section (1), the Commissioner may make an assessment of tax within one year after the date of any decision of the Appellate Tribunal or court where the assessment is required to be made in consequence of, or to give effect to, the decision of the Appellate Tribunal or court which requires the re-assessment of the person.

35. Collectionofassessedtaxandpenalties

(1) Subject to sub-sections (2) and (4) of this section, where an amount of tax or penalty has been assessed under section 32 or 33 of this Act, the Commissioner may not proceed to enforce payment of the amount assessed until two months after the date of service of the notice of assessment.

2[(2) Where a person has made an objection to an assessment or part of an assessment and has complied with the condition, if any, to entertain such objection in the manner provided in section 74 of this Act, the Commissioner may not enforce the payment of balance amount in dispute under that assessment until the objection is resolved by the Commissioner.]

(3) Nothing in this section shall stay any proceedings by the Commissioner or before a court for the recovery of—

(a) any amounts due under this Act that are not the subject of a dispute before the Commissioner; or

(b) any amounts due under this Act where the person has made an appeal to the Appellate Tribunal.

(4) Notwithstanding sub-section (1), where an amount of tax or penalty has been assessed by the Commissioner and he is satisfied that there is a likelihood that it may not be possible to recover the amount assessed if collection is delayed, the Commissioner may specify a date in the notice of assessment as the date on which collection of the amounts due and payable may commence which is earlier than two months after the date of service of the notice of assessment.

1 Substituted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013. Prior to substitution, clause (a) read as under:

“(a) the date on which the person furnished a return under section 26 or sub-section (1) of section 28 of this Act; or”

2 Substituted by the Delhi VAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12-09-2013. Prior to substitution, sub-section (2) read as under:

(2) Where a person has made an objection to an assessment or part of an assessment in the manner provided in section 74 of this Act, the Commissioner may not enforce the payment of any amount in dispute under that assessment until the objection is resolved by the Commissioner.


36. Manner of payment of tax,penaltiesandinterest(Rules 31, 32, 33 & 33A)

Every person liable to pay tax, interest, penalty or any other amount under this Act shall pay the amount to the Government Treasury of Delhi, the Reserve Bank of India or a branch in Delhi of a bank prescribed under the rules, or at such other place or in such other manner as may be prescribed. 1[36A.Taxdeductedatsource (Rule59)

2[(1) Any person, not being an individual or a Hindu undivided family, wh3o6 Ais responsible for making payment to any dealer (hereinafter in this section referred to as “the contractor”) for discharge of any liability on account of valuable consideration payable for the transfer of property in goods (whether as goods or in some other form) in pursuance of a works contract, for value exceeding twenty thousand rupees or such amount as may, by order in writing published in Official Gazette, be notified by the Commissioner from time to time, shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by any other mode, whichever is earlier, deduct tax thereon at the rate of 3[four] per cent:

4[PROVIDED that the rate of deduction of tax (TDS) shall be 4% in the case of contractors not registered under this Act:]

5[PROVIDED that the rate of deduction of tax (TDS) shall be 6% in case of contractors not registered under this Act.]

(1A) Any contractor responsible for making any payment or discharge of any liability to any sub-contractor, in pursuance of a contract with the sub-contractor for value exceeding twenty thousand rupees or such amount as may, by order in writing and published in the Official Gazette, be notified by the Commissioner from time to time, for the transfer of property in goods (whether as goods or in some other form) involved in the execution, whether wholly or in part, of the works contract undertaken by the contractor, shall, at the time of such payment or discharge, in cash or by cheque or draft or any other mode, deduct an amount equal to 3[four] per cent of such payment or discharge, purporting to be part of full amount of the tax payable under this Act:]

4[PROVIDED that the rate of deduction of tax (TDS) shall be 4% in case of sub-contractors not registered under this Act:]

5[PROVIDED that the rate of deduction of tax (TDS) shall be 6% in case of sub-contractors not registered under this Act.]

(2) Where, on an application being made by the contractor in this behalf, the Commissioner is satisfied that any works contract involves both transfer of property in goods and labour and service, or involves only labour and service and accordingly, justifies deduction of tax on a part of the sum in respect of the works contract or, as the case may be, justifies no deduction of tax, he shall, after giving the contractor a reasonable opportunity of being heard, grant him such certificate and for such period as may be appropriate:

PROVIDED that nothing in the said certificate shall affect liability of the contractor to pay tax under this Act.

(3) Where any such certificate is granted, the person responsible for making payment under sub-section (1) shall, until such certificate is cancelled by the Commissioner, deduct tax at the rate specified in such certificate or deduct no tax, as the case may be.

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.3 Substituted for the word “two” by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.4 Proviso omitted, vide ibid.5 Inserted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.


(4) The amount deducted under this section shall be deposited into the appropriate Government treasury by the person making such deduction 1[before the expiry of fifteen days] following the month in which such deduction is made in the manner as may be prescribed.

(5) The person making such deduction under this section shall, at the time of payment or discharge, furnish to the contractor from whose bills or invoices such deduction is made, a certificate as may be prescribed in respect of the amount deducted, the rate at which it has been deducted and the details of deposit into the Government treasury.

2[(5A) If any person 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.]

(6) Any deduction made in accordance with the provisions of this section and credited into the appropriate Government treasury shall be treated as payment of tax on behalf of the person from whose bills or invoices the deduction has been made, and he shall claim the adjustment towards the payment of output tax of the amount so deducted in his return for the tax period in which certificate of such deduction was issued to him.

(7) A dealer claiming adjustment in his tax return of the amount deducted under this section shall preserve the certificate issued to him for a period of seven years and shall produce the same to the Commissioner on demand.

(8) If any person as is referred to in this section fails to make the deduction or, after deducting fails to deposit the amount so deducted as required in this section, the Commissioner may, by order in writing, direct that such person shall pay, by way of penalty, a sum not exceeding twice the amount deductible under this section besides tax deductible but not so deducted and, if deducted, not so deposited into the appropriate Government treasury.

(9) Without prejudice to the provisions of sub-section (8), if any person fails to make deduction, or, after deducting, fails to deposit the amount so deducted, he shall be liable to pay simple interest at the annual rate to be notified by the Government on the amount deductible under this section but not so deducted, and if deducted, not so deposited from the date on which such amount was deductible to the date on which such amount is actually deposited into the appropriate Government treasury.

(10) Where the amount has not been deposited after deduction such amount together with interest and penalty referred to in sub-section (8) and sub-section (9) shall be a charge upon all the assets of the person concerned and recoverable as arrears of land revenue.

(11) Every person responsible for making deduction of tax under this section shall apply to the Commissioner for a Tax Deduction Account Number within the prescribed time and in the prescribed form and shall also furnish a return in the prescribed form within the prescribed period 3[and in the manner as may be notified by the Commissioner]:

1 Substituted for “before the expiry of twenty-eight days” by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.

2 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.3 Inserted by DVAT (Second Amendment) Act, 2012 (6 of 2012) dt. 15-6-2012, w.e.f. 18-6-2012.


PROVIDED that, unless intimated otherwise by the Commissioner, every person having obtained Tax Deduction Account Number under Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) shall be deemed to have obtained a Tax Deduction Account Number under this Act and shall use the same Tax Deduction Account Number under this Act.

(12) Any person who fails to comply with the requirement under sub-section (11) shall be liable to pay, by way of penalty, a sum of two hundred rupees per day from the day on which requirement arose until the failure is rectified:

PROVIDED that the amount of penalty payable under this sub-section shall not exceed twenty thousand rupees.

Explanation : Nothing contained in this section shall apply to works contract executed in the course of inter-State trade or commerce or outside the State, or in the course of import or export out of India.]

37. Orderofapplicationofpayments

Where a person owes to the Commissioner tax, interest, or penalty and the person pays to the Commissioner or the Commissioner recovers some but not all of the amounts owed by the person, the amounts shall be treated as reducing the person’s obligations to pay—

(a) interest, penalty and tax owed under this Act; and (b) interest, penalty and tax owed under the Central Sales Tax Act, 1956 (74 of

1956), in the above order.

38.Refunds (Rules22(4)&34)

(1) Subject to the other provisions of this section and the rules, the Commissioner shall refund to a person the amount of tax, penalty and interest, if any, paid by such person in excess of the amount due from him.

(2) Before making any refund, the Commissioner shall first apply such excess towards the recovery of any other amount due under this Act, or under the Central Sales Tax Act, 1956 (74 of 1956).

(3) Subject to 1[sub-section (4) and sub-section (5)] of this section, any amount remaining after the application referred to in sub-section (2) of this section shall be at the election of the dealer, either—

2[(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) carried forward to the next tax period as a tax credit in that period.

(4) Where the Commissioner has issued a notice to the person under section 58 of this Act advising him that an audit, investigation or inquiry into his business affairs

1 Substituted for “sub-section (4)” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.


will be undertaken, 1[or sought additional information under section 59 of this Act,] the amount shall be carried forward to the next tax period as a tax credit in that period.

(5) The Commissioner may, as a condition of the payment of a refund, demand security from the person pursuant to the powers conferred in section 25 of this Act, 1[within 15 days from the date on which the return was furnished or claim for the refund was made].

1[(6) The Commissioner shall grant refund within 15 days from the date the dealer furnishes the security to his satisfaction under sub-section (5).

2[(7) For calculating the period prescribed in clause (a) of sub-section (3), the time taken to—

(a) furnish the security under sub-section (5) to the satisfaction of the Commissioner; or

(b) furnish the additional information sought under section 59; or 3[(c) furnish returns under section 26 and section 27; or (d) furnish the declaration or certificate forms as required under Central

Sales Tax Act, 1956,] shall be excluded.]] 4[(8)] Notwithstanding anything contained in this section, where—

(a) a registered dealer has sold goods to an unregistered person; and (b) the price charged for the goods includes an amount of tax payable under

this Act; (c) the dealer is seeking the refund of this amount or to apply this amount

under clause (b) of sub-section (3) of this section; no amount shall be refunded to the dealer or may be applied by the dealer under clause (b) of sub-section (3) of this section unless the Commissioner is satisfied that the dealer has refunded the amount to the purchaser.

4[(9)] Where— (a) a registered dealer has sold goods to another registered dealer; and (b) the price charged for the goods expressly includes an amount of tax

payable under this Act, the amount may be refunded to the seller or may be applied by the seller under clause (b) of sub-section (3) of this section and the Commissioner may reassess the buyer to deny the amount of the corresponding tax credit claimed by such buyer, whether or not the seller refunds the amount to the buyer.

4[(10)] Where a registered dealer sells goods and the price charged for the goods is expressed not to include an amount of tax payable under this Act the amount may be refunded to the seller or may be applied by the seller under clause (b) of sub-section (3) of this section without the seller being required to refund an amount to the purchaser.

1[(11) Notwithstanding anything contained to the contrary in sub-section (3) of this section, no refund shall be allowed to a dealer who has not filed any return due under this Act.]

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.3 Substituted for existing clause (c) by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.4 Existing sub-section (6) to (8) renumbered as (8) to (10) by DVAT (Amendment) Act, 2005 (5 of

2005), w.e.f. 1-4-2005.


39. Powertowithholdrefundincertaincases (Rule34(5A))

(1) Where a person is entitled to a refund and any proceeding under this A3ct9, including an audit under section 58 of this Act, is pending against him, and the Commissioner is of the opinion that payment of such refund is likely to adversely affect the revenue and that it may not be possible to recover the amount later, the Commissioner may for reasons to be recorded in writing, either obtain a security equal to the amount to be refunded to the person or withhold the refund till such time the proceeding or the audit has been concluded.

(2) Where a refund is withheld under sub-section (1) of this section, the person shall be entitled to interest as provided under sub-section (1) of section 42 of this Act if as a result of the appeal or further proceeding, or any other proceeding he becomes entitled to the refund.

40.Collectionoftaxonlybyregistereddealers

(1) No person who is not a registered dealer shall collect in respect of any sale of goods by him in Delhi any amount by way of tax under this Act and no registered dealer shall make any such collection except in accordance with this Act and the rules made thereunder and at the rates specified under this Act.

(2) Tax collected by a person who is not a registered dealer shall not be refunded and shall stand forfeited.

1[40A.AgreementtodefeattheintentionandapplicationofthisActtobevoid

(1) If the Commissioner is satisfied that an arrangement has been entered into between two or more persons or dealers to defeat the application or purposes of this Act or any provision of this Act, then, the Commissioner may, by order, declare the arrangement to be null and void as regard the application and purposes of this Act and may, by the said order, provide for the increase or decrease in the amount of tax payable by any person or dealer who is affected by the arrangement, whether or not, such dealer or person is a party to the arrangement, in such manner as the Commissioner considers appropriate so as to counteract any tax advantage obtained by that dealer from or under the arrangement.

(2) For the purposes of this section—

(a) “arrangement” includes any contract, agreement, plan or understanding, whether enforceable in law or not and all steps and transactions by which the arrangement is sought to be carried into effect;

(b) “tax advantage” includes:

(i) any reduction in the liability of any dealer to pay tax,

(ii) any increase in the entitlement of any dealer to claim input tax credit or refund,

(iii) any reduction in the sale price or purchase price receivable or payable by any dealer.]

1 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.


41. Refundoftaxforembassies,officials,internationalandpublicorganizations(Rule35)

(1) The bodies listed in the Sixth Schedule shall be entitled to claim a refund of tax paid on goods purchased in Delhi, subject to such restrictions and conditions as may be prescribed.

(2) Any person entitled to a refund under sub-section (1) may apply to the Commissioner in the manner and within the time prescribed.

42.Interest (Rule34(6)&36)

(1) A person entitled to a refund under this Act, shall be entitled to receive, in addition to the refund, simple interest at the annual rate notified by the Government from time to time, computed on a daily basis from the later of—

(a) the date that the refund was due to be paid to the person; or (b) the date that the overpaid amount was paid by the person, until the date

on which the refund is given: PROVIDED that the interest shall be calculated on the amount of refund due after

deducting therefrom any tax, interest, penalty or any other dues under this Act, or under the Central Sales Tax Act, 1956 (74 of 1956):

PROVIDED FURTHER that if the amount of such refund is enhanced or reduced, as the case may be, such interest shall be enhanced or reduced accordingly

Explanation : If the delay in granting the refund is attributable to the said person, whether wholly or in part, the period for the delay attributable to him shall be excluded from the period for which the interest is payable.

(2) When a person is in default in making the payment of any tax, penalty or other amount due under this Act, he shall, in addition to the amount assessed, be liable to pay simple interest on such amount at the annual rate notified by the Government from time to time, computed on a daily basis, from the date of such default for so long as he continues to make default in the payment of the said amount.

(3) Where the amount of tax including any penalty due is wholly reduced, the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated accordingly.

(4) Where the collection of any amount is stayed by the order of the Appellate Tribunal or any court or any other authority and the order is subsequently vacated, interest shall be payable for any period during which such order remained in operation. (5) The interest payable by a person under this Act may be collected as tax due under this Act and shall be due and payable once the obligation to pay interest has arisen.

CHAPTER VII RECOVERY OF TAX, INTEREST AND PENALTIES

43.Recoveryoftax (Rule37)

(1) The amount of any tax, interest, penalty or other amount due under this Act shall be paid in the manner specified in section 36 of this Act and a notice of assessment served on the person for such an amount shall constitute a demand for payment of the amount stated in the assessment by the time stipulated in the notice of assessment.

(2) On an application made before the expiry of the due date under section 35 of this Act, the Commissioner may, in respect of any dealer or person and for reasons to be recorded in writing, extend the time for payment or allow payment by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case.


1[(3) Any amount of tax, interest or penalty, composition money or other amount due under this Act which remains unpaid, shall be recoverable:

(a) as arrears of land revenue, or (b) by the Commissioner in accordance with the provisions of sub-section (6)

of this section and the rules regulating the procedure of recovery of tax, interest or penalty, composition money or other amount due as may be prescribed.]

(4) Where security, other than in the form of surety bond, has been furnished under the Act, the Commissioner may, for reasons to be recorded in writing, recover any amount of tax, interest, penalty, composition money or other amount due or part thereof by ordering the forfeiture of the whole or any part of the security.

(5) Where any security tendered for the purposes of this Act is to be sold, it shall be sold in the manner stipulated in section 63 of this Act.

2[(6) Where any amount of tax, interest or penalty, composition money or other amount due under this Act 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 serve upon the defaulter the recovery certificate under

sub-section (6), notwithstanding that proceedings for recovery of such tax, interest or penalty, composition money or other amount due have been initiated or continuing by any other mode.

(8) on the service of the certificate under sub-section (6) upon a certificate-debtor:

(a) any private transfer or delivery of any of his immovable property or of any interest in any such property, shall be void against any claim enforceable in the execution of the certificate; and

(b) the amount due from time to time in respect of the certificate shall be a charge upon the immovable property of the certificate debtor, to which every other charge created subsequently to the service of the said certificate shall be postponed.

(9) The certificate-debtor may within thirty days from the service of the certificate, present to the Commissioner a petition denying his liability in whole or in part.

1 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.2 Inserted, vide ibid.


(10) The Commissioner shall hear the petition, take evidence, if necessary, and determine whether the certificate-debtor is liable for the whole or any part of the amount for which certificate was signed.

(11) Where any proceedings for the recovery of any tax, interest or penalty, composition money or other amount due remaining unpaid have been commenced under this section and the tax, interest or penalty, composition money or other amount due is subsequently modified, enhanced or reduced in consequence of any assessment made, or order passed on objection, appeal, revision or review under this Act, the Commissioner may inform the certificate debtor and thereupon such proceedings may be continued as if the tax, interest or penalty, composition money or other amount due as so modified, enhanced or reduced has been substituted for the tax, interest or penalty, composition money or other amount due which was to be recovered under sub-section (3).] 1[44.ApplicationofDelhiLandReformsAct,1954forthepurposesofrecovery

(1) For the purposes of recovery of any amount recoverable as arrears of land revenue under this Act, the provisions of the Delhi Land Reforms Act, 1954 (Delhi Act 8 of 1954), as to the recovery of arrears of land revenue shall, notwithstanding anything contained 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 purposes 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 2[and the Assistant 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.]

45.Continuationofcertainrecoveryproceedings (Rule38)

Where an assessment or notice of demand in respect of any tax, penalty or other amount payable under this Act (hereinafter in this section referred to as “government dues”) is served upon any person and any objection or appeal is initiated by the person against the assessment or demand for such Government dues then—

(a) if the objection or appeal is disallowed in whole or in part, any recovery proceedings taken for the recovery of such Government dues before the making of the objection or appeal, may, without the service of any fresh assessment or notice of demand, be continued from the stage at which such recovery proceedings stood immediately before the person made the objection or appeal; and

(b) where such government dues are reduced in any objection or appeal— (i) it shall not be necessary for the Commissioner to serve upon the person a

fresh assessment or notice of demand;

1 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.2 Inserted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.


(ii) the Commissioner shall give intimation of such reduction to him and to the person with whom recovery proceedings are pending; and

1[(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 in relation to the amount so reduced from the stage at which such proceedings stood immediately before the person made the objection or appeal.

(c) no recovery proceedings in relation to such Government dues shall be invalid by reason only that no fresh notice of demand was served upon the dealer or person after the disposal of such objection or appeal or such Government dues have been enhanced or reduced in such objection or appeal.]

46.Specialmodeofrecovery (Rule39)

(1) Notwithstanding anything contained in any law or contract to the contrary, the Commissioner may, at any time or from time to time, by notice in writing, a copy of which shall be forwarded to the person at his last known address, require,—

(a) any person from whom any amount of money is due, or may become due, to the person (in this section called “the taxpayer”) liable to pay tax, interest or penalties under section 45 of this Act; or

(b) any person who holds or may subsequently hold money for or on account of the taxpayer,

to pay to the Commissioner, either forthwith upon the money becoming due or being held or within the time specified in the first-mentioned notice (but not before the money becomes due or is held as aforesaid) so much of the money as is sufficient to pay the amount due by the taxpayer in respect of the arrears of tax, interest and penalty under this Act, or the whole of the money when it is equal to or less than that amount.

Explanation : For the purposes of this sub-section, the amount of money due to a taxpayer from, or money held for or on account of a taxpayer by any person, shall be calculated by the Commissioner after deducting therefrom such claims, if any, lawfully subsisting, as may have fallen due for payment by such taxpayer to such person.

(2) The Commissioner may amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the taxpayer, and the receipt thereof by the Commissioner shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount specified in the receipt.

(4) Any person discharging any liability to the taxpayer after receipt of the notice referred to in this section, shall be personally liable to the Commissioner to the extent of the liability discharged or to the extent of the liability of the dealer for tax and penalty, whichever is less.

(5) Where a person to whom a notice under this section is sent, proves to the satisfaction of the Commissioner that the sum demanded or any part thereof is not due to the taxpayer or that he does not hold any money for or on account of the taxpayer, then, nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, to the Commissioner.



(6) Any amount of money which the aforesaid person is required to pay to the Commissioner, or for which he is personally liable to the Commissioner under this section shall, if it remains unpaid, be recoverable as if arrears of land revenue.

(7) The Commissioner may apply to the court in whose custody there is money belonging to the taxpayer for payment to him of the entire amount of such money or if it is more than the tax, interest and penalty, if any, due, an amount sufficient to discharge such tax and the penalty. 1[46A.Provisionalattachmenttoprotectrevenueincertaincases

(1) Where, during the course of inquiry of any proceeding including any proceeding for recovery of any amount due in respect of any person or dealer or during any inspection or search in relation to the business of any person or dealer under this Act, the Commissioner is of the opinion that for the purpose of protecting the interest of the revenue it is necessary so to do, he may, notwithstanding anything contained in any law for the time being in force or any contract to the contrary, by order in writing, attach, provisionally any property movable or immovable, belonging to such person or dealer.

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1):

PROVIDED that the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years:

PROVIDED FURTHER that the Commissioner may, by an order, revoke such order if the person or the dealer furnishes to the Commissioner, a Bank Guarantee in such time, for such period as may be specified by the Commissioner in this behalf:

PROVIDED ALSO that the power under this section shall be exercised by the Commissioner himself or by the Additional Commissioner to whom the Commissioner has delegated such power.]

47. Transferofassetsduringpendencyofproceedingsvoid

Where, during the pendency of any proceedings for the recovery of an amount owed by a person under this Act, that person creates a charge on or parts with the possession by way of sale, mortgage, gift or exchange or any other mode of transfer whatsoever, any of his assets in favour of any other person, such charge or transfer shall be void against any claim by the Commissioner in respect of the amount which is the subject of proceedings, unless the other person—

(a) acted bona fide and without notice of the recovery proceedings; and (b) has paid the fair market value for the assets. 1[Explanation : In this section “assets” includes land, building, machinery, plant,

equipments, shares, securities and 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.]

1[47A.LiabilityunderthisActtobethefirstcharge

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.]



CHAPTER VIII ACCOUNTS AND RECORDS

48.Recordsandaccounts (Rule42)1[(1) Every—

(a) dealer; (b) person on whom a notice has been served to furnish returns under section

27 of this Act;shall prepare, maintain and retain sufficient records at the principal place of business as recorded in his certificate of registration to allow the Commissioner to readily ascertain the amount of tax due under this Act, and to explain all transactions, events and other acts engaged in by the person that are relevant for any purpose of this Act,:

Provided that the dealer maintaining computerised books of accounts using a software should be able to readily provide soft and/or hard copy of the records at the principal place of business as recorded in his certificate of registration, as and when required by the Commissioner.

Explanation: The dealer may maintain and retain soft copy of the records as means of compliance with the requirement of this sub-section.]

(2) Notwithstanding the generality of sub-section (1) of this section— (a) every registered dealer shall preserve a copy of all tax invoices issued by

him;(b) every dealer shall preserve the original of all tax invoices received by him;

and(c) every person who has paid an amount of tax, interest, penalty or other

amount owed under this Act, shall preserve a copy of the challan evidencing the making of the payment.

(3) The Commissioner may prescribe the manner and form in which accounts and records are to be prepared.

(4) If the Commissioner considers that such records are not sufficiently clear and intelligible to enable him to make a proper check of the obligations required of the person under this Act, he may require such person by notice in writing to keep such accounts (including records of purchase and sales) as may be specified therein.

(5) The Commissioner may, by notification in the Official Gazette, direct any class of dealers, transporters or operators of warehouses to keep such accounts (including records of purchases and sales) as may be specified in the notification.

(6) Every person required to prepare or preserve records and accounts shall retain the required records and accounts for, at least, seven years after the conclusion of the events or transactions which they record unless any proceedings in respect of that year are pending in which case they shall be preserved till the final decision in those proceedings. Any loss thereof shall be reported to the Police and the Commissioner within a period of fifteen days from the date of occurrence. 2[49. If, in respect of any particular year, the gross turnover of a dealer exceeds sixty lakh rupees or such other amount as may be prescribed, then, such dealer shall submit a report in such manner, form and period as may be notified by the Commissioner.]

1 Substituted by DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.09.2013. Earlier sub-section (1) read as: (1) Every— (a) dealer; (b) person on whom a notice has been served to furnish returns under section 27 of this Act, shall prepare and retain sufficient records to allow the Commissioner to readily ascertain the amount of tax due under this Act, and to explain all transactions, events and other acts engaged in by the person that are relevant for any purpose of this Act.

2 Substituted by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.


50. Taxinvoices (Rule44)

(1) A registered dealer making a sale liable to tax under this Act shall, at the request of the purchaser, provide the purchaser at the time of sale with a tax invoice containing the particulars specified in sub-section (2) of this section and retain a copy thereof:

PROVIDED that a tax invoice shall not be issued by a dealer who— (a) is specified in the Fifth Schedule; (b) elects to pay tax under section 16 of this Act; or (c) is making the sale in the course of inter-State trade or commerce or export: PROVIDED FURTHER that not more than one tax invoice shall be issued for each

sale: PROVIDED FURTHER that if an invoice has been issued under the provisions

of the Central Excise Act, 1944 (1 of 1944), it shall be deemed to be a tax invoice if it contains the particulars specified in sub-section (2) of this section.

Explanation : For removal of doubts, a registered dealer shall be authorised to issue tax invoices only after a certificate of registration is issued by the Commissioner.

(2) The tax invoice issued under sub-section (1) of this section shall contain the following particulars on the original as well as copies thereof:—

(a) the words ‘tax invoice’ in a prominent place; (b) the name, address and registration number of the selling registered dealer; (c) the name and address of the purchaser and his registration number, where

the purchaser is a registered dealer; (d) an individual pre-printed serialised number and the date on which the tax

invoice is issued: 1[PROVIDED that a dealer may maintain separate numerical series, with

distinct codes either, as a prefix or suffix, for each place of business in case the dealer has more than one place of business in Delhi or for each product in case he deals in more than one product or both:]

2[PROVIDED FURTHER that such numerical series may be granted by the Commissioner, in such manner and from such date as may be notified by him.]

(e) description, quantity, volume and value of goods sold and services provided and the amount of tax charged thereon indicated separately;

(f) the signature of the selling dealer or his servant, manager or agent, duly authorized by him; and

(g) the name and address of the printer and first and last serial number of tax invoices printed and supplied by him to the dealer:

(3) A tax invoice in respect of a sale shall be issued in duplicate; the original shall be issued to the purchaser (or the person taking the delivery, as the case may be) and the duplicate shall be retained by the selling dealer.

(4) Except when a tax invoice is issued under sub-section (1) of this section, if a dealer sells any goods exceeding such amount in value as may be prescribed, in any one transaction to any person, he shall issue to the purchaser a retail invoice containing the particulars specified in sub-section (5) of this section and retain a copy thereof.

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Inserted by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.


(5) The retail invoice issued under sub-section (4) of this section shall contain the following particulars on the original as well as copies thereof:—

(a) the words ‘retail invoice’ or ‘cash memorandum’ or ‘bill’ in a prominent place; (b) the name, address and registration number of the selling dealer, if

registered; (c) in case the sale is in the course of inter-State trade or commerce, the name,

registration number and address of the purchasing dealer and type of statutory form, if any, against which the sale has been made;

(d) an individual pre-printed serialized number and the date on which the retail invoice is issued:

1[PROVIDED that a dealer may maintain separate numerical series, with distinct codes, clear as prefix or suffix, for each place of business, in case the dealer has more than one place of business in Delhi or for each product in case he deals in more than one product or both:

PROVIDED FURTHER that such numerical series may be granted by the Commissioner, in such manner and from such date as may be notified by him;]

(e) description, quantity, volume and value of goods sold and 2[services provided and the of amount of tax charged thereon located separately]; and

(f) the signature of the selling dealer or his servant, manager or agent, duly authorised by him.

(6) Retail invoice shall be issued in duplicate, the original shall be issued to the purchaser and the copy shall be retained by the selling dealer.

(7) The Commissioner may, by notification in the Official Gazette, specify the manner and form in which the particulars on a tax invoice or retail invoice are to be recorded.

(8) If a purchaser claims to have lost the original tax invoice, the selling dealer may, subject to such conditions and restrictions as may be prescribed, provide a copy clearly marked as a duplicate.

51.Creditanddebitnotes (Rule45)

Where a tax invoice has been issued in respect of a sale and— (a) the amount shown as tax in that tax invoice exceeds the tax payable in respect

of the sale, the dealer shall provide the purchaser with a credit note, containing such particulars as may be prescribed; or

(b) the tax payable in respect of the sale exceeds the amount shown as tax on the tax invoice, the dealer shall provide the purchaser with a debit note, containing such particulars as may be prescribed.

CHAPTER IX LIABILITY IN SPECIAL CASES

52. Liability incaseoftransferofbusiness(1) Where a dealer liable to pay tax under this Act transfers his business in whole

or in part, by sale, gift, lease, leave or licence, hire or in any other manner whatsoever, the dealer and the person to whom the business is so transferred shall jointly and severally be liable to pay the tax, interest or penalty due from the dealer up to the time of such transfer, whether such amount has been assessed before such transfer, but has remained unpaid or is assessed thereafter.

(2) Where the transferee or the lessee of a business referred to in sub-section (1) of this section carries on such business either in his own name or in some other

1 Inserted by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.2 Substituted for “services provided, inclusive of amount of tax charged thereon”, vide ibid.


name, he shall be liable to pay tax on the sale of goods effected by him with effect from the date of such transfer and shall, if he is registered as a dealer, apply within the time specified in section 21 of this Act for the amendment of his registration.

53.Liabilityincaseofcompanyinliquidation

(1) Every person— (a) who is a liquidator of any company which is being wound up, whether

under the orders of a court or otherwise; or (b) who has been appointed the receiver of any assets of a company

(hereinafter referred to as the “liquidator”), shall, within one month after he has become such liquidator, give notice of his appointment as such to the Commissioner.

(2) The Commissioner shall, after making such inquiries or calling for such information as he may deem fit, notify the liquidator within three months from the date on which he received notice of the appointment of the liquidator, the amount which, in the opinion of the Commissioner, would be sufficient to provide for any tax, interest or penalty which is then, or is likely thereafter, to become payable by the company.

(3) The liquidator shall not part with any of the assets of the company or the properties in his hand until he has been notified by the Commissioner under sub-section (2) of this section and on being so notified, the liquidator shall set aside an amount equal to the amount notified and, until he so sets aside such amount, he shall not part with any of the assets of the company or the properties in his hand:

PROVIDED that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties in compliance with any order of a court or for the purpose of the payment of the tax and penalty, if any, payable by the company under this Act or for making any payment to secured creditors whose debts are entitled under law to priority of payments over debts due to Government on the date of liquidation or for meeting such costs and expenses of the winding up of the company as are in the opinion of the Commissioner reasonable.

(4) If the liquidator fails to give notice in accordance with sub-section (1) of this section or fails to set aside the amount as required by sub-section (3) of this section or parts with any assets of the company or the properties in his hand in contravention of the provisions of that sub-section, he shall be personally liable for the payment of tax and penalty, if any, which the company would be liable to pay under this Act:

PROVIDED that if the amount of tax and penalty, if any, payable by the company is notified under sub-section (2) of this section the personal liability of the liquidator under this sub-section shall be to the extent of such amount.

(5) Where there is more than one liquidator, the obligations and liabilities attached to a liquidator under this section shall attach to all the liquidators jointly and severally.

(6) When any private company is wound up and any tax and penalty, if any, assessed under this Act on the company for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of the private company at any time during the period for which the tax is due, shall be jointly and severally liable for the payment of such tax and penalty, if any, unless he proves to the satisfaction of the Commissioner that non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

(7) The provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

(8) For the purposes of this section, the expressions “company” and “private company” shall have the meanings respectively assigned to them under clauses (i) and (ii) of sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956).


54.LiabilityofpartnersoffirmtopaytaxNotwithstanding any contract to the contrary, where any firm is liable to pay any

tax, interest or penalty under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment:

PROVIDED that where any such partner retires from the firm, he shall intimate the date of his retirement to the Commissioner by a notice to that effect in writing and he shall be liable to pay tax, interest or penalty remaining unpaid at the time of his retirement and any tax, interest or penalty due up to the date of his retirement though unassessed on that date:

PROVIDED FURTHER that if no such intimation is given within fifteen days from the date of retirement, the liability of the partner under the first proviso shall continue until the date on which such intimation is received by the Commissioner.

55. Liabilityofguardians,trusteesetc.

Where the business in respect of which tax is payable under this Act is carried on by, or is in the charge of any guardian, trustee or agent of a minor or other incapacitated person on his behalf and for the benefit of such minor or other incapacitated person, the tax, interest or penalty shall be levied upon and recoverable from such guardian, trustee or agent, as the case may be, in like manner and to the same extent as it would be assessed upon and recoverable from any such minor or other incapacitated person, if he were of full age and of sound mind and if he were conducting the business himself, and all the provisions of this Act shall, so far as may be, apply accordingly.

56.LiabilityofCourtofWards,etc.Where the estate or any portion of the estate of a dealer owning a business in

respect of which tax is payable under this Act is under the control of the Court of Wards, the Administrator-General, the Official Trustee or any receiver or manager (including any person, whatever be his designation, who in fact manages the business) appointed by or under any order of a court, the tax, interest or penalty shall be levied upon and recoverable from such Court of Wards, Administrator-General, Official Trustee, receiver or manager in like manner and to the same extent as it would be assessable upon and recoverable from the dealer if he were conducting the business himself, and all the provisions of this Act shall, so far as may be, apply accordingly.

57.Liabilityinothercases

(1) Where a dealer is a firm or an association of persons or a Hindu Undivided Family, and such firm, association or family has discontinued business—

(a) the tax payable under this Act, by such firm, association or family up to the date of such discontinuance may be assessed as if no such discontinuance had taken place; and

(b) every person who was at the time of such discontinuance a partner of such firm, or a member of such association or family, shall, notwithstanding such discontinuance be liable jointly and severally for the payment of tax assessed and penalty imposed and payable by such firm, association or family, whether such tax, interest or penalty has been assessed prior to or after such discontinuance, and subject as aforesaid, the provisions of this Act shall, so far as may be, apply as if every such person or partner or member were himself a dealer:

PROVIDED that where the partner of a firm liable to pay such tax, interest or penalty dies, the provisions of sub-section (4) of this section shall, so far as may be, apply.


(2) Where a change has occurred in the constitution of a firm or an association of persons, the partners of the firm or members of the association as it existed before and as it exists after its reconstitution shall, without prejudice to the provisions of section 54 of this Act, jointly and severally be liable to pay tax, interest or penalty due from such firm or association for any period before its re-constitution.

(3) The provisions of sub-section (1) of this section shall, so far as may be, apply where the dealer, being a firm or association of persons is dissolved or, being a Hindu Undivided Family, has effected partition with respect to the business carried on by it and accordingly references in that sub-section to discontinuance shall be construed as references to dissolution or, as the case may be, to partition.

(4) Where a dealer liable to pay tax under this Act dies, then— (a) if a business carried on by the dealer is continued after his death by his

legal representative or any other person, such legal representative or other person, shall be liable to pay the tax, interest or penalty due from the dealer under this Act, whether such tax, interest or penalty had been assessed before his death but has remained unpaid, or is assessed after his death;

(b) if the business carried on by the dealer is discontinued after his death, his legal representative shall be liable to pay out of the estate of the deceased, to the extent the estate is capable of meeting the charge, the tax, interest or penalty due from the dealer under this Act, whether such tax, interest or penalty had been assessed before his death but has remained unpaid, or is assessed after his death,

and the provisions of this Act shall, so far as may be, apply to such legal representative or other person as if he were the dealer himself. Explanation : For the purposes of this section “legal representative” has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908).

CHAPTER X AUDIT, INVESTIGATION AND ENFORCEMENT

58. Audit (Rule46)(1) The Commissioner may serve on any person in the prescribed manner a

notice informing him that an audit of his business affairs shall be performed and where applicable, that an assessment already concluded under this Act may be reopened.

Explanation : A notice may be served notwithstanding the fact that the person may already have been assessed under section 31, 32 or 33 of this Act.

(2) A notice served under sub-section (1) of this section may require the person on whom it is served, to appear on a date and place specified therein, which may be at his business premises or at a place specified in the notice, to either attend and produce or cause to be produced the books of accounts and all evidence on which the dealer relies in support of his returns (including tax invoices, if any), or to produce such evidence as is specified in the notice.

(3) The person on whom a notice is served under sub-section (1) of this section shall provide all co-operation and reasonable assistance to the Commissioner as may be required to conduct the proceedings under this section at his business premises.

(4) The Commissioner shall, after considering the return, the evidence furnished with the returns, if any, the evidence acquired in the course of the audit, if any, or any information otherwise available to him, either—

(a) confirm the assessment under review; or (b) serve a notice of the assessment or re-assessment of the amount of tax,

interest and penalty if any pursuant to sections 32 and 33 of this Act. (5) Any assessment pursuant to an audit of the person’s business affairs shall be

without prejudice to prosecution for any offence under this Act.


1[58A . Special Audit 2[(1) If the Commissioner, having regard to:-

(a) the nature and complexity of the business of a dealer; or(b) the interest of the revenue; or (c) volume of accounts; or(d) doubts about the correctness of the accounts; or(e) multiplicity of transactions in the accounts; or(f) specialised nature of business activity; or(g) non-production of all records and accounts; or(h) non-filing of audit report under section 49 of this act; or(i) any other reason.

is of the opinion that it is necessary so to do, he may direct the dealer by a notice in writing to get his records including books of accounts, examined and audited by an accountant or a panel of accountants or any other professional or panel of professionals nominated by the Commissioner in this behalf and to furnish a report of such examination and audit in the format that he may specify, duly signed and verified by such accountant or panel of accountants or professional or panel of professionals and setting forth such particulars as may be specified.]

3[(2) The provision of sub-section (1) shall have effect notwithstanding that the accounts of the dealer have been audited under any other provision of this Act or any other law for the time being in force or otherwise.]

(3) Every report under sub-section (1) shall be furnished by the dealer to the Commissioner within such period as may be specified by the Commissioner:

PROVIDED that the Commissioner may, on an application made in this behalf by the dealer and for any good and sufficient reason, extend the said period by such further period or periods as he thinks fit:

PROVIDED FURTHER that the aggregate of the period originally fixed and the period or periods so extended shall not, in any case, exceed 180 days from the date on which the direction under sub-section (1) is received by the dealer.

4[(4) The expenses of, and incidental to, the examination and audit of records under sub-section (1), (including the remuneration of the accountant or a panel of accountants or professional or panel of professionals) ahsllbe determined and paid by the Commissioner and that determination shall be final.]

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Substituted by the Delhi VAT (Amendment) Act, 2013 (5 of 2013), dt. 12-09-2013. Prior to its

substitution sub-section (1) read as under: (1) If, [xxx] the Commissioner, having regard to the nature and complexity of the business of a dealer

and the interest of the revenue, is of the opinion that it is necessary so to do, he may direct the dealer by a notice in writing to get his records including books of accounts, examined and audited by an accountant or a panel of accountants or any other professional or panel of professionals nominated by the Commissioner in this behalf and to furnish a report of such examination and audit in the format that he may specify, duly signed and verified by such accountant or panel of accountants or professional or panel of professionals and setting forth such particulars as may be prescribed.

3 Substituted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.r.e.f. 18-6-2012. Prior to substitution, it was substituted by Delhi Act 14 of 2012, w.e.f. 16-1-2013 and read as under: “(2) The expenses of, and incidental to, the examination and audit of records under sub-section (1), (including the remuneration of the accountant or a panel of accountants or professional or panel of professionals) shall be determined and paid by the Commissioner and that determination shall be final.”

4 Substituted, vide ibid. Prior to substitution, sub-section (4) read as under: “(4) The expenses of, and incidental to, the examination and audit of records under sub-section

(1) (including the remuneration of the accountant or a panel of accountants or professional or panel of professionals) shall be paid by the dealer as determined by the Commissioner and that determination shall be final and default in such payment shall be recoverable from the dealer as tax and in the manner provided for the recovery of arrears of tax under this Act.”


59.Inspectionofrecords

(1) All records, books of accounts, registers and other documents, maintained by a dealer, transporter or operator of a warehouse shall, at all reasonable times, be open to inspection by the Commissioner.

(2) The Commissioner may, for the proper administration of this Act and subject to such conditions as may be prescribed, require—

(a) any dealer; or (b) any other person, including a banking company, post office, a person

who transports goods or holds goods in custody for delivery to, or on behalf of any dealer, who maintains or has in his possession any books of accounts, registers or documents relating to the business of a dealer, and, in the case of a person which is an organisation, any officer thereof, to—

(i) produce before him such records, books of account, registers and other documents;

(ii) answer such questions; and (iii) prepare and furnish such additional information, relating to his

activities or to the activities of any other person as the Commissioner may deem necessary.

(3) The Commissioner may require a person referred to in sub-section (2) above, to—

(a) prepare and provide any documents; and (b) verify the answer to any question, in the manner specified by him.

(4) The Commissioner may retain, remove, take copies or extracts, or cause copies or extracts to be made of the said records, books of account, registers and documents without fee by the person in whose custody the records, books of account, registers and documents are held.

60.Powertoenterpremisesandseizerecordsandgoods (Rules22(2)&48)

(1) All goods kept at any business premises by a dealer, transporter or operator of a warehouse shall at all reasonable times be open to inspection by the Commissioner.

(2) Where the Commissioner, upon information in his possession or otherwise has reasonable grounds to believe that any person or dealer is attempting to avoid or evade tax or is concealing his tax liability in any manner and for the purposes of administration of this Act, it is necessary so to do, the Commissioner may—

(a) enter and search any business premises or any other place or building; (b) break open the lock of any door, box, locker, safe, almirah or other

receptacle for exercising the powers conferred by clause (a) where the keys thereof are not readily available;

(c) seize and remove any records, books of account, registers, other documents or goods;

(d) place marks of identification on any records, books of account, registers and other documents or make or cause to be made extracts or copies thereof without charge;

(e) make a note or any inventory of any such money or goods found as a result of such search or place marks of identification on such goods; and

(f) seal the premises including the office, shop, godown, box, locker, safe, almirah or other receptacle.


(3) Where it is not feasible to remove any records, books of account, registers, other documents or goods, the Commissioner may serve on the owner and any person who is in immediate possession or control thereof, an order that he shall not remove or part with or otherwise deal with them except with the previous permission of the Commissioner.

(4) Where any premises have been sealed under clause (f) of sub-section (2), of this section or an order made under sub-section (3) of this section, the Commissioner may, on an application made by the owner or the person in occupation or in charge of such shop, godown, box, locker, safe, almirah or other receptacle, permit the de-sealing or release thereof (as the case may be) on such terms and conditions including furnishing of security for such sum in such form and manner as may be 1[prescribed].

(5) The Commissioner may requisition the services of any police officer or any public servant, or of both, to assist him for all or any of the purposes specified in sub-section (2) of this section.

(6) Save as otherwise provided in this section, every search or seizure made under this section shall as far as possible be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures made under that Code.

Explanation : The powers under this section may also be exercised in respect of a dealer or a third party for the purposes of undertaking an audit or to assist in recovery.

61.Powertostop,searchanddetaingoodsvehicles (Rules22(3),23(3),43,48&65)

(1) To enable proper administration of this Act, the Commissioner may, at an6y1 check-post or barrier or at any other place, require the 2[owner,] driver or person in charge of a goods vehicle to stop the vehicle and keep it stationary so long as may be required to search the vehicle, examine the contents therein and inspect all records relating to the goods carried, which are in the possession of such 1[owner,] driver or person in charge.

3[(2) The owner, driver or person in charge of a goods vehicle shall carry with him such records as may be prescribed in respect of the goods carried in the goods vehicle and produce the same before any officer in-charge of a check post or barrier or any other officer or any agent as may be empowered by the Commissioner.]

1[(2A) The owner, driver or person in charge of a goods vehicle entering or leaving Delhi shall also file a declaration containing such particulars in the prescribed form obtainable from the Commissioner and in such manner as may be prescribed, before the officer in charge of a check post or barrier or before any other officer or agent empowered as aforesaid:

PROVIDED that where the owner, driver or person in charge of a goods vehicle, after filing a declaration at the time of entering Delhi that the goods are meant to be carried to a place outside Delhi, fails, without reasonable cause, to carry such goods outside Delhi within the prescribed period, he shall, in addition to the payment of tax, if any, be liable to a penalty not exceeding two and a half times the tax that would have been payable had the goods been sold inside Delhi or one thousand rupees, whichever is more.]

(3) The 1[owner,] driver or person in charge of the goods vehicle shall, if required, inform the Commissioner of—

(a) his name and address; (b) the name and address of the owner of the vehicle; (c) the name and address of the consignor of the goods; (d) the name and address of the consignee of the goods; and (e) the name and address of the transporter.

1 Substituted for the word ‘directed’ by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12-9-2013.2 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.3 Substituted, vide ibid.


(4) If, on an examination of the contents of a goods vehicle or the inspection of documents relating to the goods carried, the Commissioner has reason to believe that the owner 1[or driver] or person in charge of such goods vehicle is not carrying the documents as required by sub-section (2) of this section or is not carrying proper and genuine documents or is attempting to evade payment of tax due under this Act, he may, for reasons to be recorded in writing, do any one or more of the following, namely:—

(a) refuse to allow the goods or the goods vehicle to enter 1[or leave] Delhi; (b) seize the goods and any documents relating to the goods; and (c) seize the goods vehicle and any documents relating to the goods

vehicle. (5) Where the owner 1[, driver] or the person in charge of the goods vehicle—

(a) requests time to adduce evidence of payment of tax in respect of the goods to be detained or impounded; and

(b) furnishes security to the satisfaction of the Commissioner in such form and in such manner as may be prescribed for the prescribed amount, the goods vehicle, the goods and the documents so seized may be released:

1[PROVIDED that where the owner, or his agent, driver or person in charge of the goods vehicle exercises the option of paying by way of penalty, a sum equal to three and a half times the tax, which in the opinion of the Commissioner, would be leviable on such goods, if such goods were sold in Delhi, the Commissioner instead of detaining or impounding the goods or the goods vehicle or the documents relating to the goods and goods vehicle shall release the same.]

(6) The Commissioner may permit the owner 1[, driver] or person in charge of goods vehicle to remove any goods or goods vehicle seized under sub-section (4) subject to an undertaking—

(a) that the goods and goods vehicle shall be kept in the office, godown or other place within Delhi, belonging to the owner of the goods vehicle and in the custody of such owner; and

(b) that the goods shall not be delivered to the consignor, consignee or any other person without the approval in writing of the Commissioner, and for this purpose the person in charge of the goods vehicle shall furnish an authorization from the owner of the goods vehicle authorizing him to give such undertaking on his behalf.

(7) Save as otherwise provided in this section, every search or seizure made under this section shall as far as possible be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures made under that Code.

(8) Nothing contained in this section shall apply to the rolling stock as defined in the Railways Act, 1989 (24 of 1989).

62. Custodyandreleaseofrecords

(1) Where the Commissioner seizes any books of accounts or other documents, he shall give the dealer or the person present on his behalf, as the case may be, a receipt for the same and obtain acknowledgement of the receipt so given to him:

PROVIDED that if the dealer or person from whose custody the books of accounts or other documents are seized refuses to give an acknowledgement, the Commissioner may leave the receipt at the premises and record this fact.

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.


(2) The Commissioner shall keep in his custody the books of accounts, registers, other documents seized under section 60 of this Act for a period not exceeding one year, and thereafter shall return the same to the dealer or person from whose custody or power they were seized:

PROVIDED that the Commissioner may, before returning the books of accounts, registers and other documents, require the dealer or the person, as the case may be, to give a written undertaking that the books of accounts, registers and other documents shall be presented whenever required by the Commissioner for any proceedings under this Act:

PROVIDED FURTHER that the Commissioner shall, when requested, allow the person whose books of accounts, registers and documents have been seized, reasonable access to the books of accounts, registers and documents for the purpose of inspection and shall allow the person the opportunity to make copies thereof at the person’s own expense:

PROVIDED ALSO that the period of custody of the books of accounts, registers and other documents seized under section 60 of this Act may be extended beyond one year if any proceedings under this Act are pending or for reasons to be recorded by the Commissioner in writing.

63.Custody,returnanddisposalofgoods,goodsvehicleandsecurity(Rule41)

(1) Where the Commissioner seizes any goods or goods vehicle, he shall give th63e dealer, person in charge of the goods vehicle or a person present on his behalf, as the case may be, a receipt for the same and obtain acknowledgement of the receipt so given to him:

PROVIDED that if the person from whose custody the goods or goods vehicle are seized refuses to give an acknowledgement, the Commissioner may leave the receipt in his presence and record this fact.

(2) The Commissioner—(a) shall keep any goods or goods vehicle seized under section 61 in his

custody; (b) may retain them for such time as he considers reasonable; and (c) subject to sub-section (3) of this section, shall return the goods or goods

vehicle to the dealer or other person from whose custody or power they were seized.

(3) Where the Commissioner— (a) has seized any goods; (b) has seized a goods vehicle; or (c) holds any goods as security for the performance of an obligation under

this Act, the Commissioner may, no sooner than one month after the service of notice on—

(i) the person from whom the goods were seized; (ii) the person from whom the goods vehicle was seized; (iii) the person for whom the security was given; and (iv) any person against whom the security is to be enforced, as the case

may be, of his intention to sell the goods, direct the auction of such goods or goods vehicle to meet any arrears of tax, interest or penalty owed under this Act.

(4) An auction of goods or a goods vehicle shall be carried out in the manner prescribed for the sale of property held by the Commissioner.


64. Detention of goodspendingdisclosure

(1) If any person on being required by the Commissioner, fails to give any information in respect of any goods in his possession or fails to permit the inspection thereof, the Commissioner may seize any goods in his custody or possession in respect of which the default is committed.

(2) The seizure shall remain in force until it is revoked or the person concerned furnishes the information required or makes proper arrangements for the inspection of the goods, whichever occurs first.

65.Obligationtoprovidereasonableassistance

Every person shall provide all co-operation and reasonable assistance to the Commissioner as may be required to conduct the Commissioner’s activities under the Act.

CHAPTER XI VALUE ADDED TAX AUTHORITIES AND APPELLATE TRIBUNAL

66.ValueAddedTaxAuthorities (Rules47,48&49)

(1) For carrying out the purposes of this Act, the Government shall appoint a person to be the Commissioner of Value Added Tax.

(2) To assist the Commissioner in the administration of this Act,— (a) the Government may appoint as many 1[Special] Commissioners of Value

Added Tax, Value Added Tax Officers and such other persons with such designations as the Government thinks necessary; and

(b) the Commissioner may, with the previous sanction of the Government, engage and procure the engagement of other persons to assist him in the performance of his duties, in this Act referred to as “Value Added Tax Authorities”.

(3) The Commissioner and the Value Added Tax Authorities shall exercise such powers as may be conferred, and perform such duties as may be required, by or under this Act.

(4) The powers exercised by the Value Added Tax Authorities for the making of assessments of tax, the computation and imposition of penalties, the computation of interest due or owed, the computation of the entitlement and the amount of any refund, the determination of specific questions under section 84, the making of general rulings under section 85, and the conduct of audit or investigations shall, for the purposes of this Act, be the administrative functions.

67.PowersandresponsibilitiesoftheCommissioner

(1) The Commissioner shall have responsibility for the due and proper administration of this Act and shall have jurisdiction over the whole of Delhi.

(2) Subject to sub-section (3) of this section, the Commissioner may, from time to time, issue such orders, instructions and directions to any Value Added Tax Authorities as he thinks fit for the due and proper administration of this Act and all such persons engaged in the administration of this Act shall observe and follow such orders, instructions and directions of the Commissioner.

(3) No order, instruction or direction may be issued by the Commissioner to a person exercising the power to determine—

1 Substituted for “Additional” by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.


(a) a particular objection made or to be made under section 74 of this Act; or

(b) a particular question under section 84 of this Act, so as to require the person to determine the objection or answer the question of a particular person in a particular manner.

(4) Nothing in sub-section (3) shall prevent the Commissioner issuing general orders, instructions and directions to any person who determines objections under section 74 or answers questions under section 84 of this Act about the manner of determining classes of objections or answering classes of questions.

68. DelegationofCommissioner’spowers (Rule48)

(1) Subject to such restrictions and conditions as may be prescribed, the Commissioner may delegate any of his powers under this Act to any Value Added Tax Authorities.

(2) Where the Commissioner delegates his powers under Chapter X, the delegate shall carry and produce on demand evidence in the prescribed form of the delegation of these powers when exercising the powers.

(3) Where the Commissioner has delegated a power to a Value Added Tax Authority, the Commissioner may supervise, review and rectify any decision made or action taken by that Authority.

Explanation : The exercise of this power of supervision, review or rectification will not lead to the issue of an assessment or re-assessment after the expiry of the time referred to in section 34 of this Act.

(4) Notwithstanding any law or doctrine to the contrary, the power delegated by the Commissioner to a person to determine an objection under section 74 of this Act may be exercised by that person, even though the person determining the objection is equal in rank to the person whose decision is under objection.

69. Changeofanincumbentofanoffice

Whenever in respect of any proceeding under this Act the Commissioner or any Value Added Tax Authority is succeeded by another person—

(a) no delegation of power made by the former incumbent shall be revoked by virtue of the succession; and

(b) the person so succeeding may continue the proceeding from the stage at which the proceeding was left by his predecessor.

70.PowerofCommissionertomakenotifications

(1) The Commissioner may notify and publish any forms which may be necessary for the reporting of information to the Value Added Tax Authorities.

(2) Where the Commissioner has notified a form for a particular purpose, all persons shall be required to report the information 1[using the form, in such manner as may be notified by him.]

(3) Where in his opinion it is necessary or convenient to do so, the Commissioner may issue notifications for carrying out the purposes of this Act: PROVIDED that any notification shall not be inconsistent with this Act or any rules or regulations made pursuant to it.

(4) In particular and without prejudice to the generality of the foregoing power, a notification issued by the Commissioner may stipulate all or any of the matters

1 Substituted for “using the form” by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.


which in the opinion of the Commissioner are necessary or convenient for the proper administration of this Act.

1[(5) Failure to comply with a requirement in a notification may be punishable with fine provided that the amount of the fine does not exceed 2[ten thousand] rupees or such other amount as may be prescribed.]

(6) Every notification issued by the Commissioner under this Act shall be published in the Official Gazette, and shall not have any effect prior to such publication.

71.Personstobepublicservants

The Commissioner, all Value Added Tax Authorities and all members of the Appellate Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860).

72.Immunityfromcivilsuit

No suit shall be brought in any civil court against the Government, the Commissioner, any Value Added Tax Authorities, or member of the Appellate Tribunal for anything done or intended to be done in good faith under this Act or the rules made thereunder.

73. Appellate Tribunal

(1) The Government shall, as soon as may be after the commencement of this Act, constitute an Appellate Tribunal consisting of one or more members, as it thinks fit, to exercise the powers and discharge the functions conferred on the Appellate Tribunal by or under this Act:

PROVIDED that where the Appellate Tribunal consists of one member, that member shall be a person who has held a civil judicial post for at least ten years or who has been a member of the Indian Legal Service (not below Grade III) for at least three years or who has been in practice as an advocate for at least ten years, and where the Appellate Tribunal consists of more than one member, one such member shall be a person qualified as aforesaid.

(2) Where the number of members of the Appellate Tribunal is more than one, the Government shall appoint one of those members to be the Chairperson of the Appellate Tribunal.

(3) Subject to the provisions of sub-section (1) of this section, the qualifications and other conditions of service of the member or members constituting the Appellate Tribunal and the period for which such member or members shall hold office, shall be such as may be determined by the Government.

(4) Any vacancy in the membership of the Appellate Tribunal shall be filled up by the Government as soon as practicable. (5) Where the number of members of the Appellate Tribunal is more than one and if the members differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, the decision of the Chairperson of the Appellate Tribunal thereon shall be final.

(6) Subject to the previous sanction of the Government, the Appellate Tribunal shall, for the purpose of regulating its procedure and disposal of its business, make regulations consistent with the provisions of this Act and the rules made thereunder.

(7) The regulations made under sub-section (6) shall be published in the Official Gazette.

1 Deleted vide DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.9.20132 Substituted for “five hundred” by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.


(8) The Appellate Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the Commissioner under section 75 of this Act and any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code, 1860 (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

1[(9) Notwithstanding anything contained to the contrary in this section, the Government may, by a notification in the official Gazette, constitute benches comprising of one or more members, subject to such conditions and regulations as may be laid down in the notification.]

CHAPTER XII OBJECTIONS, APPEALS, DISPUTES AND QUESTIONS

74. Objections (Rules51to57)

(1) Any person who is dis-satisfied with— (a) an assessment made under this Act (including an assessment under

section 33 of this Act); or (b) any other order or decision made under this Act, may make an objection

against such assessment, or order or decision, as the case may be, to the Commissioner:

PROVIDED that no objection may be made against a non-appealable order as defined in section 79 of this Act:

PROVIDED FURTHER that no objection against an assessment shall be entertained unless the amount of tax, interest or penalty assessed that is not in dispute has been paid 2[failing which the objection shall be deemed to have not been filed:]

3[PROVIDED ALSO that the Commissioner may, after giving to the dealer an opportunity of being heard, may direct the dealer to deposit an amount deemed reasonable, out of the amount under dispute, before such objection is entertained:]

PROVIDED ALSO that only one objection may be made by the person against any assessment, decision or order:

PROVIDED ALSO that in the case of an objection to an amended assessment, order, or decision, an objection may be made only to the portion amended:

4[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) A person who is aggrieved by the failure of the Commissioner to reach a decision or issue any assessment or order, or undertake any other procedure under this Act, within six months after a request in writing was served by the person, may make an objection against such failure.

(3) An objection shall be in writing in the prescribed form and shall state fully and in detail the grounds upon which the objection is made.

(4) The objection shall be made—

1 Inserted by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.2 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.3 Inserted by Act 8 of 2011, w.e.f. 1-10-2011. 4 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.


(a) in the case of an objection made under sub-section (1) of this section, within two months of the date of service of the assessment, or order or decision, as the case may be; or

(b) in the case of an objection made under sub-section (2) of this section, no sooner than six months and not later than eight months after the written request was served by the person:

PROVIDED that where the Commissioner is satisfied that the person was prevented by sufficient cause from lodging the objection within the time specified, he may accept an objection within a further period of two months.

(5) The Commissioner shall conduct its proceedings by an examination of the assessment, or order or decision, as the case may be, the objection and any other document or information as may be relevant:

PROVIDED that where the person aggrieved, requests a hearing in person, the person shall be afforded an opportunity to be heard in person.

(6) Where a person has requested a hearing under sub-section (5) of this section and the person fails to attend the hearing at the time and place stipulated, the Commissioner shall proceed and determine the objection in the absence of the person.

(7) Within three months after the receipt of the objection, the Commissioner shall either—

(a) accept the objection in whole or in part and take appropriate action to give effect to the acceptance (including the remission of any penalty assessed either in whole or in part); or

(b) refuse the objection or the reminder of the objection, as the case may be,

and in either case, serve on the person objecting, a notice in writing of the decision and the reasons for it, including a statement of the evidence on which it is based:

PROVIDED that where the Commissioner within three months of the making of the objection notifies the person in writing, he may continue to consider the objection for a further period of two months:

PROVIDED FURTHER that the person may, in writing, request the Commissioner to delay considering the objection for a period of up to three months for the proper preparation of its position, in which case the period of the adjournment shall not be counted towards the period by which the Commissioner shall reach his decision.

(8) Where the Commissioner has not notified the person of his decision within the time specified under sub-section (7) of this section, the person may serve a written notice requiring him to make a decision within fifteen days.

(9) If the decision has not been made by the end of the period of fifteen days after being given the notice referred to in sub-section (8) of this section, then, at the end of that period, the Commissioner shall be deemed to have allowed the objection.

(10) Where on the date of commencement of this Act a dispute under Delhi Sales Tax Act, 1975 (43 of 1975) has been pending before a sales tax authority referred to in section 9 of the Delhi Sales Tax Act, 1975 (43 of 1975), the dispute shall be disposed of within a period of 1[ten] years from the date of the commencement of this Act.

1 Substituted for “eight” by DVAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 31-3-2013.


(11) Where the dispute referred to in sub-section (10) of this section has not been decided within the time required, the dispute shall be deemed to have been resolved in favour of the dealer. 1[74A.Revision (Rule36A)

(1) After any order including an order under this section or any decision in objection is passed under this Act, rules or notifications made thereunder, by any officer or person subordinate to him, the Commissioner may, of his own motion or upon information received by him, call for the record of such order and examine whether:—

(a) any turnover of sales has not been brought to tax or has been brought to tax at lower rate, or has been incorrectly classified, or any claims incorrectly granted or that the liability to tax is understated, or

(b) in any case, the order is erroneous, insofar as it is prejudicial to the interest of revenue, and after examination, the Commissioner may pass an order to the best of his judgement, where necessary.

(2) (a) For the purpose of the examination and passing of the order, the Commissioner may require, by service of notice, the dealer to produce or cause to be produced before him such books of accounts and other documents or evidence as he thinks necessary for the purposes aforesaid.

(b) Notwithstanding anything contained to the contrary in section 34, no order under this section shall be passed after the expiry of four years from the end of the year in which the order passed by the subordinate officer has been served on the dealer.

(c) Notwithstanding anything contained to the contrary in section 34, where in respect of any order or part of the said order passed by the subordinate officer, an order has been passed by any authority hearing the objection or any appellate authority including the Tribunal or such order is pending for decision in objection or in appeal, or an objection or an appeal is filed, then, whether or not the issues involved in the examination have been decided or raised in the objection or the appeal, the Commissioner may, within five years of the end of the year in which the said order passed by the subordinate officer has been served on the dealer, make a report to the said objection hearing authority or the appellate authority including the Tribunal regarding his examination or the report or the information received by him and the said appellate authority including the Tribunal shall thereupon, after giving the dealer a reasonable opportunity of being heard, pass an order to the best of its judgement, 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.

1[(5) Notwithstanding anything contained in any judgment, decree or order of any court, the provisions of this section shall be deemed to have come into effect with effect from the 1st April, 2005.] 2[74B. RectificationofmistakesandReview (Rule36B)

(1) Notwithstanding anything contained to the contrary in section 34, 7t4hBe Commissioner may, at any time within four years from the end of the year in which any order passed by him has been served, on his own motion, rectify any mistake apparent on record and shall within the said period or thereafter rectify any such mistake which has been brought to his notice within the said period, by any person affected by such order.

(2) The provisions of sub-section (1) shall apply to the rectification of a mistake by the appellate authority or an objection hearing authority as they apply to the rectification of mistake by the Commissioner:

PROVIDED that where any matter has been considered and decided in any proceedings by way of objection or appeal or review in relation to any order or part of an order, the authority passing the order on objection, appeal or review, may, notwithstanding anything contained in this Act, rectify the order or part of the order on any matter other than the matter which has been so considered and decided.

(3) Where any such rectification has the effect of reducing the amount of the tax or penalty or interest, the Commissioner shall refund any amount due to such person in accordance with the provisions of this Act.

(4) Where any such rectification has the effect of enhancing the amount of the tax or penalty or interest or reducing the amount of refund, the Commissioner shall recover the amount due from such person in accordance with the provisions of this Act.

(5) Save as provided in the foregoing sub-sections, and subject to such rules as may be prescribed, any assessment or re-assessment made or order passed under this Act or the rules made thereunder by any person appointed under section 66 may be reviewed by such person suo motu or upon an application made in that behalf.]

75.PowerofCommissionerandotherauthoritiestotakeevidenceonoath,etc.

(1) The Commissioner or any person determining objections under section 74 of this Act, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit, in respect of the following matters, namely:—

(a) enforcing the attendance of any person and examining him on oath or affirmation;

(b) compelling the production of accounts and documents; and (c) issuing commissions for the examination of witnesses,

and any proceeding under this Act before the Commissioner or person determining objections under section 74 of this Act shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code, 1860 (45 of 1860).

1 Inserted by DVAT (Amendment) Act, 2009 (Act 1 of 2010) dt. 1-1-2010, w.e.f. 13-1-2010.2 Inserted by DVAT (Second Amendment) Act, 2005, w.e.f. 16-11-2005.


(2) Subject to any rules made in this behalf, the Commissioner or any person determining objections under section 74 of this Act may impound and retain in his custody, any books of accounts or other documents produced before him in any proceedings under this Act until such proceedings are concluded:

PROVIDED that the Commissioner or the person determining an objection under section 74 shall not impound any books of accounts or other documents without recording in writing his reasons for so doing.

76.AppealstoAppellateTribunal (Rules57Ato57C)1[(1) Any person aggrieved by a decision made by the Commissioner under sections

74, 84 and 85 of this Act may appeal to the Appellate Tribunal against such decision: PROVIDED that no appeal may be made against a non-appealable order under

section 79 of the Act. Explanation : The Commissioner does not appeal to the Appellate Tribunal but

may make a re-assessment of tax where he is of the opinion that further tax is owed.] (2) Subject to the provisions of section 77 of this Act, no appeal shall be entertained

unless it is made within two months from the date of service of the decision appealed against.

(3) Every appeal made under this section shall be in the prescribed form, verified in the prescribed manner and shall be accompanied by such fee as may be prescribed.

(4) No appeal against an assessment shall be entertained by the Appellate Tribunal unless the appeal is accompanied by satisfactory proof of the payment of the amount in dispute and any other amount assessed as due from the person:

PROVIDED that the Appellate Tribunal may, if it thinks fit, for reasons to be recorded in writing, entertain an appeal against such order without payment of some or all of the amount in dispute, on the appellant furnishing in the prescribed manner security for such amount as it may direct:

PROVIDED FURTHER that no appeal shall be entertained by the Appellate Tribunal unless it is satisfied that such amount as the appellant admits to be due from him has been paid.

(5) In proceedings before the Appellate Tribunal— (a) the person aggrieved shall be limited to disputing only those matters

stated in the objection; (b) the person aggrieved shall be limited to arguing only those grounds stated

in the objection; and (c) the person aggrieved may be permitted to adduce evidence not presented

to the Commissioner for good and sufficient reasons. (6) The Appellate Tribunal shall— (a) in the case of an assessment, confirm, reduce or annul the assessment

(including any penalty and interest imposed); (b) in the case of any other decision of the Commissioner, affirm or reject the

decision; or (c) pass such other order for the determination of the issue as it thinks fit:

1 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.


PROVIDED that the Appellate Tribunal shall give reasons in writing for its decision which shall include its findings on material questions of fact and the evidence or other material on which those findings were based.

(7) The Appellate Tribunal shall use its best endeavours to make a final resolution of the matter before it and for this purpose may make a decision in substitution for the order in dispute, including the exercise or re-exercise of any discretion or power vested in the Commissioner.

(8) The Appellate Tribunal shall not set aside an assessment and remit the matter to the Commissioner for a further assessment, unless it has first—

(a) advised the aggrieved person of the proposed order; (b) offered the person the opportunity to adduce such further evidence before

it as might assist the Appellate Tribunal to reach a final determination. (9) Where the Appellate Tribunal sets aside an assessment and remits the matter

to the Commissioner for a further assessment, the Appellate Tribunal shall at the same time order the Commissioner to refund to the person some or all of the amount in dispute: PROVIDED that where no order is made, it shall be presumed that the Appellate Tribunal has ordered the refund of the amount in dispute.

(10) Where a person has failed to attend the hearing at the time and place stipulated, the Appellate Tribunal may adjourn the proceedings, strike out the appeal or proceed to make an order determining the objection in the absence of the person.

(11) Save as provided in section 81 of this Act and sub-section (12) of this section, an order passed by the Appellate Tribunal on an appeal shall be final.

(12) The Appellate Tribunal may rectify any mistake or error apparent from the record of its proceedings.

11[(13) Any order passed by the Appellate Tribunal may be reviewed suo motu or upon an application made in this 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.]

77.Extensionofperiodoflimitationincertaincases

(1) The Appellate Tribunal may admit an appeal under section 76 of this Act after the period of limitation laid down in that section, if the appellant satisfies the Appellate Tribunal that he had sufficient cause for not preferring the appeal within such period.

(2) In computing the period laid down under sections 76 and 81 of this Act, the provisions of sections 4 and 12 of the Limitation Act, 1963 (36 of 1963), shall, so far as may be, apply.

(3) In computing the period of limitation prescribed by or under any provision of this Act, or the rules made thereunder, other than section 76 or 81 of this Act, any period during which any proceeding is stayed by an order or injunction of any court shall be excluded.

78. Burden of proof

The burden of proving any matter in issue in proceedings under section 74 of this Act, or before the Appellate Tribunal which relates to the liability to pay tax or any other amount under this Act shall lie on the person alleged to be liable to pay the amount.

Explanation : The burden of proof in criminal prosecutions is unaffected by this section.



79.Baronappealorobjectionagainstcertainorders

(1) No objection or appeal shall lie against— (a) a decision of the Commissioner to make an assessment of tax or

penalty; (b) a notice requiring a person to furnish a return; 1[(c) a notice issued under section 58, section 59 and direction under section

58A of this Act;] (d) a decision of the Commissioner to notify any matter; (e) a notice asking a dealer to show cause why he should not be prosecuted

for an offence under this Act; (f) a decision relating to the seizure or retention of books of account, registers

and other documents; (g) a decision sanctioning a prosecution under this Act; (h) an interim decision made in the course of any proceedings; (i) a decision of the Commissioner touching on the internal administration of

the Value Added Tax Authorities; 2[x x x] (j) [Omitted, by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.] 3[(j)] an assessment issued by the Commissioner to give effect to an order of

the 4[Appellate Tribunal or a court; or] 5[(k) a notice served on the person under sub-section (10) of section 84.]

(in this Act referred to as “non-appealable” orders”). (2) Save as provided in 6[clause (j)] of sub-section (1) of this section, nothing in

sub-section (1) shall prevent the person from objecting to the amount or the obligation to pay any amount assessed by the Commissioner under section 74 of this Act.

80.Assessmentproceedings,etc.nottobeinvalidoncertaingrounds(Rule40)

(1) No assessment, notice, summons or other proceedings made or issued or taken or purported to have been made or issued or taken in pursuance of any of the provisions of this Act or under the earlier law shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such assessment, notice, summons or other proceedings, if such assessment, notice, summons or other proceedings are in substance and effect in conformity with or according to the intent and purposes of this Act or any earlier law.

(2) The service of any notice, order or communication shall not be called in question if the said notice, order or communication, as the case may be, has already been acted upon by the dealer or person to whom it is issued or which service has not been called in question at or in the earliest proceedings commenced, continued or finalised pursuant to such notice, order or communication.

(3) No assessment made under this Act shall be invalid merely on the ground that the action could also have been taken by any other authority under any other provisions of this Act. 1 Substituted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Word “or” omitted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.3 Existing clause (k) relettered as clause (j), vide ibid.4 Substituted for “Appellate Tribunal or a court”, vide ibid.5 Inserted, vide ibid.6 Substituted for “clause (k)” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.


1[81. Appeal to High Court

(1) An appeal shall lie to the High Court from every order passed by the Appellate Tribunal in appeal under this Act, if the High Court is satisfied that the case involves a substantial question of law.

(2) The Commissioner or the other party aggrieved by any order passed by the Appellate Tribunal may file an appeal to the High Court and such appeal under this sub-section shall be—

(a) filed within 60 days from the date on which the order appealed against is received by the Commissioner or 2[served upon] the other party:

3[PROVIDED that the High Court may entertain an appeal after the expiry of the period of sixty days, if it is satisfied that there was sufficient cause for not filing it within that period:]

4[PROVIDED FURTHER that the above proviso shall be deemed to have come into force with effect from the first day of April, 2005.]

(b) in the form of a memorandum of appeal precisely stating therein the substantial question of law involved.

(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.

(4) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question: PROVIDED that nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.

(5) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.

(6) The High Court may determine any issue which— (a) has not been determined by the Appellate Tribunal; (b) has been wrongly determined by the Appellate Tribunal, by reason of a

decision on such question of law as is referred to in sub-section (1). (7) Where an appeal has been filed before the High Court, it shall be heard by a

bench of not less than two judges of the High Court, and shall be decided in accordance with the opinion of such judges or of the majority, if any, of such judges.

(8) Where there is no such majority, the judges shall state the point of law upon which they differ and the case shall, then, be heard upon that point only by one or more of the other judges of the High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it.

(9) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.]

1 Substituted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.3 Inserted vide Notification No. F. 14(5)/LA-2010/Law/359, dt. 31-12-2010, w.e.f. 1-2-2011.4 Inserted by Delhi Act 1 of 2012, w.r.e.f. 1-4-2005.


82.Appearancebeforeanyauthorityinproceedings (Rule64)(1)

Any person, who is entitled or required to attend before any authority in connection with any proceedings under this Act, may attend—

(a) by a person authorised by him in writing in this behalf, being a relative or a person regularly employed by him; or

(b) by a legal practitioner or chartered accountant 1[or cost accountant] 2[or company secretary] who is not disqualified by or under sub-section (2) of this section; or

(c) by a Value Added Tax practitioner who possesses the prescribed qualifications and is entered in the list, which the Commissioner shall maintain in that behalf, and who is not disqualified by or under sub-section (2) of this section.

(2) The Commissioner may, for reasons to be recorded in writing, disqualify for a period from appearing before any such authority, any legal practitioner, 3[chartered accountant, cost accountant, company secretary] or Value Added Tax practitioner—

(a) who has been dismissed from government service; or (b) who, being a legal practitioner or chartered accountant 1[or cost accountant]

2[or company secretary] is found guilty of misconduct in connection with any proceedings under this Act by an authority empowered to take disciplinary action against the members of the profession to which he belongs; or

(c) who, being a Value Added Tax practitioner, is found guilty of such misconduct by the Commissioner.

(3) Any person who is disqualified under this section may, within one month of the date of disqualification, appeal to the Government to have the disqualification cancelled.

(4) The decision of the Commissioner shall not take effect until one month of the making thereof or when an appeal is preferred, until the appeal is decided.

(5) The Commissioner may, at any time, suo moto or on an application made to him in this behalf, revoke any decision made against any person under sub-section (2) of this section and thereupon such person shall cease to be disqualified.

Explanation : A decision made by the Commissioner under this section may also be the subject of an objection under section 74 of this Act.

83.Barofsuitsincivilcourts

No suit shall be brought in any civil court to set aside or modify any assessment made or any order passed under this Act or the rules made thereunder.

84.Determinationofspecificquestions(Rules48&58)(1) If any determinable question arises, otherwise than in proceedings before8

4a court, a person may apply in the prescribed manner to the Commissioner for the determination of that question.

(2) Subject to sub-section (3) of this section, an application for the determination of a determinable question may be made in respect of a proposed transaction, a transaction that is being undertaken, or a transaction has been concluded.

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.2 Inserted by Delhi Act 6 of 2012, dt. 15-6-2012, w.e.f. 18-6-2012.3 Substituted for “chartered accountant”, vide ibid.


(3) An application for the determination of a determinable question may not be made after—

(a) the Commissioner has commenced the audit of the person pursuant to section 58 of this Act; or

(b) the Commissioner has issued an assessment for the tax period in which the transaction that is the subject of the determinable question occurred.

Explanation : For the purposes of this sub-section, the Commissioner shall be deemed to have commenced the audit of a person under section 58 of this Act when the Commissioner serves a notice to this effect.

(4) For the purposes of this section, the following shall be determinable questions:—

(a) whether any person, society, club or association or any firm or any branch or department of any firm is or would be a dealer;

(b) whether any dealer is or would be required to be registered under this Act; \

(c) the amount of the taxable quantum of a dealer for a period; (d) whether a transaction is or would be a sale, or requires an adjustment to

be made under section 8 of this Act arising out of a sale; (e) whether a transaction is or would be in the nature of works contract, or

transfer of right to use any goods; (f) whether a sale is not liable to tax under section 7 of this Act; (g) whether a sale is exempt from tax under section 6 of this Act; (h) the sale price of a transaction; (i) the proportion of the turnover or turnover of purchases of a dealer which

arises in a tax period, and the time at which an adjustment to tax or tax credit arises;

(j) whether any transaction is or would be the import of goods; (k) the value of any goods imported into Delhi; (l) the rate of tax that is payable on a sale or import of goods and the

classification of the goods under the Schedules; (m) whether a transaction is the purchase of goods, or requires an adjustment

to be made under section 10 of this Act arising out of a purchase; (n) the amount of any tax credit to which the dealer is entitled in respect of a

purchase or import of goods; (o) the amount of any tax credit in respect of any used goods purchased by

a dealer; (p) the location of any sale or purchase; (q) the application of a composition scheme in the circumstances of the

dealer; or (r) the tax period of a dealer.

(5) The Commissioner shall make the determination within such period as may be prescribed.

(6) Where— (a) the Commissioner fails to make a determination under this section within

the time prescribed under sub-section (5) of this section; (b) the person thereafter implements the transaction which is the subject of

the application and in the manner described in the application; and (c) the person has, in the application for the determination of the determinable

question, indicated the answer to the determinable question which the person believes to be correct (in this section called the “proposed determination”),


the Commissioner shall be deemed for the purposes of this Act to have made and issued to the person on the day after the expiry of the prescribed period, a determination of the determinable question in the terms of the proposed determination.

(7) The Commissioner may— (a) direct that the determination shall not affect the liability of any person

under this Act with respect to any transaction effected prior to the determination;

(b) limit the period for which the determination will apply; (c) limit the transactions to which the determination will apply; and (d) impose such other limitations or restrictions on the determination as seem

appropriate. (8) If any such question arises from any order already passed under this Act or

under the Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) or the Delhi Tax on Entry of Motor Vehicles into Local Areas Act, 1994 (Delhi Act 4 of 1995), as then in force in Delhi, no such question shall be entertained for determination under this section but such question may be raised in an objection or appeal against such order.

(9) Where— (a) the Commissioner has issued to a person a determination in respect of a

particular transaction; and (b) the person implements the transaction based on the determination issued

to him under this section and in the manner described in the application, no assessment may be raised by the Commissioner against that person which is inconsistent with the determination and no penalty may be imposed on the person if the determination is later held incorrect.

(10) The Commissioner may, by notice served on the person, withdraw or qualify a determination issued under this section but such withdrawal or qualification shall not affect the entitlement of any person to rely on the determination with respect to any transaction or action which he has commenced or which he has completed prior to the withdrawal or qualification.

85.Rulingongeneralquestions

(1) The Commissioner may, by notification in the Official Gazette, publish h8i5s ruling on the answer to any question involving the interpretation of this Act or application of this Act to a class of persons or class of transactions.

(2) A ruling issued by the Commissioner under this section may be issued subject to such restrictions and conditions as the Commissioner may deem fit.

(3) The ruling shall be treated as coming into effect on the date stated in the ruling (which may be a date prior to the publication of the ruling) or, if no date is stated in the ruling, on the date of publication of the Official Gazette.

(4) Where— (a) the Commissioner has published a ruling in respect of a class of persons

or transactions; (b) a person implements a transaction or undertakes any action based on the

ruling; (c) the ruling has, at the time of implementing the transaction or undertaking

the action, not been withdrawn by the Commissioner; and (d) according to the terms of the ruling, the ruling purports to apply to the

transaction or action undertaken by the person,


no assessment which is inconsistent with the ruling, may be raised by the Commissioner against that person and no penalty may be imposed on the person if the ruling is later held incorrect.

Explanation : A person may rely on the Commissioner’s ruling or on the determination made under section 84 of this Act.

(5) The Commissioner may, by notification published in the Official Gazette, withdraw or qualify a ruling already issued under this section but such withdrawal or qualification shall not affect the entitlement of any person to rely on the ruling with respect to any transaction or action commenced or completed by him prior to such withdrawal or qualification.

CHAPTER XIII PENALTIES AND OFFENCES

86.Penalties1[(1) In this section “tax deficiency” means the difference between the tax properly

payable by the person in accordance with the provisions of this Act and the amount of tax paid by the person in respect of a calendar month.

Explanations - 1. ‘Tax properly payable’ includes the amount of tax under section 32 of the ‘Act’

2. Due tax paid after the period specified in sub-section (4) of section 3 of the Act, is also a tax deficiency.]

(2) The Government may, from time to time, if it deems it necessary, vary the amount of any penalty due under this section by a notification to that effect in the Official Gazette:

PROVIDED that any penalty which is increased under this section shall have effect only for offences or failures occurring after the date of such notification:

2[Deleted](3) Where two or more penalties arise under this Act in respect of the same

conduct of a person, the person shall be liable to pay only the greater penalty. 3[(4) Where a person who is required to be registered under this Act has failed to

apply for registration within one month from the day on which the requirement arose, the person shall be liable to pay, by way of penalty, an amount equal to one thousand rupees per day, from the day immediately following the expiry of the said period until the person makes an application for registration in the prescribed form, containing such particulars and information and accompanied by such fee, security and other documents as may be prescribed:

PROVIDED that the amount of penalty payable under this sub-section shall not exceed one lakh rupees.]

(5) If, a registered dealer fails to comply with the provisions of sub-section (1) of section 21 of this Act, the person shall be liable to pay, by way of penalty, a sum of 1 Substituted by DVAT (Second Amendment) Act, 2013 (5 of 2013), w.e.f. 12.09.2013. Earlier sub-

section (1) read as under:(1) In this section “tax deficiency” means the difference between the tax properly payable by the person in accordance with the provisions of this Act and the amount of tax paid by the person in respect of a tax period.

2 Deleted vide DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.09.2013. Earlier the 2nd proviso read as: [PROVIDED FURTHER that the penalty imposed under this section can be remitted where a person is able to prove existence of a reasonable cause for the act or omission giving rise to penalty during objection proceedings under section 74 of this Act.]

3 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.


1[five] hundred rupees per day of default subject to a maximum of 2[ten] thousand rupees.

(6) If a registered dealer— (a) fails to comply with the provisions of sub-section (2) of section 22 of this

Act; or (b) fails to surrender his certificate of registration as provided in sub-section

(7) of section 22 of this Act, the registered dealer shall be liable to pay, by way of penalty, a sum equal to one 3[thousand] rupees for every day of default subject to a maximum of 4[twenty five] thousand rupees.

(7) If any person falsely represents that he is registered as a dealer under this Act, he shall be liable to a penalty equal to the amount of tax wrongly collected or one lakh rupees, whichever is the greater.

(8) Where a person— (a) has applied for registration under sub-section (4) of section 18 of this Act;

(b) has been registered, and either— (i) has failed to undertake activities which would make the person

a dealer within the period specified in his application; or (ii) has failed to comply with any of the restrictions or conditions

subject to which such registration was granted, the person shall be liable to pay a penalty of ten thousand rupees.

5[(9) If a person required to furnish a return under Chapter V or to comply with a requirement in a notification issued under section 70 of this Act—

(a) fails to furnish any return by the due date; or (b) fails to furnish with a return any other document that is required to be

furnished with the return; or (c) being required to revise a return already furnished, fails to furnish the

revised return by the due date, or (d) fails to comply with a requirement in a notification issue under section

70;the person shall be liable to pay, by way of penalty, a sum of five hundred rupees per day from the day immediately following the due date until the failure is rectified:

PROVIDED that the amount of penalty payable under this sub-section shall not exceed fifty thousand rupees.]

1 Substituted for the word ‘one’ by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12-09-2013.2 Substituted for the word ‘five’ by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12-09-2013.3 Substituted for the word ‘hundred’ by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12-09-2013.4 Substituted for the word ‘five’ by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12-09-2013.5 Substituted by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12-09-2013. Earlier sub-section

(9) read as: (9) If a person required to furnish a return under Chapter V of this Act—

(a) fails to furnish any return by the due date; or (b) fails to furnish with a return any other document that is required to be furnished with the

return; or (c) being required to revise a return already furnished, fails to furnish the revised return

by the due date, the person shall be liable to pay, by way of penalty, a sum of one hundred rupees per day from the day immediately following the due date until the failure is rectified:

PROVIDED that the amount of penalty payable under this sub-section shall not exceed ten thousand rupees.]


(10) Any person who— (a) furnishes a return under this Act which is false, misleading or deceptive in

a material particular; or (b) omits from a return furnished under this Act any matter or thing without

which the return is false, misleading or deceptive in a material particular, shall be liable to pay, by way of penalty, a sum of ten thousand rupees or the amount of the tax deficiency, whichever is the greater.

(11) Any dealer who— (a) has claimed tax credit under section 14 of this Act to which he is not

entitled; or (b) has claimed a greater tax credit under section 14 than is allowed, shall

be liable to pay, by way of penalty, an amount equal to the amount of tax credit so claimed or ten thousand rupees, whichever is the greater.

(12) Where a tax deficiency arises in relation to a person, the person shall be liable to pay, by way of penalty, a sum equal to one per cent of the tea deficiency per week or a sum equal to rupees one hundred per week, whichever is higher, for the period of default.

(13) Where a person is required under this Act to— (a) prepare records or accounts; or (b) prepare records or accounts in a prescribed manner; or 1[(c) retain prescribed or notified records or accounts; and the person–

(i) fails to prepare the prescribed or notified records and accounts; or (ii) fails to prepare prescribed or notified records and accounts in the

prescribed manner; or (iii) fails to retain the prescribed or notified records and accounts for the

prescribed period; or (iv) fails to retain and/or produce the prescribed or notified records

at the principal place of business as recorded in his certificate of registration; or

(v) fails to comply with the direction issued or fails to produce prescribed or notified records and accounts, or cause them to be produced, on or before the date specified in any notice served on him by the Commissioner or by an accountant or a panel of accountant or any other professional or panel of professionals nominated by the Commissioner in this behalf under sub-section (1) of section 58A;

the person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees or twenty percent of the tax deficiency, if any, whichever is greater. ]

(14) Any person who fails to comply with the requirement under sub-section (2) or sub-section (3) of section 59 of this Act shall be liable to pay, by way of penalty, a sum of fifty thousand rupees.

(15) Where a person who is required to prepare records and accounts under this Act, prepares records and accounts in a manner that is false, misleading or deceptive,

1 Substituted by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12.09.2013. Earlier read as:(c) retain records or accounts, and the person—

(i) fails to prepare the required records and accounts; or (ii) fails to prepare records and accounts in the prescribed manner; or (iii) fails to retain the records and accounts for the prescribed period,

the person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees or twenty percent of the tax deficiency, if any, whichever is greater.


the person shall be liable to pay, by way of penalty, a sum of one lakh rupees or the amount of the tax deficiency, if any, whichever is greater.

(16) Where a person— (a) has issued a tax invoice or retail invoice with incomplete or incorrect

particulars; or (b) having issued a tax invoice or retail invoice, has failed to account it

correctly in his books of account, the person shall be liable to pay, by way of penalty, an amount of five thousand rupees or twenty percent of the tax deficiency, if any, whichever is greater.

(17) Where a person who is not authorised under this Act to issue a tax invoice has issued a tax invoice for a sale, the person shall be liable to pay, by way of penalty, an amount of one lakh rupees or the tax deficiency, if any, whichever is greater.

1[(18) If, any dealer fails to comply with the provisions of section 49 of this Act, the dealer shall be liable to pay, by way of penalty, a sum equal to one percent of his turnover or a sum of one lakh rupees, whichever is less.]]

(19) Where goods are being carried by a transporter without the documents or without proper and genuine documents or without being properly accounted for in the documents referred to in sub-section (2) of section 61 of this Act, the transporter shall be liable to a penalty equal to 2[3[twenty] paise in a rupee for the value of such goods].

(20) Any person who— (a) makes a statement to the Commissioner which is false, misleading or

deceptive in a material particular; or (b) omits from a statement made to the Commissioner any matter or thing

without which the statement is false, misleading or deceptive in a material particular,

the person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees, or the amount of the tax deficiency, whichever is greater.

4[(21) Where a casual trader who is required to be registered under this Act has failed to apply for registration within stipulated period, the casual trader shall be liable to pay, by way of penalty, an amount equal to five thousand rupees per day, from the day immediately following the expiry of the due date until the person makes an application for registration under this Act:

PROVIDED that the amount of penalty payable under this sub-section shall not exceed one lakh rupees.

(22) If a casual trader required to furnish a return under this Act— (a) fails to furnish any return by the due date; or (b) fails to furnish with a return any other document that is required to be

furnished with the return, the person shall be liable to pay, by way of penalty, a sum of one thousand rupees per day from the day immediately following the due date until the failure is rectified:

PROVIDED that the amount of penalty payable under this sub-section shall not exceed 5[twenty five] thousand rupees.

1 Substituted by Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013. Prior to substitution, it read as under:

“(18) If any dealer fails to comply with the provisions of section 49 of this Act, the dealer shall be liable to pay, by way of penalty, a sum of ten thousand rupees.”

2 Substituted for “the amount of tax payable on such goods”, vide ibid.3 Substituted for the word “forty” by DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.09.20134 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.5 Substituted for the word “ten” by DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.09.2013


(23) Where 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 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.]

1[(24) Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided under the Act, shall be liable to pay a penalty of ten thousand rupees.]

Explanation : The liability to pay a penalty and the amount of the penalty may be the subject of an objection under section 74 of this Act.

87. Automaticmitigationandincreaseofpenalties(1) Where as a result of any proceedings the amount of tax with respect to which

a penalty was levied has been wholly reduced, the penalty levied shall be cancelled and if the penalty has been paid, it shall be refunded.

(2) If— (a) a person is liable to pay a penalty under 2[x x x] sub-section (12) of section

86 of this Act; and (b) the person voluntarily discloses to the Commissioner in writing the

existence of the tax deficiency before the Commissioner informs the person that an audit of the person’s tax obligations is to be carried out,

the amount of the penalty otherwise due shall be reduced by eighty per cent of the penalty.

(3) If— (a) a person is liable to pay a penalty under 1[x x x] sub-section (12) of

section 86 of this Act; and (b) the person voluntarily discloses to the Commissioner in writing the

existence of the tax deficiency after the Commissioner informs the person that an audit of the person’s tax obligations is to be carried out,

the amount of the penalty due shall be reduced by fifty per cent of the penalty. (4) If—

(a) a person is liable to pay a penalty under 3[x x x] sub-section (12) of section 86 of this Act;

1 Inserted by DVAT (Amendment) Act, 2013 (5 of 2013), w.e.f. 12.09.20132 Words, brackets and letters “clause (b), (c) or (d) of” omitted by DVAT (Amendment) Act, 2005 (5 of

2005), w.e.f. 1-4-2005.3 Words, brackets and letters “clause (b), (c) or (d) of” omitted by DVAT (Amendment) Act, 2005 (5 of

2005), w.e.f. 1-4-2005.


(b) the tax deficiency arose because the person treated this Act as applying to the person in a particular way; and

(c) the decision to adopt that treatment was made by the person relying on a determination given to the person by the Commissioner under section 84 of this Act or a ruling issued by the Commissioner under section 85 of this Act, the amount of the penalty otherwise due shall be reduced to nil.

(5) Where— (a) penalty under this Act has been assessed; (b) the penalty has not been remitted in full after objection; and (c) the person is subsequently assessed to a further penalty in respect of the

same or a substantially similar failure occurring on another occasion (in this section called the “subsequent offence”), the penalty otherwise due under this Act shall be increased by—

(i) in the case of the first subsequent offence, fifty percent of the specified penalty; and

(ii) in the case of the second and any further subsequent offence, one hundred per cent of the specified penalty.

1[(6) If— (a) a person is liable to pay penalty under section 86 of this Act; and (b) the person voluntarily discloses to the Commissioner, in writing, the

existence of the tax deficiency, during the course of proceedings under section 60; and

(c) makes payment of such tax deficiency within three working days of the conclusion of the said proceedings, the amount of the penalty otherwise due, against the admitted and paid tax, shall be reduced by eighty per cent.]

88.Relationshiptoassessmentandimpactoncriminalpenalties

(1) The penalties specified under this Act are owed notwithstanding that no assessment of tax owed under this Act has been made.

(2) Any penalty imposed under this Act shall be without prejudice to any prosecution for any offence under this Chapter.

89.Offencesandcriminalpenalties

(1) Whoever— (a) not being a registered dealer, falsely represents that he is or was a

registered dealer at the time when he sells or buys goods; (b) knowingly keeps false account or does not keep the account of the value

of the goods bought or sold by him in contravention of section 48; or (c) issues to any person a false invoice, bill, cash-memorandum, voucher

or other document which he knows or has reason to believe to be false, shall, on conviction, be punished with rigorous imprisonment for a term which may extend to six months, and with a fine.

(2) Whoever knowingly— (a) furnishes a false return; (b) produces before the Commissioner, false bill, cash-memorandum,

1 Inserted by the Delhi VAT (Amendment) Act, 2013 (1 of 2013), dt. 28-3-2013, w.e.f. 1-4-2013.


voucher, declaration, certificate, tax invoice or other document for claiming deduction on tax credit; or

(c) produces false accounts, registers or documents or knowingly furnishes false information, shall—

(i) in case where the amount of tax which could have been evaded if the false return, bill, cash-memorandum, voucher, declaration, certificate, tax invoice or other document for claiming deduction on tax credit, accounts, registers or documents or false information, as the case may be, had been accepted as true exceeds fifty thousand rupees, with rigorous imprisonment for a term which may extend to six months; and

(ii) in any other case, with rigorous imprisonment for a term which may extend to six months, and with a fine.

(3) Whoever, wilfully attempts, in any manner whatsoever, to evade payment of tax, penalty or interest or all of them under this Act, shall, on conviction, be punished—

(a) in any case where the amount involved exceeds fifty thousand rupees during the period of a year, with rigorous imprisonment for a term which may extend to six months, and with a fine; and

(b) in any other case, with rigorous imprisonment for a term which may extend to six months, and with a fine.

(4) Whoever— (a) carries on business as a dealer without being registered in wilful

contravention of sub-section (1) of section 18 of this Act; (b) fails without sufficient cause to furnish any information required under

section 21 of this Act; (c) fails to surrender his certificate of registration as provided in sub-section

(7) of section 22 of this Act; (d) fails without sufficient cause to furnish any returns as required under

section 27 of this Act by the date or in the manner prescribed; (e) without reasonable cause, contravenes any of the provisions of section

40 of this Act; (f) without sufficient cause fails to issue invoice as required under section 50

of this Act; (g) fails without sufficient cause, when directed so to do under section

48 of this Act to keep any accounts or record, in accordance with the directions;

(h) fails without sufficient cause, to comply with any requirements made of him under 1[sections 58, 58A or 59] of this Act, or obstructs any officer making inspection or search or seizure under sections 60 and 61 of this Act;

(i) obstructs or prevents any officer performing any function under Chapter X of this Act;

(j) being owner in charge of a goods vehicle fails, neglects or refuses to comply with any of the requirements contained in section 61 of this Act; or

1 Substituted for the words and figures “section 59” vide DVAT (Amendment) Act, 2013 (5 of 2013). w.e.f. 12.09.2013.


(k) interferes with or obstructs the Commissioner or any officer exercising any other power conferred under this Act, shall, on conviction, be punished with imprisonment for a term which may extend to six months, and with a fine.

(5) Whoever aids or abets any person in the commission of any act specified in sub-sections (1) to (3) of this section shall, on conviction, be punished with rigorous imprisonment which may extend to six months, and with a fine.

(6) Whoever commits any of the acts specified in sub-sections (1) to (5) of this section and the offence is a continuing one under any of the provisions of these sub-sections, shall, on conviction, be punished with a fine of not less than one hundred rupees per day during the period of the continuance of the offence, in addition to the punishments provided under this section.

1[(7) Notwithstanding anything contained in sub-sections (1) to (5) of this section, no person shall be proceeded under these sub-sections if

(a) the total amount involved is less than two hundred rupees during the period of a year; or

(b) the person has voluntarily disclosed existence of tax deficiency under sub-section (6) of section 87 of the Act.]

(8) Where a dealer is accused of an offence specified in sub-section (1), (2) or (3) or in clauses (a), (b), (c), (d), (e), (f), (g), (h) and (i) of sub-section (4), or sub-section (6) of this section the person deemed to be the manager of the business of such dealer under section 95 shall also be deemed to be guilty of such offence, unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission thereof.

90.Offencesbycompanies,etc.(1) Where an offence under this Act or the rules has been committed by a

company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

PROVIDED that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1) of this section, where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation : For the purpose of this section— (a) “company” means a body corporate, and includes a firm or other

association of individuals; and (b) “director” in relation to a firm means a partner in the firm.

1 Substituted by DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.09.2013. Earlier read as(7) Notwithstanding anything contained in sub-sections (1) to (5) of this section, no person

shall be proceeded under these sub-sections if the total amount involved is less than two hundred rupees during the period of a year.


(3) Where an offence under this Act has been committed by a Hindu Undivided Family, the Karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

PROVIDED that nothing contained in this sub-section shall render the Karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence:

PROVIDED FURTHER that where an offence under this Act has been committed by a Hindu Undivided Family and it is proved that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of any adult member of the Hindu Undivided Family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

91.Cognizanceofoffences(1) No court shall take cognizance of any offence under this Act or rules mad91e

thereunder except with the previous sanction of the Commissioner, and no court inferior to that of a Metropolitan Magistrate shall try any such offence.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) all offences punishable under this Act or the rules made thereunder shall be cognizable and bailable.

92.Investigationofoffences (Rule50)(1) Subject to such conditions as may be prescribed, the Commissioner may

authorise either generally or in respect of a particular case or class of cases any officer or person subordinate to him to investigate all or any of the offences punishable under this Act.

(2) Every officer or person so authorised shall, in the conduct of such investigation, exercise the powers conferred by the Code of Criminal Procedure, 1973 (2 of 1974) upon an officer in charge of a police station for the investigation of a cognizable offence.

93.Compoundingofoffences(1) The Commissioner may, before the institution of proceedings for any offence

punishable under sub-section (4) of section 89 of this Act or under any rules made under this Act, accept from any person charged with such offence by way of composition of offence, a sum not exceeding fifty thousand rupees or a sum not exceeding three times the amount of tax which would thereby have been avoided, whichever is higher.

(2) On payment of such sum as may be determined by the Commissioner under sub-section (1) of this section, no further proceedings shall be taken against such person in respect of the same offence.

94. Chapter XXXVI of the Code of Criminal Procedure, 1973, not to apply to certainoffences

Nothing in Chapter XXXVI of the Code of Criminal Procedure, 1973 (2 of 197944) shall apply to—

(a) any offence punishable under this Act; or

(b) any other offence which under the provisions of that Code may be tried along with such offence, and every offence referred to in clause (a) or clause (b) above may be taken cognizance of by the court having jurisdiction under this Act as if the provisions of that Chapter were not enacted.


CHAPTER XIV MISCELLANEOUS

95. 1[Dealer todeclare thenameofmanagerofbusiness,PermanentAccount NumberandIEC(ImporterExporterCode)] (Rule18)

(1) Every dealer being a Hindu Undivided Family or an association of persons or club or society or firm or company or any person or body who is engaged in business as the guardian or trustee or otherwise on behalf of another person, and who is liable to pay tax under this Act, shall, within the period prescribed, furnish a declaration in the manner prescribed, stating the name of the person or persons who shall be deemed to be the manager or managers of such person’s business for the purposes of this Act.

(2) The declaration furnished under sub-section (1) of this section may be revised from time to time as required.

2[(3) Every dealer at the time of applying for registration under this Act shall mention the Permanent Account Number (PAN) obtained under the Income Tax Act, 1961 (43 of 1961):

PROVIDED that the dealers already registered under the Act shall intimate Permanent Account Number (PAN) obtained under the Income Tax Act, 1961 (43 of 1961) in the prescribed form, within two months of notification of the amendment.

(3A) Every dealer liable to pay tax under this Act and having an IEC (Importer Exporter Code) under the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992), shall mention the IEC (Importer Exporter Code), at the time of applying for registration under this Act:

PROVIDED that the dealers already registered under the Act and having IEC (Importer Exporter Code) under the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992) shall intimate the details in the prescribed form, within two months of notification of this amendment:

PROVIDED FURTHER that every dealer registered under the Act, who obtains an IEC (Importer Exporter Code) under the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992), subsequently shall provide the IEC details in the prescribed form, within 15 days of obtaining the IEC.]

3[(4) Any person who falls to furnish a declaration or, as the case may be, a revised declaration as provided in sub-section (1) and sub-section (2) of this section or fails to provide details of the Permanent Account Number obtained under the Income Tax Act,

1 Substituted for existing title “Dealer to declare the name of manager of business and permanent account number” by DVAT (4th Amendment) Act, 2012 (14 of 2012), w.e.f. 16-1-2013.

2 Substituted, vide ibid. Prior to substitution, sub-section (3) read as under: “(3) Every dealer liable to pay tax under this Act who is liable to obtain a Permanent Account Number

(PAN) under the Income Tax Act, 1961 (43 of 1961), shall communicate to the Commissioner, in the prescribed time and manner, the said number if he has obtained the same and, in any other case, shall state whether he has applied for the same and provide the details of the application”.

3 Substituted by DVAT (4th Amendment) Act, 2012 (14 of 2012), w.e.f. 16-1-2013. Prior to substitution, sub-section (4) read as under:

“(4) Any person who fails to furnish a declaration or, as the case may be, a revised declaration as provided in sub-section (1) and sub-section (2) of this section or fails to communicate the permanent account number obtained under the Income Tax Act, 1961 (43 of 1961) or, as the case may be, fails to state, whether he has applied for the same and fails to provide the details of the application, as provided in sub-section (3) of this section, shall be liable to pay by way of penalty, a sum of ten thousand rupees”


1961 (43 of 1961), as provided in sub-section (3) of this section or fails to provide the IEC (Importer Exporter Code) under the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992) as provided in sub-section (3A) of this section, shall be liable to pay, by way of penalty, sum equal to Rupees one thousand per week of default subject to a maximum of fifty thousand rupees.]

96.Serviceofnoticewhenfamilyisdisruptedorfirmisdissolved (Rule62)

(1) Where a Hindu Undivided Family has been partitioned, notices under this Act shall be served on the person who was the last manager of the Hindu Undivided Family, or if such person cannot be found, then, on all adults who were members of the Hindu Undivided Family, immediately before the partition.

(2) Where a firm or an association of persons is dissolved, notices under this Act may be served on any person who was a partner (not being a minor) of the firm or member of the association, as the case may be, immediately before its dissolution.

97.Serviceofnoticeinthecaseofdiscontinuedbusiness (Rule62)

Where an assessment is to be made in respect of business which has been discontinued, a notice under this Act shall be served in the case of a firm or an association of persons or any person who was a member of such firm or association at the time of its discontinuance or in the case of a company on the principal officer thereof. 98. Returns, etc. to be confidential

(1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act, other than proceedings before a criminal court, shall, save as provided in sub-section (3) of this section, be treated as confidential, and notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no court shall, save as aforesaid, be entitled to require any servant of the Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.

(2) If, save as provided in sub-section (3) of this section, any servant of the Government discloses any of the particulars referred to in sub-section (1) of this section, he shall be punishable with imprisonment which may extend to six months, and shall also be liable to a fine.

(3) Nothing in this section shall apply to the disclosure—

(a) of any of the particulars referred to in sub-section (1) of this section for the purposes of investigation or prosecution under this Act or the Indian Penal Code, 1860 (45 of 1860) or any other enactment for the time being in force;

(b) of such facts to an officer of the Central Government or any State Government as may be necessary for verification of such facts or for the purposes of enabling that Government to levy or realise any tax imposed by it;

(c) of any such particulars where such disclosure is occasioned by the lawful employment under this Act of any process for the service of any notice or the recovery of any demand;

(d) of any such particulars to a civil court in any suit or proceeding to which the Government or any Value Added Tax Authority is a party and which


relates to any matter arising out of any proceeding under this Act or under any other law for the time being in force authorising any Value Added Tax Authority to exercise any powers thereunder;

(e) of any such particulars by any public servant where the disclosure is occasioned by the lawful exercise by him of his powers under the Indian Stamp Act, 1899 (2 of 1899) to impound an insufficiently stamped document;

(f) of any such particulars to the Reserve Bank of India as are required by that Bank to enable it to compile financial statistics of international investment and balance of payment;

(g) of any such particulars to any officer appointed by the Comptroller and Auditor-General of India for purpose of audit of tax receipts or refunds;

(h) of any such particulars relevant to any inquiry into a charge of misconduct in connection with income-tax proceedings against a legal practitioner or chartered accountant, to the authority empowered to take disciplinary action against members of the profession to which he belongs;

(i) of such particulars to the officers of the Central Government or any State Government for such other purposes, as the Government may, by general or special order, direct; or

(j) of any information relating to a class of dealers or class of transactions, if, in the opinion of the Commissioner it is desirable in the public interest to publish such information.

99.Publicationanddisclosureof information in respectof dealers andother personsinpublicinterest

(1) Notwithstanding anything contained in this Act, if the Government is of th99e opinion that it is necessary or expedient in the public interest to publish or disclose the names of any dealers or other persons and any other particulars relating to any proceedings under this Act in respect of such dealers and persons, it may publish or disclose or cause to be published or disclosed such names and particulars in such manner as it thinks fit.

(2) No publication or disclosure under this section shall be made in relation to any tax levied or penalty imposed or interest levied or any conviction for any offence connected with any proceeding under this Act, until the time for presenting an appeal to the appropriate appellate body has expired without an appeal having been presented or the appeal, if presented has been disposed of.

Explanation : In the case of a firm, company or other association of persons, the names of the partners of the firm, the directors, managing agents, secretaries, treasurers or managers of the company or the members of the association, as the case may be, may also be published or disclosed, if, in the opinion of the Government, the circumstances of the case justify it.

100.Powertocollectstatistics (Rule67)

(1) If the Commissioner considers that for the purposes of the better administration of this Act it is necessary so to do, he may by notification in the Official Gazette, direct


that statistics be collected relating to any matter dealt with, by or in connection with this Act.

(2) Upon such direction being made, the Commissioner or any person or persons authorised by him in this behalf may call upon all dealers or any class of dealers or persons to furnish such information or statements as may be stated therein relating to any matter in respect of which statistics are to be collected and the form in which the persons to whom or, the authorities to which, such information or returns should be furnished, the particulars which they should contain, and the intervals in which such information or returns should be furnished, shall be such as may be prescribed: PROVIDED that the call for information may be made by notification in the Official Gazette, by notice in newspapers or in such other manner as, in the opinion of the Commissioner or the said person, is best calculated to bring to the attention of dealers and other persons.

(3) Without prejudice to the generality of the foregoing provisions, the Government may by rules provide that every dealer or, as the case may be, any class of dealers shall furnish such statements as may be prescribed, with the self-assessment, and different provisions may be made for different classes of dealers. 1[100 A. Automation

(1) The Government may, by notification in the Official Gazette, provide that the provisions contained in the Information Technology Act, 2000 (21 of 2000), as amended from time to time, and the rules made and directions given under that Act, including the provisions relating to digital signatures, electronic governance, attributation, acknowledgement and dispatch of electronic records, secure electronic records and secure digital signatures and digital signature certificates as are specified in the said notification, shall, insofar as they may, as far as feasible, apply to the procedures under this Act.

(2) Where a notice or communication is prepared on any automated data processing system and is properly served on any dealer or person, then, the said notice or communication shall not be required to be personally signed by the Commissioner or any other officer subordinate to him, and the said notice or communication shall not be deemed to be invalid only on the ground that it is not personally signed by the Commissioner.]

101.Settingupofcheck-postsandbarriers (Rule66)

The Government may, by notification in the Official Gazette, set up check-posts or barriers, or both, at any place in Delhi with a view to preventing evasion of tax and other dues payable under this Act.

102.Powertomakerules

(1) The Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for—

(a) documents, testimony or other evidence constituting adequate proof under this Act;

(b) services which may constitute business under clause (i) of sub-clause (d) of sub-section (1) of section 2 of this Act;



(c) activities referred to under clause (ii) of sub-clause (j) of sub-section (1) of section 2 of this Act;

(d) tax period referred to under sub-clause (zi) of sub-section (1) of section 2 of this Act;

(e) time within which the return may be furnished; (f) the further period referred to under sub-section (6) of section 3 of this

Act; (g) the conditions and method subject to which the amount to be included in

the turnover of a dealer engaged in works contract may be determined under section 5 of this Act;

(h) conditions subject to which the dealers specified under the Fifth Schedule may be exempt from payment of tax under section 6 of this Act;

1[(ha) the conditions subject to which a dealer can make adjustments to tax in relation to the sale of goods under section 8 of this Act;]

(i) the method to be used by a dealer to calculate the amount of tax credit under section 9 or section 10 of this Act;

(j) the time at which the turnover, turnover of purchase or adjustment of tax or tax credit may arise under sub-section (4) of section 12 of this Act;

(k) form of statements, manner, conditions and restriction subject to which credit may be claimed for stock brought forward during transition under section 14 of this Act;

(l) the circumstances and the conditions subject to which, a dealer may be permitted to pay tax by way of composition under section 16 of this Act;

1[(la) the procedure and forms relating to casual dealers under section 16A of this Act;]

(m) the procedure for and other matters incidental to registration of dealers under section 19 of this Act;

(n) form in which the statement of trading stock is to be furnished under sub-section (2) of section 20 of this Act;

(o) the amount of tax credit allowed to a dealer under sub-section (3) of section 20 of this Act;

(p) matters relating to amendment of registration certificate under section 21 of this Act;

(q) matters relating to cancellation of registration certificate under section 22 of this Act;

(r) the conditions, amount, manner, time within which and other matters incidental to the security required under section 25 of this Act;

(s) the manner in which, the time by when, the information to be included and the form in which the returns under section 26 or section 27 of this Act are to be furnished;

(t) the manner in which any tax, interest, penalty or any other amount due under this Act is to be paid;

1 Inserted by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.


(u) the restrictions and conditions subject to which and the manner and the time within which the application for refund may be made under section 41 of this Act;

1[(ua) the manner and the form in which the recovery certificate under section 43 of this Act is to be served and the amount mentioned in the said certificate is to be recovered;]

(v) the manner and form in which the accounts and records are to be prepared under sub-section (3) of section 48 of this Act;

(w) the turnover, the form of the audit report, the particulars to be set forth in such report and the time of furnishing such report under section 49 of this Act;

(x) the amount referred to in sub-section (4) of section 50 or the conditions and restrictions referred to in sub-section (8) of section 50 of this Act;

(y) the particulars to be contained in the debit or credit notes under section 51 of this Act;

(z) the conditions subject to which the Commissioner may require any person to produce records, books of account, registers and other documents, answer questions or prepare and furnish additional information under sub-section (2) of section 59 of this Act;

(za) records that an owner or person in charge of a goods vehicle shall carry with him in respect of the goods carried in the goods vehicle under sub-section (2) of section 61 of this Act and form, manner and amount of security under sub-section (5) of section 61 of this Act;

(zb) the manner in which an auction of goods or a goods vehicle shall be carried out under section 63 of this Act;

(zc) the restrictions and conditions subject to which the Commissioner may delegate his powers, and the form of evidence of such delegation under section 68 of this Act;

2[(zd) Deleted.]3[(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;]

(zf) the form and manner in which appeals may be filed under section 76 of this Act, the manner in which such appeals shall be verified and the fees payable in respect thereof;

(zg) amount of fee under section 81 of this Act; (zh) qualifications to be possessed by a Value Added Tax practitioner under section 82 of this Act;

(zi) manner in which an application may be made and the period within which the determination shall be made under section 84 of this Act;

(zj) conditions subject to which, the Commissioner may authorise any officer or person subordinate to him to conduct investigations under section 92 of this Act;

1 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.2 Deleted by DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.09.2013. Earlier clause (zd) read as:

amount of fine prescribed under sub-section (5) of section 70 of this Act;3 Substituted by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005. Prior to

substitution, clause (ze) read as under: “(ze) the form and manner in which an objection may be made under section 74 of this Act;”


(zk) period within which and the manner in which 1[the declaration or the communication] under section 95 of this Act is to be furnished;

(zl) the manner in which, and the time within which, applications shall be made (including fees payable in respect thereof), information furnished, securities given and notices served under this Act;

(zm) any other matter which is required to be, or may be, prescribed. 2[(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.]

(3) In making any rules under this section, the Government may direct that a breach thereof shall be punishable with fine not exceeding five thousand rupees and, when the offence is a continuing one, with a fine not exceeding two hundred rupees per day during the continuance of such offence.

(4) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Assembly of Delhi, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the House agrees in making any modification in the rule or the House agrees that the rule should not be made, the rule shall have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 3[103.PowertoamendSchedules

(1) If the Government is of opinion that it is expedient in the interest of general public so to do, it may, by notification in the Official Gazette, add to, or omit from, or otherwise amend, the First, the Second, the Third, the Fourth, the Fifth, the Sixth, or the Seventh Schedules, either retrospectively or prospectively, and thereupon the said Schedules shall be deemed to have been amended accordingly : PROVIDED that no such amendment shall be made retrospectively if it would have the effect of prejudicially affecting the interests of a dealer.

(2) The Commissioner may, on the recommendation of the Ministry of External Affairs, Government of India, if he is of opinion that it is expedient in the interest of general public so to do, by a notification in the Official Gazette, add to, or omit from, or otherwise amend, the Sixth Schedule.]

104.Powertoremovedifficulties (Rules60&61)

(1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, by general or special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for the removal of the difficulty:

PROVIDED that no such order shall be made after the expiration of two years from the commencement of this Act.

(2) Every order made under sub-section (1) of this section shall be laid, as soon as may be after it is made, before the Legislative Assembly of Delhi.

1 Substituted for “the declaration” by DVAT (Second Amendment) Act, 2005 (10 of 2005), w.e.f. 16-11-2005.

2 Inserted, vide ibid.3 Substituted by DVAT (Amendment) Act, 2009 (Act No. 1 of 2010), dt. 1-1-2010, w.e.f. 13-1-2010.


105.Applicationtosalesandpurchases (Rules7B&30A)

(1) The tax imposed by section 3 of this Act applies to every— (a) sale, including an instalment sale and hire purchase of goods, made on

and after 1st April, 2005; (b) sale in the form of the transfer of a right to use goods, to the extent that

the right to use goods is exercised after 1st April, 2005. (2) Tax credits arising under section 9 of this Act shall be allowed only for—

(a) a purchase, including a purchase under an instalment sale and hire purchase of goods, made on and after 1st April, 2005; and

(b) a purchase occurring in the form of the acquisition of a right to use goods, to the extent that the right to use goods is exercised after 1st April, 2005. Explanation : This provision does not prevent the person claiming the special tax credit allowed under section 14 of this Act.

(3) Where an amount is paid or received prior to 1st April, 2005 in respect of a sale or purchase occurring after 1st April, 2005, and the person calculates his turnover or turnover of purchases based on amounts paid and received, the amount shall be treated as forming part of the person’s turnover or turnover of purchases in the tax period in which the sale occurs.

1[(4) Where a dealer registered under the repealed Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) (hereinafter referred to in this sub-section as “the repealed Act”), is liable to pay tax under this Act, and has at any time prior to the 1st day of April, 2005 entered into any works contract, where the total contract value was inclusive of the tax payable under the repealed Act, and the execution of the said works contract has continued after the 1st day of April, 2005, then the liability of the dealer to pay tax under this Act shall be discharged at the rates applicable under this Act, and the liability so discharged in respect of the said contract shall not exceed the liability which would have accrued under the repealed Act if it had continued to be in force and in the case of a dealer who had opted for composition of tax under the repealed Act, the liability under this Act in respect of a contract where the execution has started before the 1st day of April, 2005 and has continued thereafter shall not exceed the sum which would have been payable by way of composition in respect of the said contract under the repealed Act if it had continued to be in force:

PROVIDED that the provisions of this sub-section shall be valid up to the 31st day of March, 2007:

PROVIDED FURTHER that the provisions of this sub-section shall not apply where the contract value has been changed on account of increased liability under this Act:

PROVIDED ALSO that the provisions of this sub-section shall apply only if there was no provision in the contract for revising the value of the contract on account of the change of tax liability.]

106.Repealandsavings (Rule68)

(1) The Delhi Sales Tax Act, 1975 (43 of 1975), the Delhi Tax on Entry of Motor Vehicles into Local Areas Act, 1994 (4 of 1995), the Delhi Sales Tax on Works Contract Act, 1999 (9 of 1999), and the 2[Delhi Sales Tax on Right to Use Goods Act, 2002 (13

1 Inserted by DVAT (Second Amendment) Act, 2005 (10 of 2005), dated 16.11.2005, w.r.e.f. 1-4-2005.

2 Substituted for “Delhi Sales Tax on Transfer of Right to Use Goods Act, 2002 (13 of 2002)” by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.


of 2002)] as in force in Delhi (referred to in this section as the “said Acts”), are hereby repealed.

(2) Notwithstanding sub-section (1) of this section, such repeal shall not affect the previous operation of the said Acts or any right, title, entitlement, obligation or liability already acquired, accrued or incurred thereunder.

(3) For the purposes of sub-section (2) of this section, anything done or any action taken including any appointment, notification, notice, order, rule, form or certificate in the exercise of any powers conferred by or under the said Acts shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act, as if this Act were in force on the date on which such thing was done or action was taken, and all arrears of tax and other amounts due at the commencement of this Act may be recovered as if they had accrued under this Act.

1[(4) Notwithstanding anything contained in this Act, for the purpose of the levy, assessment, deemed assessment, reassessment, appeal, revision, review, rectification, reference, registration, collection, refund or input or credit of input tax of allowing benefit of exemption or deferment of tax, imposition of any penalty or interest or forfeiture of any sum which relates to any period ending before 1st day of April, 2005 or for any other purpose whatsoever connected with or incidental to any of the purposes aforesaid and whether or not the tax, penalty, interest or sum forfeited, if any, in relation to such proceedings, is paid before on or after 1st day of April, 2005, the repealed Act and all rules, regulations, orders, notifications, forms and notices issued thereunder and in force immediately before 1st day of April, 2005 shall continue to have effect as if this Act has not been passed.]2[107.AmnestyScheme(s)*

Notwithstanding anything to the contrary contained in this Act and Rules thereto, the Government may by notification in the official Gazette, notify amnesty scheme(s) covering payment of tax, interest, penalty or any other dues under the ‘Act’, which relate to any period ending before 1st day of April, 2013, and subject to such conditions and restrictions as may be specified therein, covering period of limitation, rates of tax, tax, interest, penalty or any other dues payable by a class of dealers or classes of dealers or all dealers.]

1 Inserted by DVAT (Amendment) Act, 2012 (1 of 2012) w.e.f. 01-04.2005.2 Inserted by DVAT (Amendment) Act, 2013 (5 of 2013) w.e.f. 12.09.2013.

*Delhi Tax Compliance Achievement Scheme, 2013 notified vide No.F.3(16)/Fin.(Rev-I)/2013-14/dsVI/786 dated : 20.09.2013.


THE FIRST SCHEDULE (Refer section 6) (As amended upto 21-6-2012)

LIST OF EXEMPTED COMMODITIES

Sr. No. Commodity

1. [01-Apr-05 to 07-Aug-05] Agricultural implements manually operated or animal driven. 1[w.e.f. 08-Aug-05] Manually operated or animal driven agricultural implements, their spare parts, components and accessories.

2. [01-Apr-05 to 13-Mar-06] Aids and implements used by handicapped persons. 2[w.e.f. 14-Mar-06] Aids and implements used by handicapped persons, that is to say, (i) Orthopaedic or fracture appliances (ii) Artificial joints and Artificial parts of the body (iii) Frequency modulated hearing aid system used for hearing by

handicapped persons (iv) Parts and accessories of hearing aids (v) Wheels chairs for invalids, whether or not mechanically propelled

(including motorized) and their parts and accessories (vi) Braille typewriters whether electric or non electric (vii) Braille Paper

3. [01-Apr-05 to 10-May-05] Aquatic feed, poultry feed and cattle feed including grass, hay and straw. 3[w.e.f. 11-May-05] Aquatic feed, poultry feed and cattle feed including grass, hay and straw, supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake.

4. [W.E.F. 01-APR-05] Betel leaves

5. [01-Apr-05 to 10-May-05] Books, Periodicals, Newspapers and Maps. 3[w.e.f. 11-May-05] 4[Books, periodicals and journals including maps, charts and globes.]

6. [w.e.f. 01-Apr-05] 5[Charakha, Ambar Charakha, handlooms and handloom fabrics and Gandhi Topi.]

1. Notification No F.101(348)/2005-Fin.(A/Cs)(i)/2393 dated 08-Aug-05. 2. Notification No F.3(77)/Fin.(T&E)/2005-06/1424-1433 Kha dated 14-Mar-06. 3. Notification No F.101(328)/2005-Fin.(A/Cs)(i)/537 dated 11-May-05. 4. Also see Determination No. 33/CDVAT/2005 dated 22-Mar-06. 5. Also see Determination Nos.90/CDVAT/2005 dated 03-May-06 and No.137-39/ CDVAT/2006/129

dated 15-Dec-06.


Sr. No. Commodity

7. [w.e.f. 01-Apr-05] Charcoal

8. [w.e.f. 01-Apr-05] Coarse grains other than paddy, rice and wheat

9. [w.e.f. 01-Apr-05] Condoms and Contraceptives

10. [01-Apr-05 to 10-May-05] Cotton and silk yarn in hank 1[w.e.f. 11-May-05] Cotton and silk yarn in hank

and cone.

11. [w.e.f. 01-Apr-05] 2[Curd, Lussi, butter milk and separated milk.]

12. [w.e.f. 01-Apr-05] Earthen pot

13. [w.e.f. 01-Apr-05] Electricity energy

14. [01-Apr-05 to 10-May-05] Firewood. 1[w.e.f. 11-May-05] Fire wood except casurina and eucalyptus timber.

15, [01-Apr-05 to 10-May-05] Fishnet and fishnet fabrics. 1[w.e.f. 11-May-05] Fish net, fish net fabrics & fish seeds, prawn/shrimp seeds.

16. [w.e.f. 01-Apr-05] Fresh milk and pasteurized milk

17. [w.e.f. 01-Apr-05] Fresh plants, saplings and fresh flowers

18. [w.e.f. 01-Apr-05] Fresh vegetables and fruits.

19. [w.e.f. 01-Apr-05] Garlic and ginger

20. [01-Apr-05 to 10-May-05] Bangles made of shell, glass, lac or plastic. 1[w.e.f. 11-May-05] All bangles except those made of precious metals.

21. [01-Apr-05 to 13-Mar-06] Human blood and blood plasma 1[w.e.f. 14-Mar-06] Blood including blood components.

1. Notification No F.101(328)/2005-Fin.(A/Cs)(i)/537 dated 11-May-05. 2. Also see Determination No.147/CDVAT/2006/127 dated 08-Dec-06 and Det. No. 147/R/CDVAT/162 dt. 8-10-2007.


Sr. No. Commodity22. [w.e.f. 01-Apr-05]

Indigenous handmade musical instruments

23. [w.e.f. 01-Apr-05] Kumkum, bindi alta and sindur

24. [w.e.f. 01-Apr-05] Meat, fish, prawn and other aquatic products when not cured or frozen; poultry, eggs and livestock and animal hair.

25. [w.e.f. 01-Apr-05] National Flag.

26. [w.e.f. 01-Apr-05 upto 06-Dec-11] Organic manure 1[w.e.f. 07-Dec-11] Organic manure, fertilizers, bio-inputs like bio-fertilizers, micro-nutrients and plant growth promoters.

27. [w.e.f. 01-Apr-05] Non-judicial stamp paper sold by Government Treasuries; postal items like envelope, post card etc. sold by Government; rupee note, when sold to the Reserve Bank of India and cheques, loose in book form.

28. [w.e.f. 01-Apr-05] Raw wool.

29. [w.e.f. 01-Apr-05] Semen including frozen semen.

30. [w.e.f. 01-Apr-05] Silk worm laying, cocoon and raw silk.

31. [w.e.f. 01-Apr-05 upto 20-Jun-12] Slate and slate pencils 2[w.e.f. 21-Jun-12 upto 31-Mar-13] Slate and slate pencils, geometry boxes, colour boxes, crayons and pencil sharpners 3[w.e.f. 1-Apr-13] Slate and slate pencils, geometry boxes, colour boxes, crayons, pencil sharpners and empty pencil/geometry box.

32. [w.e.f. 01-Apr-05] Tender green coconut.

33. [w.e.f. 01-Apr-05] Toddy, Neera and Arak.

34. [w.e.f. 01-Apr-05] 4[Bread (branded and unbranded)]

35. [w.e.f. 01-Apr-05 upto 31-Mar-13] Common Salt (Processed or unprocessed). 3[w.e.f. 1-Apr-13] Common Salt (Processed and Unprocessed) and Sendha Namak.

36. [01-Apr-05 to 13-Mar-06] Human blood and blood plasma 1[w.e.f. 14-Mar-06] Blood including blood components.

1. Notification No. F. 3(17)/Fin.(Rev.-I)/2011-12/DS-III/1420, dt. 7-12-2011. 2. Notification No. 3(4)/Fin (Rev-I)/2012-13/DS-III/461-462, dt. 21-6-2012 3. Notification No. 3(18)/Fin (Rev.I)/2012-13/DS-IV/265, dt. 30-3-2013, w.e.f. 1-4-2013. 4. Also see Determination No. 146/CDVAT/2006, dt. 31-10-2006; Det. No. 146/R/CDVAT/2007,

Dt. 21-8-07 and Det. No. 157/CDVAT/2007, Dt.21-8-2007.



Water other than (i) aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized water, and (ii) water sold in sealed container.

37. [01-Apr-05 to 10-May-05] Compressed Natural Gas. 1[w.e.f. 11-May-05] Compressed Natural Gas (CNG) for use in the Transport Sector.

38. [w.e.f. 01-Apr-05] Rakhi

39. [w.e.f. 01-Apr-05] Hand made safety matches

40. [w.e.f. 01-Apr-05] Idols made of clay

41. [w.e.f. 01-Apr-05] Clay lamps

42. [w.e.f. 01-Apr-05] 2[Murmuralu, pelalu, autukulu, puffed rice commonly known as muri, chira, murki etc, poha, murmura and lai]

43. [w.e.f. 01-Apr-05] Muddhas made of sarkands, phool buhari/jharoo.

44. [w.e.f. 01-Apr-05] 3[Coconut in shell and separated kernel of coconut]

45. [w.e.f. 01-Apr-05] 4[Religious pictures not for use as calendars]

46. [w.e.f. 01-Apr-05] Paddy, rice wheat and pulses

47. 5[01-Apr-05 to 10-May-05] Khandsari including sugar but not including imported sugar in all forms. 1[w.e.f. 11-May-05 to 9-Dec-09] 6[Khandsari including sugar as described from time to time in Column III of the Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 including imported sugar in all forms. 7[w.e.f. 10-Dec-09 to 31-Mar-11] Khandsari including sugar as described from time to time in Column III of the Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 including imported sugar in all forms. 8[w.e.f. 1-Apr-11] Khandsari and sugar including imported sugar in all forms

1. Notification No F.101(328)/2005-Fin.(A/Cs)(i)/537 dated 11-May-05. 2. Also see Determination No. 45/CDVAT/2005 dated 07-Nov-05. 3. Also see Circular No. 22 of 2005-06/No.F.1(41)/DVAT/Misc./05-06/969 dated 02-Aug-05. 4. Also see Determination No. 17/CDVAT/2005 dated 18-Jul-05, Determination No. 64/CDVAT/2005

dated 14-Dec-05 and Determination No. 63/CDVAT/2005 dated 28-Dec-05. Also see Determination No. 17/CDVAT/2005 dated 18-Jul-05, Determination No. 64/CDVAT/2005

dated 14-Dec-05 and Determination No. 63/CDVAT/2005 dated 28-Dec-05. 5. Also see Determination No. 146/CDVAT/2006, dt. 31-10-2006; Det. No. 146/R/CDVAT/2007,

Dt. 21-8-07 and Det. No. 157/CDVAT/2007, Dt. 21-June-2007 6. See Circular No 02 of 2005-06 dated 26-Apr-05, clarification on items to be covered under “Textiles”,

“Sugar”. “Tobacco”, “Paper” & “Printed Material”. Also see Determination Nos. 67/CDVAT/2005 dated 14-Mar-06; 90/CDVAT/2005 dated 03-May-06 and No.137-39/CDVAT/2006/129 dated 15-Dec-06.

7. Notification No. F.3(24)/Fin. (T&E)/2009-10/Jsfin/550, dt. 10-Dec-2009. 8. Substituted vide Notification No. 3(51)/Fin.(Rev. I)/2010-11/Asf/12, dt. 1-Apr-2011.


Sr. No. Commodity

48. [01-Apr-05 to 10-May-05] Textiles but not including imported varieties of textiles 1[w.e.f. 11-May-05 to 07-Apr-2011] 2[Textile as described from time to time in Column III of the Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 but not including Bed sheet, pillow cover and other made-ups covered by HSN entry nos. 63.01, 63.02, 63.03, 63.04, 63.05 and 63.06 and imported varieties of textiles.] 3[W.e.f. 08-Apr-2011 to 20-June-11] Textiles as described in the First Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 before its omission by the Govt. of India to give effect to section 75 of the Finance Bill, 2011 but not including— (i) Bed-sheets, pillow covers and other made ups covered by HSN entry

nos. 63.01, 63.02, 63.03, 63.04, 63.05 and 63.06. (ii) Imported varieties of textiles (iii) (a) Industrial textiles such as canvass belt, filter cloth etc. (b) Furnishing other than handloom furnishings (c) Suitings 4[w.e.f. 21-Jun-11] Textiles as described in the First Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 before its omission by the Govt. of India to give effect to section 75 of the Finance Bill, 2011 but not including— (i) bed-sheets, pillow covers and other made ups covered by HSN entry

nos. 63.01, 63.02, 63.03, 63.04, 63.05 and 63.06 (ii) imported varieties of textiles (iii) (a) industrial textiles such as canvass belt, filter cloth etc. (b) furnishings having sale price of more than Rs. 100/- per meter or per

piece or per set, as the case may be, other than handloom furnishings

(c) Suitings having sale price of more than Rs. 500/- per metre.

49. [01-Apr-05 to 10-May-05] Tobacco excluding gutkha and imported varieties of tobacco. 1[w.e.f. 11-May-05 to 13-May-07] 2[Tobacco as described from time to time in Column III of the Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 but not including gutkha and imported varieties of tobacco.] [w.e.f. 14-May-07 to 31-Mar-11] Unmanufactured tobacco, bidis and tobacco used in the manufacture of bidis and hooka tobacco. 5[W.e.f. 1-Apr-2011] [Omitted]

1. Notification No F.101(328)/2005-Fin.(A/Cs)(i)/537 dated 11-May-05. 2. See Circular No 02 of 2005-06 dated 26-Apr-05, clarification on items to be covered under “Textiles”,

“Sugar”. “Tobacco”, “Paper” & “Printed Material”. Also see Determination Nos. 67/CDVAT/2005 dated 14-Mar-06; 90/CDVAT/2005 dated 03-May-06 and No.137-39/CDVAT/2006/129 dated 15-Dec-06.

3. Notification No. 3(51)/Fin.(Rev. I)/2010-11/Asf/12, dt. 1-4-2011, w.e.f. 8-Apl.-2011 4. Notification No. F. 3(11)/Fin. (Rev. I)/2011-12, dt. 21-6-2011. 5. Notification No. 3(51)/Fin.(Rev. I)/2010-11/Asf/12, dt. 1-4-2011.


Sr. No. Commodity

50. [w.e.f. 01-Apr-05] Flour, Atta, maida, besan and suji.

51. [w.e.f. 01-Apr-05] Rassi ban and newar.

52. [w.e.f. 01-Apr-05] Mid day meal supplied by agencies approved by the Govt. and local bodies to schools run by GNCTD or local bodies.

53. 1[w.e.f. 11-May-05] Khadi garments, bags and made-ups.

54. 1[w.e.f. 11-May-05] All seeds other than oil seeds.

55. 1[w.e.f. 11-May-05] Gur & Jaggeri.

56. 1[w.e.f. 11-May-05] Items covered under PDS (except kerosene).

57. 1[w.e.f. 11-May-05] Items under customs bond for re-export after manufacturing or otherwise.

58. 1[11-May-05 to 07-Aug-05] Pappad. 2[w.e.f. 08-Aug-05] 3[Pappad and Vadi.]

59. 1[w.e.f. 11-May-05] Lac/shell-lac.

60. 1[w.e.f. 11-May-05] 4[Plastic waste.]

61. 1[w.e.f. 11-May-05] 5[Scrap glass/scrap glass bottles.]

62. 1[w.e.f. 11-May-05] Motion picture distribution when treated as right to use goods.

63. 1[w.e.f. 11-May-05] Natural gas sold to Delhi based agencies engaged in the production of CNG for sale in Delhi for use in the Transport Sector.

64. 1[w.e.f. 11-May-05] Natural Gas and R-LNG (Re-gassified Liquid Natural Gas) sold to the Power Generation Company/Companies owned by the Government of NCT of Delhi for generation of Power meant for sale in Delhi.

65. 1[w.e.f. 08-Aug-05] Leaf plates and cups.

1. Notification No F.101(328)/2005-Fin.(A/Cs)(i)/537 dated 11-May-05. 2. Notification No F.101(348)/2005-Fin.(A/Cs)(i)/2393 dated 08-Aug-05. 3. Also see Determination No.66/CDVAT/2005 dated 30-Mar-06. 4. Also see Determination No.119/CDVAT/2006 dated 28-Jul-06. 5. Also see Determination No. 16/CDVAT/2005 dated 16-Jun-05.


Sr. No. Commodity66. 1[w.e.f. 08-Aug-05]

Paper waste.

67. 1[w.e.f. 08-Aug-05] Incense sticks commonly known as agarbati, dhup kathi or dhup bati.

68. 2[w.e.f. 14-Mar-06] Deferiprone and Desferrioxamine.

69. [w.e.f. 14-Mar-06 upto 20-Jun-12] Rubber/Plastic/Rexine footwear having MRP less than Rs.300/- per pair provided that the MRP is indelibly marked or embossed on the footwear itself. 3[w.e.f. 21-Jun-12 upto 31-Mar-13] Rubber/Plastic/Rexine footwear having MRP less than Rs. 500/- per pair, provided that the MRP is indelibly marked or embossed on the footwear itself. 4[w.e.f. 1-Apr-13] All types of footwear having MRP upto Rs. 500/- provided that the MRP is indelibly marked or embossed on the footwear itself.

70. [w.e.f. 14-Mar-06 upto 20-Jun-12] 5[Hawan samagri.] 3[w.e.f. 21-Jun-12] Hawan samagri, Roli, Sacred Thread, Kirpan, Prasadam by religious institutions and Misri, Patasha as part of Prasad]

71. 6[w.e.f. 14-May-07] Tri-cycle meant for use by persons with disability.

72. [w.e.f. 14-May-07 upto 20-Jun-12] Blood filters. 3[w.e.f. 21-Jun-12] Blood filters and blood bags

73. 6[w.e.f. 14-May-07 upto 31-Mar-10] Bio-inputs lile bio-fertilizers, micro-nutrients and plant growth promoters. 7[w.e.f. 1-Apr-10] Omitted

74. [14-May-07 upto 31-Mar-10] Kerosene-stoves, lanterns and petromax and their spares [w.e.f. 1-Apr-10 upto 31-Mar-11] Omitted 6[w.e.f. 1-Apr-11] Kerosene-stoves, lanterns and petromax and their spares.

75. 8[w.e.f. 31-March-08] Embroidery and Zari items that is to say (i) imi, (ii) zari, (iii) kasab, (iv) salma, (v) dabka, (vi) chumki, (vii) gota, (viii) sitara, (ix) naqsi, (x) kora, (xi) glass bead, (xii) badla and (xiii) gazai.

76. 8[w.e.f. 1-Apr-10] Oral Iron Chelator Defarasirox

1. Notification No F.101(348)/2005-Fin.(A/Cs)(i)/2393 dated 08-Aug-05. 2. Also see Determination No.65/CDVAT/2005 dated 30-Mar-06. 3. Notification No. F.3(4)/Fin. (Rev. I)/2012-13/D-III/461-462, dt. 21-6-2012. 4. Notification No. 3(18)/Fin/(Rev-1)/2012-13/dsvi/265, dt. 30-3-2013, w.e.f. 1-4-2013. 5. Notification No F.3(77)/Fin.(T&E)/2005-06/1424-1433 Kha dated 14-Mar-06. 6. Inserted vide Notification No F.3(51)/Fin. (Rev. I)/2010-11/Asf/12, dt. 1-4-2011. 7. Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10. 8. Inserted vide Notification No. F.3(24)/Fin.(T&E)/2007-08/Jsfin/149, dated 31-March-08. 9. Inserted vide Notification No. F. 3(30)/Fin./(T&E)/2009-10/285, dt. 1-4-2010.


Sr. No. Commodity

77. 1[w.e.f. 1-Apr-10] Liquefied Petroleum Gas (LPG) for domestic use

78. 2[[w.e.f. 26-Nov-10] Sanitary napkins for use by females provided the MRP is equal to Rs. 20/- or less than Rs. 20/- per pack and a single pack contains at least 8 units.]

79. 3[w.e.f. 01-June-10] Food commonly known as ‘Jan Ahaar’ sold in Delhi by Non-Governmental Organisations (NGOs), which are duly approved by the Department of Social Welfare and Women and Child Welfare, Government of NCT of Delhi for selling this food.]

80. 4[w.e.f. 1-Apr-11] Bicycles having MRP upto Rs. 3500/-

81. 4[w.e.f. 1-Apr-11] Adult diapers

82. 5[w.e.f. 21-Jun-12] Tricycles

83. 5[w.e.f. 21-Jun-12 upto 31-Mar-13] Kites 6[w.e.f. 1-Apr-13] Kites and Charkhi, Manjha used for flying kites.

84. 5[w.e.f. 21-Jun-12] Juna

85. 5[w.e.f. 21-Jun-12] Mahawar, Hairpins, Hairbands, Hairclips, Safety pins and Saree falls

86. 7[w.e.f. 1-Apr-13] Refuse Derived Fuel (RDF)

87. 7[w.e.f. 1-Apr-13] Tiles made from Malba and Kerbstones made from Malba

88. 7[w.e.f. 1-Apr-13] Chilly Spray used for self-defence

89. 7[w.e.f. 1-Apr-13] Organic Gulal, Organic Colours

90. 7[w.e.f. 1-Apr-13] Singhara, Kuttu and their Atta

1. Inserted vide Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10. 2. Inserted vide Notification No. F. 3(42)/Fin (Rev. I)/2010-11, dt. 26-11-2010, w.e.f. 26-11-2010. 3. Inserted vide Notification No. F. 3(43)/Fin (Rev. I)/2010-11/DS-II/33, dt. 19-1-2011, w.r.e.f. 1-6-2010. 4. Inserted vide Notification No. F.3(51)/Fin. (Rev. I)/2010-11/Asf/12, dt. 1-4-2011. 5. Inserted vide Notification No. 3(4)/Fin/ (Rev. I)/2012-13/DS-III/461-462, dt. 21-6-2012. 6. Substituted vide Notification No. 3(18)/Fin(Rev-I)/2012-13/dsvi/265, dt. 30-3-2013, w.e.f. 1-4-2013. 7.. Inserted, ibid..


THE SECOND SCHEDULE (Refer section 4)

LIST OF GOODS TAXED AT 1%

Sr. No. Commodity

1. [w.e.f. 01-Apr-05] 1[Bullion]

2. [w.e.f. 01-Apr-05] 2[Articles of Gold, Silver and Precious Metals including Jewellery made from gold, silver and precious metals]

3. [w.e.f. 01-Apr-05] Precious Stones and Semi-Precious Stones

1. Also see Composition scheme for bullion dealers vide Notification No. F.3 (82)/Fin/T&E)/2005-06/1599 kha dated 21-Apr-06.

2. Also see Determination No. 28/CDVAT/2005 dated 28-Sep-05.


1. Rate of tax on the goods specified in this Schedule @ 5% except on the declared goods defined from time to time in the CST Act.

2. Notification No F.101(348)/2005-Fin.(A/Cs)(i)/2404, dated 08-Aug-05. 3. Also see Determination Nos. 53/CDVAT/2005, dated 16-Feb-06; No. 136/CDVAT/2006, dated 09-

Oct-06; No. 143/CDVAT/2006, dated 10-Oct-06. 4. Notification No F.101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05. 5. Also see the Determination No. 144/CDVAT/2006, dated 10-Oct.-06. 6. Substituted vide Notification No F.3(2)/Fin.(T&E)/2007-08/(ii)/dsftc/351 dated 14-May-07. 7. Also see Det. No. 181/CDVAT/2007/159 dt. 8-10-2007. 8. Substituted vide Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.

THE THIRD SCHEDULE (Refer section 4)

LIST OF GOODS TAXED AT 5%1

Sr. No. Commodity

1. [w.e.f. 01-Apr-05 to 07-Aug-05] Agricultural implements not operated manually or not driven by animal. 2[w.e.f. 08-Aug-05] Agricultural implements not operated manually or not driven by animal, their spare parts, components and accessories.

2. [w.e.f. 01-Apr-05] All equipments for communications such as, Private Branch Exchange (PBX) and Electronic Private Automatic Branch Exchange (EPABX) etc.

3. [w.e.f. 01-Apr-05] 3[All intangible goods like copyright, patent, rep license, goodwill etc.]

4. [w.e.f. 01-Apr-05] All kinds of bricks including fly ash bricks, refractory bricks and asphaltic roofing, earthen tiles.

5. [w.e.f. 01-Apr-05] All types of yarn other than cotton and silk yarn in hank and sewing thread.

6. [w.e.f. 01-Apr-05 to 10-May-05] Aluminium utensils and enameled utensils. 4[w.e.f. 11-May-05 to 13-May-07] All 5[utensils] including pressure cookers/pans except utensils made of precious metals. 6[w.e.f. 14-May-07 upto 31-Mar-2010] 7[All utensils and cutlery items (including pressure cookers/pans) except those made of precious metals] 8[w.e.f. 1-Apr-10] All utensils (including pressure cookers/pans) except utensils made of precious metals.

7. [w.e.f. 01-Apr-05] Arecanut powder and betel nut.

8. [w.e.f. 01-Apr-05] Bamboo.


1. Notification No F.101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05. 2. Also see Det. No. 188/CDVAT/2007 dt. 7-11-2007. 3. Also see Determination No. 73/CDVAT/2005, dt. 06-Feb-06. 4. Also see Determination No. 29/CDVAT/2005, dated 14-Dec-05. 5. Substituted vide Notification No. 3(4)/Fin/ (Rev. I)/2012-13/DS-III/461-462, dt. 21-6-2012. 6. Notification No. F.101(328)/2005-Fin.(A/Cs)/255, dated 20-Apr-05. 7. Also see Determination Nos. 35.59.62/CDVAT/2005 dated 17-Mar-06; No. 120 & 134/CDVAT/2006

dated 01-Aug-06 and 116/CDVAT/2006 dated 07-Aug-06.

Sr. No. Commodity

9. [w.e.f. 01-Apr-05 to 10-May-05] Bearings. 1[w.e.f. 11-May-05] 2[Bearings including plumnes blocks, housing for bearing, locate rings and covers, adopter with drawl sleeves, lock-nuts, lock-washers, clamps and rolling elements.]

10. [w.e.f. 01-Apr-05] Beedi leaves.

11. [w.e.f. 01-Apr-05] 3[Beltings.]

12. [w.e.f. 01-Apr-05 to 10-May-05] Bicycles, tricycles, cycle rickshaws and parts. 1[w.e.f. 11-May-05 to 31-Mar-2011] 4[Bicycles, Tricycles, cycle rickshaws and parts including tyres and tubes thereof.] [w.e.f. 1-Apr-2011 upto 20-Jun-12] Bicycles having MRP above Rs. 3500/-, tricycles, cycle rickshaws and parts including tyres and tubes thereof. 5[w.e.f. 21-Jun-12] Bicycles having MRP Rs. 3500/-, cycle rickshaws and parts including tyres and tubes thereof

13. [01-Apr-05 to 19-Apr-05] Bitumen. 6[w.e.f. 20-Apr-05] [Omitted]

14. [w.e.f. 01-Apr-05] Bone meal.

15. 15 ****

16. [w.e.f. 01-Apr-05 to 10-May-05] Drugs and Medicines including bulk drugs. 1[w.e.f. 11-May-05] 7[Drugs & medicines including vaccines, syringes and dressings, medicated ointments produced under a drugs licence, light liquid paraffin of IP grade.]

17. [w.e.f. 01-Apr-05 to 10-May-05] Castings. 1[w.e.f. 11-May-05] Castings including all metal castings.

18. [w.e.f. 01-Apr-05] Centrifugal, monobloc and submersible pumps and parts thereof.


1. Also see the Circular No. 44 of 2005-06, dt. 17-Jan-06. 2. Notification No. F.101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05. 3. Existing entry at S. No. 20 substituted vide Notification No. F.3(2)/Fin(T&E)/2007-08/(ii)/ dsftc/351,

dt. 14-5-2007. 4. Omitted vide Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10. 5. Also see Determination No. 41/CDVAT/2005 dated 20-Oct-05 and Det. No. 164/CDVAT/2007/154

dt. 23-8-2007 and Det. No. 183/CDVAT/2007 dt. 2-11-2007 and Det. No. 191/CDVAT/2007/172 dt. 26-11-2007.

6. Also see Circular No. 22 of 2005-06 dated 02-Aug-05 and Determination No. 128-A/ CDVAT/2006 dated 08-Aug-06.

7. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05. Also see Determination No. 137-39/CDVAT/2006/129, dated 15-Dec-06.

8. Substituted vide Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.

Sr. No. Commodity

19. [w.e.f. 01-Apr-05] 1[Coffee beans and seeds, cocoa pod, green tea leaf and chicory.]

20. [w.e.f. 01-Apr-05 to 10-May-05] Chemical fertilizers, pesticides, weedicides and insecticides 2[w.e.f. 11-May-05 to 13-May-07] Bio-fertilizers and micro nutrients, also plant growth promoters and regulators, herbicides, rodenticides, chemical fertilizers, pesticides, weedicides and insecticides. 3[w.e.f. 14-May-07 to 31-Mar-10] Fertilizers, Pesticides, Weedicides, Insecticides, Herbicides, Rodenticides and Plant Growth Regulators (other than those covered in the First Schedule. 4[w.e.f. 1-Apr-10] Omitted.

21. [w.e.f. 01-Apr-05] Coir and coir products excluding coir mattresses.

22. [w.e.f. 01-Apr-05] Cotton and cotton waste.

23. [w.e.f. 01-Apr-05] Crucibles.

24. [w.e.f. 01-Apr-05 to 10-May-10] 5[6[Declared goods] as specified in section 14 of the Central Sales Tax Act, 1956 but not including cereals, pulses, sugar and tobacco [w.e.f. 11-May-05 to 31-Mar-10] 7[Declared goods as specified in section 14 of the Central Sales Tax Act, 1956 but not including cereals, pulses, sugar, textiles and tobacco] [w.e.f. 1-Apr-10] 8[Declared goods as specified in section 14 of the Central Sales Tax Act, 1956 but not including cereals, pulses, sugar, textiles, tobacco and Liquefied Petroleum Gas (LPG) for domestic use.]

25. [w.e.f. 01-Apr-05 to 10-May-05] Edible oils, oil cake and de-oiled cake 2[w.e.f. 11-May-05] Edible oils and oil cake.


1. Notification No F.101(328)/2005-Fin.(A/Cs)(i)/2404, dated 08-Aug-05. 2. Also see Determination No. 51/CDVAT/2005, dated 10-Feb-06. 3. Also see Determination No. 40/CDVAT/2005, dated 08-Sep-05. 4. Also see Determination No. 41/CDVAT/2005/20-Oct-05 and Determination No. 36/CDVAT/2005/10-

Feb-06. 5. Notification No. F.101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05. 6. Also see Determination No. 123/CDVAT/2006, dated 31-Oct-06. 7. Notification No. F.101(328)/2005-Fin.(A/Cs)(i)/2404, dated 08-Aug-05.

Sr. No. Commodity

26. [w.e.f. 01-Apr-05 to 07-Aug-05] Electrodes. 1[w.e.f. 08-Aug-05] 2[Electrodes and welding equipments.]

27. [w.e.f. 01-Apr-05] 3[Exercise book, graph book and laboratory note book.]

28. [w.e.f. 01-Apr-05] 4[Ferrous and non-ferrous metals and alloys; non-metals such as aluminium, copper, zinc and extrusions of those.]

29. [w.e.f. 01-Apr-05] Fibers of all types and fiber waste.

30. 30 ***

31. [w.e.f. 01-Apr-05 to 10-May-05] Fried grams 5[w.e.f. 11-May-05] Fried and roasted grams.

32. [w.e.f. 01-Apr-05 to 10-May-05] Gur, jaggery, and edible variety of rub gur 5[w.e.f. 11-May-05] Edible varieties of rub gur.

33. [w.e.f. 01-Apr-05] Hand pumps and spare parts.

34. [w.e.f. 01-Apr-05] Medicinal Herbs including Amla, Harrad, Bahera, Sikakai, Katha, Supari, Rattanjot & Khusk Pudina, Bark, Dry Plant, Dry Root commonly known as jari booti and dry flower.

35. [w.e.f. 01-Apr-05] 6[Hose pipes.]

36. [w.e.f. 01-Apr-05] Hosiery goods.

37. [w.e.f. 01-Apr-05] Husk and bran of cereals.

38. [w.e.f. 01-Apr-05] Ice.

39. [w.e.f. 01-Apr-05 to 07-Aug-05] Incense sticks commonly known as, agarbatti, dhupkathi or dhupbati. 7[w.e.f. 08-Aug-05] Omitted


1. Also see Clarification No. F.6(3)/Policy-III/VAT/2005/2116-2124, dated 17-Feb-06. 2. Also see Circular No. 32 of 2005-06 dated 16-Sep-05 and Det. No. 163/CDVAT/2007/145 dt. 14-7-

2007 and Det. No. 163/R/CDVAT/2007 dt. 7-11-2007. 3. Also see Circular No. 51 of 2005-06, No. F.6(3)/Policy-III/VAT/2005/2241, dated 28-Mar-06. 4. Notification No. 3(59)/Fin/(T&E)/2005-06/933 kha, dt. 30-11-2005, w.e.f. 30-11-2005. 5. Also see Determination No. 26-A/CDVAT/2005/25-Jan-06 and Determination No. 50/CDVAT/2005/09-

Nov-05 and Det. No. 154/CDVAT/2007/152 dt. 23-Aug-07 and Det. No. 176/CDVAT/2007/177 dt. 13-Dec-2007 and Det. No. 158/CDVAT/2007/176 dt. 13-Dec-07.

6. Notification No. F.101(348)/ 2005-Fin.(A/Cs)/(ii) 2404, dated 08-Aug-05 w.e.f. dated 08-Aug-05. 7. Also see Determination No. 32/CDVAT/2005/07-Nov-05 and Determination No. 26-A/ CDVAT/2005/25-

Jan-06 and Det. No. 176.CDVAT/2007/177 dt. 13-12-2007 and Det. No. 158/CDVAT/2007/176 dt. 13-12-2007.

8. Substituted vide Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10. 9. Substituted vide Notification No. F.3(59)/Fin.(T&E)/2005-06/933 Kha dated 30-Nov-05 w.e.f. 30-

Nov-05 for the entry appended to this schedule as Annexure ‘A’. “41A. IT products notified by the Ministry of IT as specified below: (i) Word processing machines, Electronic typewriters. (ii) Microphones, multimedia speakers, headphones, etc. (iii) Telephone answering machines. (iv) Parts of Telephone answering machines. (v) Prepared unrecorded media for sound recording. (vi) IT software or any media. (vii) Transmission apparatus other than apparatus for radio or T.V. broadcasting. (viii) Radio communication receivers, Radio Pagers. (ix) Aerials, antennas and parts. (x) LCD panels, LED panels and parts. (xi) Electrical capacitors, fixed, variable and parts. (xii) Electronic calculators. (xiii) Electrical resistors. (xiv) Printed Circuits. (xv) Switches, connectors, Relays for upto 5 amps. (xvi) DATA/Graphic Display Tubes other than Picture tubes and parts. (xvii) Diodes, transistors and similar semi-conductor devices.

Sr. No. Commodity40. [w.e.f. 01-Apr-05 to 29-Nov-05]

2[Industrial cables] (High voltage cables, ELPE Cables, jelly filled cables, optical fibres)]3 4[w.e.f. 30-Nov-05] Industrial cables (High voltage cables, XLPE cables, jelly filled cables, optical fibres)

5[41] [w.e.f. 01-Apr-05 to 07-Aug-05] IT products including computers, telephone and parts thereof, teleprinter and wireless equipment and parts thereof, cellular phones and accessories. [w.e.f. 8-Aug-05 to 31-Mar-10] 6[Computers, telephone and parts thereof, teleprinter and wireless equipment and parts thereof, cellular phones and accessories]7 [w.e.f. 1-Apr-10] 8[Computers, telephone and parts thereof, teleprinter and wireless equipment and parts thereof, Mobile phone and all mobile accessories costing upto rupees ten thousand]

5[41A] [w.e.f. 01-Apr-05 to 29-Nov-05] IT products notified by the Ministry of IT as specified in Annexure 41A below. 9[w.e.f. 30-Nov-05] Information Technology products as per the description in column (2) below, as covered under the headings, or sub-headings mentioned in column (3), as the case may be, of the Central Excise Tariff Act, 1985 (5 of 1986)

Cont. on Next Page


Cont.fromPreviousPage (xviii) Electronic Integrated Circuits and Micro-assemblies. (xix) Signal Generators and parts. (xx) Optical Fibre Cables. (xxi) Optical fibre and optical fibre bundles, cables. (xxii) Liquid Crystal devices, flat panel display devices and parts. (xxiii) Computer Systems and peripherals, Electronic Diaries. (xxiv) Cathode ray oscilloscopes, Spectrum analysers, Signal analysers. (xxv) Parts and accessories of HSN 84.69, 84.70 and 84.71 (xxvi) D C Micromotors, Stepper Motors of 37.5 watts. (xxvii) Parts of HSN 85.01. (xxviii) Uninterrupted Power Supply. (xxix) Permanent Magnets and articles.” 1. Also see Det. No. 167/CDVAT/2007/147 dt. 31-Jul-07.

Sl. No. Description CentralExciseTariff

Heading

(1) (2) (3)

1 Automatic Typewriter and word processing machines. 8469

2. Electronic calculator capable of operations without an external source of electrical power and pocket size data recording, reproducing and displaying machines with calculating functions (including electronic diaries other than those covered under heading No. 8471) or incorporating a printing device.

8470

1[3 Automatic data processing machines and units thereof, magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data. Analogue or hybrid automatic data processing machine, Electronic Diaries, Portable digital automatic data processing machine, personal computer, computer systems including personal computers, other Digital automatic data processing machines comprising in the same housing at least a central processing unit and an input and output unit whether or not combined, micro computer/processor, large/mainframe computer, computer presented in form of systems, digital processing units, storage units, input units, output units. Teletypewriter, Data entry terminal, Line printer, Dot matrix printer, Letter quality daisy wheel printer, Graphic printer, Plotter, Laser jet printer, Key board, Monitor, storage units, floppy disc drive. Winchester/hard disc drives, Removal/exchangeable disc drives, magnetic tape drives, Cartridge tape drive, other units of automatic data processing machines, Uninterrupted power supply units (UPS).]

8471



Heading

(1) (2) (3)

4 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading No. 8470, parts and accessories of the machines of heading No. 8470, parts and accessories of the machines of heading No. 8471, Headstack, connectors for computer terminals, micro processor for automatic data processing machines of heading No. 8471, reconditioned components of computers, network access controllers.

8473

5 DC Micro motors/Steppers motors of an output not exceeding 37.5 Watts.

8501

6 Parts of goods specified in heading No.8501 8503

7 1[w.e.f. 30-Nov-05 to 13-Mar-06] Uninterrupted Power Supplies (UPS) and their parts. 2[w.e.f. 14-Mar-06 to 31-Mar-10] 3[Uninterrupted Power Supplies (UPS), Inverters and their parts.] [w.e.f. 1-Apr-10 upto 20-Jun-12] Uninterrupted Power Supplies (UPS) and their parts. 4[w.e.f. 21-Jun-12] [Omitted]

8504

8 Permanent magnet and articles intended to become permanent magnet (ferrites).

8505

9 Telephone sets, video phones, line telephone sets with cordless handsets, push button type, rotary dial type, cordless telephones, video telephones / video door phones, apparatus for carrier-current line systems of for digital line system, teleprinters, PLCC equipment, voice frequency telegraphy, modems, multiplexers / statistical multiplexers, routers, X-25pads, High Bit Rate Digital Subscriber Line System (HDSL) Digital loop carrier system (DLC), synchronous digital hierarchy system (SDH), ISDN Terminal Subscriber End Equipment, ISDN Terminal Adapter and parts of the equipments covered by this heading

8517

1. Notification No. F. 3(59)/Fin (T&E)/2005-06/933 Kha, dt. 30-Nov-05 w.e.f. 30-Nov-05. 2. Notification No F.3(77)/Fin.(T&E)/2005-06/1434-1443-Kha, dated 14-Mar-06. 3. Also see Determination No. 125/CDVAT/2006, dated 10-Oct-06. 4. Omitted vide Notification No. 3(4)/Fin/ (Rev. I)/2012-13/DS-III/461-462, dt. 21-6-2012.



Heading

(1) (2) (3)

10 1[Microphones, multimedia speakers, headphones, earphones and combined microphones/ speaker sets and their parts.]

8518

11 Telephone answering machines. 8520

12 Parts of telephone answering machines. 8522

13 Magnetic tape for recording sound, audio magnetic tape, video magnetic tape, magnetic disc, hard disc pack, floppy disc or diskettes, rewritable magneto optical disc including mini disc, CD Recordable, cards incorporating a magnetic stripe, mattresses for the production of records, prepared record blanks, cartridge tape, blank video cassettes 3/4” U-matic and 1” video cassettes/tape 1/2” video cassettes suitable to work with betacam / betacam SP/ M-II SVHS/ Digital S type VCR, 8mm video tapes / cassettes in finished form, 6.35mm (1/4”) digital video cassettes and DV tapes suitable to work with digital video camera, blank master disc, blank audio cassettes, audio tape cassettes in finished form (Blank), optical media discs, CD Recordable, CD Rewritable.

8523

14 2[Software including Information Technology software on any media, video compact disc of educational nature, other video compact discs and digital video discs.]

8524

15 Transmission apparatus (other than apparatus for radio broadcasting or TV broadcasting, transmission apparatus incorporating reception apparatus, digital still image video cameras).

8525

16 Radio communications receivers, radio pagers. 8527

17 (1) Aerials, antennae and their parts. (2) Parts of goods specified in heading No. 8525 and 8527.

8529

18 LCD panels, LED panel and parts thereof. 8531

19 Electrical capacitors, fixed variable or adjustable (preset) and parts thereof.

8532

1 Also see Determination Nos. 118/CDVAT/2006 dated 10-Jul-06; No. 122/CDVAT/2006 dated 01-Aug-06 and 127/CDVAT/2006 dated 08-Aug-06.

2 Also see Determination Nos. 136/CDVAT/2006 dated 09-Oct-06 and No. 143/CDVAT/ 2006 dated 10-Oct-06.


Sl. No. Description CentralExciseTariff Heading

(1) (2) (3)

20 Electrical resistors (including rheostats and potentiometers), other than heating resistors.

8533

21 Printed circuits. 8534

22 Switches, connectors and relays for upto 5 amps at voltage not exceeding 250 volts, electronic fuses.

8536

23 Data/Graphic Display tubes, other than TV picture tubes and parts thereof.

8540

24 Diodes transistors and similar semiconductor devices; photo sensitive semiconductive devices, including photovoltaic cells whether or not assembled in modules or made-up into panels; light emitting diodes; mounted piezo-electric crystals.

8541

25 1[Electronic integrated circuits and micro assemblies.] 8542

26 Signal generators and parts thereof. 8543

27 Optical fiber cables. 8544 70

28 Optical fiber and optical fiber bundles; optical fiber cables 9001 10 00

29 Liquid crystal devices, flat panel display devices and parts thereof.

9013

30 Cathode ray oscilloscopes, spectrum analysers, cross talk meters, gain measuring instruments, distortion factor meteres, psophometeres, network and logic analysers and signal analysers.

9030

Note : (1) The Rules for the interpretation of the provisions of the Central Excise Tariff Act, 1985 read with the Explanatory Notes as updated from time to time published by the Customs Cooperation Council, Brussels apply for the interpretation of this entry and the entry number 84 of this Schedule.

1. Also see Determination No. 81/CDVAT/2005 dated 03-May-06.


Note : (2) Where any commodities are described against any heading or, as the case may be, subheading, and the description in this entry and in entry number 84 is different in any manner from the corresponding description in the Central Excise Tariff Act, 1985, then, only those commodities described in this entry and in the entry number 84 will be covered by the scope of this notification and other commodities though covered by the corresponding description in the Central Excise Tariff will not be covered by the scope of this notification.

Note : (3) Subject to Note (2), for the purpose of any entry contained in this notification, where the description against any heading or, as the case may be, sub-heading, matches fully with the corresponding description in the Central Excise Tariff, then all the commodities covered for the purposes of the said tariff under that heading or sub-heading will be covered by the scope of this notification.

Note : (4) Where the description against any heading or sub-heading is shown as “other”, then, the interpretation as provided in Note 2 shall apply;

1. Also see Circular No. 13 of 2005-06 dated 07-Jul-05. 2. Notification No. F. 101(348)/2005-Fin.(A/Cs)/(ii) 2404 dated 08-Aug-05. 3. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05.


1[Kerosene oil sold through PDS.]

43. [w.e.f. 01-Apr-05 to 07-Aug-05] Leaf plates and cups. 2[w.e.f. 08-Aug-05] [w.e.f. Omitted]

44 ***

45 ***

46 [w.e.f. 01-Apr-05 to 10-May-05] Napa Slabs (Rough flooring stones) 3[w.e.f. 11-May-05] Napa slabs (rough flooring stones) & Shahabad stones.

47 [w.e.f. 01-Apr-05] Ores and minerals.

48 ***


1. Also see Circular No. 2 dated 26-Apr-05 and Determination Nos. 96/CDVAT/2005 dated 17-May-06; 120-A/CDVAT/2006 dated 08-Aug-06 and No.149A/CDVAT/2007/182, dated 17-01-08

2. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05. 3. Notification No. F.3(77)/Fin(T&E)/2005-06/1434-1443/Kha dated 14-Mar-06. 4. Notification No. 3(18)/Fin(Rev-I)/2012-13/dsvi/265, dt. 30-3-2013, w.e.f. 1-4-2013. 5. See Circular-2 dated 26-Apr-05; Determination Nos. 25/CDVAT/2005/18-Jul-05 & 40/CDVAT/2005,

dated 08-Sep-05. 6. Omitted vide Notification No. F3(59)/Fin(T&E)/2005-06-933-Kha-dated 30-Nov-05 earlier read as

“etc.”. 7. Also see Determination No. 28/Remanded/CDVAT/2005/27-Oct-05 and D No. 22/ CDVAT/2005

dated 18-Jul-05. 8. Also see Determination No. 120-A/CDVAT/2006 dated 08-Aug-06

Sr. No. Commodity

49 [w.e.f. 01-Apr-05] 1[Paper and newsprint.]

50 [01-Apr-05 to 10-May-05] Pipes of all varieties including GI pipes, CI pipes, ductile pipes and PVC pipes. 2[w.e.f. 11-May-05] Pipes of all varieties including G.I. Pipes, C.I. Pipes, Ductile Pipes, PVC Pipes and hosepipes and fittings thereof.

51 [w.e.f. 01-Apr-05 to 10-May-05] Hawai Chappal and Plastic footwear 2[w.e.f. 11-May-05 to 13-Mar-06] Plastic footwears including moulded plastic footwears, Hawai Chappals and straps thereof. 3[w.e.f. 14-Mar-06 upto 31-Mar-13] Plastic footwears (other than those specified in the First Schedule) including moulded plastic footwears, Hawai Chappals and straps thereof. 4[w.e.f. 1-Apr-13] Omitted

52 [w.e.f. 01-Apr-05] 5[Printed material including diary, calendar] 6[xxx]

53 [w.e.f. 01-Apr-05] 7[Printing ink excluding toner and cartridges.]

54 ***

55 [w.e.f. 01-Apr-05] 8[Pulp of bamboo, wood and paper.]

56 [w.e.f. 01-Apr-05 to 10-May-05] Rail coaches engines and wagons. 2[w.e.f. 11-May-05] Railway coaches, engines, wagons and part thereof.


1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05. 2. Also see Determination No. 90/CDVAT/2005 dated 03-May-06. 3. Substituted vide Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10. 4. Also see Determination No. 117/CDVAT/2005 dated 03-May-06. 5. Also see Determination Nos. 61/CDVAT/2005 dated 15-Feb-06 and No. 130/CDVAT/2006/128

dated 08-Dec-06. 6. Also see Det. Nos. 90/CDVAT/2005 /03-May-06 and No. 137-39/CDVAT/2006/129 dt. 15-Dec-06.

Sr. No. Commodity

57 [w.e.f. 01-Apr-05 to 10-May-05] Readymade garments. 1[w.e.f. 11-May-05] 2[Readymade garments but not including those made of khadi.] [w.e.f. 01-Apr-10] 3[Readymade garments costing upto rupees five thousand but not including those made up of khadi]

58 [w.e.f. 01-Apr-05] 4[Renewable energy devices and spare parts.]

59 [w.e.f. 01-Apr-05] Safety matches other than hand-made safety matches.

60 [w.e.f. 01-Apr-05 to 10-May-05] Seeds. 1[w.e.f. 11-May-05] Omitted.

61 61 [w.e.f. 01-Apr-05 to 10-May-05] Sewing machines. 1[w.e.f. 11-May-05] 5[Sewing machines, its parts and accessories.]

62 [w.e.f. 01-Apr-05] Ship and other water vessels.

63 [w.e.f. 01-Apr-05 to 10-May-05] Silk fabrics. 1[w.e.f. 11-May-05] 6[Silk fabrics including silk sarees but excluding handloom silk unless covered by Additional Excise Duty.]

64 [w.e.f. 01-Apr-05 to 10-May-05] Skimmed milk powder. 1[w.e.f. 11-May-05] Skimmed milk powder and UHT milk.

65 [w.e.f. 01-Apr-05 to 10-May-05] Solvent oils other than organic solvent oil. 1[w.e.f. 11-May-05] Solvent oils.


1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05. 2. Notification No. F. 101(348)/2005-Fin.(A/Cs)(i)/2404 dated 08-Aug-05. 3. Also see Determination No. 42/CDVAT/2005/20-Oct-05 and Determination No. 56/ CDVAT/2005/10-

Feb-06. 4. Also see Determination No. 07/CDVAT/2005 dated 08-Jul-05. 5. Also see Determination No. 24/CDVAT/2005/28-Jul-05 and Determination No. 39/ CDVAT/2005/24-

Nov.-05. 6. Substituted vide Notification No. 3(4)/Fin/ (Rev. I)/2012-13/DS-III/461-462, dt. 21-6-2012.

Sr. No. Commodity

66 [w.e.f. 01-Apr-05 to 10-May-05] Spices of all varieties and forms including cumin seed, aniseed, turmeric and dry chillies 1[w.e.f. 11-May-05] All kinds of spices and condiments including cumin seeds, turmeric, ajwain, haldi, dhania, hing, methi, sonth, kalaunji, saunf, khatai, amchur, long-patta, dal-chini, tej-patta, javatri jaiphal, pepper, elaichi of all kind, dried chilies, kankaul mirch.

67 [w.e.f. 01-Apr-05] Sports goods excluding apparels and footwear.

68 [w.e.f. 01-Apr-05 to 07-Aug-05] Starch. 2[w.e.f. 08-Aug-05] 3[Starches, glues and adhesives.]

69 ***

70 [w.e.f. 01-Apr-05] Tamarind.

71 [w.e.f. 01-Apr-05] 4[Tractors, threshers, harvesters and attachments and parts thereof.]

72 [w.e.f. 01-Apr-05] Transmission towers.

73 [w.e.f. 01-Apr-05 to 10-May-05] Umbrella except garden umbrella. 1[w.e.f. 11-May-05] Umbrella, its parts and accessories thereof except garden umbrella.

74 [w.e.f. 01-Apr-05] Vanaspati (Hydrogenated vegetable oil).

75 [w.e.f. 01-Apr-05] Vegetable oil including gingili oil and bran oil.

76 [w.e.f. 01-Apr-05 to 10-May-05] Writing instruments. [w.e.f. 11-May-05 to 31-Mar-10] 1[5Writing instruments, geometry boxes, colour boxes, crayons and pencil sharpeners.] [w.e.f. 01-Apr-10 upto 20-Jun-12] Writing instruments costing upto rupees one thousand per piece, geometry boxes, color boxes crayons and pencil sharpeners 6[w.e.f. 21-Jun-12] Writing instruments costing upto rupees one thousand per piece


1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05. 2. Notification No. F.3(59)/Fin.(T&E)/2005-06 933 kha dated 30-Nov-05. 3. Also see Circular No. 44 of 2005-06 dated 17-Jan-06. 4. Notification No.F 3(24)/Fin(T&E)/2007-08/Js Fin. 149 dt.31-3-2008

Sr. No. Commodity

77 [w.e.f. 01-Apr-05 to 10-May-05] Processed meat, poultry, fish and processed or preserved vegetables and fruits. 1[w.e.f. 11-May-05 to 29-Nov-05] Processed meat, poultry, fish and processed or preserved vegetables and fruits, etc. including fruit jams, jelly, pickle, fruits squash, paste, fruit drink and fruit juice whether in sealed container or otherwise. 2[w.e.f. 30-Nov-05] Processed meat, poultry, fish and processed or preserved vegetables and fruits, including fruit jams, jelly, pickle, fruits squash, paste, fruit drink and fruit juice whether in sealed container or otherwise]

78 [w.e.f. 01-Apr-05] Knitting wool.

79 [w.e.f. 01-Apr-05] 3[Tea.]

80 [w.e.f. 01-Apr-05 to 10-May-05] Embroidary and Zari items. 1[w.e.f. 11-May-05 to 30-March-2008] Embroidery and Zari items, that is to say—

(i) Imi,

(ii) Zari,

(iii) Kasab,

(iv) Salma,

(v) Dabka,

(vi) Chumki,

(vii) Gota,

(viii) Sitara,

(ix) Naqsi,

(x) Kora,

(xi) glass bead,

(xii) badla and

(xiii) Gizai.

[w.e.f. 31 March 2008] 4[Omitted]


1. Also see Det No. 197/CDVAT/2007/186 dt. 13-Feb-08.2. Omitted vide Notification No. F.101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05 w.e.f.

11-May-05 : earlier read as “gola”.3. Omitted vide Notification No. F.101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05, w.e.f.

11-May-05; earlier read as “seik narial”. 4. Inserted vide Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05.5. Substituted vide Notification No. 3(4)/Fin/ (Rev. I)/2012-13/DS-III/461-462, dt. 21-6-2012.6. Substituted vide Notification 3(18)/Fin(Rev-I)2012-13/dsvi/265, dt. 30-3-2013, w.e.f. 1-4-2013. 7. Substituted vide Notification No. F.101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05.

Sr. No. Commodity

81 [w.e.f. 01-Apr-05 to 10-May-05] 1[Kirana items namely ararote, singhara, kuttu & their atta, kala namak, sendha namak, heeng, aam papar, mushrum, khumba and guchchi, gola, gole ka burada, seik narial, til, rai, postdana, magaj of all kinds, mungafali dana, sabudana, roli, mehendi patti, pisi mehendi, kesar] [w.e.f. 11-May-05 upto 31-Mar-10] Kirana items namely ararote, singhara, kuttu & their atta, kala namak, sendha namak, heeng, aam papar, mushrum, khumba and guchchi, goley ka burada, til, rai, postdana, magaj of all kinds, mungafali dana, sabudana, roli, mehendi, patti, pisi mehendi, kesar, dry fruits. [w.e.f. 1-Apr-10 upto 19-Jul-10] Kirana items namely ararote, singhara, kuttu & their atta, kala namak, sendha namak, heeng, aam papar, mushrum, khumba and guchchi, goley ka burada, til, rai, postdana, mungafali dana, sabudana, roli, mehendi patti, pisi mehendi. [w.e.f. 20-Jul-10 upto 20-Jun-12] Kirana items namely ararote, singhara, kuttu & their atta, kala namak, sendha namak, heeng, aam papar, mushrum, khumba and guchchi, goley ka burada, til, rai, postdana, mungafali dana, sabudana, roli, mehendi patti, pisi mehendi, dry fruits 5[w.e.f. 21-Jun-12 upto 31-Mar-13] Kirana items, namely ararote, singhara, kutu & their atta, kala namak, sendha namak, heeng, aam papar, mushrum, khumba and guchchi, gole ka burada, til, rai, postadana, mungfali dana, sabudana, mehendi patti, pisi mehendi, dry fruits. 6[w.e.f. 1-Apr-13] Kirana items, namely ararote, kala namak, heeng, aam papar, mushrum, khumba and guchchi, gole ka burada, til, rai, postadana, mungfali dana, sabudana, mehendi patti, pisi mehendi, dry fruits.

82 [w.e.f. 01-Apr-05] School Bags having MRP upto Rs. 300.

83 [w.e.f. 01-Apr-05 to 10-May-05] Plastic granules 7[w.e.f. 11-May-05] Plastic granules, plastic powder and master batches.

84 [w.e.f. 01-Apr-05 to 10-May-05] Industrial inputs as specified 7[w.e.f. 11-May-05] Industrial inputs as specified below :


1. Also see Determination No. 132/CDVAT/2006/125, dated 29-Nov-06. 1. lso see Determination No. 166/CDVAT/2007/158, dated 04-Oct.-07.

Sl. No. Heading No.

Sub Heading

No.

Descriptionofgoods

(1) (2) (3) (4)

1. 15.01 Animal (including fish) fats and oils, crude, refined or purified

2. 15.06 Glycerol, Crude, Glycerol Waters and Glycerol lyes

3. 15.07 1[Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti, whether or not refined or coloured; degras; residues resulting from the treatment of fatty substances or animal or vegetable waxes]

4. 15.08 2[Animal or vegetable fats boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified; inedible mixtures or preparations of fats and oils of this chapter.]

5. 17.02 Liquid glucose (non medicinal), Dextrose Syrup.

6. 2204.10 Denatured ethyl alcohol of any strength

7. 2505.00 Sulphur, Barytes

8. 26.02 Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, calculated on the dry weight

9. 26.03 Copper ores and concentrates

10. 26.04 Nickel ores and concentrates

11. 26.05 Cobalt ores and concentrates

12. 26.06 Aluminium ores and concentrates

13. 26.07 Lead ores and concentrates

14. 26.08 Zinc ores and concentrates

15. 26.09 Tin ores and concentrates

16. 26.10 Chromium ores and concentrates

17. 26.11 Tungsten ores and concentrates

18. 26.12 Uranium or Thorium ores and concentrates

19. 26.13 Molybdenum ores and concentrates

20. 26.14 Titanium ores and concentrates

21. 26.15 Niobium, tantalum, vanadium or zirconium ores and concentrates

22. 26.16 Precious metal ores and concentrates


1. Also see Determination No. 12/CDVAT/2005, dated 14-Jun-05.

23. 26.17 Other ores and concentrates

24. 26.18 Granulated slag (slag sand) from the manufacture of iron or steel

25. 26.21 Ground granulated blast-furnace slag (GGBS)

26. 26. 2707.10 Benzole

27. 2707.20 Toluole

28. 2707.30 Xylole

29. 29. 2707.40 Naphthalene

30. 30. 2707.50 Phenols

31. 2707.60 2707.90

Creosote oilsMixed Xylene

32. 2711.14 Butadene

33. 2712.20 Normal Paraffin

34. 2714.10 Bitumen

35. 35. 28.01 Fluorine, Chlorine, Bromine and Iodine

36. 36. 28.02 Sulphur, sublimed or precipitated; colloidal sulphur

37. 37. 28.03 Carbon (carbon blacks and other forms of carbon not elsewhere specified or included)

38. 38. 28.04 Hydrogen, rare gases other than metals excluding oxygen (medicinal grade)

39. 28.05 Alkali or alkaline-earth metals; rare earth metals, scandium and yttrium, whether or not intermixed or interalloyed; mercury

40. 28.06 Hydrogen chloride (hydrochloric acid); chlorosulphuric acid

41. 28.07 Sulphuric acid and anhydrides thereof; Oleum

42. 28.08 Nitric acid; sulphonitric acids

43. 28.09 Diphosphorus pentaoxide; phosphoric acid and poly-phosphoric acids

44. 28.10 Oxides of boron; boric acids

44a. 28.11 1[Other organic acids and other Inorganic compounds of non-metal]

45. 28.12 Halides and halide oxides of nonmetals

46. 28.13 Sulphides of non-metals; commercial phosphorus trisulphide

47. 28.14 Ammonia, anhydrous or in aqueous solution

48. 28.15 Sodium hydroxide (caustic soda); potassium hydroxide (caustic potash); peroxides of sodium or potassium

49. 28.16 Hydroxide and peroxide of magnesium; oxides, hydroxides and peroxides of strontium or barium

50. 28.17 Zinc oxide, zinc peroxide

51. 2818.10 Aluminium hydroxide, aluminium calcides

52. 28.19 Chromium oxides and hydroxides


53. 28.20 Manganese oxides

54. 2821.10 Iron oxides and hydroxides;

55. 28.22 Cobalt oxides and hydroxides; commercial cobalt oxides

56. 28.23 Titanium oxide

56(a) 28.24 Lead oxides, Read lead and Orange lead

57. 28.25 Hydrazine and hydroxylamine and their inorganic salts; other inorganic bases; other metal oxides, hydroxides and peroxides

58. 28.26 Fluorides; fluorosilicates, fluoroalum-inates and other complex fluorine salts

59. 28.27 Chlorides, chloride oxides and chloride hydroxides; bromides and bromide oxides; iodides and iodide oxides

60. 28.28 Bleach liquid, Bleaching powder, sodium hypochlorides, sodium chloride

61. 28.29 Chlorates and Perchlorates; Bromates and Perbromates; Iodates and periodates

62. 28.30 Sulphides; Polysulphides

63. 28.31 Dithionites and sulphoxylates

64. 28.32 Sulphites; thiosulphates

65. 2833 Sodium sulphates, alums, Peroxosulphates (Persulphates), Sodium Hydrogen sulphate, Ferrous sulphate, Copper sulphate, Amonium alum, potash alum and ferric alum, Manganese sulphate, Strontium sulphate

66. 2833.90 Basic Chromium Sulphate, sodium sulphate, Magnesium sulphate, Ferrous sulphate

67. 28.34 Nitrites; nitrates

68. 28.35 Phosphinates (hypophosphites), phosphonates (phosphites); phosphates and polyphosphates, Sodium Tripoliuphosphate, Trisodium phosphate

69. 28.36 Carbonates; peroxocarbonates (percarbonates); commercial ammonium carbonates containing ammonium carbonate

70. 28.37 Cyanides, cyanide oxides and complex cyanides

71. 28.38 Fulminates, cyanates and thiocyanates

71(a) 28.39 Silicates, commercial alkali metal, silicates of sodium, sodium metasilicates, sodium metasilicates of potassium, Magnesium Trisilicate

72. 28.40 Borates; peroxoborates (perborates)

73. 28.41 Sodium bichromate

74. 2841.10 Sodium dichromate

75. 2841.20 Potassium dichromate

76. 28.44 Radioactive chemical elements and radioactive isotopes (including the fissile chemical elements and isotopes) and their compounds; mixtures and residues containing these products

77. 28.45 Isotopes other than those of heading No. 28.44; compounds, inorganic or organic of such isotopes, whether or not chemically defined


78. 28.46 Compounds, inorganic or organic, of rare earth metals, of yttrium or of scandium or of mixtures of these metals

79. 28.47 Hydrogen peroxide

80. 28.48 Phosphides, whether or not chemically defined, excluding ferrophosphorus

81. 28.49 Silicon carbide

82. 2849.10 Calcium carbides.

83. 28.50 Hydrides, nitrites, azides, cilidides and borides, whether or not chemically defined, other than compounds which are also carbides of heading No. 28.49

84. 29.02 Cyclic Hydrocarbons

85. 29.03 Halogenated derivatives of Hydrocarbons

86. 29.04 Sulphonated, nitrated or nitrosated derivatives of hydrocarbons, whether or not halogenated

87. 29.05 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives

88. 29.06 Cyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives

89. 29.07 Phenols; Phenol-Alcohols and their derivatives

90. 29.08 Halogenated, sulphonated, nitrated or nitrosated derivatives of phenols or phenol-alcohols

91. 29.09 Ethers, ether-alcohols, ether-phenols, ether-alcoholphenols, alcohol peroxides, ether peroxides, ketone peroxides (whether or not chemically defined) and their halogenated, sulphonated, nitrated or nitrosated derivatives

92. 29.10 Epoxides, epoxyalcohols, epoxyphenols and epoxyethers, with a three-membered ring and their halogenated, sulphonated, nitrated or nitrosated derivatives

93. 29.11 Acetals and hemiacetals, whether or not with other oxygen function and their halogenated, sulphonated, nitrated or nitrosated derivatives

94. 29.12 Aldehydes, whether or not with other oxygen function; cyclic polymers of aldehydes; paraformaldehyde

95. 29.13 Halogenated, sulphonated, nitrated or nitrosated derivatives of products of heading No. 29.12

96. 29.14 Acetone, NIBK, MEK, Cyclohexanone, diacetone alcohol and others

97. 29.15 Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives

98. 29.16 Unsaturated acyclic monocarboxylic acids, cyclic monocarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives

99. 29.17 Polycarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated sulphonated, nitrated or nitrosated derivatives

100. 29.18 Carboxylic acids with additional oxygen function and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives


101. 29.19 Phosphoric esters and their salts, including lactophosphates; their halogenated, sulphonated, nitrated or nitrosated derivatives

102. 29.20 Esters of other inorganic acids (excluding esters of hydrogen halides) and their salts; their halogenated, sulphonated, nitrated or nitrosated derivatives

103. 29.21 Amine-function compounds and derivatives and salts

104. 29.22 Oxygen-function amino-compounds

105. 29.23 Quaternary ammonium salts and hydroxides; lecithins and other phosphoaminolipids

106. 29.24 Carboxyamide-function compounds; amide-function compounds of carbonic acid

107. 29.25 Carboxyamide-function compound (including saccharin and its salts)and imine-function compounds.

108. 29.26 Nitrile-function compounds

109. 29.27 Diazo-, Azo- or azoxy-compounds

110. 29.28 Organic derivatives of hydrazine or of hydroxylamine

110(a) 29.29 Compounds with other nitrogenfunction

111. 29.30 Organo-sulphur compounds

112. 29.31 Ethylene Diamine Tetra Acetic Acid, Nitrillo Triacetic Acid and their Derivatives

113. 29.32 Heterocyclic compounds with oxygen heteroatom(s) only

114. 29.33 Heterocyclic compounds with nitrogen heteroatom(s) only

115. 29.34 Nucleic acids and their salts; other heterocyclic compounds

116. 29.35 Sulphonamides

117. 29.38 Glycosides, natural or reproduced by synthesis and their salts, ethers, esters and other derivatives

118. 29.39 Vegetable alkaloids, natural or reproduced by synthesis, and their salts, ethers, esters and other derivatives

119. 29.42 Ethylene Diamine Tetra Acetic Acid, Nitrillo Triacetic Acid and their Derivatives

120. 32.01 Tanning extracts of vegetable origin; tannins and their salts, ethers, esters and other derivatives excluding catechu or gambiar

121. 32.02 Synthetic organic tanning substances; inorganic tanning substances; tanning preparations, whether or not containing natural tanning substances; enzymatic preparations for pretanning excluding catechu or gambiar

122. 32.03 Colouring matter of vegetable or animal origin (including dyeing extracts but excluding animal black), whether or not chemically defined; preparations based on colouring matter or vegetable or animal origin excluding catechu or gambiar

123. 32.04 Synthetic organic colouring matter, whether or not chemically defined; preparations based on synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as luminophores, whether or not chemically defined excluding catechu or gambiar

124. 32.05 Colour lakes; preparations based on colour lakes


125. 3206 Pigments, Inorganic products of kind used as luminophores, Ultramarine and preparations, Lithphone and other pigments and preparations based on zink sulphide

126. 3206.49 Red oxide, Bronze powder

127. 3206.90 Master Batches, other colouring matter including ultra marine blue

128. 32.07 Prepared pigments and all their derivatives

129. 3207.10 Glass frit and other glass, in the form of powder, granules or flakes

130. 3207.90 Other

131. 32.11 Prepared driers.

132. 32.12 Pigments (including metallic powders and flakes) dispersed in non-aqueous media, in liquid or paste form, of a kind used in the manufacture of paints (including enamels); stamping foils; dyes and other colouring matter put up in forms (for example, bales, tablets and the like) or small packings (for example, sachets or bottles of liquid) of a kind used for domestic or laboratory purposes.

133. 3215.90 Printing ink whether or not concentrated or solid.

133(a) 34.02 1[Silicon surfacted, Non-ionic, Sulphonated or sulphated oxide, Chlorine castor oil]

133(b) 34.04 2[Artificial waxes and prepared waxes]

134. 35.01 Casein, caseinates and other Casein derivatives, casein glues.

135. 35.07 Enzymes; prepared enzymes not elsewhere specified or included

136. 3707.00 Chemical preparations for photographic uses (other than varnishes, glues, adhesives, and similar preparations)

137. 38.01 Artificial graphite; colloidal or semicolloidal graphite; preparations based on graphite or other carbon in the form of pastes, blocks, plates or other semi-manufactures

138. 38.02 Activated carbon; activated natural mineral products; animal black, including spent animal black

139. 38.04 Residual lyes from the manufacture of wood pulp, whether or not concentrated, desugared or chemically treated, including lignin sulphonates, but excluding tall oil

139(a) 38.05 3805.10 Gums and turpentine oil

140. 38.06 Rosin and resin acids, and derivatives thereof: rosin spirit and rosin oils; run gums.

141. 38.07 Wood tar; wood tar oils; wood creosote; wood naphtha; vegetable pitch; brewers’ pitch and similar preparations based on rosin, resin acids or on vegetable pitch

142. 3808.10 Insecticides, fungicides, herbicides, weedicides and pesticides of technical grade. 142(a) 3808.20 Sodium penta chlorophenate

143. 38.09 Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included

1. Also see Determination No. 126/CDVAT/2006, dated 28-Jul-06. 2. Also see Determination No. 132/CDVAT/2006/125, dated 29-Nov-06.


144. 38.12 Prepared rubber accelerators; compound plasticisers for rubber or plastics, not elsewhere specified or included; anti-oxidising preparations and other compound stabilisers for rubber or plastics

145. 38.14 Reducers and blanket wash/roller wash used in the printing industry.

146. 38.15 Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included.

147. 38.17 Mixed alkylbenzenes and mixed alkylnaphthalenes, other than those of heading No. 27.07 or 29.02

148. 38.18 Chemical elements doped for use in electronics, in the form of discs, wafers or similar forms; chemical compounds doped for use in electronics

149. 38.23 Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols

150. 3824.90 Retarders used in the printing industry.

151. 39.01 Polymers of ethylene in primary forms

152. 39.02 Polymers of propylene or of other olefins, in primary forms

153. 39.03 Polymers of styrene, in primary forms

154. 39.04 Polymers of vinyl chloride or of other halogenated olefins, in primary forms

155. 39.05 Polymers of vinyl acetate or of other vinyl esters in primary forms; other vinyl polymers in primary forms

156. 39.06 Acrylic polymers in primary forms

157. 39.07 Polyacetals, other polyethers and epoxide resins, in primary forms, polycarbonates, alkyd resins, polyallyl esters and other polyesters, in primary forms

158. 39.08 Polyamides in primary forms

159. 39.09 Amino-resins, polyphenylene oxide, phenolic resins and polyurethanes in primary forms

160. 39.10 Silicones in primary forms

161. 39.11 Petroleum resins, coumarone-indene resins, polyterpenes, polysulphides, polysulphones and other products, not elsewhere specified or included in primary forms

162. 39.12 Cellulose and its chemical derivatives, and cellulose ethers, not elsewhere specified or included in primary forms

163. 39.13 Natural polymers (for example, alginic acid) and modified natural polymers (for example, hardened proteins, chemical derivatives of natural rubber), not elsewhere specified or included, in primary forms

164. 39.14 Ion-exchangers based on polymers of heading Nos. 39.01 to 39.13, in primary forms

165. 39.19 Self adhesive plates, sheets, film foil, tape, strip of plastic whether or not in rolls.

166. 39.20 1[Other plates, sheets, film, foil and strip, of plastics, non-cellular, whether lacquered or metallised or luminated, supported or similarly combined with other materials or not]

167. 3921.90.10 Thermocol

1. Also see Determination Nos. 11/CDVAT/2005 dated 08-Jul-05; No. 97/CDVAT/2005, dated 15-Feb-06 and No. 94/CDVAT/2006 dated 08-Aug-06 and Det.No.169/CDVAT/2007/161, Dt. 08-10-2007 and Det. No. 169/R/CDVAT/2007/168, Dt.16-11-2007.


168. 39.23 1[Articles for the conveyance or packing of goods, of plastics, stoppers, lids, caps and other closures, of plastics but not including- (a) insulated wares (b) bags of the type which are used for packing of goods at the time of sale for the convenience of the customer including carry bags]

169. 40.01 Natural Rubber, balata, gutta percha, Guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strips

170. 40.02 2[Synthetic rubber and factice derived from oils in primary forms or in plates, sheets or strip; mixtures of any product of heading No. 40.01 with any product of this heading, in primary forms or in plates, sheets or strip]

171. 40.03 2[Reclaimed rubber in primary forms or in plates, sheets or strip]

172. 40.05 3[Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip, other than the forms and articles of unvulcanised rubber]

173. 47.01 Mechanical wood pulp, chemical wood pulp, semi-chemical wood pulp and pulps of other fibrous cellulosic materials

174. 48.19 Cartons (including flattened or folded cartons), boxes (including flattened or folded boxes), cases, bags and other packing containers, of paper, paperboard, whether in assembled or unassembled condition.

175. 48.21 Paper printed labels and paperboard printed labels.

176. 48.23 Paper self adhesive tape and printed wrappers used for packing.

177. 5402.33 Polyester texturised yarn

178. 5402.42 4[Yarn of Polyesters, partially oriented]

179. 6305.10 Sacks and bags, of a kind used for the packing of goods, of jute or of other textile bast fibres

180. 70.07 Carboys, bottles, jars, phials of glass, of a kind used for the packing goods; stoppers, lids and other closures, of glass:

181. 70.14 Glass fibres (including glass wool and glass filaments) and articles thereof (for example: yarn, woven fabrics), whether or not impregnated, coated, covered or laminated with plastics or varnish.

182. 72.02 Ferro alloys

183. 7607.60 Aseptic packaging aluminium foil of thickness less than 0.2 mm and backed by paper and LDPE.

184. 83.09 Stoppers, caps and lids (including crown corks, screw caps and pouring stoppers) capsules for bottles, threaded bungs, bung covers, seals and other packing accessories, of base metal.

1. Also see Determination Nos. 14/CDVAT/2005 dated 13-Jul-05; No. 92/CDVAT/2005, dated 17-May-06 and No. 149/CDVAT/2006, dated 21-Nov-06 and Det. No. 187/R/CDVAT/2007/188 Dt.25-02-08.

2. Also see Determination No. 111/CDVAT/2006, dated 23-Aug-06 and Det. No.111/CDVAT/R/2007/160 Dt. 08-10-2007.

3. Also see Determination Nos. 57/CDVAT/2005, dated 10-Feb-06 and No. 111/CDVAT/ 2006 dated 23-Aug-2006 and Det. No.111/CDVAT/R/2007/160, Dt.08-10-2007.

4. Also see Determination No. 111/CDVAT/2006, dated 23-Aug-06 and Det. No.111/CDVAT/R/ 2007/160 Dt. 08-10-2007.


185. Polymer of Styrene-polystyrene or Expandable Polystyrene.

186. Textile Finishing agents. Textile Printing Binder-PVA Copolymer Textile Non-woven binder-PVA copolymer Lamination emulsion- PVA copolymer Packaging emulsion-PVA copolymer Sticker Emulsion-PVA copolymer Binder for water based paint-PVA copolymer

187. Water/Hydraulic/industrial valves

188. Copper Clad sheets (PCB Sheets) for Printed Circuit Boards

189. H-70 base oil

190. Strings for Musical Instrument’

191. Purified Terepthalic Acid

192. Expandable Polysterene or Polysterene of Styrene

193. Zinc Oxide

194. Jute Yarn, Jute Cloth and Jute twine

195. PP/HDPE Woven sacks PP HDPE Fabrics

196. Refractory Monoothic

197. 3905.10 PVA Copolymer

198. CNSL, cardanol & Alklyd Resins

199. Hessian cloth, jute Cloth/Sheets

200. Metal containers

201. Sodium Sulphate

202. Pine Oil, Terepeneol (2906.10)

203. Mild Steel Sheets

204. Camphor (2914.20)

205. Micro cellular Sheets, Banwar Sheets & Hawai Straps.

206. Woven Label Tapes

207. Wodden Crates.

208. Polymers of Venyl Acetate and Poly Venyl acetate Emulsion.

209. Empty cylinders of LPG.

210. Railway freight containers attachable to wagon.

211. 8201.00 1[Tools and Dies]. “Tools that is to say, —(a) Power Tools such as electric drills, tapping machines,

hammers, sanders, planners, screw drivers, blowers routers, winches, grinders, super abrasives floor, stone for sharpening carpenters’ instruments, tile polishing blocks and rubbing bricks;

(b) Cutting Tools such as taps, milling cutters, reamers, segments, carbide tools, saws, high speed cut-off machines, shears, nibblers, compound milter saws, masonry cutters, diamond dresser cutter gear hobbs and gear shaper cutters;

(c) Measuring Tools such as micrometers vernier calipers, feeler gauges, height gauges slip gauges snap gauges, pressure gauges dial thermometers, water meter and measuring steel tapes;

1. Also see Determination Nos. 82/CDVAT/2005 dated 03-May-06 and No. 124/CDVAT/ 2006, dated 10-Jul-06; substituted vide Notification No. F.3(22)/Fin. (T&E)/2006-07/ 364-373 dated 07-Sep-06. Before substitution it was read as “Tools & Dyes”


(d) Hydraulic Tools such as jacks, pipe-benders torque wrenches, breakers, cylinders and control valves;

(e) Pneumatic Tools such as impact wrenches, rammers, grinders, drills torque wrenches, tilters, regulators and lubricant applicators;

(f) Hand Tools such as spanners pliers, screw drivers, hammers, torque tools, cold chisels, drill bits and burrs, tool bits hack saws, hack saw blades and frames band saw rolls, dice die nuts, tools for carpentry, tools for masons and steel files.

212. 9607.00 1[Zip/zip fastener]

213. 7301.10 Stainless steel but not including finished goods thereof

214. Silicon Carbaride

215. 6406.00 Parts of footwear (including upper) / Re-processed Sole

216. 2[Sewing machine spare parts and thread]

217. 1[Buttons]

218. Transformers used in the transmission/distribution of Electricity.

219. 3[w.e.f. 08-Aug-05] Additives, Salts, Stippers, Passivations, Intermediates and other chemicals used in various types of Electroplating such as Nickel, Zinc, Copper, Satin Nickel, Chrome Brass, Silver, Gold, Aluminium, Lead Tin, Tin Cobalt.

220. 39.07 3[w.e.f. 08-Aug-05]Layflat Tubing.

221. 4[w.e.f. 07-Sep-06]Flexible Polyurethane foam sheets

85. 5[w.e.f. 03-May-05 to 10-May-05]Sweetmeat6[w.e.f. 11-May-05 to 30-March-08]Sweetmeat and halwai items as notified by this Government vide Notification No. F.4(18)/77-Fin. Dated the 27th Feb. 1978, that is to say—

(a) Halwas:1. Halwa Sohan.2. Karachi Halwa (Pista).3. Halwa Karachi (Badam).4. Halwa Habshi (Egyptian).5. Halwa Soft.6. Halwa Akharot.7. Halwa Sohan (Walnut).

1. Also see Determination No. 111/CDVAT/2006, dated 23-Aug-06. and Det. No.111/CDVAT/R/2007/160, Dt. 08-10-2007.

2. Also see Determination Nos. 61/CDVAT/2005 dated 15-Feb-06 and No. 111/CDVAT/ 2006 dated 23-Aug-06 and Det. No.111/CDVAT/R/2007/160, Dt.08-10-2007.

3. Notification No. F. 101(348)/2005-Fin.(A/Cs)(ii)/2404 dated 08-Aug.-05.4. Inserted vide Notification No. F.3(22)/Fin.(T&E)/2006-07/364-373, dated 07-Sep-06.5. Inserted vide Notification No. F.101(336)/2005-Fin.(A/Cs)(i)/468, dated 03-May-05.6. Inserted vide Notification No. F.101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05.


8. Halwa Sohan Special (Dudhiya).9. Halwa Suji.10. Halwa Moong.11. Halwa Gajar.12. Halwa Bombai.13. Halwa Dipak.

(b) Laddus:14. Laddu Badam.15. Laddu Besan.16. Laddu Moong.17. Laddu Green Gram18. Laddu Moti Choor19. Laddu Khoya.20. Laddu Suji.21. Laddu Bundi.22. Laddu Maithi.23. Laddu Cholai.24. Laddu Til.25. Laddu Nishasta.26. Laddu Mohan.27. Paira Khoya.28. Paira Mathura.

(c) Petha:29. Petha Misri.30. Petha Angoor.31. Petha Gandhari.32. Petha Pan.33. Petha Cream Roll.34. Annanas.

(d) Other Sweets:35. Gulab Jaman.36. Parval.37. Likma Malai.38. Gileri Khurchan.39. Khoya Petha.40. Khoya Makhan Bara.41. Khoya Malpura.42. Milk Maisu.43. Malai Roll.44. Long Lata.45. Khurchan.46. Malai Tikka.


47. Kalakand.48. Milk Tikki.49. Milk Cake.50. Barfi (Coconut).51. Mango Sweet.52. Gulab Kand.53. Dar Bahisat.54. Barfi Pista.55. Barfi Badam.56. Barfi Moong.57. Barfi Khoya.58. Barfi Kesar Pak.59. Barfi Chocolate.60. Barfi Akharot.61. Barfi Standard (Pista Badam).62. Barfi Moti Pak.63. Barfi Gajjar.64. Barfi Paitha.65. Barfi Ghiya.66. Barfi Besan.67. Barfi Angoor.68. Barfi Kashmiri.69. Barfi Dal Chak.70. Barfi Khir Mohan.71. Barfi Kala Jaman.72. Barfi Rasgulla Sukh.73. Rasgulla.74. Orange Rasgulla.75. Cham Cham.76. Dil Bahar.77. Ras Mehuri.78. Ras Bhari.79. Chhaina Murgi.80. Ras Malai.81. Raj Bhog.82. Malai Chop.83. Suriya.84. Pinni Dal Urd.85. Lachha Ghiya.86. Sohar Papri.87. Imarti.88. Maisu Pak.


89. Balu Shahi.

90. Makhan Bara.

91. Nan Khatai of Besan.

92. Nan Khatai of Suji.

93. Phaini.

94. Ghaivar.

95. Andarse.

96. Andarse ki Goli.

97. Khajle.

98. Malpua Suji.

99. Malpua of Atta.

100. Jalebi.

101. Bundi.

102. Guldana.

103. Dil Khushal.

104. Patisha.

105. Khajur.

106. Pinni Nishasta.

107. Dhinda.

108. Samosa Sweet.

109. Chandrakala.

110. Rasgulla Moong.

111. Khera Patti.

112. All Kinds of Gajak.

(e) 1[Namkeen]

113. Badam.

114. Pista.

115. Akharot.

116. Chilgoza.

117. Kharbuza seeds.

118. Ratira.

1. Also see Determination No. 45/CDVAT/2005 dated 07-Nov-05.


119. Kadu seeds.120. Seem seeds.121. Dal Biji.122. Potato Chips.123. Mongra.124. Dal Moong.125. Kabli Chana.126. Samosa.127. Dal Masoor.128. Saib.129. Namak Para.130. Lachha Alu.131. Mathri.132. Mathri Bengali.133. Mathri Rewa.134. Mathri Punjabi.135. Mathri Sonth.136. Tikkia Sonth.137. Khasta Kachori.138. Bairwari.139. Puri.140. All kinds of Pakoras

(f) Milk:1[w.e.f. 11-May-05 to 07-Aug-05]141. Curd Lassi2[w.e.f. 08-Aug-05 to 30-Mar-08]141. 3[Curd lassi, flavoured milk and yogurt when sold in sealed and packed

containers or in bottles.]

Sr. No. Commodity

85 4[w.e.f. 31-Mar-08 to 31-Mar-2011](a) Sweetmeats and Namkeens.5[w.e.f. 1-Apr-11](a) Omitted(b) Curd lassi, flavoured milk and yogurt when sold in sealed and packed

containers or in bottles.

1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548, dt. 11-May-05.2. Notification No. F. 101(348)/2005-Fin.(A/Cs)(ii)/2404, dt. 08-Aug.-05.3. Also see Determination No. 147/CDVAT/2006/127, dated 8-Dec-2006 and Det. No. 147/R/

CDVAT/162, dt. 8-10-2007.4. Existing entry at S.No. 85 substituted vide Notification No. F.3 (24)/Fin.(T&E)/2007-08/Js Fin/149,

dt. 31-03-08.5. Entry “(a) Sweetmeats and Namkeens” omitted vide Notification No. 3(51)/Fin. (Rev.-I)/2010-11/asf/12,

dt. 1-4-2011, w.e.f. 1-4-2011.


Sr. No. Commodity

86 1[w.e.f.11-May-05]2[Capital goods] as specified below:

(i) Machinery for tea industry;

(ii) Machinery for food and food processing industries including flour mill;

(iii) Machinery for sugar mill;

(iv) Machinery for beverages, tobacco and tobacco products industries;

(v) Machinery for jute, hemp, mesta textiles industries;

3[(vi) Machinery for textile industries including hosiery other than jute;]

(vii) Machinery for engineering industries;

(viii) Machinery for paint industry;

(ix) Machinery for furniture and wood products industries;

(x) Machinery for paper and paper products and printing, publishing and allied industries;

(xi) Machinery for leather and fur product industries;

(xii) Rubber, plastic, petroleum and coal product industry machinery;

(xiii) Machinery for chemical and chemical products;

(xiv) Machinery for basic metal and alloys industries;

(xv) Machinery for non-metallic mineral product and industries;

4[(xvi) Machinery for construction works;]

(xvii) Transport equipment and motor parts manufacturing machinery;

(xviii) Mining machinery;

(xix) Packaging machinery;

(xx) Foundry machinery;

(xxi) Agricultural machinery other than those mentioned elsewhere in any other Schedule;

(xxii) Waste treatment plant and pollution control equipment manufacturing machinery;

1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548, dt. 11-May-05.2. Also see Determination Nos. 55/CDVAT/2005 dated 28-Nov-2005, 83/CDVAT/2005, dated

04-Apr-06 and 86/CDVAT/2005, dated 04-Apr-2006.3. Also see Determination No. 130/CDVAT/2006/128, dated 8-Dec-2006.4. Also see Det. No. 189/CDVAT/2007/175, dt. 12-12-2007.


Sr. No. Commodity

1[(xxiii) Machinery for printing industry;] (xxiv) Machinery for iron and steel industry; (xxv) Machinery for refrigeration and cooling towers including air-

conditioners; (xxvi) Cooling towers; (xxvii) Earth moving machinery; (xxviii) Spare parts, accessories and components of the plant and machinery

specified in items (i) to (xxvii).

87. 2[w.e.f. 11-May-05]Cottage cheese.

88. 2[w.e.f. 11-May-05]Non-mechanized boats used by fisherman for fishing.

89. 2[w.e.f. 11-May-05]Refractory monolithic.

90. 2[w.e.f. 11-May-05]Wooden crates.

91. 2[w.e.f. 11-May-05]Nuts bolts, screws and fasteners.

92. 2[w.e.f.11-May-05]3[Medical equipment/devices and implants.]

93. 2[w.e.f.11-May-05]Clay including fire cly, fine china clay and ball clay.

94. 2[w.e.f.11-May-05]4[Toys excluding electronic toys.]

95. 2[w.e.f.11-May-05]Honey.

96. 2[w.e.f.11-May-05]Combs.

1. See Det. No. 167/CDVAT/2007/147, dt. 31-07-07.2. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05.3. Also see Determination No. 68/CDVAT/2005/19-Dec. 054. Also see Cir. No. 28 of 2005-06 dt. 24-Aug-05 ; Det. Nos. 13/CDVAT/2005, dt. 12-07-05 : 72/

CDVAT/2005 dt. 13-02-06; 93/CDVAT/2005 dt. 21-02-06; 35, 59 & 62/CDVAT/2005 dt. 17-03-06; 79/CDVAT/2005 dt. 03-05-06; 120 & 134/CDVAT/2006, dt. 01-08-06; 116/CDVAT/2006 dt. 07-08-06; No. 133/CDVAT/2006 dt. 21-09-06; Det. No. 165/CDVAT/2007, dt. 23-08-07 and Det. No. 162/CDVAT/2007/156, dt. 4-10-07.


Sr. No. Commodity

97. 1[w.e.f.11-May-05]Insulators.

98. 1[w.e.f.11-May-05 upto 20-Jun-12]2[Cups and glasses of paper and plastics.]3[w.e.f. 21-Jun-12]Cups and glasses of paper

99. 1[w.e.f.11-May-05]Buckets made of iron and steel, aluminium, plastic or other materials (exceptprecious materials).

100. 1[w.e.f.11-May-05]Coal tar.

101. 1[w.e.f.11-May-05]Computer stationery.

102. 1[w.e.f.11-May-05]Writing ink.

103. 1[w.e.f.11-May-05]Rice bran.

104. 1[w.e.f.11-May-05]Bio-mass briquettes.

105. 1[w.e.f.11-May-05]River sand and grit.

106. 1[w.e.f.11-May-05]Wet dates.

107. 1[w.e.f.11-May-05]Khoya/khoa.

108. 1[w.e.f.11-May-05]Porridge.

109. 1[w.e.f.11-May-05]Imitation jewellery.

110. 1[w.e.f.11-May-05]Feeding bottle, nipples.

111. 1[w.e.f.11-May-05 to 13-May-07]4[Kerosene stove/lantern, petromax, glass chimney, hurricane lamp and itsspares.]5[w.e.f. 14-May-07][x x x]

1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05.2. Also see Determination No. 96/CDVAT/2005/17-May-06.3. Substituted vide Notification No. 3(4)/Fin. (Rev. I)/2012-13/DS-III/461-462, dt. 21-6-2012.4. Also see Determination No. 117/CDVAT/2005 dated 03-May-06.5. Entry at Sl. No. 111 omitted vide Notification No. F.3(2)/Fin(T&E)/2007-08/(ii)/dsftc/351, dt. 14-May-

07.


Sr. No. Commodity

112. 1[w.e.f.11-May-05]Hing (Asafoetida).

113. 1[w.e.f.11-May-05]Fly ash.

114. [w.e.f.11-May-05 to 7-4-2011]2[Bed-sheet, pillow cover and other made-ups covered by HSN entry nos. 63.01, 63.02, 63.03, 63.04, 63.05 and 63.06.]3[W.e.f. 8-4-2011 to 20-Jun-11] (i) Bed-sheet, pillow cover and other made-ups covered by HSN entry nos.

63.01, 63.02, 63.03, 63.04, 63.05 and 63.06. (ii) (a) Industrial textiles such as canvass belt, filter cloth etc. (b) Furnishings other than handloom furnishings. (c) suitings4[w.e.f. 21-6-2011] (i) Bed-sheets, pillow covers and other made-ups covered by HSN entry nos.

63.01, 63.02, 63.03, 63.04, 63.05 and 63.06 (ii) (a) Industrial textiles such as canvass belt, filter cloth etc. (b) Furnishings having sale price of more than Rs. 100/- per meter or per piece or per set, as the case may be, other than handloom furnishings. (c) Suiting having sale price of more than Rs. 500/- per meter

115. 1[w.e.f.11-May-05]Spectacles, parts and components thereof, contact lens & lens cleaner.

116. 1[w.e.f.11-May-05]Jute and all kind of jute products including natural, dyed and bleached, diversified, plain and laminated jute products.

117. 1[w.e.f.11-May-05]5[Imported textiles and fabrics.]

118. 1[11-May-05 to 31-Mar-10]Plastic and tin containers including barrels.[w.e.f. 01-Apr-10]6[Omitted]

119. 1[w.e.f.11-May-05]7[Buffing material and metal polish.]

120. 1[w.e.f.11-May-05]8[Paraffin wax of all grades/standards other than food grade standards including standard wax and slack wax.]

121. 1[w.e.f.11-May-05 to 07-Aug-05]9[Industrial perfumes and its concentrates.]10[w.e.f.08-Aug-05]11[Industrial perfumes and its concentrates (HSN 33.02).]

1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05.2. Also see Determination No. 67/CDVAT/2005 dated 14-Mar-06.3. Substituted vide Notification No. 3(51)/Fin. (Rev. I)/2010-11/Asf/12, dt. 1-4-2011.4. Substituted vide Notification No. F. 3(11)/Fin. (Rev. I)/2011-12/DS-II/313, dt. 21-6-2011.5. Also see Determination No. 90/CDVAT/2005 dated 03-May-06.6. Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.7. Also see Determination No. 84/CDVAT/2005 dated 17-May-06.8. Also see Determination No. 132/CDVAT/2006 dated 29-Nov-06.9. Also see Determination No. 12A/CDVAT/2005 dated 23-Jun-05.10. Notification No. F. 101(348)/2005-Fin.(A/Cs)/(ii) 2404, dated 08-Aug-05.11. Also see Determination No. 21/CDVAT/2005 dated 06-Mar-06.


Sr. No. Commodity122. 1[w.e.f.11-May-05]

Linear Alkyle Benzene, L.A.B. Sulphonic Acid, Alfa Olefin Sulphonates.

123. 1[w.e.f.11-May-05]All CDs and DVDs, whether recorded or unrecorded.

124. 1[w.e.f.11-May-05]Willow vicker.

125. 1[w.e.f.11-May-05]Mekhla chaddar.

126. 1[w.e.f.11-May-05 upto 20-Jun-12]Misri, patasha as part of prasad.2[w.e.f. 21-Jun-12]Omitted

127. 1[w.e.f.11-May-05]Sattu.

128. 1[w.e.f.11-May-05]Handicrafts.

129. 1[w.e.f.11-May-05]Cart driven by animals.

130 1[w.e.f.11-May-05]Chicken products.

131. 1[w.e.f.11-May-05 upto 20-Jun-12]Kirpan.2[w.e.f. 21-Jun-12]Omitted

132. 1[w.e.f.11-May-05 upto 20-Jun-12]Prasadam by religious institutions.2[w.e.f. 21-Jun-12]Omitted

133. 1[w.e.f.11-May-05 upto 20-Jun-12]Sacred Thread.2[w.e.f. 21-Jun-12]Omitted

134. 1[w.e.f.11-May-05]Tapioca.

135. 1[w.e.f.11-May-05]Mat locally known as madhur, madhur kathi or cyperus.

136. 1[w.e.f.11-May-05]Rattan, reed (in Malayalam).

137. 1[w.e.f.11-May-05]Plantain leaves.

138. 1[w.e.f.11-May-05]Coconut fibre.

139. 1[w.e.f.11-May-05]Chalk stalk

1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05.2. Notification No. 3(4)/Fin. (Rev. I)/2012-13/DS-III/ 461-62, dt. 21-6-2012.


Sr. No. Commodity

140. 1[w.e.f.11-May-05]Bamboo mating.

141. 1[w.e.f.11-May-05]Animal shoe nails.

142. 1[w.e.f.11-May-05]Husk including ground nut husk.

143. 1[w.e.f.11-May-05]Appalam, vadam & vathal.

144. 1[w.e.f.11-May-05]Unprocessed green leaves of tea.

145. 1[w.e.f.11-May-05]Leaf plates and cups pressed or stitched.

146. 1[w.e.f.11-May-05]Agate.

147. 1[w.e.f.11-May-05]Takhti.

148. 1[w.e.f.11-May-05]Beehive.

149. 1[w.e.f.11-May-05]Gamosha.

150. 1[w.e.f.11-May-05]Bukhari.

151 1[w.e.f.11-May-05]Loi.

152. 1[w.e.f.11-May-05]Pattu.

153. 1[w.e.f.11-May-05]Gabba.

154. 1[w.e.f.11-May-05]Kangri.

155. 1[w.e.f.11-May-05]Quandakari.

156. 1[w.e.f.11-May-05]Sabai grass and rope.

1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548 dated 11-May-05.


Sr. No. Commodity

157. 1[w.e.f.11-May-05]Sirali, bageshi, barroo, date leaves, baskets, made of bamboo.

158. 1[w.e.f.11-May-05]Mat sticks and reed obtainable from cyperus kathi, mutha.

159. 1[w.e.f.11-May-05]Candles.

160. 1[w.e.f.11-May-05]Non-conventional Energy Devices.]

161. 2[w.e.f.08-Aug-05]Unbranded Goli and Toffi.

162. 2[w.e.f.08-Aug-05]3[Coated abrasives viz., grinding discs, coated emery cloth, waterproof emery paper, emery belts and rolls, emery wheels (made from natural or artificial powder or grain) and bonded abrasives viz., grinding wheel and like bonded abrasives of different shapes for grinding, sharpening, polishing and cutting.]

163. 2[w.e.f.08-Aug-05 upto 20-Jun-12]Kite.4[w.e.f. 21-Jun-12]Omitted

164. 2[w.e.f.08-Aug-05]5[All other verities of textile fabrics and made ups as are specifically not covered by any other entry of any of the Schedules to the Act.]

165. 2[w.e.f.08-Aug-05 to 31-Mar-10]6[Household plastic items such as combs, jug, soap case, mug, tooth brush, patra, looking glass and photo frames, chakla belan, 7[cutlery], tea and atta chhanani, lunch box, bottles, trays, tokras including baskets, mats, basins, tubs, and drums of capacity upto 100 litres.][w.e.f. 01-Apr-10]8[Omitted]

166. 2[w.e.f.08-Aug-05 to 31-Mar-10]9[Fittings for doors, window and furniture including (1) hinges-butt, piano, narrow, tee, parliament, handles for locks, furniture handles, furniture knobs, drawer channel, furniture fitting, furniture hinges, furniture catchers, (2) nails, screws, nuts and bolts, revets, cotter[w.e.f. 01-Apr-10]8[Omitted]

1. Notification No. F. 101(328)/2005-Fin.(A/Cs)(ii)/548, dated 11-May-05.2. Notification No. F. 101(348)/2005-Fin.(A/Cs)(ii)/2404, dated 08-Aug-05.3. Also see Determination No. 84/CDVAT/2005, dated 17-May-06.4. Notification No. 3(4)/Fin. (Rev. I)/2012-13/DS-III/ 461-62, dt. 21-6-2012.5. Also see Determination No. 106/CDVAT/2006, dated 10-Jul-06.6. Also see Determination No. 92/CDVAT/2005 dated 17-May-06 and Det. No. 181/CDVAT/2007/159,

Dt.8-10-20077. Also see Determination No. 78/CDVAT/2005 dated 04-Apr-06.8. Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.9. Also see Determination Nos. 85/CDVAT/2005 dated 20-Mar-06; No. 121/CDVAT/ 2006, dated 14-

Jul-06.; Det. No. 151/CDVAT/2006/140,Dt.17-4-07; Det. No. 182/DVAT/2007/169,Dt.16-11-07 and Det. No. 200/CDVAT/2007/189, Dt.25-2-2008


Sr. No. Commodity

pins, staples, panel pins, blue cut taks, hob nails, stars, studs, iron heels, bullock and horse shoes and nails, (3) 1[chains of all kinds, ] (4) all kinds of metal sections, including slotted angles, shelves and accessories, (5) rods, rails, channels and curtain fittings, (6) tower bolts, handles, aldrops, window stay, gate hook, door stopper, brackets, card clamp, clips, corners, washers, eyelets, hooks and eyes, hangers, hasps, pegs, pelmet fittings, sliding door fittings, stoppers, suspenders, springs, magic eyes, trolley wheels, pulleys and holdfasts, (7) wire brushes.]

167. 2[w.e.f.08-Aug-05]All other scrap not included elsewhere in any Schedule of the Act.

168. 2[w.e.f. 08-Aug-05 to 31-Mar-10]Paint brushes.[w.e.f. 01-Apr-10]3[Omitted]

169. 2[w.e.f. 08-Aug-05 to 31-Mar-10]4[Wood, timber, ply-board and laminated board.][w.e.f. 01-Apr-10]3[Omitted]

170. 2[w.e.f. 08-Aug-05]Insulating varnish.

171. 2[w.e.f. 08-Aug-05 to 29-Nov-05]Tractor tyre.5[w.e.f. 30-Nov-05 to 31-Mar-10]Tractor tyres and tubes.[w.e.f. 01-Apr-10]3[Omitted]

172. 5[w.e.f. 14-Mar-06]Winding wires and Strips

173. 5[w.e.f. 14-Mar-06]Ammeter, KWH meter, Voltmeter

174. 5[w.e.f. 14-Mar-06]Insulating material, Insulator

175. 5[w.e.f. 14-Mar-06]Jointing materials

176. 5[w.e.f. 14-Mar-06]Circuit breakers, HRC fuse, Thermostat

1. Also see Determination No. 54/CDVAT/2005 dated 10-Feb-06.2. Notification No. F. 101(348)/2005-Fin.(A/Cs)(ii)/2404 dated 08-Aug-05.3. Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.4. Also see Determination Nos. 43/CDVAT/2005/14-Dec-05; No. 46/CDVAT/2005/03- May-06 and No.

134/CDVAT/2006, dated 22-Sep-06.5. Notification No. F.3(59)/Fin.(T&E)/2005-06 933 kha dated 30-Nov-05.6. Notification No. F. 3(77)/Fin.(T&E)/2005-06/1434-1443-Kha, dated 14-Mar-06.


Sr. No. Commodity177. 1[w.e.f. 14-Mar-06]

Electrical relays and Single phasing Preventors and Timers

178. 1[w.e.f. 14-Mar-06]Cocoa and Coffee including coffee beans

179. 1[w.e.f. 14-Mar-06]Wire mesh and Metal mesh[w.e.f. 01-Apr-10]2[Omitted]

180. 1[w.e.f. 14-Mar-06]Liquefied Petroleum Gas (LPG) and Piped Natural Gas (PNG)[w.e.f. 01-Apr-10]3[Liquified Petroleum Gas (LPG) other than for domestic use and PipedNatural Gas (PNG)]

181. 1[w.e.f. 14-Mar-06 to 31-Mar-10]Desi Ghee.[w.e.f. 01-Apr-10]2[Omitted]4[w.e.f. 1-Apr-13]Desi Ghee

182. 5[w.e.f. 14-May-07]Glucose D.[w.e.f. 01-Apr-10]2[Omitted]

183. 6[w.e.f. 31-March-08 upto 31-Mar-13]Compact Fluorescent Lamp and Electronic Chokes (Bureau of Indian Standards certified or star rated by Bureau of Energy Efficiency).7[w.e.f. 1-Apr-13]Compact Fluorescent Lamp and Electronic Chokes (Bureau of Indian Standards certified or star rated by Bureau of Energy Efficiency), LED lights.

184. 6[w.e.f. 31-March-08 to 31-Mar-10]Locks.[w.e.f. 01-Apr-10]2[Omitted]

185. 6[w.e.f. 31-March-08 to 31-Mar-10]Weights and Measures.[w.e.f. 01-Apr-10]2[Omitted]

186. 6[w.e.f. 31-March-08 to 31-Mar-10]Fibre board and particle board made out of agricultural wastes like Bagasse.][w.e.f. 01-Apr-10]2[Omitted]

1. Notification No. F. 3(77)/Fin.(T&E)/2005-06/1434-1443-Kha, dated 14-Mar-06.2. Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.3. Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.4. Notification No. 3(18)/Fin(Rev-I)/ 2012-13/dsvi/265, dt. 30-3-2013, w.e.f. 1-4-2013.5. Notification No. F.3(2)/Fin(T&E)/2007-08/(ii)/dsftc/351,Dt.14-May-07.6. Notification No. F.3(24)/Fin(T&E)/2007-08/JsFin/149,Dt 31-3-20087. Notification No. 3(18)/Fin(Rev-I)/ 2012-13/dsvi/265, dt. 30-3-2013, w.e.f. 1-4-2013.


Sr. No. Commodity187. 1[w.e.f. 3-Jun-08]

Subject to the conditions specified in entry No. 1 of the Fifth Schedule to theDelhi Value Added Tax Act, 2004, the following goods sold by Canteen Stores Department: (i) (a) All Goods made of glass including glassware, but not including glass

and bangles, optical lenses, glass tumblers and mirrers. (b) Utensils, kitchenware and tableware made of glass or china clay. (c) Glazed earthenware. (d) Chinaware including crockery. (ii) Iron and steel safes and almirahs. (iii) Cosmetics, perfumery and toilet goods including soaps, shampoos and

hair oil but not including tooth brushes, toothpaste, tooth powder and kumkum.

(iv) Cushion and mattresses of foam, including foam sheets, pillows and other articles made from foam rubber or plastic foam or other synthetic foam.]

188. [w.e.f. 01-Apr-10 to 6-12-2011]Bio-inputs like bio-fertilizers, micro-nutrients and Plant Growth Promoters2[w.e.f. 7-12-2011][Omitted]

189. 3[w.e.f. 01-Apr-10 to 31-Mar-11]Kerosene-stoves, Lanterns and Petromax and their spares4[w.e.f. 01-Apr-11][Omitted]

1. Notification No. F3(2) Fin (T&E)/2008-09/JS Fin. 237, dt. 3-6-2008, w.e.f. 3-6-2008.2. Notification No. F. 3(17)/Fin. (Rev. I)/2011-12, dt. 7-12-2011.3. Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.4. Notification No. 3(51) (Rev. I)/2010-11/Asf/12, dt 1-4-2011


1. Also see Determination Nos. 49/CDVAT/2005 dated 08-Mar-06 and 110/CDVAT/2006 dated 10-May-06; Circular No. F.6(26) Policy-III/VAT/2005/1746-1845/Circular No. 47 dated 23-Jan-06; Notification No. F.1(13)/P-II/VAT/ACT/2006/1701 Kha dated 20-Jun-06.

2. Notification No. F. 101(336)/2005-Fin.(A/Cs)(ii)/479, dated 03-May-05.3. Notification No. F. 101(328)/2005-Fin. (A/Cs)(iii)/559, dt. 11-5-2005.4. Substituted vide Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 1-Apr-10.5. Notification No. F. 3(35)/Fin. (Rev.I)/2010-11/161, dt. 19-Jul-2010.

THE FOURTH SCHEDULE(Refer section 4)

LIST OF GOODS TAXED AT 20%Sr. No. Commodity

1. [w.e.f. 01-Apr-05 to 2-May-05]1[Petroleum Products] other than liquid petroleum gas, Compressed Natural Gas and Kerosene such as:— (i) Naphtha; (ii) Aviation Turbine Fuel; (iii) Spirit; (iv) Gasoline; (v) Diesel (High Speed Diesel, Super Light Diesel Oil, Light Diesel Oil) (vi) Furnace oil; (vii) Organic solvent; (viii) Coal tar; (ix) Wax (except petroleum wax used for manufacture of candles); (x) Mixture and combination of above products[w.e.f. 3-May-05 upto 10-May-05]2(v) omitted; rest same[w.e.f. 11-May-05 upto 13-Mar-06]3(vii) & (viii) omitted; rest same[w.e.f. 14-Mar-06 upto 31-Mar-10]Petroleum products other than liquid petroleum gas, piped natural gas, Compressed Natural Gas and Kerosene such as (i) to (x) same as on 11-May-05[(v), (vii) & (viii) already omitted]4[w.e.f. 1-Apr-10 upto 19-Jul-10]Petroleum products other than liquid petroleum gas, piped natural gas, Compressed Natural Gas and kerosene such as (i) Naphtha; (ii) Aviation Turbine Fuel; (iii) Spirit; (iv) Gasoline; (v) Diesel; (vi) Furnace oil; (vii) xxx (viii) xxx (ix) Wax (except petroleum wax used for manufacture of candles; (x) Mixture and combination of above product5[w.e.f. 20-Jul-10]Petroleum products other than liquid petroleum gas, piped natural gas, Compressed Natural Gas and Kerosene such as (i) to (iv) and (vi) to (x) same as on 1-Apr-10.

2. [w.e.f. 01-Apr-05]Liquor (Foreign and Indian Made Foreign Liquor).

3. [w.e.f. 01-Apr-05]Country Liquor.


1. Substituted vide Notification No. 3(4)/Fin. (Rev. I)/2012-13/DS-III/ 461-62, dt. 21-6-2012.2. Inserted vide Notification No. F.3(30)/Fin.(T&E)/2009-10/JS Fin./285, dt. 01-Apr-10.

4. [w.e.f. 01-Apr-05]Narcotics (Bhanng).

5. [w.e.f. 01-Apr-05]Molasses.

6. [w.e.f. 01-Apr-05]Rectified Spirit.

7. [w.e.f. 01-Apr-05]Lottery Tickets.

8. [w.e.f. 01-Apr-05]Brake Fluid.

[9. xxx]

10. [w.e.f. 26-Jun-09 upto 20-Jun-12]Tobacco and Gutka—except unmanufactured tobacco, bidis, tobacco used in the manufacture of bidis and hooka tobacco]1[w.e.f. 21-Jun-12]Tobacco and Gutkha, unmanufactured tobacco, bidis and tobacco used in the manufacture of bidis and hooka tobacco

11. 2[w.e.f. 01-Apr-10]Aerated Drinks

12. 2[w.e.f. 01-Apr-10]Watches costing above rupees five thousand.


THE FIFTH SCHEDULE(Refer section 6)

LIST OF DEALERS EXEMPTED FROM PAYING TAX ON SALE OF GOODSSr. No. Commodity

1. 1[w.e.f. 02-Jun-05]

“Subject to the conditions specified here in under, the sale in Delhi made by the Canteen Stores Department to Regiment or Unit-run canteens or canteen contractors approved by the Government of India (hereinafter referred to as ’canteens’) or to the members of the Armed Forces, or by the canteens to the members of the Armed Forces

CONDITIONS

(a) The canteens shall sell the goods—(i) exclusively to members of the Armed Forces, or(ii) both to members of the Armed Forces and to other persons (but

not exclusively to other persons) provided that such canteens are registered under the said Act and their registration number, name and address is mentioned in the bill or cash memorandum.

(b) The sale by the canteen in respect of which exemption under the Fifth Schedule above referred to is claimed shall be of goods obtained from the Canteen Stores Department, the sale price of which is fixed by the Quarter Master General, Army Headquarters, New Delhi.

(c) Where any goods are purchased by the Canteen Stores Department or a canteen for which a refund has been sought under the provisions of section 41 of the said Act, and are utilized by it otherwise than by way of sale in Delhi, the price of the goods so purchased shall be included in its taxable turnover.

(d) The exemption of tax will be available for the sale of goods other than those mentioned at annexure below for resale in Delhi and turn over of sales on account of sale of goods mentioned in the Annexure below shall be included in its taxable turnover.

Explanation : For the purpose of this clause, the expression “Members of the Armed Forces” shall include ex-service personnel and war-widows identified as such by the Ministry of Defence/Army, Navy and Air Headquarters or their subordinate/attached offices.

ANNEXURE

1. (a) Motor Vehicles including chassis of motor vehicles and motor bodies, but not including tractors tyres, tubes, accessories, component parts and spare part of motor vehicles.

(b) Motor cycles, motor cycle combinations, motor scooters, motoretts, two wheelers and three wheelers.

2. (a) Refrigerators of the capacity above 170 litres. (b) Air-conditioning and other cooling appliances and apparatus

excluding air coolers and water coolers. (c) All kind of cooking appliances, cooking ranges, microwave ovens

and grilles.

1. Inserted vide Notification No. F. 101(328)/2005-Fin.(A/Cs)(i)/1099, w.e.f. 02-Jun-05.


Sr. No. DescriptionoftheDealer(d) Vaccum cleaners, electrical and electronic air purifiers and dish

washers.

(e) Television sets, video cassette recorders, video cassette players, CD players, home theatres, video camera and cameras of value exceeding Rs. 250.

(f) Washing machines.

(g) Room air convectors and air circulators.

(h) Voltage stabilizers, inverters and transformers.

(i) Transmission towers.

(j) Electronic toys and games.

(k) Video CD and DVD Players.

(l) ACSR Conductors.

3. Telecommunication equipments including telephones, tele-printers, wireless equipment and fax machines but excluding mobile phone handsets.

4. Cinematographic equipments including cameras, projectors and sound recording and reproducing equipment and spare parts, component parts and accessories required for use therewith and lenses, films and cinema carbons.

5. Foreign made watches, electrical time switches and mechanical timers and component parts, spare part and accessories thereof.

6. All arms including rifles, revolvers pistols and ammunition for the same and component parts and accessories thereof but not including 12 bore shot-gun ammunition.

7. Cigarette cases and lighters.

8. Typewriters, tabulating, calculating, cash registering, indexing, card punching, franking and addressing machines, tele-printers, duplicating machines and photocopying machines, component parts, spare parts and accessories thereof.

9. Binoculars, telescopes and opera glasses and component parts, spare parts and accessories thereof.

10. All type of cutlery including knives, forks and spoons.

11. (a) All goods made of glass including glassware, but not including glass and bangles, optical lenses, glass tumblers and mirrors.

(b) Utensils, kitchenware and tableware made of glass or chine clay.

(c) Glazed earthenware.

(d) Chinaware including crockery.

12. Picnic set sold as a single unit.

13. Iron and steel safes and almirahs.


Sr. No. DescriptionoftheDealer1 14. (a) Light Diesel oil/high speed Diesel.

(b) Kerosene oil sold through modes other than fair price shop.

15. Cosmetics, perfumery and toilet goods including soaps, shampoos and hair oils but not including tooth brush, tooth brush, toothpaste, tooth powder and kumkum.

16. Leather goods, excepting footwear, belts and sports articles made of leather.

17. Furniture including iron and steel and moulded furniture, but excluding wooden furniture.

18. Cushion and mattresses of foam, including foam sheets, pillows and other articles made from foam rubber or plastic foam or other synthetic foam.

19. Furs and skins with fur and articles made therefrom including garments made thereof.

20. Articles made of stainless steel excluding safety razor blades and surgical instruments or parts of industrial machinery and plant, utensils, kitchen wares and table wares made up of stainless steel.

21. Plastic, PVC, celluloid, bakelite and rubber goods and goods made of similar other substances but not including domestic goods having maximum retail price inclusive of all taxes up to two hundred rupees per item.

22. Fireworks including coloured matches.

23. Lifts and elevators of all kinds.

24. (a) All types of glazed and vitrum tiles, mosaic tiles and ceramic tiles.

(b) All types of laminated sheets such as Sunmica, Formica etc.

25. Carpets of all kinds.

26. Weatherproofing compounds.

27. Ivory articles.

28. All kinds of marble, granite and their tiles.

29. Sandalwood and Oil thereof.

30. Meat, fish, fruits and vegetables when sold in preserved form

31. Silk and garments made of silk but not including Sarees made of silk.

32. Musical instruments.

33. Synthetic Gems.

34. Spark plugs.

35. Adhesives.


Sr. No. DescriptionoftheDealer36. Oxygen and Gases.

37. Aeronautics including aeroplanes, ground equipments their accessories and parts.

38. All types of sanitary goods, sanitary wares and fittings.

39. Paints and colours.

40. Pan Masala and Gutkha.

41. All kinds of preserved food articles when sold in sealed containers.

42. Lubricants including all kinds of non petroleum lubricants.

43. Imported Vanaspati.

2. 1[w.e.f. 24-Jan-11]

Rama Krishna Mission, Rama Krishna Ashram Marg, New Delhi-110055 (only for sale of cassettes, CDs and laminated photos prepared by the mission, subject to the condition that the Ramakrishna Mission shall not be entitled to claim input tax credit on the purchases made by it.


THE SIXTH SCHEDULE(Refer section 41)

LIST OF ORGANIZATIONS WHO CAN CLAIM REFUNDSr. No. DescriptionoftheDealer1[1. “1. DIPLOMATIC MISSIONS/CONSULATES OF COUNTRIES AND INTERNATIONAL

ORGANIZATIONS LISTED BELOW AND THEIR DIPLOMATS/INTERNATIONAL OFFICERS IN RESPECT OF PURCHASES MADE BY THEM FOR OFFICIAL OR PERSONAL USEPART A - LIST OF COUNTRIES.(1) AFGHANISTAN2[w.e.f. 2-12-2010]2[(1A) ALBANIA—Exempted/refund of VAT for official purchases of the Embassy of the republic of Albania in New Delhi and personal purchases of its diplomats.(2) ALGERIA(3) ANGOLA(4) ARGENTINA(5) ARMENIA(6) AUSTRALIA(7) AUSTRIA(8) AZERBAIJAN3[w.e.f. 17-10-2008](9) BANGLADESH—Except on hotel bills, restaurant bills and utility bills in respect of both official purchases of the Mission/Posts and personal/purchases of diplomats.On personal purchases by diplomats of locally manufactured goods, petrol, diesel and other fuel.4[w.e.f. 06-May-08](9A) BAHRAIN](10) BELARUS(11) BELGIUM5[w.e.f. 6-7-2011](11A) REPUBLIC OF BENIN—Exemption/refund of VAT for official purchases of the Embassy of the Republic of Benin in New Delhi and personal purchases of its diplomats. The minimum invoice value will be Rs. 1500/-.(12) BHUTAN6[w.r.e.f. 07-Oct-05]7(12A) BOSNIA HERZEGOVINA8[(12B) BOTSWANA](13) BRAZIL(14) BRUNEI DARUSSALAM

1. Substituted vide Notification No. F.101(352)/2005-Fin(A/Cs)/736-745 w.e.f. 07-Oct-2005. Prior to substitution full names and addresses of all the Embasssies, Diplomats etc. were written from Entry No. 1 to 136 w.e.f. 01-Apr-05.

2. Inserted vide Notification No. F 5(54)/Policy-II/VAT/Amendment/2010/1790-1800, dt. 2-12-2010, w.e.f. 2-12-2010.

3. Substituted vide Notification No. F.3(25)/Fin. (T&E)/2008-09/JS Fin/441, dt. 17-10-2008, w.e.f. 17-10-2008.

4. Inserted vide Notification No. F.3(15)/Fin (T&E)/2008-09/JS Fin/363, dt. 31-7-2008, w.r.e.f. 6-5-2008.5. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/Amendment/2010-11/293-304, dt. 6-7-2011.6. See Notification No. F.3(22)/Fin(T&E)/2006-07/354-363 Dt.7-9-20067. Substituted vide Notification No. F.3(22)/Fin.(T&E)/2006-07/354-363 Kha dated 7-9-2006.8. Inserted vide Notification No. F.3(12)/Fin.(T&E)/2007-08/dsfte/510, dated 10-July-07 w.r.e.f 16-9-06.


Sr. No. DescriptionoftheDealer1[1. (15) BULGARIA

1[w.r.e.f. 07-Oct-05]2[(15A) BURKINA FASO]3[w.e.f. 7-Mar-2012](15B) REPUBLIC OF BURUNDI—Exemption/refund of VAT for official purchases of Embassy of the Republic of Burundi in New Delhi and personal purchases of its diplomats. Minimum invoice value eligible for refund shall be Rs. 1500/-.(16) CAMBODIA(17) CANADA(18) CHINA(19) COLUMBIA(20) CONGO-DEMOCRATIC REPUBLIC OF(21) COTE-D’IVOIRE(22) CROATIA(23) CUBA(24) CYPRUS(25) CZECH REPUBLIC 4(Only for invoices of Rs. 8200/- and above)(26) DENMARK5(26A) DJIBOUTI - REPUBLIC OF6(26B) DOMINICAN REPUBLIC7[w.e.f. 17-Oct-08](27) ECUADORThe minimum invoice value per purchase per dealer for exemption/refund of VAT in respect of the Embassy and diplomats will be Rs. 12,500/-](28) EGYPT(29) ERITREA8[w.e.f. 30-Aug-12](29A) Republic of Estonia, New Delhi for VAT, exemption/refund for official and personal purchases of goods (except food items) by it and its diplomatic officers. Minimum Invoice value eligible for refund shall be Rs. 4300/-(30) ETHIOPIA(31) FINLAND[Upto 07-Sept-2010](32) FRANCE9[w.e.f. 08-Sep-2010](32)(a) Official purchases of the embassy/consulates general (Chancery and Residence of Heads of Mission/Post): (i) Exemption/Refund of VAT will be allowed only on purchase of office furniture,

vehicles, functional office equipments, stationery, telephone, gas, electricity, water, internet, fuel and household items for the residents of the Head of Mission/Head of Post.

(ii) Exemption/Refund will not be allowed on repair and maintenance of vehicles other than the flag car (official vehicle of the Ambassador/Consul General)

(iii) The minimum invoice value per purchase per dealer for exemption/refund of VAT will be Rs. 9,500 per invoice.

1. See Notification No. F.3(22)/Fin(T&E)/2006-07/354-363 dated 7-9-20062. Substituted vide Notification No. F.3(22)/Fin.(T&E)/2006-07/354-363 Kha dated 7-9-2006.3. Inserted vide Notification No. F. 5(54)/P-II/VAT/2010-11/1315-27, dt. 7-3-2012.4. Inserted vide Notification No. F.3(21)/Fin.(T&E)/2007-08/JsFin/94/, dated 10-3-08 w.r.e.f 7-1-2008.5. Inserted vide Notification No. F.3(77)/Fin.(T&E)/2005-06/1454-63 Kha dated 14-Mar-06, w.r.e.f. 07-

Oct-05.6. Inserted vide Notification No. F.3(21)/Fin.(T&E)/2007-08/JsFin/94/, dated 10-3-08 w.r.e.f 1-5-2006.7. Substituted for “(27) ECUADOR” vide Notification No. F. 3(25)/Fin. (T&E)/2008-09/JS Fin/441, dt.

17-10-2008, w.e.f. 17-10-2008.8. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/2011-12/555-567, dt. 30-8-2012.9. Substituted vide Notification No. F. 5 (45) Policy-II/VAT/Amendment/2010/1684-1693, dt. 8-9-2010,

w.e.f. 8-9-2010.


Sr. No. DescriptionoftheDealer(b) Personal purchases of the diplomatic level officers (other than Head of Mission/Head of Post) (i) Exemption/Refund of VAT will be allowed only on purchase of vehicles. (ii) The minimum invoice value per purchase per dealer for exemption/

refund of VAT will be Rs. 9,500 per invoice.1[w.e.f. 2-Dec-2010](32A) GAMBIA—Exemption/refund of VAT for official purchases of the High Commission of the republic of Gambia in New Delhi and personal purchases of its diplomats.]2[w.e.f. 08-Sept-2010](32A) GHORIA— Exemption/refund of VAT for official purchases of the embassy and personal

purchases of its diplomats.— The minimum invoice value per purchase per dealer for exemption/refund

of VAT in respect of the Embassy and its diplomats will be Rs. 1,500.3[w.e.f. 4-Oct-12](32B) for official purchases of Embassy of the Republic of Gabon in New Delhi. Minimum Invoice value eligible for refund shall be Rs. 1500/-.4[w.e.f. 24-Jul-08](33) GERMANY (i) The minimum invoice value per purchase per dealer for exemption/

refund of VAT in respect of the Embassy/consulates and diplomats will be Rs. 5600/-,

(ii) In respect of personal purchases of diplomats, the maximum limit for exemption/exemptioni/refund will be Rs. 33,600/- (excluding VAT on purchase of vehicles, per Financial year,

(iii) Exemption/refund of VAT will not be available in respect of food stuff and tobacco products.

(34) GHANA(35) GREECE5[w.e.f. 30-Jul-12](35A) Republic of Guinea, New Delhi for VAT, exemption/refund for official purchases by it and for personal purchases of its diplomats. Minimum Invoice value eligible for refund shall be Rs. 1500/-.(36) GUYANA(37) HUNGARY(38) HOLY SEE5[w.e.f. 22-Feb-2006](38A) ICELAND](39) INDONESIA

1. Inserted vide Notification No. 5. 5 (54)/Policy-II/VAT/Amendment/2010/1790-1800, dt. 02-12-2010, w.e.f. 20-5-2009 vide Notification No. F. 5(54)/Policy-II/VAT/Amendment/2010/2088-97, dt. 25-3-2011.

2. Inserted vide Notification No. F. 5 (45) Policy-II/VAT/Amendment/2010/1684-1693, dt. 8-9-2010, w.e.f. 8-9-2010.

3. Inserted vide Notification No. F. 5 (54)/Policy-II/VAT/2011-12/726-738, dt. 4-10-2012.4. Substituted for “(33 GERMANY” vide Notification No. F. 3(21)/Fin.(T&E)/2008-09/JS Fin/350,

dt. 24-7-2008, w.e.f. 24-7-2008.5. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/2011-12/394-405, dt. 30-Jul-2012.6. Inserted vide Notification No. F.3(12)/Fin.(T&E)/2007-08/dsfte/510, dated 10-Jul-07.


Sr. No. DescriptionoftheDealer(40) IRAN(41) IRAQ(42) IRELAND(43) ISRAEL(44) ITALY(45) JAPAN(46) JORDAN(47) KAZAKHSTAN(48) KENYA(49) KOREA-REPUBLIC OF(50) KOREA (D.P.R.)(51) KUWAIT(52) KYRGHYZ REPUBLIC(53) LAOS(54) LEBANON(55) LESOTHO(56) LIBYA1[w.e.f. 6-8-2009](56-i) Lithuania-Republic of [The minimum invoice value applicable for the VAT exemption is Rs. 1,500 (per invoice)](57) LUXEMBOURG1[w.e.f. 6-8-2009](57-i) Macedonia-Republic of (The minimum invoice value applicable for the VAT exemption is Rs. 5,300 per invoice)](58) MALAYSIA(59) MALDIVES2[w.e.f. 19-Jun-08](59A) MALTA][w.e.f. 3-Jun-08 to 07-09-2010]3[w.e.f. 28-4-2011](59B) REPUBLIC OF MALI—Exemption/refund of VAT for official purchases of Embassy of the Republic of Mali in New Delhi and personal purchases of its diplomats. The minimum invoice value will be Rs. 1500/-.(60) MAURITIUS (only for petrol and diesel)4[w.e.f. 08-Sept-2010](60) MAURITIUS— Exemption/refund of VAT for official purchases of the High Commission and personal

purchases of its diplomats.— The Minimum invoice value per purchase per dealer for exemption/refund of VAT in

respect of the embassy and its diplomats will be 5[Rs. 4,500](61) MEXICO(62) MONGOLIA(63) MOROCCO(64) MOZAMBIQUE(65) MYANMAR(66) NAMIBIA

1. Inserted vide Notification No. F. 3(8)/Fin. (T&E)/2009-2010/JS Fin/339, dt. 6-8-2009.2. Inserted vide Notification No. F.3(21)/Fin.(T&E)/2007-08/JsFin/94, dated 10-Mar-08.3. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/Amendment/2010/60-72, dt. 28-4-2011.4. Substituted vide Notification No. F. 5(45)/Policy-II/VAT/Amendment/2010/1684-1693, dt. 8-9-2010,

w.e.f. 8-9-2010.5. Substituted for “Rs. 1,500” vide Notification No. F. 5(45)/Policy-II/VAT/Amendment/2010/2078-87,

dt. 25-3-2011, w.r.e.f. 8-9-2010.


Sr. No. DescriptionoftheDealer(67) NEPAL(68) NETHERLANDS[w.e.f. 07-Aug-12 upto 08-Jan-13](68A) Republic of Niger, New Delhi for VAT, exemption/refund for official purchases by it and for personal purchases of its diplomats. Minimum invoice value eligible for refund shall be Rs. 2500/-1[w.e.f. 9-Jan-13](68A) Republic of Niger, New Delhi for VAT, exemption/refund for its official purchases. Minimum Invoice value eligible for refund shall be Rs. 5000/-. w.e.f. 1-1-20131[w.e.f. 7-Aug-12]Republic of Niger, New Delhi for VAT, exemption/refund for official purchases by it and for personal purchases of its diplomats. Minimum Invoice value eligible for refund shall be Rs. 2500/-.(69) NIGERIA(70) NORWAY(71) OMAN(72) PAKISTAN(73) PALESTINE(74) PANAMA2[(74A) PAPUA NEW GUINEA]3[(74B)] PARAGUAY(75) PHILIPPINES(76) POLAND(77) PORTUGAL(78) QATAR(79) ROMANIA4[w.e.f. 17-10-2008](80) [Omitted](81) RWANDA(82) SAUDI ARABIA(83) SENEGAL(84) SERBIA & MONTENEGRO5[w.e.f. 7-Aug-12](84A) Republic of Seychelles, New Delhi for VAT, exemption/refund for official purchases by it and for personal purchases of its diplomats. Minimum Invoice value eligible for refund shall be Rs. 1500/-6[w.e.f. 24-Jul-08](85) SINGAPORE (i) Exemption/refund of VAT will be granted for purchases for official use of the High

Commission/consulate General/consulate, (ii) The facility fo exemption/refund of VAT on goods other than Water, Electricity and

Cooking Gas withdrawn for purchases made for personal use of diplomats.](86) SLOVAK REPUBLIC(87) SLOVENIA(88) SOMALIA

1. Substituted vide Notification No. F. 5(54)/Policy-II/VAT/2010/1106-1118, dt. 9-1-2013.2. Inserted vide Notification No. F.3(12)/Fin.(T&E)/2007-08/dsfte/510, dated 10-July-07,w.r.e.f 15-11-

2006.3. Existing S.No.74A re-numbered as 74B, vide ibid.4. Word, brackets and figures “(80) RUSSIA” omitted vide Notification No. F. 3(25).Fin. (T&E)/2008-09/

JS Fin./441, dt. 17-10-2008, w.e.f. 17-10-2008.5. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/2011-12/438-450, dt. 7-8-2012.6. Substituted for “(85) SINGAPORE” vide Notification No. F. 3(21)/Fin. (T&E)/2008-09/JS Fin/350, dt.

24-7-2008, w.e.f. 24-7-2008.


Sr. No. DescriptionoftheDealer1[w.e.f. 22-May-09](89) SOUTH AFRICA(90) SPAIN(91) SRI LANKA(92) SUDAN2[w.e.f. 9-Jan-13](92A) Republic of South Sudan, New Delhi for VAT, exemption/refund for official purchases by it for personal purchases of its diplomats. Minimum Invoice value eligible for refund shall be Rs. 5000/-., w.e.f. 1-1-13(93) SURINAME(94) SWEDEN(95) SWITZERLAND(96) SYRIA3[w.e.f. 7-10-2005](96A) TANZANIA4[w.e.f. 17-Oct-08](96B) TAIPEI ECONOMIC & CULTURAL CENTRE (TECE)](97) THAILAND5[w.e.f. 28-4-2011](97A) REPUBLIC OF TOGO—Exemption/refund of VAT for official purchases of the Embassy of the Republic of Togo in New Delhi and personal purchases of the diplomats. The minimum invoice value will be Rs. 1500/-.(98) TRINIDAD & TOBAGO(99) TUNISIA(100) TURKEY6[w.e.f. 7-10-2005](100A) TURKMENISTAN(101) UGANDA(102) UKRAINE(103) UNITED ARAB EMIRATES[Upto 01-Mar-2010](104) UNITED KINGDOM7[w.e.f. 02-Mar-2010](104) United Kingdom—British High Commission and Deputy High Commissions in India will be allowed for exemption/refund of VAT only in respect of purchases for the chancery (office) and residence of the head of the mission post.(105) URUGUAY8[w.e.f. 1-6-2007](106) USA](107) UZBEKISTAN(108) VENEZUELA

1. Substituted vide Notification No. F-03(35)/Fin. (T&E)/2008-09/55 Fin./167, dt. 22-5-2009, w.e.f. 22-5-2009.

2. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/2010/1093-1105, dt. 9-1-2013.3. Inserted vide Notification No. F.3(77)/Fin.(T&E)/2005-06/354-63 Kha dated 7-Sept-06, w.r.e.f.

07-Oct-05.4. Inserted vide Notification No. F. 3(25)/Fin. (T&E)/2008-09/JS Fin/441, dt. 17-10-2008, w.e.f. 17-10-2008.5. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/Amendment/2010/60-72, dt. 28-4-2011.6. Inserted vide Notification No. F.3(77)/Fin. (T&E)/2005-06/1454-1463, dt. 14-Mar-06, w.r.e.f. 7-10-2005.7. Substituted vide Notification No. F. 5(42)/Policy-II/VAT/Misc./Amendment/2009-10/1423, dt. 02-07-

2010.8. Inserted vide Notification No. F.3(12)/Fin.(T&E)/2007-08/dsfte/510,Dt. 10-7-07, w.r.e.f 1-6-2007.


Sr. No. DescriptionoftheDealer(109) VIETNAM(110) YEMEN(111) ZAMBIA(112) ZIMBABWEPART B - LIST OF INTERNATIONAL ORGANIZATIONS(1) ASIAN DEVELOPMENT BANK (ADB)(2) FOOD AND AGRICULTURAL ORGANIZATION OF THE UNITED NATIONS -

FAO(3) INTERNATIONAL LABOUR ORGANIZATION (ILO)(4) UNITED NATIONS CHILDREN’S FUND (UNICEF)(5) UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP)(6) UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION

(UNESCO)(7) UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES (UNHCR)(8) UNITED NATIONS INFORMATION CENTRE (UNIC)(9) UNITED NATIONS MILITARY OBSERVER GROUP FOR INDIA AND PAKISTAN

(UNMOGIP)(10) UNITED NATIONS POPULATION FUND (UNFPA)(11) WORLD HEALTH ORGANIZATION (WHO)(12) INTERNATIONAL CENTRE FOR GENETIC ENGINEERING AND

BIOTECHNOLOGY (ICGEB)[w.e.f. 1-Apl.-05 upto 4-Mar-13](13) EUROPEAN COMMISSION1[w.e.f. 5-Mar-13]EUROPEAN UNION(14) LEAGUE OF ARAB STATES(15) AFRO-ASIAN RURAL DEVELOPMENT ORGANIZATION(16) ASIAN-AFRICAN LEGAL CONSULTATIVE ORGANIZATION(17) UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT MISSION

(USAID)”]2(18) World Bank2(19) International Finance Corporation2(20) International Monetory Fund2(21) World Food Programme2(22) Asian & Pacific Centre for Transfer of Technology2(23) International Committee of Red Cross (ICRC)2(24) International Crops Research Institute for the Semi-Arid Tropics (ICRISAT)”3[(25) Commonwealth Education Media Centre for Asia (CEMCA)]4[(26) South Asian University (which includes its Project Office), New Delhi for VAT

exemption/refund on official purchases and personal purchases of its internationally recruited officers]

5[w.e.f. 07-July-2010](27) Global Development Network (GDN)—In respect of its official purchases in New

Delhi and personal purchases of its internationally recruited officials.

1. Notification No. F. 5(54)/Policy-II/VAT/2012-13/1331-1343, dt. 5-3-2013.2. Inserted vide Notification No. F.3(22)/Fin.(T&E)/2006-07/354-363 Kha dated 7-Sep-06, w.r.e.f.

07-Oct-05.3. Inserted vide Notification No. F. 3(2)/Fin. (T&E)/2008-09/JS Fin/237, dt. 3-6-2008, w.e.f. 3-6-2008.4. Inserted vide Notification No. F.5(36)/Policy-II/Misc./Amendment/2009/984, dt. 16-Mar-10.5. Inserted vide Notification No. F. 5(58)/Policy-II/VAT/2010/1991-2001, dt. 11-3-2011, w.r.e.f. 7-7-

2010.


Sr. No. DescriptionoftheDealer1[w.e.f. 6-7-2011](28) South Asia Regional Delegation of International Federation of Red Cross and

Red Crescent Societies in New Delhi—In respect of official purchases.2[w.e.f. 19-Jun-12](29) Borlaug Institute of South Asia (BISA), New Delhi for VAT, exemption/refund for

official purchase by it and for personal purchases of its deplomats. Minimum Invoice value eligible for refund shall be Rs. 1500/-

3[w.e.f. 12-Mar-13](30) United Nations Economic and Social Commission for Asia and the Pacific

(UNESCAP-SSWA), New Delhi.4[2.] [w.e.f. 02-Jun-05]

Canteen Stores Department (CSD) of the Ministry of Defense, Government of India for purchase of goods other than those mentioned at Annexure below for resale in Delhi.

ANNEXURE

1. (a) Motor Vehicles including chassis of motor vehicles and motor bodies, but not including tractors tyres, tubes, accessories, component parts and spare parts of motor vehicles.

(b) Motor cycles, motor cycle combinations, motor scooters, motoretts, two wheelers and three wheelers.

2. (a) Refrigerators of the capacity above 170 litres.

(b) Air-conditioning and other cooling appliances and apparatus excluding air coolers and water coolers.

(c) All kinds of cooking appliances, cooking ranges, microwave ovens and grilles.

(d) Vaccum cleaners, electrical and electronic air purifiers and dish washers.

(e) Television sets, video cassette recorders, video cassette players, CD players, home theatres, video camera and cameras of value exceeding Rs. 250.

(f) Washing machines.

(g) Room air convectors and air circulators.

(h) Voltage stabilizers, inverters and transformers.

(i) Transmission towers.

(j) Electronic toys and games.

(k) Video CD and DVD Players.

(l) ACSR Conductors.

1. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/2010/305-316, dt. 6-7-2011.2. Inserted vide Notification No. F. 5(54)/Policy-II/VAT/2011-12//229, dt. 19-6-2012, w.e.f. 19-6-2012.3. Inserted vide Notification No. F 5(54)/Policy-II/VAT/2012-13/1363-1375, dt. 12-3-2013.4. Existing entry 137 renumbered as ‘entry 2’ vide Notification No. F. 101(352)/2005-Fin(A/Cs)/736/

Kha, dated 7-Oct-05. Earlier, it was inserted vide Notification No. F. 101(328)/2005-Fin. (A/Cs)(ii)/1110, w.e.f. 2-6-2005.


Sr. No. DescriptionoftheDealer3. Telecommunication equipments including telephones, tele-printers,

wireless equipment and fax machines but excluding mobile phone handsets.

4. Cinematographic equipments including cameras, projectors and sound recording and reproducing equipment and spare parts, component parts and accessories required for use therewith and lenses, films and cinema carbons.

5. Foreign made watches, electrical time switches and mechanical timers and component parts, spare part and accessories thereof.

6. All arms including rifles, revolvers pistols and ammunition for the same and component parts and accessories thereof but not including 12 bore shot-gun ammunition.

7. Cigarette cases and lighters.

8. Typewriters, tabulating, calculating, cash registering, indexing, card punching, franking and addressing machines, tele-printers, duplicating machines and photocopying machines, component parts, spare parts and accessories thereof.

9. Binoculars, telescopes and opera glasses and component parts, spare parts and accessories thereof.

10. All type of cutlery including knives, forks and spoons.

11. (a) All goods made of glass including glassware, but not including glass and bangles, optical lenses, glass tumblers and mirrors.

(b) Utensils, kitchenware and tableware made of glass or chine clay.

(c) Glazed earthenware.

(d) Chinaware including crockery.

12. Picnic set sold as a single unit.

13. Iron and steel safes and almirahs.

14. (a) Light Diesel oil/high speed Diesel.

(b) Kerosene oil sold through modes other than fair price shop.

15. Cosmetics, perfumery and toilet goods including soaps, shampoos and hair oils but not including tooth brush, toothpaste, tooth powder and kumkum.

16. Leather goods, excepting footwear, belts and sports articles made of leather.

17. Furniture including iron and steel and moulded furniture, but excluding wooden furniture.

18. Cushion and mattresses of foam, including foam sheets, pillows and other articles made from foam rubber or plastic foam or other synthetic foam.

19. Furs and skins with fur and articles made therefrom including garments made thereof.


Sr. No. DescriptionoftheDealer20. Articles made of stainless steel excluding safety razor blades and surgical

instruments or parts of industrial machinery and plant, utensils, kitchen wares and table wares made up of stainless steel.

21. Plastic, PVC, celluloid, bakelite and rubber goods and goods made of similar other substances but not including domestic goods having maximum retail price inclusive of all taxes up to two hundred rupees per item.

22. Fireworks including coloured matches.

23. Lifts and elevators of all kinds.

24. (a) All types of glazed and vitrum tiles, mosaic tiles and ceramic tiles.

(b) All types of laminated sheets such as Sunmica, Formica etc.

25. Carpets of all kinds.

26. Weatherproofing compounds.

27. Ivory articles.

28. All kinds of marble, granite and their tiles.

29. Sandalwood and Oil thereof.

30. Meat, fish, fruits and vegetables when sold in preserved form

31. Silk and garments made of silk but not including Sarees made of silk.

32. Musical instruments.

33. Synthetic Gems.

34. Spark plugs.

35. Adhesives.

36. Oxygen and Gases.

37. Aeronautics including aeroplanes, ground equipments their accessories and parts.

38. All types of sanitary goods, sanitary wares and fittings.

39. Paints and colours.

40. Pan Masala and Gutkha.

41. All kinds of preserved food articles when sold in sealed containers.

42. Lubricants including all kinds of non petroleum lubricants.

43. Imported Vanaspati.

1[PROVIDED that the items at S. No. 11,13,15,18, in the Annexure above referred to the Centeen Stores Department (CSD) shall claim the refund @ 8.5% paise per rupee of input tax for the said items.]

1. Inserted vide Notification No. F. 3(2)/Fin.(T&E)/2008-09/JS Fin/237, dt. 3-6-2008, w.e.f. 3-6-2008.


Sr. No. DescriptionoftheDealer3. 1[w.e.f. 01-Apr-05]

Indian Red Cross Society, Delhi for purchases other than those for personal use of officers/officials.

4. 1[w.e.f. 01-Apr-05]

St. John Ambulance Association (India), Delhi for purchases other than those for personal use of officers/officials.

5. [w.e.f. 10-Oct-05 to 15-08-2010]

Confederation of Indian Industry, Delhi in respect of purchases of (i) tents, (ii) blankets, (iii) bandages and plaster, (iv) cotton, (v) antiseptics, (vi) medicines and (vii) non-perishable food items for free distribution to the earthquake victims of Kashmir for a period up to 31st March, 2006 and further subject to furnishing of a certificate in the following format:—

CERTIFICATE

Certified that the goods covered by invoice(s)/bill(s)/cash memo(s) mentioned below which were purchased by the Confederation of Indian Industry, Delhi, during the quarter ended on ___________, have been distributed to the earthquake victims of Kashmir free of cost.

DESCRIPTION OF GOODS PURCHASED

S. No.

Name and TIN of the

dealer from whom the goods

were purchased

Invoice(s)/ Bills(s) Cash

memo(s) No.

Description of Goods purchased

Date of purchase

Amount(Rs.)

VAT paid or payable

(Rs.)

Total

_____________________ Signature

_____________________ Designation

_____________________ Date

1. Inserted vide Notification No. F.3(77)/Fin.(T&E)/2005-06/1454-63 Kha dated 14-Mar-06, w.r.e.f. 01-Apr-05.


Sr. No. DescriptionoftheDealer5. 1[W.e.f. 16-Aug-2010]

Confederation of Indian Industry, Delhi in respect of purchases as per following details, for a period from 16th August, 2010 to 30th October, 2010:—

S. No.

Item Description Amount (VAT inclusive) Rs.

1. Plywood 8,85,000

2. EPS Sheets (Thermocol) 2,28,000

3. GI Pipes 1,70000

4. Steel Sariyas 3,50,000

5. J Hooks 1,50,000

6. Community Tents (2 no.) 69,300

Subject to the condition that these items are not sold and are used in the relief work for the victims of flash floods in Leh and further subject to furnishing of certificate in the following format:—

CERTIFICATE

Certified that the goods covered by invoice(s)/bill(s)/cash memo(s) (dealer-wise details) mentioned below which were purchased by the Confederation of Indian Industry Delhi, during the period from 16th August, 2010 to 30th October, 2010 have not been sold and have been used in the relief work for the victims of flash floods in Leh.

S. No.

Name of the

Supplying dealer

TIN of the Supplying

dealer

Invoice(s)/ Bill(s)/Cash

memo(s) No. / Date

Descrip- tion of

goods pur-chased

Amount(Rs.

VAT Total paid Bill Amount (Rs.)

Total amount (Rs.) ............................. Total VAT (Rs.) ................................... ............................................................

(Signature of the Tehsildar/SDM/ an officer of the equivalent rank, with stamp) Date...................

6. 2[w.e.f. 01-Apr-05]Vivekananda Kendra, Delhi Branch in respect of payments made, for its construction project at Chanakya Puri, New Delhi, to M/s. V. K. Constructions, Rajouri Garden, New Delhi for their construction contracts including fire fighting, plumbing, sanitation and to M/s Goel & Associates, Chattarpur, New Delhi for their contracts regarding electrical works during the period 01.04.2005 to 31.12.2006.

1. Substituted vide Notification No. F. 3(44)/Fin. (Rev-I)/2010-11/asf/1, dt. 05-01-2011, w.r.e.f. 16-08-2010.

2. Inserted vide Notification No. F.3(77)/Fin.(T&E)/2005-06/1454-63 Kha dated 14-Mar-06, w.r.e.f. 01-Apr-05.


1. Inserted vide Notification No. F.3(22)/Fin.(T&E)/2006-07/354-363 dated 7-Sep-06, w.e.f. 07-Sep-06.

2. Inserted vide Notification No. F.3(34)/Fin.(T&E)/2006-07/dsfte/659 dated 5-Dec-06, w.e.f. 05-Dec-06.

Sr. No. DescriptionoftheDealer7. 1[w.e.f. 07-Sep-06]

Constitution Club, AB-97, Shahjahan Road, New Delhi in respect of purchases meant for its renovation and up-gradation.

8. 1[w.e.f. 07-Sep-06]Delhi Metro Rail Corporation (DMRC) for carrying out its ‘Mass Rapid Transport System’ (MRTS) project in Delhi in respect of purchases made by it till 31st March, 2010.

9. 2[w.e.f.05-Dec-06]Chetanalaya, 9-10, Bhai Vir Singh Marg, New Delhi-11001 in respect of purchases, costing up to a maximum of sixty-five lakh ruppes, for its project for re-construciton of the Mother Teresa’s Home at Kashmere Gate, Delhi.


THE SEVENTH SCHEDULE(Refer section 9)

LIST OF NON-CREDITABLE GOODSSr. No. Descriptionofnon-creditablegoods

1. Subject to clauses 2 and 3 of this Schedule, the following goods shall be “non-creditable goods” for the purposes of this Act:

[w.e.f. 01-Apr-05 to 29-Nov-05]

(i) Motor vehicles designed for transporting fewer than eight passengers, motorcycles, motor scooters and other motorised two-wheeled vehicles;

1[w.e.f. 30-Nov-05]

(i) All automobiles including commercial vehicles, and two and three wheelers, and spare parts for repairs and maintenance and tyres and tubes thereof:

[w.e.f. 01-Apr-05 to 06-Sep.-06]

(ii) Fuels in the form of petrol, diesel and kerosene, LPG, CNG, coal;

2[w.e.f. 07-Sep-06]

(ii) Fuels in the form of petrol, diesel, kerosene, LPG, CNG, PNG and coal;

[w.e.f. 01-Apr-05]

(iii) Conventional clothing and footwear, clothing fabrics;

[w.e.f. 01-Apr-05]

(iv) Food for human consumption;

[w.e.f. 01-Apr-05]

(v) Beverages for human consumption;

[w.e.f. 01-Apr-05]

(vi) Goods designed, and used predominantly for, the provision of entertainment including television receivers, video cassette players, radios, stereo systems, audio cassette player, CD players, DVD players, computer game consoles and computer games, cameras of any kind;

[w.e.f. 01-Apr-05 to 29-Nov-05]

(vii) Air conditioners other than those used for manufacturing purposes;

1. Notification No. F. 3(59)/Fin.(T&E)/2005-06/908-Kha, dated 30-Nov-05.2. Notification No. F.3(22)/Fin (T&E)/2006-07/384-393, dated 07-Sep-06.


Sr. No. Descriptionofnon-creditablegoods

(vii) 1[w.e.f. 30-Nov-05]Air conditioners, air conditioning plants or units other than those used for manufacturing purposes; air coolers, fans and air circulators;[w.e.f. 01-Apr-05](viii) Tobacco in any form and tobacco products;1[w.e.f. 30-Nov-05](ix) Office equipments, furniture, carpets, stationery items, advertisement and publicity materials, sanitation equipments, fixtures including electrical fixtures and fittings, generators and electrical installation;1[w.e.f. 30-Nov-05](x) Elevators (lifts);1[w.e.f. 30-Nov-05](xi) Computers other than those used for the purpose in normal business;1[w.e.f. 30-Nov-05](xii) All kinds of cranes, earthmovers, JCB, excavators, road rollers, concrete mixing machines and other similar machineries;1[w.e.f. 30-Nov-05](xiii) Goods for personal consumption or for gifts;1[w.e.f. 30-Nov-05](xiv) Goods purchased and accounted for in business but utilized for the facility to the employees; and1[w.e.f. 30-Nov-05](xv) Goods used for construction of or incorporation in civil structures and immovable goods or properties not constituting part of the works contracts.”

2. [w.e.f. 01-Apr-05 to 29-Nov-05]Any item in clause 1 1[other than Item (ii)] shall not be treated as non-creditable goods if the item is purchased by a registered dealer for the purpose of re-sale in an unmodified form or use as raw material for processing or manufacturing of goods for sale by him in Delhi in the ordinary course of his business.1[w.e.f. 30-Nov-05]Any entry in clause 1 1[other than item (ii), (xiii), (xiv) and (xv)] shall not be treated as non-creditable goods if the item is purchased by a registered dealer for the purpose of resale in an unmodified form or use as raw material for processing or manufacturing of goods, in Delhi, for sale by him in the ordinary course of his business.”

3. [w.e.f. 01-Apr-05]Fuel Item (ii) of clause 1 shall not be treated as non-creditable goods if the purchaser is licensed as a dealer in fuel products and purchases the fuel in commercial quantities for resale.

1. Notification No. F. 3(59)/Fin.(T&E)/2005-06/06/913-Kha, dated 30-Nov-05


DELHI VALUE ADDED TAX RULES, 2005

[As amended upto 30-09-2013 by Delhi Value Added Tax (Third Amendment) Rules, 2013 notified vide

Notification No. F. 3 (16)/Fin(Rev-I)/2013-14/dsVI/785, dated 20-09-2013]

Contents

CHAPTER I - PRELIMINARY 1611. Short title and commencement 161

2. Definitions 161

CHAPTER II - INCIDENCE AND LEVY OF TAX 1623. Works contract 162

4. When turnover arises in a tax period 167

4A. Determination of taxable turnover of sales of residential hotels 167 charging a composite sum for lodging and boarding

5. Composition scheme 168

5A. Registration, furnishing of security, payment of tax and 169 assessment of casual trader

CHAPTER III - TAX CREDIT 1696. Apportionment of tax credit 169

6A. Restriction and conditions governing tax credit 169

7. Reduction of tax credit 170

7A. Adjustment to tax 171

7B. Adjustment of tax due to retrospective reduction of tax liability 171 by virtue of the Delhi Value Added Tax (Second Amendment) Act, 2005

8. Treatment of stock brought forward during transition 171

9. Credit on second hand goods purchased by a registered dealer 172 from a resident seller not registered under the Act

10. Document for availing of credit 172

CHAPTER IV - REGISTRATION, APPROVAL AND PERMISSION 17211. Applications—General 17212. Application for registration as a dealer 17313. Processing application for registration as a dealer 17314. Certificate of registration 17315. Amendment of registration 17316. Cancellation of registration 17417. Hosting of particulars of cancelled certificates of registration 17418. Declaration of name of manager of business 17519. Nomination of principal place of business in the case of a dealer 175 having more than one place of business in Delhi20. Notification of address for service of notices 175

21. Register of dealers 175

CHAPTER V - SECURITY 17622. Person and the required amount of security to be furnished 176

23. Manner in which security may be furnished 176

24. Safe-keeping, retention and return of security 179

25. Forfeiture of security 180

CHAPTER VI - TAX PERIOD AND TAX RETURNS 18026. Tax period 180

27. Returns—General 181

28. Dealer’s periodic returns 182

29. Revised returns 183

30. Statement for transitional input tax credit 183

30A. Discharge of liability in respect of a continuing works contract 183

CHAPTER VII - PAYMENT OF TAX AND MAKING REFUNDS 18431. Method of payment of tax, interest or penalty 184

32. Treasury to notify payments 184

33. Proof of payment 184

33A. Intimation of depositing the Government dues 185

34. Refund of excess payment 185

35. Refund by notified organisations 186

CHAPTER VIII - ASSESSMENTS AND ENFORCEMENT OF 187 TAX AND PENALTIES

36. Assessment of tax, interest or imposition of penalty 187

36A. Form of notice for revision 187

36B. Rectification of mistakes and review 187

37. Recovery of Government dues 188

38. Continuation of certain recovery proceedings 189

39. Special mode of recovery 189

40. Issue of summons 189

41. Procedures for sale of property held by the Commissioner 189

CHAPTER IX - ACCOUNTS, RECORDS AND AUDIT 19142. Books and Accounts 191

42A. Audit Report 192

43. Records to be carried by a person in-charge of a goods vehicle 192

44. Issue of duplicate tax invoice 193

44A. 193

45. Credit and debit notes 194

46. Notice for audit 194

CHAPTER X - VALUE ADDED TAX AUTHORITIES AND 194 APPELLATE TRIBUNAL

47. Designation of other persons appointed to assist the Commissioner 194

48. Conditions upon delegation of powers by the Commissioner 194

49. Superintendence and control 194

49A. Power to extend time 194

50. Conditions subject to which an officer may be authorised to 195 investigate offences punishable under the Act

CHAPTER XI - DISPUTES 19551. Authority to whom objection may be made 195

52. Making of objections 195

53. Determination of objections 195

54. Hearings 196

55. Intimation of outcome of objection 196

56. Delay 196

57. Refund on account of objection 196

57A. Filing of appeal before Appellate Tribunal 196

57B. Furnishing of security 197

57C. Hearing of the appeal or application 197

58. Determination of specific questions 197

CHAPTER XII - MISCELLANEOUS 19859. Tax Deduction at Source 198

60. Rounding 198

61. Printing of forms 199

62. Service of documents 199

63. Submission of documents with Commissioner 200

64. Qualifications to be possessed by Value Added Tax Practitioner 201

65. Officers to carry and produce authorisations 201

66. Location of check-posts and barriers 202

67. Other returns and additional information for proper Administration 202 of the Act

67A. Power to prescribe Acknowledgement 202

68. Repeal and savings 202

ANNEXURE 1 203

ANNEXURE 2 203

ACT & RULES-161 DELHI VALUE ADDED TAX RULES, 2005 2013

DELHI VALUE ADDED TAX RULES, 2005

[As amended by Delhi Value Added Tax (Third Amendment) Rules, 2013 notified vide Notification No. F. 3 (16)/Fin(Rev-I)/2013-14/dsVI/785, dt. 20-09-2013]

In exercise of the powers conferred by section 102 of the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005), the Government of National Capital Territory of Delhi, hereby, makes the following rules, namely:—

CHAPTER I PRELIMINARY

1. Short title and commencement

(1) These rules may be called the Delhi Value Added Tax Rules, 2005.(2) They shall come into force on such date1 as the Government may, by

notification in the Official Gazette, appoint:PROVIDED that different dates may be appointed for different provisions of

these Rules and any reference in any such provision to the commencement of these Rules shall be construed as a reference to the coming into force of that provision.

2.Definitions

(1) In these Rules, unless the context otherwise requires,— (a) “Act” means the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of

2005);(b) “form” means a form appended to these Rules;(c) “Schedule” means a Schedule appended to the Act;(d) “section” or “sub-section” means a section or sub-section of the Act.

(2) Words and expressions defined in the Act and used but not defined in these Rules have the same meaning as assigned to them in the Act.

(3) Unless otherwise specified in these Rules— (i) words importing the masculine gender shall include the feminine gender; (ii) words in singular shall include their plural and vice versa; (iii) expressions referring to “writing” shall include printing, typing, lithography,

photography and other methods of representing or reproducing words in a visible form;

(iv) with reference to a person who is unable to sign his name, the word “signature” shall include his “thumb impression” or other mark duly attested to signify his signature; and

(v) signature shall include digital signature.(4) In these Rules, unless the context otherwise requires,—

1 These rules have come into force vide Notification No. F.101(321)/2005-Fin(A/CS)(iii)/8778, dt. 31-3-2005 w.e.f. 1-4-2005.


(a) “address for service” means the address determined in accordance with Rule 21;

(b) “appropriate Government treasury” means Pay and Accounts offices of Reserve Bank of India or State Bank of India, or such other Scheduled bank within the meaning of the Reserve Bank of India Act, 1934 or any other bank as may be notified by the Commissioner;

(c) “collector” means the Collector as defined in Delhi Land Reforms Act, 1954; (Act No. 8 of 1954)

(d) “quarter” means the periods of three calendar months— (i) April 1 to June 30; (ii) July 1 to September 30; (iii) October 1 to December 31; and (iv) January 1 to March 31.

(5) For the purposes of clause (ra) of sub-section (1) of section 2, “manufacture” shall not include the following processes or modes of manufacture, namely:

(i) dispensing of medicines according to prescription of medical practitioners; (ii) cutting of paper from reels into reams; (iii) recovering of jewels and other components from old jewellery and

ornaments; (iv) conversion of milk into khoa; (v) rolling of ‘bidis’ by hand and without the use of any mechanical aid or

device; (vi) dismantling of old motor vehicles; (vii) killing, dressing and freezing chickens; (viii) removal of peanuts from the shell; (ix) collecting of bristles, boiling and washing them with soap and other

chemicals, sorting out according to their sizes and colouring and then tying them in separate bundles of different sizes and clipping them for uniformity of size;

(x) repairing, cleaning and oiling of watches, clocks or time-pieces; (xi) boiling of butter into ghee or separation of cream from milk or ghee from curd; (xii) assembling of lenses and other part of spectacles according to the

prescription of ophthalmologists; (xiii) boiling of milk and adding sugar to it; and (xiv) making of garlands and bouquets from fresh flowers.

CHAPTER IIINCIDENCE AND LEVY OF TAX

1[3.Workscontract

(1) 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 and exclude –

(i) the charges towards labour, services and other like charges; and

(ii) the charges towards cost of land, if any, in civil works contracts,

subject to the dealer’s maintaining proper records such as invoice, voucher, challan or

1 Substituted vide Delhi Value Added Tax (Third Amendment) Rules, 2013 notified vide notification No. F. 3 (16)/Fin(Rev-I)/2013-14/dsVI/785, dated 20-09-2013.


any other document evidencing payment of above referred charges to the satisfaction of the Commissioner.

Explanation. – The term “civil works contracts” for the purpose of this rule shall include construction of building or complexes - residential or commercial, bridges, flyovers, dams, barriers, canals, diversions, other works of similar nature, and the collaboration agreements or joint development agreements or similar other agreements/arrangements between the land-owner(s) and the contractor(s)/builder(s)/ developers/ collaborators/ similar other persons by whatever name called for construction of complex or property.

(1A) In case the civil works contract mentioned in sub-rule (1) are of the nature wherein the agreement executed between the land owner(s) and contractor(s) or similar other agreements/ arrangements is of the nature of collaboration or joint development where the contractor(s) constructs the building/units and consideration for the construction is given by the land owner in the form of share in the land with or without additional money exchange, the value of works contract carried out by the contractor(s) for the land owner shall be highest of the following amounts:

(i) Actual value of construction, including profit, transferred by the contractor to the land-owner in accordance with the books of accounts maintained by the contractor.

(ii) Where proportionate land is transferred by the land-owner to the contractor by executing a separate conveyance/sale deed, the value stated in the deed for the purpose of payment of stamp duty as reduced by consideration paid by the contractor to the land owner through account payee cheque/ draft/ pay order/ electronic transfer, if any.

(iii) On the basis of circle rate of proportionate area of land transferred by the land-owner to the contractor in accordance with the notification under Delhi (Prevention of Under Valuation of Instruments) Rules, 2007 as amended from time to time (hereinafter referred as “circle rates”) prevailing at the time of execution of agreement between them, as reduced by the consideration paid by contractor to the land-owner through account payee cheque/draft/pay order/electronic transfer, if any.

Provided that where separate circle rates for land and construction have not been notified in respect of certain buildings or properties, then circle rate for land and construction prevailing in that locality for other buildings or properties, in respect of which separate circle rates have been notified, shall be taken for the purpose of determination of value under this sub-rule.

Provided further that the value of works contract under this sub-rule shall not be less than the circle rate of construction applicable on the date on which agreement between the land-owner and the contractor for the construction of property was executed.

Explanations:-

1.- The term “contractor” for the purpose of this sub-rule shall include the builders, developers, collaborators and similar other persons by whatever name called.

2.- The taxable turnover in relation to contractor’s share of construction for


activity carried on by him for the intended purchaser shall be calculated separately as per sub rule (1) of this rule.

(1B) In case of works contract falling under sub-rule (1A), tax shall be payable at the time of incorporation of goods in the execution of works contract by the contractor.

(2) For the purpose of sub-rule (1), the charges towards labour, services and other like charges shall include-

(i) labour charges for execution of works;

(ii) charges for planning and architects fees;

(iii) charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract;

(iv) cost of consumables such as water, electricity, fuel, etc. used in the execution of the works contract, the property in which is not transferred in the course of execution of a works contract;

(v) cost of establishment of the contractor including cost of marketing, finance expenses and securities deposits to the extent it is relatable to supply of labour and services;

(vi) other similar expenses relatable to supply of labour and services;

(vii) profits earned by the contractor to the extent it is relatable to supply of labour and services subject to furnishing of a profit and loss account of the works sites:

PROVIDED that where amount of charges towards labour, services and other like charges are not ascertainable from the books of accounts of the dealer, the amount of such charges shall be calculated at the percentages specified in the following table :-

TABLEPERCENTAGES FOR WORKS CONTRACTS

Sl. No.

Type of contract Labour,serviceandotherlikechargesare percentage of total value of the

contract

1. Fabrication and installation of plant and machinery. Twenty five percent

2. Fabrication and erection of structural works of iron and steel including fabrication, supply and erection of iron trusses, purloins and the like.

Fifteen per cent

3. Fabrication and installation of cranes and hoists. Fifteen percent

4. Fabrication and installation of elevators (lifts) and escalators. Fifteen percent

5. Fabrication and installation of rolling shutters and collapsible gates. Fifteen percent

6. Civil works. Twenty five percent*

7. Installation of doors, doorframes, windows, frames and grills. Twenty percent

8. Supply and fixing of tiles, slabs, stones and sheets. Twenty percent

9. Supply and installation of air conditioners and air coolers. Fifteen percent

10. Supply and installation of air conditioning equipment including deep freezers, cold storage plants, humidification plants and de-humidors.

Fifteen percent

11. Supply and fitting of electrical goods, supply and installation of electrical equipments including transformers.

Fifteen percent


12. Supply and fixing of furniture and fixtures, partitions including contracts for interior decoration and false ceiling.

Twenty percent

13. Construction of Railway coaches and wagons on under carriagessupplied by Railway.

Twenty percent

14. Construction or mounting of bodies of motor vehicle and construction of trailers.

Twenty percent

15. Sanitary fitting for plumbing and drainage or sewerage. Twenty five percent

16. Laying underground surface pipelines, cables or conduits. Thirty percent

17. Dyeing and printing of textiles. Thirty percent

18. Supply and erection of weighing machines and weighbridges. Fifteen percent

19. Painting, polishing and white washing. Thirty percent

20. Book-binding Fifty percent

21. Textile processing such as dying, fabrication, tailoring, embroidery and other similar activities where textile is supplied by the contractee

Fifty percent

22. Electro plating, electro galvanizing, anodizing, powder coating and other similar activities

Fifty percent

23. Re-treading of old tyres Forty percent

24. All other contracts not specified from Sl. Nos. 1 to 23 above. Twenty percent

*Twenty-five percent of total value of the contract, excluding the cost of land transferred, if any, as determined under this rule.

(3) For the purpose of sub-rule (1), the cost of land, if any, in a civil works contract carried on by the builder for the intended purchaser, shall be determined in the following manner:

(a) Where separate conveyance/sale deed of the land has been executed between the builder and the intended purchaser, the consideration amount of land stated in that deed;

(b) Where separate conveyance/sale deed of the land has not been executed for transfer of land between the builder and the intended purchaser, then the value of land in the value of composite works contract inclusive of land may be arrived at on any of the following basis:-

(i) Where proportionate land is transferred by the land-owner to the builder by executing a conveyance/sale deed: On the basis of rate of land arrived at from such deed for the purpose of payment of stamp duty.

(ii) Where clause (i) is not applicable, on the basis of rate of land arrived at by adding the amount paid by the builder through account payee cheque/draft/pay order/electronic transfer to the land-owner towards the land rights and value of construction transferred by the builder to the land-owner determined as per sub-rule (1A).

To illustrate, land-owner and builder enter into an agreement, where builder would build four units, which would be shared equally between them. In addition, builder pays Rs.1 crore to the land owner. Total construction cost for four flats is Rs.4 crores. Here, builder transfers the value of construction worth Rs. 2 crores [Rs.4 crores divided by two, since 50% share in the construction is transferred to the land-owner]. In this case, value of land transferred by the land-owner is: Rs.1 crore + Rs.2 crores = Rs.3 crores; and total value of land transferred by the


builder to the intended purchasers for his share of the land shall also be Rs.3 crores (Rs. 1.5 crs. per flat if there are two intended purchasers).

(iii) In all other cases where clauses (i) and (ii) are not applicable, the value of land shall be determined on the basis of notified circle rates of land prevailing at the time of execution of agreement between the builder and the intended purchaser.

Provided that where separate circle rates for land and construction have not been notified in respect of certain properties, then circle rate for land and construction prevailing in that locality for other properties in respect of which separate circle rates have been notified, shall be taken for the purpose of determination of value under this sub-rule.

Provided further that where land has been valued at circle rate and the value of conveyance/sale deed with the intended purchaser exceeds the circle rate, then the difference between the two shall be proportionately divided between the value of land and the works contract (comprising material and services).

For example, in case of composite works contract, circle rate of land is Rs.2 crore and circle rate of construction is Rs.1 crore respectively, and the consolidated value of sale deed (inclusive of land and cost of construction) is Rs.3.60 crores. Difference of Rs.0.60 crore shall be divided in the ratio of 2:1; and thus, value of land for the purpose of this sub-rule shall be Rs.2.40 crores.

Explanation 1: The term “Builder” for the purpose of this sub-rule means the person who undertakes the construction of property, either as owner of the land or under an agreement of power of attorney with the land owner or under some other arrangement, and transfers the property to some other person before completion of construction for a consideration, which may be received by the builder either as a composite sum or under separate agreements for land and construction. The term “builder” shall also include the land-owner(s) who transfers the property to the intended purchaser before completion of construction.

Explanation 2: The term “intended purchaser” for the purpose of this sub-rule means the person who agrees to buy the property before completion of construction and pays the consideration, in full or part, before such completion.

Explanation 3: For the purpose of this sub-rule, construction shall be deemed to be completed at the time of issuance of completion certificate by the competent authority, or at the time and in the manner notified by the Government for this purpose.

(c) In the case of works contract of civil nature where the payment of charges towards the cost of land, if any, is not ascertainable in accordance with the preceding clauses of this sub-rule, the amount of such charges shall be calculated @ 30% of the total value of the contract except in the case of construction of commercial buildings or complexes where it shall be calculated @ 50% of the total value of the contract.

(d) In the case of works contract of civil nature where only a part of the total constructed area is being transferred, the charges towards the cost of land shall be calculated on a pro-rata basis through the following formula:

Proportionate super area × Value of land as determined in this sub-rule

Total plot area × Floor Area Ratio


Explanation1.- Proportionate super area for the purpose of this clause means the covered area booked for transfer and the proportionate common constructed area attributable to it.

Explanation 2.- Floor Area Ratio = Total constructed area/ Total plot Area

(4) In the case of works contract of civil nature where only a part of total constructed area is being transferred, the deduction towards labour, services and other like charges mentioned in sub-rule (2) and input tax credit under section 9 shall be calculated on a pro-rata basis.

(5) Where an agreement is executed by the builder with the intended purchaser before completion of construction as referred in sub-rule (3),

(i) total value of agreement, as reduced by cost of land, and amount of labour, services and like charges, determined in accordance with this Rule, shall be deemed to be taxable turnover of sale;

(ii) tax shall be payable at the time of receipt of consideration, in whatever form or manner, from the intended purchaser in relation to (i) above;

(iii) the builder shall be eligible to deduct labour, services, other like charges in relation to (i) above in the tax period when output tax becomes payable; and

(iv) the builder may claim input tax credit under section 9 in relation to turnover of sale stated in (i) above in that tax period on the basis of separate books of accounts maintained for that property.]

4.Whenturnoverarisesinataxperiod

For the purposes of sub-section (4) of section 12, the amount of turnover or turnover of purchases arising in the tax period in the case of a sale or purchase occurring—

(a) by means of an instalment sale or hire purchase of goods made in the tax period, is the total amount of the sale price that will be due and payable under the agreement, including the amount of any option fee paid or that may be payable;

(b) by the transfer of a right to use goods, not being a hire purchase agreement or instalment sale agreement, is the proportion of the sale price that is due and payable during the relevant tax period;

(c) by means of transfer of property in goods (whether as goods or in some other form) under a works contract executed or under execution in the tax period, is the consideration received or receivable by the dealer for such transfer of property in goods (whether as goods or in some other form) during the relevant tax period.

1[4A.Determinationoftaxableturnoverofsalesofresidentialhotelscharginga compositesumforlodgingandboarding

While determining the turnover of sales of goods, specified in sub-clause (vii) of clause (zc) of section 2, of the residential hotels providing lodging and boarding and charging a composite sum, which is inclusive of breakfast or lunch or dinner or, as the

1 Inserted by Delhi Value Added Tax (Third Amendment) Rules 2005 vide Notification No. F.101(348)/2005-Fin. (A/Cs)(iii)/2415, dt. 8-8-2005, w.e.f. 8-8-2005.


case may be, a combination of all or any of the above, the taxable turnover of sales in respect of any period shall be computed in the following manner, namely:—

(a) Where the composite charges include the charges for breakfast.

*[Ten] per cent of thecomposite charges.

(b) Where the composite charges include the charges for lunch. Ten per cent of thecomposite charges.

(c) Where the composite charges include the charges for dinner.

Fifteen per cent of thecomposite charges.

(d) Where the composite charges include the charges for breakfast and lunch.

*[Twenty] per cent of thecomposite charges.

(e) Where the composite charges include the charges for breakfast and dinner

*[Twenty Five] per cent of the composite charges.

(f) Where the composite charges include the charges for lunch and dinner.

Twenty Five per cent ofthe composite charges.

(g) Where the composite charges include the charges for breakfast, lunch and dinner.

*[Thirty Five] per cent of the composite charges.

PROVIDED that if the claimant dealer has in his possession sufficient documentary evidence, which conclusively proves that the component of the taxable turnover of sales in the composite sum is less than the percentage given above, the taxable turnover shall be reduced from the above percentage to the extent of actual sum of turnover of sales.]

5.Compositionscheme

(1) A dealer making an application for registration under section 19 and opting for payment of tax under sub-section (1) of section 16, shall specify his intention to pay tax under section 16.

(2) A dealer paying tax at the rates specified in section 4 may elect to pay tax under section 16 only from the beginning of the following year by making an application in DVAT-01 within 30 days from the first day of the beginning of the following year.

1[x x x]2[(3) A person who is eligible under sub-section (3) of section 16 and elects to

pay tax under sub-section (1) of section 16 shall, on or before 25th July of the year of the commencement of the Act, file an application in Form DVAT-02, specifying his intention to pay tax under section 16 and give particulars of trading stock, raw material, packaging material and finished goods held on the date of commencement of the Act and on which he is liable to pay tax under sub-section (6) of section 16:]

3[PROVIDED that in respect of the financial year 2005-06, the period for making such application shall be ninety days from the first day of the beginning of the following year.]

(4) If a dealer, who has elected to pay tax under sub-section (1) of section 16, desires to reverse his option under sub-section (2) of section 16, he shall file an application in Form DVAT-03 within 30 days from the first day of the beginning of the following year.

(5) A dealer who is covered by sub-section (10) of section 16 shall give intimation to the Commissioner in Form DVAT-03A.* Substituted in sub-rule (a), (d), (e), (g), for the word ‘Five’, ‘Fifteen’, ‘Twenty’, ‘Thirty’ vide Delhi

Value Added Tax (Second Amendment Rules), 2013 dated, 9-07-2013 vide notification No. F.3(4)/Fin (Rev. I)/2013-14/ds-VI/519.

1 Omitted by Notification No. F. 101(337)/2005-Fin. (A/Cs)/1836, dt. 8-7-2005.2 Substituted, vide ibid.3 Inserted by Notification No. F. 101(337)/2005-Fin. (A/Cs)(ii)/1477, dt. 22-6-2005.


5A. Registration,furnishingofsecurity,paymentoftaxandassessmentof casualtrader

(1) A casual trader shall, at least three days before commencing his business in Delhi, make an application in Form DVAT-4A in person or through his authorised agent to the Commissioner.

(2) The Commissioner shall, after registration is granted, issue him a registration certificate in Form DVAT-6A, along with as many Forms DVAT-34 and DVAT-35 as are reasonably required, against payment of the price thereof, if any.

(3) Every casual trader shall furnish a return in Form DVAT-16A which shall be accompanied with the proof of payment of tax and unused Forms DVAT-34 and DVAT-35, if any.

CHAPTER III TAX CREDIT

6. Apportionment of tax credit

Where a dealer has purchased goods intended to be used for the purposes specified in sub-section (1) of section 9 and the goods are subsequently used fully or partly for other purposes as specified in sub-section (4) of section 9 or the goods or goods manufactured out of such goods are exported from Delhi by way of transfer, the tax credit claimed shall be reduced under section 10, in the following manner:

(i) in case commodity-wise accounts are maintained by the dealer clearly correlating use of goods for making sales under sub-section (1) of section 9 and for other purposes, the tax credit shall be reduced by the amount of input tax paid on the purchases used for such other purposes;

(ii) in case commodity-wise accounts are maintained by the dealer clearly correlating use of goods for making sales referred in sub-section (1) of section 9 and for transfer of goods or goods manufactured out of such goods, the credit shall be reduced in the manner specified in rule 7;

(iii) in case commodity-wise accounts are not maintained by the dealer clearly correlating use of goods for making sales referred to in clause (i) above, the reduction of tax credit shall be calculated on the basis of the purchase price of such goods immediately preceding their use for other purposes or their fair market value, whichever is higher;

(iv) in case commodity-wise accounts are not maintained by the dealer clearly correlating use of goods for making sales referred to in clause (ii) above, the reduction of tax credit shall be calculated on the basis of the purchase price of such goods immediately preceding to their transfer or their fair market value, whichever is higher, and the input tax credit shall be reduced in the manner specified in rule 7.

1[6A.Restrictionandconditionsgoverningtaxcredit2[(1) For the purpose of working out the entitlement of tax credit under sub-section

(1) of section 9 of the Act to the extent of proportion of the goods which have been put to sale during the tax period, the input tax credit on the closing stock available with the dealer at the end of every tax period shall be carried forward to the next tax period or the following tax period or periods, as the case may be, till such stock is sold by the dealer:

PROVIDED that this sub-rule shall not prevent the claim of refund of a dealer for sales already effected during the relevant tax period or to a dealer who makes sales in

1 Inserted vide Notification No. F.3(23)/Fin./(T&E)/2009-10/JSFin/287, dt. 1-4-2010, w.e.f. 1-4-2010.2 Italicised sub-rule (1) omitted vide Notification No. F. 3(23)/Fin/(Rev-I)/2011-12/DS-III/68, dt. 27-1-

2012.


the course of exports out of India, or in the course of inter-State trade and commerce, or, in such cases where the dealer being a manufacturer is required to make purchases of raw materials taxable at a higher rate of tax, while the sales of goods manufactured by him (not being goods exempt under section 6 as specified in the First Schedule to the Act) are taxable at the lower rate under the Act.]

(2) Before allowing the claim of input tax credit to a dealer, the assessing authority may satisfy himself that the conditions laid down in clause (g) of sub-section (2) of section 9 of the Act are also satisfied.

(3) The provisions of sub-section (5) of section 10 of the Act relating to proportionate reduction of tax credit on purchases of goods sold at a price lower than the purchase price shall apply to the cases where, during the tax period, the dealer receives credit note or notes from the selling dealer on account of discount, commission, rebate, remission in price of incentive, or by whatever name called.

Explanation : For the removal of doubt, it is hereby clarified that the provisions of sub-section (5) of section 10 of the Act shall not apply to a case where in the ordinary course of business the goods are sold by a dealer at a loss.

(4) In the cases where the sale has been made at price lower than the purchase price in pursuance of the administered prices of the oil companies, that is to say, Indian Oil Corporation, Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd. the provisions of section 10(5) shall not apply.]

7. Reduction of tax credit1[(1) For the purposes of sub-section (6) of section 9 and 2[sub-clause (ii) of clause

(c) of] sub-section (3) of section 10, the tax credit shall be reduced by the following prescribed percentages:

(a) in the case of goods specified in the Second Schedule 100 percent 3[(b) in the case of goods specified in the Third Schedule 40 percent] (c) in the case of goods specified in the Fourth Schedule 10 percent (d) in the case of any other goods specified in clause (e)

of sub-section (1) of section 4 16 percent.] 4[(e) declared goods, as defined from time to time in section 14 of Central

Sales Tax Act, 1956 (74 of 1956) 50 per cent](2) Where a dealer has transferred any goods in the circumstances specified under

sub-section (6) of section 9 and has made a reduction of tax credit by the prescribed percentage, he shall be entitled to claim the tax credit so reduced when he brings such goods back into Delhi for sale on which tax is payable under section 3 or for sale in the course of inter-State trade or commerce or for sale outside Delhi or for sale in the course of exports out of the territory of India, subject to the condition that the goods brought back to Delhi are the same goods as originally transferred 5[or the goods processed or manufactured out of the goods as originally transferred].

(3) Where any goods or goods manufactured out of such goods are lost or destroyed, the dealer shall not be eligible to claim tax credit on such goods and the credit taken in any earlier tax period shall be reversed in the tax period in which goods are claimed to have been lost or destroyed.

(4) For the purpose of sub-section (9) of section 9, the prescribed percentage of reduction of tax credit shall be 6[2 percent].

1 Substituted vide Notification No. F.3(10)/Fin.(T&E)/2008-09/JS Fin/351, dt. 24-7-2008 w.r.e.f. 1-6-2008.

2 Inserted vide Notification No. F.3(15)/Fin(Rev-I)/2012-13/dsVI/264, dt. 30-3-2013, w.e.f. 30-3-2013.3 Substituted for “(b) in the case of goods specified in the Third Schedule.........40 percent” vide

Notification No. F.3(27)/Fin. (T&E)/2009-10/JSFin./195, dt. 17-3-2010.4 Omitted by DVAT (Amendment) Rules, 2012 vide Notification No. F. 3(23)/Fin./(Rev-I)/2011-12/DS-III,

dt. 27-1-2012.5 Inserted vide Notification No. F. 3(59)/Fin (T&E)/2005-2006/923 kha, dt. 30-11-2005.6 Substituted for “3 percent” vide Notification No. F.3(10)/Fin.(T&E)/ 2008-09/JS Fin/351, dt. 24-7-

2008, w.e.f. 24-7-2008.


7A.Adjustmenttotax

Where adjustment of tax arises under clause (e) of sub-section (1) of section 8 by reason of the whole or part of the price owed by the buyer for the purchase of goods having been written off by the dealer as bad debt, the dealer shall make such adjustment to the extent of the tax on the price written off as bad debt provided such price has been written off in his books of accounts and the price so written off has also been claimed by the dealer as deduction under section 36 of the Income Tax Act, 1961 (43 of 1961):

PROVIDED that where the price so written off relates to the sale of goods taxable at different rates of tax specified under section 4, the adjustment shall be made by allocating the price so written off to various amounts outstanding in the following order:

(i) any interest amount due and outstanding;

(ii) sale price of any exempted goods;

(iii) sale price of goods taxable at the rate of 1 per cent;

(iv) sale price of goods taxable at the rate of 1[5 per cent];

(v) sale price of goods taxable at the rate of 12.5 per cent; and

(vi) sale price of goods taxable at the rate of 20 per cent:

PROVIDED FURTHER that where the price so written off is recovered subsequently either in whole or part, it shall be deemed to be the sale of goods by him in the tax period in which such price is recovered and the dealer shall make an adjustment in calculating the tax payable for the same tax period by allocating the recovery amount to the amounts stated above in the reverse order.2[7B.AdjustmentoftaxduetoretrospectivereductionoftaxliabilitybyvirtueoftheDelhiValueAddedTax(SecondAmendment)Act,2005

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]2to 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.]

8.TreatmentofstockbroughtforwardduringtransitionFor the purposes of sub-section (2) of section 14, the amount of tax borne shall

be—1 Substituted for “4 per cent” vide Notification No. F. 3(23)/Fin/(Rev-I)/2011-12/DS-III, dt. 27-1-2012.2 Date extended upto the time of filing of the Dec. 2005 return vide Order No. F.3(17)/P-II/VAT/Misc./

2005/1211, dt. 3-1-2006.


(a) where the dealer holds an invoice issued by a dealer registered under the Delhi Sales Tax Act, 1975 (43 of 1975) in respect of the opening stock which separately states the amount of tax paid under the Delhi Sales Tax Act, 1975 (43 of 1975), at the point specified under section 5 of the said Act, the amount of such tax as is allocable to the opening stock; or

(b) in any other case, an amount calculated according to the formula—F x P x 75%

where—F = the tax fraction, (r/r + 100) [where ‘r’ is the rate of tax under the Delhi Sales Tax Act, 1975 (43 of 1975) applicable as on March 31, 2005 to the opening stock].P = the price paid for the opening stock.

9. Creditonsecondhandgoodspurchasedbyaregistereddealer fromaresidentsellernotregisteredundertheAct

(1) No input tax credit shall be claimed on second hand goods purchased by a registered dealer from a resident seller who is not registered under the Act, unless the registered dealer has in his possession adequate proof of the amount paid for such goods in the form of an invoice or receipt signed by such a resident seller containing the following, namely—

(a) the description of the goods;(b) the amount paid for the goods;(c) the name and address of the resident seller; and(d) the Permanent Account Number (PAN), if any, of the resident seller.1[(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.]

10. Document for availing of credit

(1) A dealer requiring to furnish statement of trading stock and raw material under clause (c) of sub-section (1) of section 20 shall furnish the same in Form DVAT-19 within 7 days of his registration taking effect.

(2) No input tax credit shall be allowed on the trading stock or raw materials held by a dealer who is registered or re-registered at the time when such registration or re-registration takes effect, unless the dealer has in his possession adequate proof of the amount of input tax paid in the form of a tax invoices issued by a registered dealer to the dealer claiming the tax credit.

CHAPTER IV REGISTRATION, APPROVAL AND PERMISSION

11. Applications—General(1) Every application under the Act for registration as a dealer or for the amendment

or cancellation thereof, shall— (i) be furnished in the Forms prescribed in these Rules; (ii) contain the information and particulars required in the relevant Form; (iii) be signed and verified by the person or authority mentioned in section 29

and in the manner specified in the relevant Form; (iv) be accompanied by all documents mentioned in the Form; (v) be accompanied by proof of payment of the fee as prescribed in Annexure

I to these Rules; and1 Substituted vide Notification No. F. 3(59)/Fin (T&E)/2005-2006/923 kha, dt. 30-11-2005.


(vi) be accompanied by security for the prescribed amount.(2) Where no Form is prescribed in these Rules, the application may be made in

writing served on the Commissioner:PROVIDED that the Commissioner may require that the application be re-submitted

in a form or manner as may be specified by the Commissioner.(3) The Commissioner shall issue a receipt acknowledging receipt of an application

at the time the application is furnished.

12.Applicationforregistrationasadealer(1) A dealer who is required to apply for registration under section 18 shall make

an application for registration to the Commissioner in Form DVAT-04 within a period of 30 days from the date of his becoming liable to pay tax under the Act and shall pay the filing fee as prescribed in Annexure I of these Rules.

(2) The dealer shall provide such further information as may be required by the Commissioner.

13.ProcessingapplicationforregistrationasadealerEvery notice issued to an applicant under clause (b) of sub-section (3) of section 19

shall be in Form DVAT-05 and shall be served on the applicant in the manner specified in Rule 62.

14.Certificateofregistration(1) The Commissioner, after due verification of the application and the supporting

documents, shall grant a certificate of registration in Form DVAT-06. The Commissioner shall grant single registration to a dealer who has within Delhi, more than one place of business.

(2) A dealer shall be deemed to be registered under the Act from the date of the receipt of his application for registration as specified in sub-rule (1) above or from the date the dealer has become liable to pay tax except where any other date has been specified in the certificate of registration.

(3) Every registered dealer shall retain and prominently display the certificate of registration at its principal place of business and a certified copy thereof at all other places of business in Delhi. 1[Further, the dealer shall also prominently display his TIN and ward number outside the main entrance of all places of business in Delhi.]

(4) A registered dealer may obtain from the Commissioner, on payment of the fee prescribed in Annexure I to these Rules, a duplicate of the certificate of registration where the original has been lost, destroyed or defaced or a certified copy or copies on payment of the fee prescribed in Annexure I to these Rules for the purpose specified in sub-rule (3).

(5) The Commissioner shall issue a fresh certificate of registration under the Act to every dealer who is registered by virtue of section 24.

(6) Pending the issue of the certificate pursuant to sub-rule (5), a certificate of registration issued to a dealer who is registered under the Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract Act, 1999 (9 of 1999) or the Delhi Sales Tax on Right to Use Goods Act, 2002 (13 of 2002) as in force in Delhi immediately before the commencement of the Act shall be sufficient evidence that the person is registered for the purposes of section 19.

15.Amendmentofregistration

(1) An application for amendment to an existing registration shall be made in Form DVAT-07.

(2) Any amendment to the existing registration as a dealer shall be intimated by the Commissioner in Form DVAT-08.

1 Inserted vide Delhi Value Added Tax (Second Amendment Rules), 2013 dated, 9-07-2013.


16.Cancellationofregistration

(1) An application under sub-section (2) of section 22 for cancellation of registration as a dealer shall be made in Form DVAT-09 within thirty days of the following—

(a) in cases where a registered dealer has ceased to carry on any activity which would entitle him to be registered as a dealer under the Act, from the date of cessation of the activity;

(b) in cases where an incorporated body is closed down or otherwise ceases to exist, from the date of closure or cessation of existence;

(c) in cases where the owner of a proprietorship business dies leaving no successor to carry on the business, from the date of death of the owner of the proprietorship business;

(d) in case of a firm or an association of persons being dissolved, from the date of its dissolution;

(e) in case a registered dealer has ceased to be liable to pay tax under the Act, from the date on which he ceased to be so liable.

(2) Every registered dealer who applies for cancellation of his registration shall surrender with his application the original certificate of registration and all certified copies thereof.

(3) The application shall specify the date from which the dealer desires the cancellation of registration to take effect:

PROVIDED that unless the Commissioner by notice in writing, served on the dealer notifies another date from which registration shall be cancelled, the dealer’s registration shall cease on the date specified by the dealer.

(4) Where the Commissioner proposes to cancel the registration of a dealer under sub-section (1) of section 22, the Commissioner shall serve upon the person a notice in Form DVAT-10 in the manner prescribed in Rule 62.

(5) Every registered dealer whose registration is cancelled under sub-section (1) of section 22 shall deliver to the Commissioner the certificate of registration by the date stated in 1[Form DVAT-11]:

PROVIDED that where a dealer has made an objection to the Commissioner under section 74 against the cancellation of the registration, the dealer may retain the certificate of registration pending resolution of the objection.

(6) In case of cancellation of registration, the Commissioner shall specify in a notice in Form DVAT-11, the date from which the cancellation of the registration takes effect. Upon cancellation of registration, the dealer shall be required to comply with the requirements specified by the Commissioner either in the notice issued in Form DVAT-11 or by a separate communication to be served in the manner specified in Rule 62.

(7) Notwithstanding the cancellation of registration, all the proceedings pending or to be initiated shall not abate.

17. 2[Hosting]ofparticularsofcancelledcertificatesofregistration

For the purposes of sub-section (8) of section 22, the Commissioner shall 3[host on the Department’s website] the particulars of dealers whose registration has been cancelled in the following form:

1 Subs. for “Form DVAT-10” vide Notification No. F. 3(22)/Fin.(T&E)/2006-07/344-353, dt. 7-9-2006, w.e.f. 7-9-2006.

2 Substituted for the word ‘Publication’ vide Delhi Value Added Tax (Second Amendment Rules), 2013 dated, 9-07-2013.

3 Substituted for the word ‘Publish’ vide Delhi Value Added Tax (Second Amendment Rules), 2013 dated, 9-07-2013.


Name and address of

the dealer

Name of theProprietor/Manager/Partner/Director

Registration number Date of effect ofcancellation ofregistration

(1) (2) (3) (4)

18. Declaration of name of manager ofbusiness

(1) The information required under section 95 shall be intimated to the Commis-sioner in Form DVAT-04 at the time of application for registration.

(2) Where there is any change in the person or persons named in Form DVAT-04 as manager or managers of business under section 95 on account of death or otherwise, the registered dealer or his legal representative, as the case may be, shall inform the Commissioner within thirty days from the date of such change in Form DVAT-07 and also provide the name of the person or persons who shall be manager or managers thereafter.

1[A declaration under sub-section (3), (3A) of section 95, shall be furnished in Form DVAT-52 to the Commissioner within the time as specified in section 95.]

19. Nominationofprincipalplaceofbusinessinthecaseofadealer havingmorethanoneplaceofbusinessinDelhi

(1) Where a dealer has within Delhi, more than one place of business (hereinafter referred to as “branches”), he shall—

(a) nominate one of such branches as the principal place of business in Delhi; and

(b) inform the Commissioner in Form DVAT-04 of such nomination at the time of application for registration.

(2) When the dealer changes his designated principal place of business, the dealer shall inform the Commissioner within thirty days from the change in Form DVAT-07 and shall intimate the Commissioner of the location of the new principal place of business.

20.Notificationofaddressforserviceofnotices

(1) Every person who applies for registration under the Act as a dealer shall, in the application, give an address in Delhi for service of notices, orders and other correspondence.

(2) Every person who has given an address for service and who subsequently changes his address shall, within thirty days after the change, intimate the Commissioner, in writing, his new address in Delhi in Form DVAT-07.

(3) Where a person has changed his address and has failed to give to the Commissioner notice in Form DVAT-07 of his new address in Delhi for service, the service effected at the last known address shall be deemed to be valid service under the Act or these Rules and such person shall not be permitted to plead such change of address as a defence in any proceedings (whether civil or criminal) instituted against him under the Act or these Rules.

(4) The address for service last given to the Commissioner by any person shall, for all purposes under the Act and these Rules, be his address for service.

21.Registerofdealers

The Commissioner shall maintain a “Registration Register” in such form as he may deem fit, incorporating therein the complete particulars of the dealers registered under the Act including particulars of any amendments to and cancellation of, registration of the dealers under the Act, which will be available for inspection on payment of fee prescribed in Annexure I to these Rules.

1 Substituted vide Notification No. F. 3(15)/Fin (Rev-I)/2012-13/dsVI/264, dt. 30-3-2013, w.e.f. 30-3-2013


CHAPTER V SECURITY

22.Personandtherequiredamountofsecuritytobefurnished

(1) A person applying for registration under the Act shall furnish security not exceeding Rupees one lakh along with the application for registration:

PROVIDED that the amount of the security shall be reduced by the amount stated below subject to a total maximum reduction of Rupees 50,000, in case the person produces the following documents:

(a) last paid electricity bill in his name Rupees 10,000(b) last paid telephone bill in his name Rupees 5,000(c) Permanent Account Number (PAN) issued under the

Income Tax Act, 1961 Rupees 10,000(d) any document as proof of ownership of principal

place of business Rupees 30,000(e) any document as proof of ownership of residential

property Rupees 20,000(f) notarised photocopy of the passport of proprietor/

managing partner or managing director Rupees 10,000.1[(2) A person required to pay security under sub-section 4 of section 60 for de-

sealing or release of any premises including the office, shop, godown, box, locker, safe, almirah or other receptacle, shall furnish security of a sum equal to one per cent of the maximum of GTO of last three years or a sum equal to five lakh rupees, whichever is higher.]

(3) A person offering to pay security under sub-section (5) of section 61 for release of any goods vehicle, goods and documents seized shall furnish security of twice the amount of tax payable if the goods were sold in Delhi, before seeking release of goods vehicle, goods and documents seized.

(4) The Commissioner may require a dealer claiming refund under section 38 to furnish security of the amount not exceeding the amount of refund claimed before the grant of refund.

23.Mannerinwhichsecuritymaybefurnished

(1) The tender of an amount or an asset or the undertaking of a liability as security for any purpose of the Act shall be made in Form DVAT-12.

(2) Subject to sub-rule (3) of this rule where a person is required or offers to furnish security for any purpose of the Act, the security shall be acceptable only if it is made in any one of the forms listed in Table below, unless the Commissioner prescribes a particular form in which the security shall be acceptable:

PROVIDED that security may be offered partly in one form and partly in another.2[(2A) The security required to be furnished by a person under sub-section 4 of

section 60, shall be, at least 50% in the form of security specified at sl. no.1 of the

1 Substituted vide Delhi Value Tax (Third Amendment) Rules, 2013 w.e.f. 20-09-2013 vide notification No. F. 3 (16)/Fin(Rev-I)/2013-14/dsVI/785, dt. 20-09-2013. Earlier Sub-rule (2) read as:

“(2) A person ordered to pay security under sub-section (4) of section 60 for de-sealing or release of any premises including the office, shop, godown, box, locker, safe, almirah or other receptacle, shall furnish security of the amount ordered by the Commissioner before seeking de-sealing or release of the premises.”

2 Inserted vide Ibid.


‘Table – Forms of Security’ below and balance may be in any of the forms of security specified in the said table.]

(3) The security required to be furnished by a person under sub-section (5)(b) of section 61, shall be, at least 50% in the form specified as Item No. 1 of the Table below, and balance may be in any of the form specified in Table below.

(4) A security, which does not meet the conditions specified in Table below, shall not be treated as the furnishing of security for the purposes of the Act.

(5) The security shall be accepted only for the amount prescribed or ordered.(6) If the security is furnished in any of the forms referred to in items 2 to 7

(inclusive) in Table below, a document transferring the title to the security shall be executed in the name of the President of India and the transfer recorded and noted in the books of the issuing authority and the person offering the security shall be required to pay Stamp duty and Registration fee as prescribed under the relevant law.

(7) The Commissioner shall maintain a complete account of the securities deposited, forfeited or refunded in Securities Register in such form and in such manner as the Commissioner deems fit.

Form of security Conditions Amount of security

1. Cash The Government will not pay any interest on security deposit, held in the form of cash.

Amount of cash deposited in appropriate Government treasury

2. Promissory notes, stock certificates of any State Government

These securities shall be accepted at five per cent below their market price as on date of submission or at their face value, whichever is less.

3. Post Office Cash Certificates, Treasury Savings Deposits, National Plan Savings Certificates, 12 year National Defence Certificates, 10 year National Defence Certificates

These certificates shall be formally transferred to the (President of India) and shall be accepted with the sanction of the Post Master of the office of registration.

Surrender value at the time of tender

4. Post Office Savings Bank Pass Books.

A pass book, for a deposit made under the Post Office Savings Bank Rules may be accepted as security provided that the dealer has signed and delivered to the Post Master a letter in the prescribed form as required by the said rules. The pass book shall be sent to the post office as soon as possible after the 15th June of each year so that necessary entries of interest may be made therein.

Amount deposited


5. Municipal debentures or Port Trust Bonds and/or Debentures issued by the Government or a financial corporation.

These securities shall be accepted at five per cent below the market price as on date of submission or face value, whichever is less.

6. Bonds or debentures issued by corporate bodies guaranteed by the Central or any State Government as regards the payment of principal and interest or as regards principal only.

These securities shall be accepted at five per cent below the market price or face value, whichever is less.

7. Deposit receipts of any authorised bank.

The deposit receipts shall be made in the name of the dealer but pledged to the President of India. The Bank shall agree that on receiving a signed treasury challan from the Commissioner and withdrawal order duly signed by the Commissioner, the bank will at once remit the amount in full or in part, as may be specified in the order into the treasury and send the receipted challan to the Commissioner. The dealer will agree in writing to undertake the risk involved in the investment.

The amount shown on the deposit receipt.

8. Mortgage of immovableproperty, hypothecation or pledge of movable property, personal surety.

Mortgage bond in writing shall be executed in favour of the President of India and registered according to law of registration at the cost of the dealer. The property mortgaged shall be free from all encumbrances. Personal surety shall be in the form of a personal bond with one or two guarantees acceptable to the Commissioner. This form of security shall be accepted subject to such conditions as may be laid down from time to time by the Commissioner by a general or special order.

Amount stated in the relevant document as the maximum amount recoverable under the mortgage, h y p o t h e c a t i o n , pledge, or personal surety.


The liability of the surety or guarantor shall be co-extensive with that of the dealer for the period the contract of surety or guarantee remains in operation notwithstanding the fact that the assessment proceedings against the dealer under Chapter VI of the Act for the period are initiated before or after the said period. The liability of the surety or guarantor shall be enforced and executed according to the law for the recovery as arrears of land revenue referred to in section 44.

9. Bank guarantee The bank must be a Scheduled Bank. The bank guarantee shall be initially valid for a period of one year and shall be kept valid till such time the Commissioner may require.

The amount stated in the relevant document as the maximum amount recoverable under the bank guarantee.

24.Safe-keeping,retentionandreturnofsecurity

(1) Post Office Savings Bank pass books, deposit receipts of banks, security bonds and agreements, promissory notes or stock certificates tendered as security shall be kept in safe custody by the Commissioner or an officer nominated by him in this behalf.

(2) Security tendered in any form shall be retained until the Commissioner orders that there is no further necessity for keeping it.

(3) Where a person has ceased to be a dealer or undertakes any other activity for which security under the Act might be required, the person may apply for the return, release or discharge of the security in Form DVAT-13.

(4) A person may object in the manner provided in section 74 if the Commissioner has failed 1[within six months] to return, release or discharge the security:

PROVIDED that, where the person has sought a refund in cash pursuant to section 38 at any time, the person shall not request the Commissioner to return, release or discharge the security on or before 30th November of the year succeeding the year which includes the tax period in respect of which the refund is claimed.

(5) No security shall be returned, released or discharged to the person or otherwise disposed of except in accordance with the terms of the security bond or agreement and while returning, releasing or discharging the security to the person, unless the person entitled to the security gives an acknowledgment duly signed and witnessed setting forth therein the full particulars of the security released, returned or discharged.

1 Substituted for “within 4 months” vide Notification No. F. 3(22)/Fin.(T&E)/2006-07/344-353, dt. 7-9-2006, w.e.f. 7-9-2006.


25.Forfeitureofsecurity

(1) Where the Commissioner proposes to forfeit a security in full or in part or is of the view that the security furnished is insufficient, he shall serve upon the person who furnished the security, a notice in Form DVAT-14.

(2) Where the Commissioner is not satisfied with the explanation given in response to the notice served upon in sub-rule (1), he shall pass an order in Form DVAT-15 forfeiting the security in part or in full and requiring the person to make good the deficiency of security.

(3) Where security is furnished in a form other than cash or bank guarantee and the security is forfeited in full or in part or is rendered insufficient, the Commissioner shall, in the notice, allow the person affected, to pay the forfeited or insufficient amount in cash within the time specified in the notice.

(4) If the amount to be forfeited or rendered insufficient is not deposited in cash pursuant to sub-rules (2) and (3) of this rule, the Commissioner shall make an application to the Collector as defined in Delhi Land Reforms Act, 1954 (hereinafter referred to as “Collector”) to recover the said amount from the person, his surety or guarantor as arrears of land revenue.

(5) The Commissioner shall furnish to the Collector, the names and addresses of the person, his surety or guarantor and the amount to be recovered and thereupon the Collector shall proceed to recover the amount from the person or his surety or guarantor or from both as arrears of land revenue.

(6) Where security has been provided in the form of a pledge of goods, the Commissioner may sell the goods following the procedure prescribed in Rule 41 to the extent applicable.

(7) Where the security furnished by any person is forfeited in whole or is rendered insufficient, the person shall make up deficiency in any of the forms referred to in Table under Rule 23, as may be required by the Commissioner, within fifteen days from the date of service of order in Form DVAT-15.

CHAPTER VI TAX PERIOD AND TAX RETURNS

26. Tax period1[(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 cease—

(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.

1 Substituted vide Notification No. F. 3 (15)/Fin. (Rev-I)/2012-13/dsVI/264, dated 30-3-2013, w.e.f. 30-3-2013.


1[(3) .........................................................................................................................]1[(4) .........................................................................................................................]

(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;

(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 prior 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.

27.Returns—General

(1) Every return under the Act shall—

(i) be furnished in the appropriate Form 2[and in the manner] prescribed in these Rules;

(ii) contain the information and particulars required in that Form;

(iii) be signed and verified by the person or authority mentioned in section 29 and in the manner specified in that Form; and

(iv) be accompanied by all documents mentioned in the Form.

(2) Where no Form for a return is prescribed in these Rules, the return may be made in writing and served on the Commissioner:

1. Sub-rule (3) & (4) were substituted vide Notification No. F.3(27)/Fin. (Rev-I)/2011-2012/AS/353 dated 25-04-2012. Sub-rule (3) & (4) omitted vide Notification No. F. 3 (15)/Fin(Rev-I)/2012-13/dsVI/264, dt. 30-3-2013, w.e.f. 30-3-2013. Prior to its omission sub-rule (3) & (4) read as:

“(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.”(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.

2. Inserted vide Delhi Value Added Tax (Second Amendment Rules), 2013 dated, 9-07-2013.


PROVIDED that the Commissioner may require that the return be resubmitted in a form or manner specified by the Commissioner.

(3) Every person liable to furnish a return as agent for any person (including an auctioneer) shall furnish a separate return for each person for whom he is agent, in addition to his own return, if required.

(4) The person liable to furnish a return as trustee for another shall furnish a separate return for the trust of which he is a trustee, in addition to his own return, if required.

1[(5) Notwithstanding anything contained in this rule, the dealer or a class or classes of dealers as may be notified by the Commissioner by a special or general order, shall file the return in electronic form, from the date notified by the Commissioner in this regard and such dealer shall also file a copy of the return with the Commissioner within three days of electronic filing of return.]

28.Dealer’speriodicreturns

(1) Subject to sub-rule (2) of this rule, every dealer liable to pay tax under section 3 shall furnish a return in Form DVAT-16 for each tax period.

(2) Every dealer who has elected to pay tax under section 16 shall furnish return in Form DVAT-17.

2[(3) A return referred to in sub-rule (1) or sub-rule (2) shall be furnished by transmitting the data in the return electronically on the Departmental website and thereafter submitting the Return Verification Form in Form DVAT-56, in duplicate, in the manner stated in Rule 63. Such return and the said Form shall be furnished by the dealer within twenty eight days from the end of the tax period. On submitting of Form DVAT-56, the Commissioner shall issue the acknowledgement with signature and stamp on one copy of the said Form;

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 expired on the date of grant of registration certificate, within seven days from the date of such grant; PROVIDED FURTHER that where the dealer fails to submit Form DVAT-56 and/or to obtain the acknowledgment, it shall be construed that no return has been furnished by the dealer for that tax period;

PROVIDED ALSO that the Commissioner, by an order, may exempt a dealer or class or classes of dealers from furnishing acknowledgment in Form DVAT-56 along with documents stated in sub-Rule-(3A), if the return under this rule is furnished with digital signatures, in accordance with the provisions contained in the Information Technology Act, 2000 (21 of 2000).

(3A) The verification of the return in Form DVAT-56, referred to in sub-rule (3), shall be accompanied by proof of payment of tax, interest or any other sum in Form DVAT-20, copy of the TDS Certificate(s), CC-01 and the documents, as specified in Form DVAT-56 or in the return Form.]

1 Omitted vide Delhi Value Added Tax (Second Amendment Rules), 2013 dated, 9-07-2013.2 Substituted vide Delhi Value Added Tax (Second Amendment Rules), 2013 dated, 9-07-2013. Earlier

Sub-rule (3) read as: (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 by the dealer within twenty-eight days from the end of his tax period:

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.


(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 1[including Return Verification Form in Form DVAT-56 and documents referred to in sub-rule(3A)] 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.]

29.2[Revisedreturns]

(1) A person who furnishes a revised return in correction of some error that has been detected, shall do so by furnishing Form DVAT-16 along with an explanatory note specifying the mistake or errors because of which it has become necessary to furnish a revised return.

(2) A person paying tax under section 16 and wishes to furnish revised return to correct any mistakes/errors as detected by him shall furnish in Form DVAT-17 along with an explanatory note specifying the mistake or error because of which it has become necessary to furnish a revised return.

30.Statementfortransitionalinputtaxcredit

Where, upon the commencement of the Act, a registered dealer wishes to claim tax credit under section 14, he shall furnish the required statement in Form DVAT-18 and in case the tax credit claimed is in excess of Rupees one lakh, the statement shall be accompanied by a certificate signed by an Accountant.

3[30A.Dischargeofliabilityinrespectofacontinuingworkscontract

(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 31st March, 2005 to the Commissioner, in a statement in Form DVAT 53 4[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 31st 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.]

1 Inserted vide Delhi Value Added Tax (Second Amendment Rules), 2013 dated, 9-07-2013.2 Also see Cir. No. 4, dt. 31-5-2006.3 Inserted vide Notification No. F. 3(59)/Fin (T&E)/2005-2006/918 kha, dt. 30-11-2005.4 Also see Order No. F.34(17)/P-II/VAT/Misc./2005/1211, dt. 3-1-2006 where time was extended for

dealers having monthly returns upto the due date of filing of Dec.-2005 returns.


CHAPTER VII PAYMENT OF TAX AND MAKING REFUNDS

31.Methodofpaymentoftax,interestorpenalty

(1) Tax, interest, penalty or any other amount due under the Act may be paid only in Rupees.

(2) A payment of tax, interest, penalty or any other amount due under the Act may be made either in cash or by means of a crossed cheque, or bank draft drawn in favour of the appropriate Government treasury drawn on an 1[authorised bank] and shall be tendered along with a duly completed Form DVAT-20.

(3) Where a payment of tax, interest, penalty or any other amount due under the Act is made by cheque or bank draft, the date of the payment for the purpose of the Act shall be the date on which the said cheque or bank draft is encashed.

(4) Any tax, interest, penalty or any other amount due under the Act may be paid—

(a) at a branch in Delhi of the Reserve Bank of India;

(b) at a branch in Delhi of an authorised Bank;

(c) at any other place notified by the Commissioner.

(5) Notwithstanding anything contained in this rule, the Commissioner may provide separate procedure for method of payment of tax, interest, penalty or any other amount due under the Act in electronic form.

32.TreasurytonotifypaymentsThe appropriate Government treasury shall furnish to the Commissioner, the Part

B of the Form DVAT-20 retained by it in respect of all payments made in a day together with sufficient information to identify the dealer. The officer in charge of the appropriate Government treasury shall set his hands and seal on the said information before furnishing it to the Commissioner.

33. Proof of payment(1) On receipt of the Part B of the receipted Form DVAT-20, the Commissioner

shall allow the credit of the amount shown therein, to the dealer against tax, interest, penalty or any other amount due from him under the Act.

(2) In case the Part ‘B’ of Form DVAT-20 is not forthcoming to the Commissioner or is lost, destroyed, defaced or mutilated, the dealer who claims that he had paid any amount on account of tax, interest, penalty or any other amount due under the Act, the Commissioner may require such dealer to furnish other satisfactory proof of such payment which shall be the Part ‘C’ or Part ‘D’ of Form DVAT-20 in respect of that payment supported by a certificate from the appropriate Government treasury that the payment shown in such Part ‘C’ or Part ‘D’ of Form DVAT-20 was deposited and credited to the Government account and an affidavit from such dealer that Part ‘C’ or Part ‘D’ of Form DVAT-20 and the certificate from the appropriate Government treasury are genuine. If, the dealer fails to furnish satisfactory proof of such payment, the credit for such payment shall be disallowed by the Commissioner.

1 See Order No. F.27(95)/Policy/2005/CST/PF/1597, dt. 20-9-2005.


1[33A.IntimationofdepositingtheGovernmentdues

Every dealer or person who, in pursuance of a notice of assessment or an order or a decision, is required to deposit any amount of tax or interest or penalty or composition money or any other amount due under the Act, shall, after depositing such amount or a part of such amount, furnish an intimation to the Commissioner in Form DVAT-27A within seven days of making such payment duly accompanied by Pact C of the respective deposit challan in Form DVAT-20.]

34.Refundofexcesspayment

(1) A claim for refund of tax, penalty or interest paid in excess of the amount due under the Act (except claimed in the return) shall be made in Form DVAT-21, stating fully and in detail the grounds upon which the claim is being made.

(2) Only such claim should be made in Form DVAT-21 that has not already been claimed in any previous return. A claim for refund made in Form DVAT-21 shall not be again included in the return for any tax period.

2[(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.]

(4) Where the refund is arising out of a judgment of a Court or an order of an authority under the Act, the person claiming the refund shall attach with Form DVAT-21 a certified copy of such judgment or order.

(5) When the Commissioner is satisfied that a refund is admissible, he shall determine the amount of the refund due and record an order in Form DVAT-22 sanctioning the refund and recording the calculation used in determining the amount of refund ordered (including adjustment of any other amount due as provided in sub-section (2) of section 38).

3[(5A) The order for withholding of refund/furnishing security under section 39 shall be issued in Form DVAT-22A.]

(6) Where a refund order is issued under sub-rule (5), the Commissioner shall, simultaneously, record and include in the order any amount of interest payable under sub-section (1) of section 42 for any period for which interest is payable.

(7) The Commissioner shall forthwith serve on the person in the manner prescribed in Rule 62, a cheque for the amount of tax, interest, penalty or other amount to be refunded along with the refund order in Form DVAT-22:

4[PROVIDED that the Commissioner may transfer the amount of refund through Electronic Clearance System (ECS) in the bank account of the dealer.]

(8) No refund shall be allowed to a person who has not filed return and has not paid any amount due under the Act or an order under section 39 is passed withholding the said refund.

1 Inserted vide Notification No. F. 3(22)/Fin.(T&E)/2006-07/344-353, dt. 7-9-2006, w.e.f. 7-9-2006.2 Substituted vide Notification No. F. 3(59)/Fin (T&E)/2005-2006/923 kha, dt. 30-11-2005.3. Inserted by Delhi VAT (Third Amendment) Rules, 2005 vide Notification No. 101(348)/2005-Fin.(A/

Cs)/2415, dt. 8-8-2005, w.e.f. 8-8-2005.4 Inserted vide Notification No. F. 3(59)/Fin (T&E)/2005-2006/923 kha, dt. 30-11-2005.


1[(9) Before allowing the claim for refund to a dealer under section 38 of the Act, the Authority concerned shall satisfy himself that the conditions laid down in clause (g) of sub-section (2) of section 9 of the Act are fulfilled.]

2[35. (1) (a) the goods were purchased by the organizations or the qualified person from a registered dealer against a tax invoice/retail invoice and the sale price of the goods covered in each single tax invoice/retail invoice exceeds five thousand rupees (excluding tax paid, if any) or such other amount as may be notified by the Commissioner.]

(2) An application for refund under section 41 shall be made by the organization on behalf of itself and every qualified person attached to the organization in Form DVAT 23 within a period of twenty-eight days from the end of the relevant quarter covering all purchases made against tax invoices in that quarter.

Explanation : For the purpose of this rule, the organisation shall be deemed to be an agent duly authorised by all qualified persons attached to the organisation to make such a claim:]

3[PROVIDED that, an application for refund under section 41 shall be made by the Embassies, High Commissions, International Organizations on behalf of itself and every qualified person attached to such organization in Form DVAT-23 within a period of three months from the end of the relevant quarter covering all purchases made against tax invoices/retail invoices in that quarter.]

(3) A refund made to the organisation shall be deemed to be made to each qualified person through its agent duly authorised by the qualified person to receive such a payment.

(4) Where an application for a refund is made in accordance with sub-rule (1) and the application is made in the prescribed form, manner and time, the refund shall be paid by the Commissioner within 30 days from the day when the Commissioner receives the application along with refund order in Form DVAT-22.

(5) The amount of any refund shall be paid to a single account with a bank nominated by the organisation and any deposit made by the Commissioner to the account shall be deemed to be paid to the organisation and to every qualified person.

(6) Subject to the restrictions and conditions notified by the Commissioner, for the purposes of this rule, a “qualified person” means a person referred to in Sixth Schedule of the Act.

(7) Where an express term in a treaty or other international agreement to which the President or the Government of India is a party is inconsistent with the conditions in this rule, such treaty or international agreement shall prevail.

(8) A claim for a refund of tax made under this rule shall be a composite of all the claims for a refund of tax of the organisation and every qualified person attached to the organisation.

(9) The form shall be signed by the Chief of the organisation or a person duly authorised by him. In case the form is signed by an authorised signatory, the form shall be accompanied by the letter of authorisation signed by the Chief of the organisation.

1 Inserted vide Notification No. F.3 (23)/Fin.(T&E)/2009-10-JSFin./287, dt. 1-4-2010, w.e.f. 1-4-2010.2 Substituted vide Notification No. F. 3(25)/Fin (T&E)/2009-10/JS fin/94, dt. 15-2-2010, w.r.e.f. 1-4-

2005.3 Inserted, vide ibid.


1[(10) The organization claiming a refund under this rule shall be required to retain all tax invoices/retail invoices based on which such refund is claimed for a period of one year from the date on which the refund is made.

(11) The tax invoices/retail invoices filed along with the form shall be stamped by the Commissioner and returned along with the refund order in Form DVAT-22.]

2[(12) Notwithstanding anything contained in this rule to the contrary, where an organisation, listed in the Sixth Schedule in the entry at Sl. No. 1, for the purpose of receiving the refund of tax borne in two different bank accounts viz. the refund of tax borne by the organisation itself in one account and the refund of tax borne by all the qualified persons attached to the organisation in the other account, furnishes two separate applications in Form DVAT-23, the Commissioner may pay the refund admissible in two bank accounts.]

CHAPTER VIII ASSESSMENTS AND ENFORCEMENT OF TAX AND PENALTIES

36.Assessmentoftax,interestorimpositionofpenalty

(1) Where the Commissioner makes a default assessment of tax under section 3326, he shall record the order in Form DVAT-24 and such notice of assessment shall be served on the dealer in the manner prescribed in Rule 62.

(2) Where the Commissioner makes an assessment of penalty under section 33, he shall record the order in Form DVAT-24A and such notice of assessment of penalty shall be served on the dealer in the manner prescribed in Rule 62.

3[(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 of 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.]1[36A.Formofnoticeforrevision

The notice for the purposes of sub-section (2) of section 74A shall be in Form DVAT-24B.

36B.Rectificationofmistakesandreview

(1) The application for rectification of a mistake in any order shall be filed in Form DVAT-38B.1 Substituted for existing sub-rule (10) and (11) vide Notification No. F. 3 (25)/Fin./(T&E)/2009-10/

jsfin/94, dt. 15-2-2010, w.r.e.f. 1-4-2005.2 Inserted vide Notification No. F. 3(22)/Fin.(T&E)/2006-07/344-353, dt. 7-9-2006, w.e.f. 7-9-2006.3 Inserted vide Notification No. F. 3(59)/Fin (T&E)/2005-2006/923 kha, dt. 30-11-2005.


(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 section 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.]1[37.RecoveryofGovernmentdues

(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.

1 Substituted, vide ibid.


(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.]

38. Continuationofcertainrecoveryproceedings

For the purposes of section 45, the Commissioner shall notify to the Collector any reduction of Government dues in Form DVAT-26, a copy of which shall also be served on the person in the manner prescribed in Rule 62.

39. Special mode of recovery

For the purposes of section 46, the Commissioner shall serve on the person in Form DVAT-27 notifying the person of the requirement to pay the specified amount to the Commissioner in the manner prescribed in Rule 62.

40.Issueofsummons

(1) A summons requiring a person— 40(a) to appear before the Commissioner;(b) to produce documents to the Commissioner; or(c) to appear before the Commissioner and produce documents, shall be in

Form DVAT-28.(2) The Commissioner shall serve summons under sub-rule (1) in the manner

prescribed in Rule 62.

41. ProceduresforsaleofpropertyheldbytheCommissioner

(1) Where the Commissioner has in his possession any goods, goods vehicle, or any other property, including goods seized at any border or check-post and goods held as security for the performance of an obligation under the Act (in this rule called “the property”), which may be sold by the Commissioner in pursuance of any powers


conferred under the Act to recover tax, interest, penalty or other amount due under the Act, the power of sale shall be exercised in the manner set out in this rule.

(2) The Commissioner shall serve a notice in Form DVAT-29 in the manner prescribed in Rule 62 on the person recorded as the owner of the goods in the Commissioner’s records requiring the person to redeem the property within 15 days by tender of payment in cash of all amounts owed under the Act.

(3) Where the person has not redeemed the property within the time specified in the form, the Commissioner may proceed to sell the property by public auction as per the following procedure—

(a) A report shall be prepared of the facts and circumstances in which the property is required to be sold by public auction and the Commissioner shall make a written order for sale or disposal of the property.

(b) The officer nominated by the Commissioner for the purpose shall cause to be published on the notice board of his office, a list of the properties intended for sale with a notice under his signature specifying the place where, and the day and hour at which, the property is to be sold and display copies of such list and notices at more than one public place near the place where the property is currently held, and the place of the proposed auction. A copy of the list and notice shall also be displayed in the office of the Commissioner. Except in exceptional circumstances, a notice for not less than seven days shall be given before the auction is conducted.

(c) Intending bidders shall be required to deposit as earnest money, a sum equal to ten per cent of the estimated value of the property. The officer conducting the auction shall prepare a receipt acknowledging the receipt of the earnest money. Earnest money deposited by unsuccessful bidders shall be refunded to them immediately after the auction is over.

(d) At the appointed day and time, the property shall be put up in one or more lots, as the officer conducting the auction sale may consider fit and shall be knocked down in favour of the highest bidder subject to confirmation of the sale by the Commissioner.

(e) The purchaser shall pay the sale value of the property in cash immediately after the sale and he shall not be permitted to carry away any part of the property until he has paid for the same in full and until the sale has been confirmed by the Commissioner. If the purchaser fails to pay the purchase money within three days of the confirmation of sale by the Commissioner, the property shall be re-offered for auction and any earnest money deposited by the defaulting bidder shall be forfeited to the Government.

(4) If any order directing detention is reversed on appeal, the property detained, to the extent they have not been sold before such reversal comes to the knowledge of the officer conducting the sale, shall be released or, if such property has been sold, the net proceeds thereof shall be paid to the owner of the property.

(5) Notwithstanding anything contained in this rule, if the property is of a perishable nature or subject to speedy and natural decay or when the expenses of keeping it in custody are likely to be high, the Commissioner may—

(a) reduce the time stated in sub-rule (2) within which the owner may redeem the property;

(b) reduce the time for display of any notice; and(c) accelerate the time for conducting the auction of the property.

(6) Where property is sold under the preceding sub-rules, the proceeds of sale shall be applied in the following order—


(a) payment of any expenses of the sale, including tax arising under the Act by virtue of the sale, and other incidental charges;

(b) in respect of any surplus, payment of the amount of any tax, interest and penalty recoverable under the Act or Delhi Sales Tax Act, 1975 (43 of 1975) or Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) or The Central Sales Tax Act, 1956 (74 of 1956) or The Delhi Sales Tax on Right to Use Goods Act, 2002 (Delhi Act 13 of 2002);

(c) in respect of any surplus, on application made to the Commissioner and upon provision of sufficient proof, payment to the person who was the owner of the property; and

(d) in respect of any surplus, in the absence of any claimant, deposited in the Consolidated Fund of the National Capital Territory of Delhi.

CHAPTER IX ACCOUNTS, RECORDS AND AUDIT

42.BooksandAccounts

(1) The following records shall be maintained by a dealer at his principal place of business, namely:—

(a) A monthly account specifying total output tax, total input tax and net tax payable or the excess tax credit due for carry forward.

(b) Purchase records, showing details of purchases on which tax has been paid, purchases made without payment of tax, purchases made from an exempted unit and purchases made from outside the State in Form DVAT-30. Original tax invoices for purchases on which tax has been paid and invoices for purchases made without payment of tax shall be preserved date-wise and in numerical order.

(c) Sales records showing separately sales made at different tax rates, zero-rated taxable sales and tax-free sales in Form DVAT-31. Copies of tax invoices related to taxable sales and invoices related to exempt sales shall be retained date-wise and in numerical order.

(d) Record of inter-State sales and inter-State transfer of goods (including that of goods sent for job work) supported by statutory declarations and such other evidence as may be relevant.

(e) Details of input tax calculations where the dealer is making both taxable and tax free sales.

(f) Stock records showing stock receipts and deliveries and manufacturing records.

(g) Stock records showing separately the particulars of goods stored in cold storage, warehouse, godown or any other place taken on hire.

(h) Order records and delivery challans wherever applicable.(i) Annual accounts including trading, profit and loss accounts and the

balance sheet.(j) Bank records, including statements, cheque book counter foils and pay-

in-slips.(k) Cash book, daybook and ledger.


1[(l) Record of Credit and Debit Note(s) relating to purchase in DVAT -30A and record of Credit and Debit Note(s) relating to sale in DVAT-31A].

(2) The following records shall be maintained by a dealer having elected to pay tax under section 16, namely:—

(a) Details of the goods purchased and sold by him; and(b) Cash book, daybook, ledger, invoice books and purchase vouchers.

(3) Every owner or lessee of a cold store, warehouse, godown or any such place, who stores goods for hire or reward shall maintain or cause to be maintained a correct and complete account indicating the full particulars of the person whose goods are stored and the quantity, value, date of arrival, date of dispatch and the proposed destination of such goods.

(4) Every person who carries goods for reward shall maintain or cause to be maintained a correct and complete account indicating the full particulars of the person whose goods are carried, the quantity, value, the place and date of delivery of such goods, vehicle number, and serial number and date of Goods Receipts (GR) note and his office copy of the same.

1[Explanation: For removal of doubts, books of accounts, as stated in this rule, shall be maintained separately in relation to the business carried out in Delhi.]

2[42A. For the purpose of section 49, a dealer whose gross turnover in a year exceeds one crore rupees, shall get his accounts of such year audited by an accountant, and shall be liable to submit a report, as notified by the Commissioner, from time to time:

PROVIDED that the Commissioner may, by an order, require a dealer or class or classes of dealers, to submit a simplified version of the report in lieu of report notified by him under section 49:

PROVIDED FURTHER that the Commissioner may, by an order, exempt a dealer or class or classes of dealers, from furnishing a report, for the purpose of section 49.]

43.Recordstobecarriedbyapersonin-chargeofagoodsvehicle

(1) The owner, driver or person in-charge of the goods vehicle shall carry th43e Transport Receipt in Form DVAT-32, sale invoice or delivery note in Form DVAT-33, and, as the case may be, export declaration in Form DVAT-34, import declaration in Form DVAT-35 or transit slip in Form DVAT-35A.

(2) For obtaining export or, as the case may be, import declaration in Forms DVAT-34 and DVAT-35, an application in Form DVAT-46 shall be made to the Commissioner by the user dealer.

(3) Account of the usage of Forms DVAT-34 and DVAT-35 shall be maintained by the user dealer in Form DVAT-35B which shall be open for inspection by the Commissioner and shall be filed with the Commissioner every quarter or with every new application for obtaining Form DVAT-34 and DVAT-35, whichever is earlier.

(4) A declaration in Form DVAT-34 or DVAT-35 shall be in three parts. Each part shall be filled and signed by consignor, the consignee and the transporter, as the case may be. The owner, driver or person in-charge of the goods vehicle shall keep with him such declaration forms in duplicate while carrying the goods. He shall submit the declaration forms in duplicate at the check post or barrier. The officer in-charge shall retain the original part of such declaration and shall return to the owner, driver or person

1 Inserted vide Notification No. F. 3(15)/Fin/(Rev-I)/2012-13/dsVI/264, dt. 30-3-2013, w.e.f. 30-3-2013.

2 Substituted, vide ibid.


in charge of the goods vehicle, the duplicate part duly verified, signed and stamped. The duplicate part of such declarations shall be furnished by the user dealer to the Commissioner along with the account of such declaration maintained in Form DVAT- 35B at the time of obtaining of additional declaration Forms.

(5) Where the goods vehicles entering Delhi, is bound for any place outside Delhi and passes through Delhi, the owner, driver or the person in-charge of the goods vehicle shall furnish, in duplicate, to the officer in-charge of the check post or barrier, a Transit Slip in duplicate in Form DVAT-35A duly filled, signed and verified. He will obtain from the officer in-charge of the check post or the barrier one copy of the Transit Slip duly countersigned. The owner, driver or person in-charge of the goods vehicle shall deliver within twelve hours of its entry into Delhi, the said countersigned copy to the officer in-charge of the check post or barrier at the point of his exit from Delhi.

(6) The owner, driver or his agent or the person in-charge of the goods vehicle when required to furnish security under sub-section (5) of section 61 shall furnish security in the form and in the manner and subject to the conditions specified in rule 23. The security referred to in this sub-rule shall be furnished within the time specified in the order not exceeding seven days from the detention of the goods. The Commissioner shall issue to the depositor a receipt in Form DVAT-47 acknowledging the receipt of the security.

(7) The officer in-charge of the check post or barrier detaining the goods shall make a report to the Commissioner about all the facts and circumstances of the case within twelve hours of the detention of the goods.

(8) Where the goods detained are not released owning to the failure to furnish the security required to be furnished under sub-section (5) of section 61 within the specified time, the notified goods detained shall be sold by public auction after following the procedure as specified in rule 41.

Explanation : For the purpose of this rule, unless the context otherwise requires, “officer in-charge” of the check post of barrier shall also include any officer or any agent as may be empowered by the Commissioner.

44.Issueofduplicatetax invoice

(1) Where a purchasing dealer claims to have lost the original tax invoice, the selling dealer may, upon a request made by the purchasing dealer accompanied by an undertaking cum indemnity in Form DVAT-36, provide a copy of such last tax invoice clearly marked as a ‘duplicate’ and shall furnish a copy of such undertaking-cum-indemnity along with his return for the tax period in which such ‘duplicate’ tax invoice has been issued.

(2) Except when a tax invoice is issued under sub-section (1) of section 50, if a dealer sells any goods exceeding Rupees 1[one hundred] in any one transaction to any person, he shall issue to the purchaser a retail invoice in terms of sub-section (4) of section 50.

2[44A. A retail invoice issued under sub-section (4) of Section 50 of the Act by a dealer, who has elected to pay tax under section 16 of the Act (including schemes notified there under), besides, containing particulars specified in sub-section (5) of the said section, shall also contain the words ‘Composition Dealer (Not eligible to charge VAT on Bill Amount)’ at the top of the invoice.]

1 Substituted for “twenty five” vide Notification No. F. 3(15)/Fin(Rev-I)/2012-13/dsVI/264, dt. 30-3-2013, w.e.f. 30-3-2013.

2 Inserted vide Delhi Value Added Tax (Third Amendment) Rules, 2013 w.e.f. 20-09-2013, vide Notification No. F. 3 (16)/Fin(Rev-I)/2013-14/dsVI/785, dt. 20-09-2013


45.Creditanddebitnotes

For the purposes of section 51, a credit note and a debit note shall be signed by a person authorised to sign the return to be filed under this Act and shall contain the following particulars, namely:—

(a) the name, address and registration certificate number of the selling registered dealer;

(b) the name and address of the purchaser and his registration number where the purchaser is a registered dealer;

(c) a description of the reason for issuing the credit note or debit note, as the case may be;

(d) the serial number of the relevant tax invoice affected by the credit note or debit note, as the case may be; and

(e) the amount of the variation to the tax amount shown on the tax invoice.

46. Notice for audit

Where the Commissioner has decided to audit the business affairs of any person under section 58, the Commissioner may serve on that person a notice in Form DVAT-37 in the manner prescribed in Rule 62.

CHAPTER X VALUE ADDED TAX AUTHORITIES AND APPELLATE TRIBUNAL

47.DesignationofotherpersonsappointedtoassisttheCommissioner

Other persons who may be appointed to assist the Commissioner, under sub-section (2) of section 66 may be designated as 1[Additional] Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner, Assistant Value Added Tax Officer and Value Added Tax Inspector.

48.ConditionsupondelegationofpowersbytheCommissioner

Without prejudice to the provisions of section 68, the Commissioner may delegate any of his powers to a person not below the rank of Assistant Value Added Tax Officer, but he may delegate his powers—

(a) under sub-sections (1) and (2) of section 60, to a person not below the rank of a Value Added Tax Officer;

(b) under section 61, to a person not below the rank of a Value Added Tax Inspector; and

(c) under section 84, to a person not below the rank of an 2[Special] Commissioner.

49. Superintendence and control

Subject to the general control and superintendence of the Government, control and superintendence over all officers appointed under sub-section (2) of section 66 shall vest in the Commissioner.3[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.]

1 Substituted for “Special”, vide Notification No. F. 3(15)/Fin(Rev-I)/2012-13/dsvi/264, dt. 30-3-2013, w.e.f. 30-3-2013.

2 Substituted for “Additional” vide Ibid..3 Inserted vide Notification No. F. 3(59)/Fin (T&E)/2005-2006/923 kha, dt. 30-11-2005.


50. Conditionssubjecttowhichanofficermaybeauthorisedtoinvestigate offencespunishableundertheAct

The Commissioner shall not authorise any officer for the purpose of sub-section (1) of section 92 who is lower in rank than Assistant Value Added Tax Officer.

CHAPTER XI DISPUTES

51. Authority to whom objection may be made

An objection under sub-section (1) of section 74 shall lie to Special Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner, Value Added Tax Officer and Assistant Value Added Tax Officer:

PROVIDED that the Commissioner may, by notice published in the Official Gazette, fix the jurisdiction of the respective prescribed authority on the basis of territory or pecuniary limit or nature or class of objections or on any other basis that may be deemed appropriate by the Commissioner.

52.Makingofobjections

(1) Every objection shall be made in Form DVAT-38 accompanied by a copy of the notice of assessment, order or decision against which the objection is being preferred and shall be submitted in triplicate with one copy to the Commissioner or the Value Added Tax Authority against whose order the objection has been preferred.

(2) Every objection shall contain a clear statement of facts, precise grounds of objection and the relief claimed.

(3) Where an objection is made after the time limit prescribed under sub-section (4) of section 74, it shall be accompanied by a statement in Form DVAT-39, showing the reason for the delay in making the said objection.

(4) Where fresh evidence is sought to be produced, the objection shall be accompanied by a memorandum of the evidence sought to be produced, stating clearly the reasons why such evidence was not adduced before the Value Added Tax Authority against whose order the objection is being preferred.

(5) The objection in Form DVAT-38 shall be signed by the person making such objection or his agent and shall be presented by him or his agent to the prescribed authority in person.

(6) The authority shall issue or cause to be issued an acknowledgement of the objection received, to the person who has filed the objection, specifying the date of personal hearing.

53. Determinationofobjections

The Commissioner while deciding the objection shall conduct the proceedings by examining—

(a) the registers and records maintained by the Value Added Tax Authority against whose order or decision or assessment the objection has been preferred;

(b) the objection; and(c) any other document, information or report, which, in his opinion, is relevant to

decide the objection; and may— (i) admit any further oral or documentary evidence that is relevant to the

matters in dispute; and (ii) allow the applicant to present its arguments in person, by a representative

authorised to appear before any authority under section 82 and by submission in writing, if any.


54.Hearings

(1) Unless the person making the objection has expressly waived the person5a4l hearing, the Commissioner or the Value Added Tax Authority (together referred to in this rule as “authority”) deciding the objection shall pass the order on the objection after affording a reasonable opportunity of being heard to such person or his authorised representative.

(2) The authority deciding the objection may before deciding the objection, cause such further and other enquiry or direct such enquiry to be held by the authority against whose decision the objection has been preferred, as the authority deciding the objection may consider necessary. The authority against whose order or decision or assessment the objection has been preferred may be represented by a person authorised by him.

(3) The authority deciding the objection shall not at any hearing, allow the objector to argue or present any ground of objection not specified in the objection unless the authority is satisfied that omission of that ground therefrom was not wilful or unreasonable.

55. Intimation of outcome of objectionThe decision of the Commissioner or the Value Added Tax Authority deciding the

objection shall be intimated to the applicant in Form DVAT-40 and shall be served on the person making the objection in the manner prescribed in Rule 62.

56. Delay(1) A notice for the purpose of sub-section (8) of section 74 shall be in For5m6

DVAT-41.(2) The notice shall be signed by the person making the objection or his authorised

signatory and shall be served in person on the Commissioner or the Value Added Tax Authority deciding the objection.

57. Refund on account of objectionThe procedure for the refund of any amount due in consequence of an order made

pursuant to an objection, or any other proceeding under the Act, shall be that provided in Rule 34.

57A. Filing of appeal before Appellate Tribunal(1) Every appeal shall be presented in the form of a memorandum of appeal which

shall be—(a) in Form DVAT-38A when the appeal is against an order of assessment;(b) written on a standard watermarked judicial paper when the appeal is against

any other order or decision.(2) Every memorandum of appeal shall be accompanied by a fee of fifty rupees in

the form of court fee stamps.(3) Every memorandum of appeal shall contain a clear statement of facts, precise

ground of appeal and relief claimed.(4) Every appeal shall be filed in triplicate and shall be accompanied by three

copies (at least one of which shall be certified) of the order appealed against and three copies of the order of the original authority. Copies, other than those that are certified, shall be attested by the appellant or his authorised representative as true copies.

(5) An appeal to the Appellate Tribunal shall be signed by the appellant and shall be presented by him in person or by his authorised representative to the Appellate Tribunal or to an officer authorised by the Appellate Tribunal.


(6) Where an appeal is made after the expiry of the period specified in sub-section (2) of section 76, it shall be accompanied by a petition duly verified setting forth the facts showing sufficient cause for not preferring the appeal within the said period.

(7) Where the appeal is made without payment in full of the tax or any penalty in respect of which the appeal is being preferred, the memorandum of appeal shall be accompanied by a petition duly verified stating the facts on which the appellant relies to satisfy the Appellate Tribunal to entertain his appeal without such payment or on payment of such lesser amount as remains unpaid.

(8) Every appeal where fresh evidence is sought to be produced, shall be accompanied by a memorandum of evidence sought to be produced, stating clearly the reasons why such evidence was not adduced before the authority against whose order the appeal is being preferred.

57B.Furnishingofsecurity

Where the Appellate Tribunal orders an appellant to furnish security under the proviso to sub-section (4) of section 76, the appellant shall furnish the security in any one of the modes specified in rule 23 of these rules, as the Appellate Tribunal may direct and subject to the conditions specified therein.

57C. Hearing of the appeal or application

(1) If the Appellate Tribunal does not reject the appeal summarily, it shall fix a date for its hearing and send a notice to the appellant and the Commissioner. The Appellate Tribunal may, before deciding the appeal, hold such further enquiry or direct it to be held by the authority against whose decision the appeal has been preferred, as may appear necessary to the Appellate Tribunal. The Commissioner may be represented by a person authorised by him.

(2) The Appellate Tribunal shall not, for the first time receive in evidence on behalf of the appellant, an account, register, record or other documents, unless it is satisfied that the appellant was prevented by sufficient cause from producing such documents before the authority against whose order the appeal has been preferred.

(3) The Appellate Tribunal shall not, at the hearing of appeal allow the appellant to go into any ground of appeal not specified in memorandum of appeal unless the Appellate Tribunal is satisfied that omission of that ground therefrom was not wilful or unreasonable.

58.Determinationofspecificquestions

(1) Any person desiring that a question be determined by the Commissioner pursuant to section 84, shall furnish a concise statement of the case in Form DVAT-42 stating therein precisely the question to be determined, and indicating clearly the basis for the question. Where the person applying for the determination so desires, the statement may separately include a draft ruling for the Commissioner’s consideration and must be accompanied by a demand draft in favour of “The Commissioner, Delhi Value Added Tax” for the amount of the fee as prescribed in Annexure 1 to these Rules.

(2) The statement of the case referred to in sub-rule (1) shall contain a declaration that the question submitted for determination of the Commissioner does not arise from any order passed under the Act or under the Delhi Sales Tax Act, 1975 (43 of 1975), or


Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999), or the Delhi Sales Tax on Right to Use Goods Act, 2002 (Delhi Act 13 of 2002), which were in force before the commencement of the Act and shall be signed by the person or his agent.

(3) The Commissioner, after considering all the relevant material produced before him in this connection, shall determine the question or questions referred to him.

(4) The decision of the Commissioner shall be prepared and notified to the applicant in writing.

(5) An order determining the questions shall be made by the Commissioner within a period of six months from the date of submission of the question, failing which, the provision of sub-section (6) of section 84 shall apply.

CHAPTER XII MISCELLANEOUS

59. Tax Deduction at Source

(1) Any person deducting tax under section 36A shall deposit the tax in the appropriate Government treasury against the challan in Form DVAT-20 within the time prescribed in section 36A, alongwith interest for delayed payment.

1[(2) Person who has deducted the tax under sub-section (1) of section 36A shall issue a certificate for deduction of tax in Form DVAT-43. Such certificate shall be issued in quadruplicate. The person who has deducted the tax is liable to deposit the same before the expiry of fifteen days following the month in which such deduction is made and shall furnish the certificate in duplicate to the contractor within 7 days from the date of deposit. The third copy thereof along with proof of payment in challan Form DVAT-20 shall be attached along with the return of Tax Deduction at Source (TDS) as prescribed in sub-rule (4) of this rule. The fourth copy thereof shall be retained by him for his records.]

(3) Every person responsible for making deduction of tax under section 36A shall apply for Tax Deduction Account Number (T.A.N.) 2[within seven days] from the date on which the tax was deducted or deductible in Form DVAT-44 and a Tax Deduction Account Number shall be issued in Form DVAT-45.

3[(4) Every person holding a TAN shall be required to file a quarterly return in Form DVAT-48 within a period of twenty eight days from the end of the quarter.

(5) An application for amendment and/or cancellation to an existing registration shall be made in Form DVAT-45A electronically, on the department website.]

60. Rounding

Where the Act or these Rules require an amount to be calculated and the amount is not a multiple of a Rupee, the amount shall be rounded off to the nearest Rupee.

1 Substituted vide Notification No. F. 3(15)/Fin/(Rev-I)/2012-13/dsVI/264, dt. 30-3-2013, w.e.f. 30-3-2013.

2 Substituted for “within thirty days” vide Notification No. F. 3(22)/Fin.(T&E)/2006-07/344-353, dt. 7-9-2006, w.e.f. 7-9-2006.

3 Substituted vide Delhi Value Added Tax (Second Amendment) Rules, 2013, dated 09-07-2013. Earlier Sub-rule (4) read as:(4) Every person deducting tax shall be required to file a Tax Deduction at Source (T.D.S.)

[quarterly] return in Form DVAT-48 within a period of twenty-eight days from the end of the [quarter] in which tax has been deducted.


61.Printingofforms

All forms prescribed in these Rules shall be printed under the authority of the Commissioner and be obtainable from him or his authorised agent on payment of such charges, as may be specified by the Commissioner from time to time:

PROVIDED that any form in force before commencement of these Rules and which may be specified by the Commissioner by order in writing may continue to be used for such period as specified in the said Order:

PROVIDED FURTHER that the provisions of this rule shall not apply to such form or forms as the Commissioner may specify in this behalf. It shall be open for a dealer to download such forms from the official website that may be notified by the Commissioner.

62. Serviceofdocuments

(1) Without prejudice to the provisions of sections 96 and 97, notices of summons or orders (in this rule called a ‘document’) under the Act or these Rules may be served by any of the following methods, namely—

(i) by delivering or tendering to the addressee or his agent, or to a person regularly employed by him in connection with the business in respect of which he is registered or to any adult member of his family, a copy of the notice, summons or order;

(ii) by post: PROVIDED that if upon an attempt having been made to serve any such

notice or summons or order by any of the above mentioned method, the Commissioner is satisfied that the addressee is evading service of notice, summons or orders or that for any other reasons, the notice, summons or order cannot be served by any of the above mentioned methods, the Commissioner shall cause such notice or summons or orders to be served by affixing a copy thereof—(a) if the addressee is a dealer, upon some conspicuous part of any

place of the dealer’s business last notified by the dealer or if the said place of business is known not to exist or is not traceable, upon some conspicuous part of the last known place of residence of its proprietor or partner or director or trustee or manager or authorised signatory or any other person authorised to receive notice on behalf of the dealer;

(b) if the addressee is not a dealer, on some conspicuous part of his residence or office or the building in which his residence or office is located;

and such service shall be as effectual as if it has been on the addressee personally:

PROVIDED FURTHER that where the Commissioner at whose instance the notice or summons or order is to be served, on inquiry, is satisfied that the said office, building, place of residence is known not to exist or is not traceable, he may, by order in writing, dispense with the requirement of service of the notice or summons or order under the preceding proviso;

(iii) by sending the document by facsimile; (iv) by sending the document by electronic mail;


(v) by sending the document by courier; or

(vi) as such other manner as the Commissioner thinks fit.

(2) When the officer serving a notice or summons or order delivers or tenders a copy of the notice or summons or order to the addressee personally or to his agent or to any other person referred to in clause (i) of sub-rule (1), he shall require the signatures of the person to whom the copy is so delivered or tendered, to an acknowledgment of the service, endorsed on the original notice of summons, or order:

PROVIDED that where the addressee or his agent or any such person refuses to sign the acknowledgment, the servicing officer shall affix a copy of the notice or summons or order on the outer door or some other conspicuous part of the premises in which the addressee ordinarily resides or carries on business or personally works for gain.

(3) When the notice, summons or order is served by affixing a copy thereof in accordance with the provisions to sub-rule (1) or sub-rule (2), the officer serving it shall return the original to the Value Added Tax Authority which issued the notice, summons or order with a report endorsed thereon or annexed thereto, stating that he so affixed the copy, the circumstances under which he did so and the name and address of the person, if any, by whom the addressee’s place of business or residence was identified and in whose presence the copy was affixed. The said officer shall also obtain the signatures or thumb impression of the person identifying the addressee’s residence, office, or place of business.

(4) When service is made by post, the service shall be deemed to be effected by properly addressing, pre-paying and posting by registered post the notice, summons or order and unless the contrary is proved, the service shall be deemed to have been effected at the time at which the notice, summons or order would be delivered in the ordinary course by post.

(5) When the service is made through a courier, the service shall be deemed to have been effected by properly addressing, pre-paying and delivering to the courier the notice, summons or order and unless contrary is proved, the service shall be deemed to have been effected at the time at which the notice, summons or order would be delivered in the ordinary course by courier.

(6) The sufficiency of mode of service of any notice, summons or order shall be decided by the Value Added Tax Authority which issued the same.

63.SubmissionofdocumentswithCommissioner(1) Subject to sub-rule (2), any application, return, form, or other document (in

this rule called “document”) which is to be furnished, submitted or made (in this rule referred to as “submitted”) to the Commissioner under the Act or these Rules shall be submitted by—

(a) delivering the document to the Commissioner at his office;

(b) delivering the document to the Commissioner at any other place notified by him; or

1[(c) such other means as the Commissioner may notify, including electronic transmission of data, on the departmental website, from the date and manner notified by the Commissioner in this regard,:

1 Substituted vide Delhi Value Added Tax (Second Amendment) Rules, 2013, w.e.f. 09-07-2013. For the words ”such other means as the Commissioner may notify, including electronic means”.


PROVIDED THAT the Commissioner may require any person or all persons, responsible for making payment to any contractor, to issue Form DVAT-43 and also furnish return in Form DVAT-48 electronically, on the departmental website, from the date and manner, as may be notified by the Commissioner in this regard.]

(2) A document shall be treated as submitted by a person to the Commissioner if the document is submitted by delivery at a place notified by the Commissioner, once the document has been stamped with the date of receipt by the Commissioner or by any other person authorised by the Commissioner to receive the document.

64.QualificationstobepossessedbyValueAddedTaxPractitioner(1) A value added tax practitioner referred to in section 82 shall be eligible to have

his name entered in the list, if—(a) he possesses any of the qualifications specified in rule 50 or rule 51 of the

Income Tax Rules, 1962, as amended from time to time; or(b) he—

(i) was formerly an employee of the Sales Tax Department or Value Added Tax Department;

(ii) held during service in the department an office not lower in rank than that of an Assistant Sales Tax Officer or Assistant Value Added Tax Officer for not less than seven years; and

(iii) is, in the opinion of the Commissioner, a fit and proper person to appear or act in proceedings under the Act and these Rules.

(2) A person referred to in clause (b) of sub-rule (1) shall not be eligible to appear before the Authority deciding the objection on behalf of a person for a period of one year after he ceased to be an employee of the Department.

(3) A person who wishes to have his name entered in the list referred to in clause (c) of sub-section (1) of section 82, shall—

(a) apply to the Commissioner in writing;(b) pay the fee as prescribed in Annexure 1 of these Rules; and(c) furnish with his application documentary evidence of his eligibility.

(4) The Commissioner shall maintain a list of all persons whose names are entered as per this rule.

(5) A certificate in Form DVAT-49 would be provided to each qualified Value Added Tax Practitioner.

65.Officerstocarryandproduceauthorisations

(1) Where the Commissioner wishes to appoint an officer or other person to exercise any of the powers in Chapter X of the Act, the grant of authority to exercise the powers shall be in Form DVAT-50 and shall be issued by the person empowered by the Commissioner in this regard.

(2) The grant of authority shall—(a) be limited to a period not exceeding three years;(b) be to a specific person; and(c) expire on the retirement, resignation or transfer of the person:

PROVIDED that an authority granted may be renewed.


(3) Every officer or other person authorised by the Commissioner under sub-rule (1) shall—

(a) carry the authorisation in Form DVAT-50, with him when purporting to exercise any of the powers conferred under Chapter X of the Act; and

(b) produce the authorisation in Form DVAT-50, if requested by the owner or occupier of any premises where he proposes to exercise these powers.

66.Locationofcheck-postsandbarriers

The check-posts and barriers set up for the purposes of section 101 shall be located at the places described in the Annexure 2 to these Rules.1[67.OtherreturnsandadditionalinformationforproperAdministration of the Act

(1) Every dealer effecting sale 2[x x x] or branch transfer in the course of inter-State trade or commerce or in the course of export shall furnish to the Commissioner a reconciliation return in Form DVAT-51 within three months after the end of each quarter:

PROVIDED that for the transactions prior to 1st October, 2005, such reconciliation return in Form DVAT-51 shall be furnished by 31st December, 2006.]

(2) Every transporter, cold storage or warehouse operator, or any other person shall produce such information required for proper administration of the Act.

(3) Where, upon the commencement of the Act, a person is deemed to have been registered under the Act pursuant to section 24, he shall furnish a statement of opening stock held by him and that has not suffered tax under Delhi Sales Tax Act, 1975 (43 of 1975) in Form DVAT-18A alongwith his first return to be filed in Form DVAT-16.3[67A. PowertoprescribeAcknowledgement

The Commissioner may prescribe an Acknowledgment for applications/returns filed by the dealer online, in lieu of hard copy of such applications/returns.]

68.Repealandsavings

(1) The Delhi Sales Tax Rules, 1975, the Delhi Sales Tax on Works Contracts Rules, 1999, the Delhi Tax on Entry of Motor Vehicles into Local Areas Rules, 1995, and The Delhi Sales Tax on Right to Use Goods Rules, 2004 as in force in Delhi (referred to in this rule as the “said Rules”), are hereby repealed.

(2) Notwithstanding sub-rule (1), such repeal shall not affect the previous operation of the said Rules or any right, title, obligation or liability already acquired, accrued or incurred thereunder.

(3) For the purposes of sub-rule (2), anything done or any action taken including any appointment, notification, notice, order, rule, form or certificate in the exercise of any powers conferred by or under the said Rules shall be deemed to have been done or taken in the exercise of the powers conferred by or under these Rules, as if these Rules were in force on the date on which such thing was done or action was taken.

1 Substituted vide Notification No . F. 3(77)/Fin (T&E)/2005-06/1538Kha, dt. 17-3-2006.2 Words “or purchase” omitted vide Notification No. F. 3(22)/Fin.(T&E)/2006-07/344-353, dt. 7-9-2006,

w.e.f. 7-9-2006.3 Inserted vide Delhi Value Added Tax (Third Amendment) Rules, 2013, w.e.f. 20.09.2013.


ANNEXURE 1PRESCRIBED FEES

A. The following fee shall be payable in court fee stamps, namely:Circumstancerequiringfee Amount

(inrupees)REGISTRATION

Application for registration 500Request for duplicate of certificate of registration 100

INSPECTION AND COPIES OF DOCUMENTSInspection of documents : first hour 50

Inspection of documents : for each subsequent hour 10Inspection of documents : document of previous year 100Making copies of documents in the Commissioner’s possession: for the first 200 words or part thereof

10

Making copies of documents in the Commissioner’s possession: for every additional 100 words or part thereof

5

Additional fee where copies of documents are required urgently 20OBJECTIONS AND DISPUTES

Submitting an objection/appeal 50Any other application 10On Vakalatnama or Mukhtiarnama 10AB. The following fee shall be payable in the form of Bank Draft namely:

Amount(Rs.)

Application for determination of a specific question under section 84 1[500 per question]

Application to be recognised as a value added tax practitioner 5,000

ANNEXURE 2[Refer rule 62]

LOCATIONS OF CHECK-POSTS AND BARRIERS[To be specified]

PRESCRIBED FORMSNumber Title

DVAT-01 Application for Opting for Composition scheme by a dealer registered under Delhi Value Added Tax Act, 2004

DVAT-02 Application for opting for Composition scheme by a dealer registered during transition

DVAT-03 Application for withdrawing from Composition scheme

1. Substituted for "10,000" by Delhi Value Added Tax (Third Amendment) Rules, 2005, w.e.f. 8-8-2005.


DVAT-03A Intimation for opting out from Composition scheme during the financial year

DVAT-04 Application for Registration as a dealer

DVAT-04A Application for Registration by a casual trader

DVAT-05 Notice Proposing Rejection of Registration Application

DVAT-06 Certificate of Registration as a dealer

DVAT-06A Certificate of Registration for a casual dealer

DVAT-07 Application for Amendment in Registration

DVAT-08 Amendment of existing Registration

DVAT-09 Application for cancellation of Registration

DVAT-10 Show Cause Notice for cancellation of Registration

DVAT-11 Cancellation of Registration

DVAT-12 Form for furnishing securityDVAT-13 Application for return, release or discharge of securityDVAT-14 Notice for Forfeiture and Insufficiency of SecurityDVAT-15 Order of Forfeiture of SecurityDVAT-16 Dealer’s Value Added Tax Return and Revised ReturnDVAT-16A Value Added Tax Return for casual dealersDVAT-17 Composition Tax Return and Revised ReturnDVAT-18 Statement for Tax paid stock in hand on April 1, 2005DVAT-18A Statement of stock in hand as on April 1, 2005 (which has not suffered tax

earlier)DVAT-19 Statement of Trading stock and Raw Material as on the date of registrationDVAT-20 Challan for Delhi Value Added TaxDVAT-21 Refund Claim FormDVAT-21A Notice for furnishing security for granting refundDVAT-22 Refund orderDVAT-22A Notice for withholding refund/furnishing security under section 39 of the Delhi

Value Added Tax Act, 2004DVAT-23 Refund Form for Embassies, International and Public Organisations and

staffDVAT-24 Notice of AssessmentDVAT-24A Notice of Assessment of PenaltyDVAT-25 Form of Recovery CertificateDVAT-25A Certificate to be served upon the certificate-debtor u/s 43(6)DVAT-26 Continuation of Recovery ProceedingsDVAT-27 Notice for special mode of recoveryDVAT-27A Intimation of deposit of Government duesDVAT-28 Summons to appear in person/or to produce documentsDVAT-29 Notice for redeeming goodsDVAT-30 Purchase RegisterDVAT-31 Sales Register


DVAT-32 Goods Receipt recordDVAT-33 Delivery NoteDVAT-34 Export DeclarationDVAT-35 Import DeclarationDVAT-35A Transit SlipDVAT-35B Account of Declaration Form DVAT 34/DVAT 35DVAT-36 Undertaking cum Indemnity by Purchasing DealerDVAT-37 Notice for audit of Business AffairsDVAT-38 Objection FormDVAT-38A Memorandum of appealDVAT-38B Application for rectification under section 74B

DVAT-38C Application for review under section 74BDVAT-39 Application for condonation of delayDVAT-40 Decision of the Commissioner in respect of an objectionDVAT-41 Notice of delay to the Authority deciding the objectionDVAT-42 Application for determination of a Specific QuestionDVAT-43 Certificate of Deduction of Tax at SourceDVAT-44 Application for allotment of Tax Deduction Account NumberDVAT-45 Tax Deduction Account Number CertificateDVAT-46 Application for obtaining Form DVAT 34 or DVAT 35DVAT-47 Receipt of security depositedDVAT-48 Form of Annual Return by the ContracteeDVAT-49 Certificate for Enrolment of Value Added Tax PractitionerDVAT-50 Grant of Authority by the CommissionerDVAT-51 Quarterly Return Statement of Exports/Inter State Sales/Branch TransferDVAT-52 Declaration of Permanent Account Number under section 95DVAT-53 Statement of Partly Executed works ContractsDVAT-54 Details of Partly Executed ContractsDVAT-55 Intimation for Change of Tax Period

Delhi Tax Compliance Achievement Scheme, 2013

[No.F.3(16)/Fin.(Rev-I)/2013-14/dsVI/786 Dated the 20.09.2013]

Contents

1. Short title, extent and commencement 209

2. Definitions 209

3. Procedure for Calculation of Tax Dues 210

4. Procedure for making declaration and payment of tax dues 211

5. Immunity from interest, penalty and other proceedings 212

6. No refund of tax paid under this Scheme 213

7. Failure to pay tax dues after making declaration 213

8. Failure to make true declaration 213

9. Removal of doubts 213


Delhi Tax Compliance Achievement Scheme, 2013

[No.F.3(16)/Fin.(Rev-I)/2013-14/dsVI/786 Dated the 20.09.2013]

Whereas the Lt. Governor of National Capital Territory of Delhi is of the opinion that it is necessary in the interest of general public so to do.

Now, therefore, in exercise of the powers conferred by section 107 of the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005) (hereinafter referred to as “the Act”), the Lt. Governor of National Capital Territory of Delhi, hereby provides for the Delhi Tax Compliance Achievement Scheme, 2013, subject to fulfilling the eligibility conditions and compliance procedures specified in this notification, namely:-

1. Short title, extent and commencement.- 1. This Scheme may be called the Delhi Tax Compliance Achievement Scheme, 2013.

2. It shall come into force from the date of its publication in the official Gazette.

2.Definitions.-(1) In this Scheme, unless the context otherwise requires,—

(a) “Act(s)” means the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005) or Central Sales Tax Act, 1956 or the erstwhile Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) or the Delhi Sales Tax on Right to Use Goods Act, 2002 (Delhi Act 13 of 2002) or the Delhi Tax on Entry of Motor Vehicles into Local Areas Act, 1994 (Delhi Act 4 of 1995), whichever is relevant;

(b) “declarant” means any person who makes a declaration under sub-clause (1) of clause 4;

(c) “designated authority” means officer(s) not below the rank of Joint Commissioner as notified by the Commissioner, Value Added Tax for the purposes of this Scheme;

(d) “tax dues” means-

(i) tax due or payable by the dealers, registered or required to be registered, under the Act or the Central Sales Tax Act, 1956 for the period beginning from the 1st day of April, 2005 and ending on the 31st day of March, 2013, but not paid or partly paid till the 31st day of August, 2013 and calculated in accordance with sub-clauses (1), (2) and (3) of clause 3 of the Scheme; and

(ii) tax due and payable under the Central Sales Tax Act, 1956 or the erstwhile Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) or the Delhi Sales Tax on Right to Use Goods Act, 2002 (Delhi Act 13 of 2002) or the Delhi Tax on Entry of Motor Vehicles into Local Areas Act, 1994 (Delhi Act 4 of 1995) for the period prior to 1st April, 2005, but not paid or partly paid till the 31st day of August, 2013 and calculated in accordance with sub-clause (4) of clause 3 of the scheme; and

(iii) tax due and payable by a person who is liable to deduct tax at source


under section 36A of the Act in accordance with the provisions of said section for the period 1st day of April 2005 and ending on 31st day of March, 2013 but not paid or partly paid till the 31st day of August, 2013, and calculated in accordance with sub-clause (5) of clause 3 of this Scheme.

Explanation.-1- “Tax dues” includes the amount of tax assessed in terms of notice of assessment or assessment order issued under any of the Acts referred to in this sub-clause, whether pending in objection/revision before the objection hearing authority (OHA) or in appeal/revision before appellate authority/Tribunal or any higher court, including writ petition and special leave petition.

Explanation.-2- Where a notice of assessment or assessment order has been issued to a person in respect of some default(s), the term “tax dues” shall also include tax dues relating to default(s) not covered in the notice of assessment or assessment order for the same tax period.

Explanation.-3- This Scheme does not cover cases of notice of assessment of penalty issued under any of the relevant Acts and without having any relation to tax deficiency.

(e) “tax” means tax dealt under Act(s) referred to in sub-clause (1)(a) above.

(2) Words and expressions used herein and not defined in this scheme, shall have the meanings respectively assigned to them in the respective Acts or the rules framed thereunder.

3.ProcedureforCalculationofTaxDues.-(1) Tax dues in respect of sub-clause (i) of clause 2(1)(d) by the dealer on whom notice of assessment under section 32 of the Act has not been served shall be calculated by him in the following manner:

(i) The dealer shall first determine the commodity wise taxable turnover in respect of which declaration is to be made under this Scheme;

(ii) He shall then ascertain the rate of tax of that commodity applicable as per Schedules appended to the Act for the period under declaration.

(iii) Tax dues shall be calculated by multiplying the rate of tax as per item (ii) above in respect of every class of commodity stated at item (i) above.

Explanation.- Where any audit, special audit, survey, or inspection has been initiated or conducted under Chapter X of the Act, but no notice of assessment under section 32 of the Act has been issued, the dealer shall be eligible to make declaration of his tax dues under this Scheme.

(2) Tax dues in respect of sub-clause (i) of clause 2(1)(d) by the dealer on whom notice of assessment under section 32 of the Act has been served, shall be calculated by aggregating the amount of tax and interest determined as per Notice of default assessment of tax and interest in Form DVAT-24 less the amount paid by the dealer, voluntarily or pursuant to a court direction, towards the said demand. The penalty in relation to such tax for which a notice of assessment of penalty may have been issued under section 33 of the Act shall stand waived off.

Explanation.- The dealer shall be liable pay the amount of interest charged in Notice of assessment in Form DVAT-24 only under this sub clause and shall get immunity for interest due and payable thereafter.


(3) Notwithstanding anything contained in sub-clause (1) or (2) of this clause, tax dues in respect of the dealers engaged in the execution of works contract shall be calculated by multiplying their total turnover (including value of labour and services relating to works contract) at the following rate:

(a) 1% of the total consideration by the dealers, being works contractors, engaged in construction of complex, building, a civil structure or a part thereof, including residential unit or complex or building, for sale whether wholly or partly, to a buyer before construction is complete, where value of land is included in total consideration; and

(b) 3% of the total turnover (including value of labour and services) by the other works contractors [including the dealers stated at (a) above, who opt to exclude the value of land in accordance with the provisions of rule 3 of Delhi Value Added Tax Rules, 2005].

(4) Tax dues in respect of sub-clause (ii) of clause 2(1)(d) by the dealer shall be calculated by aggregating the amount of tax and interest determined in the assessment order less the amount paid by the dealer, voluntarily or pursuant to a court direction, towards said demand. The penalty, if any, leviable in relation to such tax whether in the assessment order or by way of separate order shall stand waived off.

Explanation.- The dealer shall be liable to pay the amount of interest charged in the assessment order and shall get immunity for interest due and payable thereafter.

(5) Tax dues in respect of sub-clause (iii) of clause 2(1)(d) by the persons required to deduct tax at source shall be calculated at the rate of three percent of the total sum paid or credited by the person for discharge of any liability for the execution of works contract or the amount actually deducted, whichever is greater less the amount already deposited towards such discharge.

Explanation.- This sub-clause covers those cases where neither the contractee has deducted tax at source nor the contractor has paid the taxes due and payable on that contract. Immunity under this sub clause shall be granted from payment of interest and penalty in relation to such tax to the declarant and his immediate contractor.

4. Procedureformakingdeclarationandpaymentoftaxdues.-(1) Subject to the other provisions of this Scheme, a person may make a declaration of the tax dues to the designated authority on or before the 31st day of January 2014 in Form DSC-1 appended to this notification.

(2) The designated authority shall acknowledge the receipt of declaration in Form DSC-2 appended to this notification, within a period of fifteen working days from the date of receipt of the declaration.

(3) The declarant shall pay not less than fifty per cent of the tax dues declared under sub-clause (1) along with the declaration and submit proof of such payment to the designated authority.

(4) The remaining amount of tax dues or part thereof remaining to be paid after adjusting the payment made under sub-clause (3) shall be paid by the declarant on or before the 21st day of March, 2014.

(5) Notwithstanding anything contained in sub-clause (3) and sub-clause (4),


any tax which becomes due or payable by the declarant for the tax period(s) beginning from 1st day of April, 2013 and thereafter shall be paid by him in accordance with the provisions of the Act:

Provided that where an unregistered dealer has made declaration referred to in sub-clause (1) of this clause, such dealer shall obtain registration and pay net tax for the period from 1st day of April 2013 to the date of registration and furnish return in Form DVAT-16 for that period along with proof of payment in Form DVAT-20 to the designated authority at the time of furnishing of declaration under this Scheme. Such a dealer shall be eligible for immunity under clause 5 of the Scheme for late payment of such tax and non-filing of return under the Act.

(6) The declarant shall furnish to the designated authority, details of payment made from time to time under this Scheme along with a copy of acknowledgement issued to him under sub-clause (2).

(7) On furnishing the details of full payment of declared tax dues payable under sub-clause (4), the designated authority shall issue an acknowledgement of discharge of such dues within fifteen days to the declarant in Form DSC-3 appended to this notification.

(8) A dealer who has not taken registration shall obtain registration prior to filing of declaration as referred in sub-clause (1) of clause 4. Likewise, a person who is responsible for making deduction of tax under section 36A of the Act, shall obtain a Tax Deduction Account Number (TAN), if not already obtained.

5. Immunityfrominterest,penaltyandotherproceedings.-(1) Notwithstanding anything contained in any provision of the Scheme, the declarant, upon payment of the tax dues declared by him under sub-clause (1) of clause 4, shall get immunity from penalty or penalties, interest other than interest payable in terms of sub-clauses (2) and (4) of clause 3, prosecution or any other proceedings under the Act or, as the case may be, under the Central Sales Tax Act, 1956 or the erstwhile Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) or the Delhi Sales Tax on Right to Use Goods Act, 2002 (Delhi Act 13 of 2002) or the Delhi Tax on Entry of Motor Vehicles into Local areas Act, 1994 (Delhi Act 4 of 1995), in relation to the tax dues declared by the declarant; and from penalty and prosecution for non-registration and non-furnishing of returns in time.

Explanation.- For the purpose of this sub-clause, the term “declarant” shall include- (i) in relation to the declarant being a contractee, who has awarded the works contract under section 36A(1) of the Act, his immediate contractor to whom he has awarded the works contract, to the extent of amount declared by the contractee; and (ii) in relation to the declarant being a contractor, his immediate contractee who has awarded the works contract under section 36A(1) of the Act. Explanation -For removal of doubts, it is hereby declared that, to avoid double taxation, if the contractee has declared tax dues, his immediate contractor will also get immunity to that extent, and vice-versa.

(2) Subject to the provisions of clause 8, a declaration made under sub-clause (1) of clause 4 shall become conclusive upon issuance of acknowledgement of discharge under sub-clause (7) of clause 4 and no matter shall be reopened/ reassessed/ reviewed thereafter in any proceedings under this Scheme or under the Act before any authority or court relating to the period covered by such declaration to the extent of tax dues declared by the declarant.


(3) All statutory appeals/ revisions pending before quasi-judcial forums upto the stage of Tribunal shall be deemed to have been withdrawn once the Scheme is opted for. Further, all matters pending in the High Court and Supreme Court shall be withdrawn by the declarant and he will need to submit the application filed for withdrawl with the declaration. for the case to be withdrawn before the court.

(4) No proceeding shall be instituted within 48 hours of securing a registration, provided, the registrant declares his intent of opting under the Scheme at the time of applying for TIN/ TAN.

(5) The information gathered vide a declaration under the scheme shall be kept confidential and shall not be used except under the Scheme and the same shall not be shared with any other person/ government department/ agency.

6. NorefundoftaxpaidunderthisScheme.- Any amount paid in pursuance of a declaration made under sub-clause (1) of clause 4 shall not be refundable under any circumstances.

7.Failuretopaytaxduesaftermakingdeclaration.-Where the declarant fails to pay the tax dues, either fully or in part, as declared by him, such dues along with interest thereon shall be recoverable under the provisions of the Act.

8. Failure to make true declaration.- (1) Notwithstanding anything contained in clause 5 of the Scheme, where the Commissioner has, for a period beginning from 1st April, 2009, reasons to believe that the declaration was false in material particulars, he may, for reasons to be recorded in writing, serve notice on the declarant in respect of such declaration requiring him to show cause as to why he should not be required to pay the tax dues unpaid or short-paid as per the provisions of the Scheme.

(2) If the Commissioner is satisfied, for reasons to be recorded in writing, that the declaration made by the dealer was substantially false,

(i) he shall within three months of service of notice under sub-clause (1) make assessment of tax and penalty under section 32 and 33 of the Act, as if that dealer had never made declaration under this Scheme. However, the dealer shall be entitled to the credit of tax paid by him under this Scheme; and

(ii) such dealer may be proceeded under sub-section (2) of section 89 of the Act for furnishing of false declaration.

(3) No notice shall be issued under sub-clause (1) of this clause after the expiry of one year from the date of declaration.

9.Removalofdoubts.-For the removal of doubts, it is hereby declared that nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant other than the benefit,. concession or immunity granted under clauses 3 and 5 of this scheme.





Documents

Contentssalestaxbar.com/resource/Image/DVAT2013.pdf · a warehouse, godown or such other place where a dealer stores his goods.] 3[(f) “capital goods” means plant, machinery and