TaxTMI 
TaxTMI 
THE DELHI VALUE ADDED TAX (SECOND AMENDMENT) ACT, 2005
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....(1) This Act may be called the Delhi Value Added Tax (Second Amendment) Act, 2005. (2) It extends to the whole of the National Capital Territory of Delhi. (3) Except for the provisions of sections 4 and 5, clause (a) of section 7, sections 9, 32 and 33 which shall be deemed to have come into force with effect from the 1st day of April, 2005, the remaining provisions of this Act shall come into force with effect from the date of the publication of this Act in the official Gazette. 2. Amendment of section 2. In the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005))(hereinafter referred to as "the principal Act"), in section 2, in sub-section (1) - (a) for clause (f), the following shall be substituted, namely:- "(f) "capital goods" means plant, machinery and equipment used, directly or indirectly, in the process of trade or manufacturing or for execution of works contract in Delhi;"; (b) for clause (j), the following shall be substituted, namely:- "(j) dealer" means any person who, for the purposes of or consequential to his engagement in or in connection with or incidental to or in the course of his business, buys ....
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....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 Indian Railways Act, 1989 ( 24 of 1989) and Delhi Metro Rail Corporation Limited; (vi) Incorporated or unincorporated societies, clubs or other associations of persons; (vii) Each autonomous or statutory body or corporation or company or society or any industrial, commercial, banking, insurance or trading undertaking, corporation, institution or company whether or not of the Union Government or any of the State Governments or of a local authority; (viii) Delhi Transport Corporation; (ix) Shipping and construction companies, air transport companies, airlines and advertising agencies." 3. Amendment of section 3. In the principal Act, in section 3- (a) for sub-section (4), the following shall be substituted, namely:- ....
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....s contracts which are in the nature of printing works, the rate of tax shall be four paise in the rupee." 5. Amendment of section 7. In the principal Act, in section 7, after clause (c), the following shall be inserted, namely:- "(d) in accordance with the notification issued by the Central Government in exercise of its powers under section 3 of the Foreign Aircraft (Exemption from Taxes and Duties on Fuel) Act, 2002(36 of 2002), no tax shall be levied on sales of the fuel and lubricants which are filled into receptacles forming part of any aircraft registered in a country other than India, if- (i) the said country is a party to the Convention on International and Civil Aviation, 1944; and (ii) the said country has entered into an Air Services agreement with India; and (iii) the aircraft is operating on a scheduled or non-scheduled service to or from India." 6. Amendment of section 8. In the principal Act, in section 8, in sub-section (1), for clause (d), the following shall be substituted, namely:- "(d) the goods or part of the goods sold have been returned to the dealer within six months of the date of sale; or" 7. A....
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....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." 9. Amendment of section 15. In the principal Act, in section 15, - (a) in sub-section (1), for clause (c), the following shall be substituted, namely:- "(c) the goods were purchased either as trading stock for re-sale in an unmodified form or otherwise or as raw material for incorporation or division into trading stock;"; (b) to sub-section (2), the following Explanations shall be inserted, namely:- "Explanation I.- For the purpose of this sub-section, the words "input tax borne" means the tax paid by the resident seller under the Delhi Sales Tax Act, 1975 (Act 43 of 1975) or under this Act and the word "tax fraction" shall be construed accordingly.Explanation II.- This section shall apply only if the resident seller had purchased goods in Delhi.". 10. Amendment of section 16. In the principal Act, in section 16 - (a) in sub-section (1), the words "exceeds the taxable quantum under this Act, but" occurring after the clause (b) reading as "turnover in the current year," and befo....
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....nner and within such time as may be prescribed." 12. Substitution of new section for section 26. In the principal Act, for section 26, the following shall be substituted, namely:- "26. Periodical payment of tax and furnishing of returns. (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) 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....
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....t days" occurring after the words "person making such deduction" and before the words "following the month in which" the words "before the expiry of fifteen days" shall be substituted; (c) after sub-section (5), the following shall be inserted, namely:- "(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.". 15. Amendment of section 38. In the principal Act, in section 38 - (a) in sub-section (3), for clause (a), the following shall be substituted, namely:- " (a) refunded to the person, - (i) within one month after the date on which the return was furnished or claim for the refund was made, if the tax period for the person claiming refund is one month; (ii) within two months after the date on which the return was furnished or claim for the r....
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.... the procedure of recovery of tax, interest or penalty, composition money or other amount due as may be prescribed."; (b) after sub-section (5), the following shall be inserted, namely:- "(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 ....
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....n of the Delhi Land Reforms Act, 1954 for purposes of recovery.- (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 purpose of sub-section (1) - (a) The Additional Commissioner of Value Added Tax and the Joint Commissioner of Value Added Tax shall have and exercise all the powers and perform all the duties of the Deputy Commissioner under the Delhi Land Reforms Act, 1954 (Delhi Act 8 of 1954); (b) The Deputy Commissioner of Value Added Tax shall have and exercise all the powers and perform all the duties of Revenue Assistant under the said Act; (c) The Value Added Tax Officers and the Assistant Value Added Tax officers shall have and exercise all the powers and perform all the duties of Tehsildar and Assistant Collector of the First....
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....cified 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. 21. Amendment of section 47 In the principal Act, in section 47, after clause (b), the following shall be inserted, namely:- 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. 22. Insertion of new section 47A In the principal Act, after section 47, the following shall be inserted, namely:- 47A. Liability under this Act to be the first charge. - Notwithstanding anything contained in any contract to the contrary, but subject to any provision regarding creation of first charge in any Central Act for the time being in force, any amount of tax, penalty, interest, composition money, sum forfeited, fine or any other sum payable by a dealer or any other person un....
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.... 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 judgment, where necessary. (3) If the Commissioner has initiated any proceeding before an appropriate forum against an issue which is decided against the revenue by an order of the Tribunal, then the Commissioner may, in respect of any order, other than the order which is the subject matter of the order of the Tribunal, call for the record, conduct an examination as aforesaid, record his findings, call for the said books of account and other evidence and pass an order as provided for under this section as if the issue was not s....
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....for sub-section (1), the following shall be substituted, namely:- (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 this 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. (b) after sub-section (12), the following shall be inserted, namely:- (13) Any order passed by the Appellate Tribunal may be reviewed suo-motu or upon an application made in that behalf: Provided that, before any order which is likely to affect any person adversely is passed, such person shall be given a reasonable opportunity of being heard. 26.Amendment of section 79 In the principal Act, in section 79, in sub-section (1)- (a) in clause (i), the word "or" occurring at the end thereof, shall be omitted- (b) in....
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....hall 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 ten thousand rupees. (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 partic....
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....ds, 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 subordinate officer to him, or person 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. 31.Amendment of section 102 In the principal Act, in section 102- (a) In sub-section (2)- (i) after clause (u), the following shall be inserted namely;- (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. (ii) for clause (ze), the following shall be substituted namely;- (ze)the form and manner in which an objection under section 74 of this Act or an applicati....