Appointment to Appellate Tribunal: Member named under Delhi VAT Act for a fixed term until successor assumes office.
The Lieutenant Governor, under the statutory authority of the Delhi Value Added Tax Act, appoints Shri Bharat Bhushan, DHJS (Retd.), as Member of the Appellate Tribunal, Delhi Value Added Tax. The appointment is effective until the earlier of 31 March 2007 or the date on which a successor assumes office, and is formalised by a notification issued in the name of the Lieutenant Governor and signed by the Deputy Secretary, Finance.

Appointment of Appellate Tribunal member under statutory authority confirmed, tenure limited until successor joins or prescribed term ends.
The Lieutenant Governor, under the Delhi Value Added Tax Act, appoints Shri K. Sethuraman, IAS (Retd.) as Member of the Appellate Tribunal, with service limited to the earlier of a prescribed terminal date or until his successor joins, pursuant to a notification issued by the Finance (Accounts) Department.

Appointment qualifications for Appellate Tribunal governed by prior sales tax notifications until VAT rules are framed.
Qualifications, term of office and service conditions for appointment of Members of the Appellate Tribunal under the Delhi Value Added Tax Act shall, until rules are framed, be governed by the qualifications, term of office and conditions of service notified under the Delhi Sales Tax Act, subject to the proviso and stipulations of the VAT provision.

Constitution of Appellate Tribunal under DVAT Act establishes two-member tribunal to hear specified appeals and dispose pending sales tax appeals.
Appellate Tribunal under the Delhi Value Added Tax Act, 2004 is constituted by notification to function as a two member body exercising the appellate powers and functions conferred by the Act and to hear and dispose of appeals filed or yet to be filed under the appellate provision of the repealed Delhi Sales Tax Act, 1975.

Department renaming: Sales Tax Department redesignated as Department of Trade and Taxes following VAT regime implementation.
The Sales Tax Department is redesignated as the Department of Trade and Taxes consequent to implementation of the Delhi Value Added Tax regime under the Delhi Value Added Tax Act, 2004; the executive notification issued in the name of the Lt. Governor takes immediate effect.

Acknowledgment requirement for VAT returns: coloured triplicate forms determine refund claims and render returns incomplete if absent.
Every dealer required to furnish VAT returns must attach an Acknowledgment in triplicate printed on red paper if claiming a cash refund and on green paper if not; each acknowledgment must be signed, fully completed and include departmental receipt number, return period, dealer identification, whether CST and DVAT statements (DVAT-18, DVAT-18A) are enclosed, turnover and tax figures, and, for refunds, detailed bank account information with a cancelled cheque. Any return submitted without the prescribed acknowledgment will be treated as an incomplete return.

Composition Scheme deadline extended; applicants now granted an additional post-year opt-in period under amended VAT rules.
The notification amends Rule 5 of the Delhi Value Added Tax Rules, 2005 by adding provisos to sub rules (2) and (3) providing that, in respect of the financial year 2005 06, the period for making an application to opt for the Composition Scheme shall be ninety days from the first day of the beginning of the following year.

Composition scheme: purchase of exempted goods permitted from unregistered exclusive dealers following immediate VAT notification.
A statutory direction exempts purchases of exempted commodities from clause (a) of sub section (5) of section 16 where the seller is an un registered dealer dealing exclusively in goods listed in the First Schedule. Under this exception, a dealer electing the composition scheme may purchase those exempted commodities from such un registered dealers. The notification, issued under section 104 of the Act, takes effect immediately and removes the identified restriction for the covered transactions.

Refund eligibility expanded to include Canteen Stores Department purchases for resale, excluding goods specified in the Annexure.
Canteen Stores Department (CSD) of the Ministry of Defence is added as Entry No. 137 to the Sixth Schedule, making CSD eligible to claim VAT refunds for purchases made for resale in Delhi, subject to an Annexure that enumerates excluded categories and specific goods which do not qualify for refund; the amendment is notified under the Delhi VAT Act and takes immediate effect from 02.06.2005.

VAT exemption for Canteen Stores Department: sales to approved canteens and armed forces members exempt subject to specified conditions.
Inclusion of the Canteen Stores Department within the Fifth Schedule grants a conditional exemption from Delhi VAT for sales by the Department and approved regiment or unit-run canteens to members of the Armed Forces, subject to canteen registration and billing requirements, procurement from the Department at prices fixed by the Quarter Master General, treatment of refunded or non-sale utilizations as taxable turnover, and exclusion of listed annexure goods whose sales must be included in taxable turnover.

Tax collection authorization: bank permitted to collect VAT and sales tax subject to prompt remittance and electronic reporting requirements.
Punjab National Bank and listed branches are authorized as collection points for sales tax and VAT; funds must be remitted to the Delhi VAT account at the Reserve Bank within a short stipulated period from realization, delayed remittance attracts interest at bank rate plus a margin, and banks must operate on-line computerized counters with prescribed software, provide MIS reports, transmit electronic collection data in prescribed formats, and accept payments of any denomination at any authorized branch irrespective of account status.

VAT collection authorization designates banks as government treasury for tax deposits subject to remittance, interest, software, and acceptance requirements.
Banks listed are designated as the appropriate Government Treasury for deposit of sales tax and VAT dues under the Delhi VAT Rules. This designation is subject to conditions: remittance of funds to the VAT account at the Reserve Bank within three days of realization with same day collection reports; levy of interest on delayed remittance at bank rate plus two percent; implementation of on line computerized counters and department specified software for electronic reporting and MIS; and mandatory acceptance of tax payments at any authorized branch irrespective of the payer's account relationship.

Tax schedule amendment reclassifies coal tar to a lower VAT rate and omits organic solvent, effective immediately.
The Fourth Schedule to the Delhi VAT Act omits sub entries for organic solvent and coal tar at Sl. No.1 (sub entries (vii) and (viii)), effective immediately. Coal tar is inserted into the Third Schedule at entry no. 100 and is taxable under the Third Schedule rate from the notification's effective date. The amendment is made under statutory authority conferred by the Act.

Third Schedule amendment expands and revises specified goods and exemptions under the Delhi Value Added Tax regime.
Amendment to the Third Schedule of the Delhi Value Added Tax Act, 2004 substitutes numerous existing entries, omits a specified entry and inserts an extensive list of additional goods and categories (including capital goods and industrial inputs) by way of textual substitutions and new entries; the changes, enumerated in Part-A (Industrial Inputs) and Part-B (Capital Goods), take immediate effect under the notification issued by the Lt. Governor pursuant to section 103 of the Act.

Exemption amendment: Delhi VAT exempted goods list now includes CNG for transport, selected textiles, feeds and khadi garments.
Amendment to the First Schedule of exempted commodities under the Delhi Value Added Tax Act, 2004 substitutes multiple schedule entries and inserts new exempt items effective immediately, including various feeds, books, cotton and silk yarn in hank and cone, specified firewood, fishery inputs, non-precious bangles, CNG for transport, khandsari sugar and certain textile and tobacco categories (with specified exclusions), and newly exempted items such as khadi garments, most seeds, gur, PDS items (except kerosene), goods under customs bond for re-export, plastic waste, scrap glass, motion picture distribution rights, and specified natural gas sales for CNG production and power generation for sale in Delhi.

Taxability of diesel revised: omission from Fourth Schedule reclassifies diesel to unspecified item and alters applicable VAT treatment.
By notification under section 103 of the Delhi Value Added Tax Act the Lt. Governor omitted sub-entry (v) of Sl. No. 1 in the Fourth Schedule with immediate effect, removing diesel (High Speed Diesel, Super Light Diesel Oil, Light Diesel Oil) from that schedule; diesel was therefore subject to the prior specified levy for the initial period and, from the omission date, is classified as an unspecified item and taxed at the rate applicable to unspecified items.

Inclusion of sweetmeat in VAT schedule makes it taxable under Delhi VAT with immediate effect.
The Lt. Governor, under section 103 of the Delhi Value Added Tax Act, 2004, issued a notification inserting Sweetmeat as Sl. No. 85 in the Third Schedule, with immediate effect, thereby subjecting sweetmeat to the VAT treatment applicable to Third Schedule goods under the Delhi VAT framework.

Rate of interest on late payment of refunds fixed, applying immediately under the VAT interest provision for refunds.
Annual rate of interest for delayed payment of tax refunds under the Delhi Value Added Tax framework is fixed at eight percent, effective with immediate commencement from 25 April 2005, by notification of the Finance (Accounts) Department invoking the statutory power to prescribe the interest rate for late refunds.

Interest on late tax payment prescribed under statute; notified rate applies immediately to dealers' VAT liabilities.
The notification prescribes an annual rate of interest for delayed payment of tax by dealers under sub section (2) of section 42 of the Delhi Value Added Tax Act, 2004, fixing the statutory interest rate to be applied to late VAT payments and declaring that the rate takes effect immediately from the date specified in the notification.

Bank collection of VAT: banks authorised as government treasuries subject to remittance, interest and electronic reporting conditions.
Certain specified commercial banks are designated as the appropriate Government Treasury to receive sales tax and Value Added Tax liabilities of dealers under the Delhi VAT Act, 2004, effective 1 April 2005. Their authority is conditional on remitting collections to the RBI Sales Tax Account within three days of realization, payment of interest on delayed remittances at the latest bank rate plus two percent, implementing on-line computerized collection systems that supply prescribed MIS and electronic data, and accepting sales tax payments of any denomination at any authorised branch regardless of dealer banking relationship.