TaxTMI 
TaxTMI 
Notification regarding Composition Scheme
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....eby, provides for the Composition Scheme for every registered dealer engaged exclusively in carrying out works contracts for cash or for deferred payment or for valuable consideration in Delhi as under, namely:- TABLE Category Nature of Works Contracts Composition Tax Rate [As percentage of entire turnover in relation to works contracts in Delhi] Scheme A Scheme B (1) (2) (3) (4) 1 Every registered dealer engaged in execution of works contracts of the following categories and incidental or ancillary activities in connection with or thereto: (A) Civil Contracts, such as, (i) Civil construction, improvement, modification, repair and maintenance, electrification, sanitary fittings, flooring, plastering, finishing, white washing, painting, polishing, interior decoration, etc. of any immovable property, including a building or a complex - residential or commercial. (ii) Water works and Sewerage works, including treatment plants, whether meant for individual houses/buildings/ complexes or for the general public. (iii) Fabrication & fixing of shutters, doors, gates, windows, grills, furniture, fixtures, fitting outs....
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....scheme provided by Section 16(1) to 16(10) of the Act. ^1[PROVIDED FURTHER that the dealers who have already opted for the composition scheme notified on 28/02/2013 will have the option to withdraw from the scheme from the third quarter of 2013‐14 by filing Form WC‐02 by 31/10/2013. They shall in that case pay tax as normal dealers under section 3 of the Act w.e.f. 01/10/2013. ] Particular Conditions: Scheme A: A registered dealer opting to pay composition tax under this Scheme shall: (i) not purchase or procure goods from any place outside Delhi at any time during the period for which he opts to avail this Scheme; and (ii) not sell or supply goods to any place outside Delhi at any time during the period for which he opts to avail this Scheme. However, he may procure his own Plant & Machinery and Equipments from outside Delhi, meant exclusively for use in execution of the works contract by him. Scheme B: A registered dealer opting to pay composition tax under this Scheme shall be entitled to make purchases of goods required for the execution of the contract under this Scheme in the course of inter-State trade or commerce on the strength of his....
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....ler who opts to pay composition tax under the notification and executes different types of works contracts which are liable to tax at different rates under this notification, shall pay tax according to the rate applicable to each of such contracts. ^5[PROVIDED that the dealer shall be eligible to opt for only one Scheme, that is either Scheme "A" or Scheme "B", for all categories of works contracts to be executed by him in a financial year.] (6) The term "Turnover" for the purposes of this composition scheme means: (i) In relation to the category at serial No. (1) and (3), in Table total consideration, received or receivable by the dealer under the contract for transfer of property in goods (whether as goods or in some other form) involved in the execution of the contract together with the charges for labour, services and other like charges. (ii) In relation to the category at serial No. 2, in Table the total consideration received or receivable by the dealer under the contract for transfer of property in goods (whether as goods or in some other form) involved in the execution of the contract, including the value of land, charges for supply of labour and services and ot....
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.... contractee to the contractor does not form part of the contract and is not deductible from the amount payable to the contractor by the contractee for the execution of the works contract. Further, no TDS shall be deducted by the contractee on the value of goods supplied as such by it to the contractor. Modalities for availing the Scheme: (1) The dealer applying for a fresh registration can opt for this scheme by filing an application in Form WC 01 appended to this notification along with his registration application in Form DVAT 04. (2) A works contract dealer who is paying tax under section 3 of the Act, can opt for this scheme by filing an application in Form WC 01 appended to this notification within thirty days from the first day of the financial year with effect from which composition is opted,: ^7[Provided that a dealer who is paying tax under section 3 of the Act on the date of this notification or paying tax under the composition scheme notified on 28.02.2013 may opt for this scheme from the third quarter of 2013‐14 by filing an application in Form WC 01.] Provided further that the dealer who is paying composition tax under the erstwhile Notification No....
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....ted to pay tax under this scheme, he shall, except under the circumstances specified at Sl. No. (6) below, not be eligible to withdraw his option before the end of the financial year. (5) A composition dealer who, having opted to pay composition tax under this scheme for a particular year, does not intend to opt for payment of composition tax under this scheme for the following year, shall, subject to the conditions contained in section 20 of the Act, in so far as they are applicable, and further subject to furnishing of intimation regarding withdrawal from this scheme in Form WC 02 within thirty days from the end of the financial year, be eligible to claim credit of tax paid under the Act on the opening stock held by him on the first day of the year from which he opts out of the Scheme. (6) A composition dealer who has opted to pay tax under this scheme and has defaulted in furnishing the returns for two consecutive tax periods, by the prescribed due date for the latter tax period, shall, from the beginning of the tax period in respect of which the default was first committed: (i) cease to be liable to pay tax under this scheme (ii) be liable to pay tax under section 3....
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....e forms appended to this notification shall be filed online. (9) All the provisions contained in the DVAT Act, 2004 and DVAT Rules, 2005 which are not contrary to the provisions of the composition scheme under this notification, shall apply to the dealers opting for composition.] This notification shall come into force with effect from 1st April 2013. By order and in the name of the Lt. Governor of the National Capital Territory of Delhi, (Ravinder Kumar) Deputy Secretary-VI (Finance) No.3(13)/Fin.(Rev-I)/2012-13 Copy forwarded for information and necessary action to: (1) The Pr. Secretary (GAD), Govt. of NCT of Delhi, Delhi Sachivalaya, New Delhi with one spare copy for publication in Delhi Gazette Part-IV (extraordinary) in today's date. (2) The Pr. Secretary to the Hon'ble Lieutenant Governor, Delhi. (3) The Pr. Secretary to the Hon'ble Chief Minister, Government of NCT of Delhi, Delhi Sachivalaya, IP Estate, New Delhi. (4) Pr. Secretary (Finance) Finance Department, Govt. of NCT of Delhi, Delhi Sachivalaya, New Delhi. (5) Commissioner, Value Added Tax, Department of Trade And Taxes, Vyapar Bhawan, I.P. Estate, New Delhi. (6) The Secretary ....
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....ho also opts for composition under this notification, for the execution of works contract, whether wholly or partly, the composition dealer shall issue a certificate to such sub-contractor, in Form CC 01 appended to this notification. Such sub-contractor shall be eligible to deduct from his turnover liable to be taxed under this scheme, the amount mentioned in such certificate by enclosing it with his return. Such amount shall not constitute part of the turnover in Form DVAT 17 of such sub-contractor. The contractor shall not deduct TDS from payments made to such sub-contractors in respect of the turnover covered by the certificate." ============= Document 1 (TO BE PUBLISHED IN PART IV OF THE DELHI GAZETTE EXTRAORDINARY) GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI FINANCE (REVENUE-I) DEPARTMENT DELHI SACHIVALAYA, I.P. ESTATE, NEW DELHI-110002 No.3(13)/Fin.(Rev-I)/2012-13/dsvi/180/ Dated the 28-02-2013 NOTIFICATION Whereas the Lt. Governor of the 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 sub-section (12) of ....
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....ridges or other similar activities. (vi) Any other contract for civil construction and maintenance as may be notified by the Commissioner. (B) Repair & maintenance of any moveable property, including vehicles, annual maintenance contracts (AMCs) and other similar contracts. (C) All other types of works contracts, including those involving moveable goods, not specified elsewhere in this notification. 2 Every registered dealer engaged in construction, of a complex, building, civil structure or a part thereof, including a residential unit or a complex or building, for sale whether wholly or partly, to a buyer before construction is complete, where the value of land is included in the total consideration. 1 3 Note: Contracts where the entire consideration is received after issuance of completion certificate by the competent authority are excluded here. Page 2 of13 3 Every registered dealer engaged in 2 3 (i) Printing and/or book-binding. (ii) Textile processing such as dying, fabrication, tailoring, embroidery and other similar activities. (iii) Electro plating, electro galvanizing, anodizing, powder coating and other similar activities. (iv) Re-treading of old....
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....and all the retail invoices for all his purchases and copies of all retail invoices issued by him as required under section 48 of the Act; (vii) maintain separate records of all the purchases made within Delhi, or in the course of inter- State trade or commerce and by way of transfer of stock or from outside India; (viii) issue only Retail Invoices, as per provisions of the Act and the Delhi Value Added Tax Rules, 2005 (hereinafter called 'the Rules'); (ix) be eligible to claim set off of TDS only if on the date of filing of return, he is in possession of original TDS Certificate issued to him by the person making the deductions; and (x) not entitled for refund before his assessment is made under section 32 of the Act. (2) All the provisions of the Act and the Rules, in so far as the same are not contrary to and inconsistent with this notification shall apply mutatis mutandis. (3) The term "composition dealer" means a contractor, or as the case may be a sub- contractor, who has opted for the composition scheme under this notification. (4) The term "sub-contractor" means any person who has been awarded a works contract by the main contractor, or the sub-contract....
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....priate Government Treasury and the copy of the TDS Certificate obtained in the prescribed form and in the prescribed manner, along with challan in proof of such deposit is enclosed with the return. (10) Where any composition dealer, who has opted for composition scheme under this notification, sells, transfers or disposes of any capital assets, including plant, machinery and equipments, scrap, surplus, waste or discarded material, he shall not make such sale outside Delhi against Central Statutory Forms and shall pay tax on such sale, transfer or disposal at the rates specified in Section 4 of the Act, as if he had not opted for this Scheme. (11) No tax shall be payable under this Notification by a composition dealer on the amount representing the value of the goods supplied by the contractee to the contractor in the execution of 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 ....
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.... applicable, and further subject to furnishing of intimation regarding withdrawal from this scheme in Form WC 02 within thirty days from the end of the financial year, be eligible to claim credit of tax paid under the Act on the opening stock held by him on the first day of the year from which he opts out of the Scheme. (6) A composition dealer who has opted to pay tax under this scheme and has defaulted in furnishing the returns for two consecutive tax periods, by the prescribed due date for the latter tax period, shall, from the beginning of the tax period in respect of which the default was first committed: (i) cease to be liable to pay tax under this scheme (ii) be liable to pay tax under section 3 of the Act. Such a dealer shall also, subject to the conditions contained in section 20 of the Act in so far as they are applicable and further subject to furnishing the intimation in Form WC 02 within seven days after the end of due date prescribed for filing of return for the latter tax period in respect of which the default has been committed, be eligible to claim credit of the tax paid under the Act on the opening stock held by him in Delhi on the first day of the fir....
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....nder Kumar) Deputy Secretary-VI (Finance) Page 7 of13 Department of Trade & Taxes Government of NCT of Delhi Form WC 01 [(See notification under section 16(12)] PART-A Application Form for opting Composition by an eligible works contractor in respect of scheme as notified by Government under sub-section (12) of section 16 1. TIN : Ward No. 2. Full Name of Applicant Dealer 3. Full Address of Dealer 4. Date with effect from which composition scheme is sought 5. Applicable rate of 6% of the turn over 3% of the turn over 1% of the turn over 2% of the turn over comp ositio n tax ** ** please tick in the appropriate box or boxes 6. Turnover in the preceding year (Rs.) 7. Estimated Turnover in the current year (Rs.) 8. Tax Payable on Opening Stock held on the first day with effect from which scheme is being opted. Description* Tax Payable (Rs.) (i) Trading Stock (Iii) Raw material (iii) Packaging Material (iv) Finished Goods Total (* Please complete Part- B) 9. Details of Composition Tax paid calculated Description as per (8) above (i) Amount of composition tax paid* (iii) Date of Deposit ....
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.... (v). Verification I/We hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my/our knowledge and belief and nothing has been concealed therefrom. Signature of Authorised Signatory Full Name (first name, middle, surname) Designation Place Date Day Month Year Page 9 of13 Page 10 of13 Department of Trade and Taxes Government of NCT of Delhi Form WC 02 [See notification under section 16(12)] (PART-A) Application Form for withdrawing from Composition by a works contractor in respect of scheme as notified by Government under sub-section (12) of section 16 1. TIN Ward No. 2. Full Name of Applicant Dealer 3. Full Address of Dealer 4. Date with effect from which withdrawal from composition scheme is sought 5. Turnover in the preceding year (Rs.) 6. Reasons for withdrawal from composition scheme Description* Input tax (Rs.) (i) Trading Stock (ii) Raw Material (iii) Packaging Material (iv) Finished Goods Total 7. Input tax on goods purchased and lying in stock in Delhi on 1st day from which withdrawing from composition scheme is sought (* Please complete....