(TO BE PUBLISHED IN PART IV OF THE DELHI GAZETTE - EXTRAORDINARY) GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI FINANCE (TAXES & ESTABLISHMENT) DEPARTMENT DELHI SACHIVALAYA, I.P.ESTATE, NEW DELHI-110002 No.F.3(78)/Fin.(T&E)/2005-06/1518 kha Dated: 17/03/2006 NOTIFICATION Whereas the Lt. Governor of the National Capital Territory of Delhi is of the opinion that it is expedient in the interest of general public so to do. Now, therefore, in exercise of the powers conferred by sub-section (12) of section 16 of the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005), (hereinafter referred to as “the Act”), the Lt. Governor of the National Capital Territory of Delhi, subject to the conditions specified in column (3) against the classes of dealers specified in column (1) of the Table below, and other general conditions as prescribed in this notification, hereby, provides for the scheme of composition of tax payable by the said dealers as specified in column (2) of the said Table, namely :- TABLE Eligible class or classes of dealers Composition Amount Conditions
(1) (2) (3) Every registered dealer engaged exclusively in trading of drugs and medicines whose turnover in the preceding year as well as the estimated turnover in the current year does not exceed one crore rupees: PROVIDED that the condition regarding turnover in the preceding year shall not apply One per cent of the entire turnover.
(1) The dealer shall -
(a) not be eligible for making purchases from or procuring goods from or making sales to or making supplies to any place outside Delhi;
(b) not be eligible for making purchases from a person who is not registered under the Act except in the case of goods specified in the First Schedule;
(c) not be eligible to claim tax credit under section 9, 14 and 15 of the Act;
(d) not calculate his net tax under section 11 of the Act;
(e) not collect any amount by way of tax under the Act;
(1) (2) (3) to a dealer who has commenced business activities during the current year.
(f) not be entitled to issue ‘Tax Invoices’;
(g) continue to retain the original copies of all tax invoices and all retail invoices for all his purchases and copies of all retail invoices issued by him in respect of his sales as required under section 48 of the Act;
(2) The dealer applying for a fresh registration can opt for this scheme by filing an application in Form DM 01 appended to this notification along with his registration application in Form DVAT 04. Such a dealer shall pay tax, at the rates specified in section 4 of the Act, on the value of opening stock of goods which have been purchased or brought from any place outside Delhi, held by him on the date of filing of application and shall furnish the details of such opening stock in Form SS 02 appended to this notification along with proof of payment of due tax in Form DVAT 20, with his application.
(3) A dealer who is paying tax under section 3 of the Act, can opt this scheme by filing an application in Form DM 01 appended to this notification within a period of thirty days from the first day of the year with effect from which composition is opted. Such a dealer shall pay tax at the rates specified in section 4 of the Act on the opening stock of goods, held by him on the first day with effect from which the dealer opts to pay tax under this scheme and shall furnish the details of such opening stock in Form SS 02 appended to this notification along with the proof of payment of
(1) (2) (3) tax in DVAT 20, with his application for opting the scheme.
(4) Once a dealer has opted to pay tax under this scheme, he shall, except under the circumstances described at Sl. No. (6) and (7) below, not be eligible to withdraw his option before the end of the year for which opted to pay tax under this scheme.
(5) A dealer who, having opted to pay tax under this scheme for a particular year, does not intend to opt for payment of 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 DM 02 within thirty days from the end of the year for which opted to pay tax under this scheme, be eligible to claim credit of tax paid on the opening stock held by him on the first day of said following year.
(6) A dealer who has opted to pay tax under this scheme and whose turnover exceeds, at any time during the year for which opted to pay tax under this scheme, one crore rupees, shall be liable to pay tax under section 3 of the Act on and from the day his turnover exceeds one crore rupees and shall, subject his intimating the Commissioner within seven days of his becoming liable to pay tax under section 3 of the Act in form DM 02 and further subject to the conditions contained in section 20 of the Act in so far as they are applicable, be eligible to claim credit of tax paid on the opening stock held by him on such day i.e. the
(1) (2) (3) day on which his turnover exceeded one crore rupees.
(7) A dealer who has opted to pay tax under this scheme and has defaulted to furnish the returns for two consecutive tax periods by the prescribed due dates shall, with effect from the first day of the period immediately next to the latter tax period in respect of which the default has been 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 applicable and further subject to furnishing the intimation in Form DM 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 this Act on the opening stock held by him in Delhi on the first day of the period immediately next to the latter tax period in respect of which the default has been committed. General conditions : (1) All the provisions of the Act and the rules made thereunder which are not contrary to this scheme shall apply to every dealer opting to pay tax under the scheme.
(2) The tax period for the dealers opting to pay tax under this scheme shall be a quarter unless otherwise prescribed by the Commissioner for a dealer or class of dealers.
(3) In case a dealer has opted for this scheme but has failed to comply with the conditions specified therein or who, at any later stage, is found not eligible for having opted this scheme, all the provisions of the Act including the liability to pay tax under section 3, along with interest due for delay, if any, shall apply mutatis mutandi as if the dealer has never opted for this scheme and the amount deposited by such dealer as the composition amount, if any, shall stand forfeited. This notification shall come into force with the first day of April of the year 2006. By order and in the name of the Lt. Governor of the National Capital Territory of Delhi, (Daljit Singh) Dy. Secretary, Finance (T&E) No.F.3(78)/Fin.(T&E)/2005-06/1523 kha Dated: 17/03/2006 Copy forwarded for information and necessary action to:-
1. The Pr. Secretary (GAD), Govt. of NCT of Delhi with one spare copy for its publication in Delhi Gazette Part-IV (extraordinary) in today’s date.
2. The Secretary, Govt. of India, Ministry of Home Affairs, North Block, New Delhi.
3. The Secretary, Govt. of India, Ministry of Finance, Deptt. of Revenue, Jeevan Deep Building, New Delhi.
4. The Secretary to Finance Minister, GNCT of Delhi, Delhi Sachivalaya, I.P. Estate, New Delhi.
5. The Pr. Secretary (Finance), GNCT of Delhi, Delhi Sachivalaya, I.P. Estate, New Delhi.
6. The Commissioner, Value Added Tax, Bikri Kar Bhawan, I.P Estate, New Delhi.
7. The Deputy Secretary (L&J), GNCT of Delhi, Delhi Sachivalaya, I.P Estate, New Delhi.
8. The Registrar, Sales Tax Appellate Tribunal, Bikri Kar Bhawan, I.P. Estate, New Delhi.
9. VAT Officer (Policy), Department of Trade and Taxes, Govt. of NCT of Delhi, New Delhi.
10. Guard File. (Daljit Singh) Dy. Secretary, Finance (T&E) Department of Trade and Taxes Government of NCT of Delhi Form DM 01 [See notification under section 16(12)] Application Form for opting Composition by an eligible drugs and medicine dealer in respect of scheme as notified by Government under sub-section (12) of section 16 Ward No.
1. TIN
2. Full Name of Applicant Dealer
3. Full Address of Dealer
4. Year for which the composition scheme is sought* - * hereinafter referred to as “current year”
5. Turnover in the preceding year (Rs.)
6. Estimated Turnover in the current year (Rs.)
7. Tax payable on opening stock held on the first day with effect from which scheme is being opted Fair market value* or Purchase Value of the opening stock (whichever is higher) (Rs.) Tax payable (Rs.)
8. Details of Tax paid as per the details at (7) above Description Details
(i) Amount of tax paid* (Rs.)
(ii) Date of Deposit / / dd mm yyyy
(iii) Challan No. if any (* Please attach original challan / proof of deposit) Name and signature of applicant / authorized signatory
9. 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 Department of Trade and Taxes Government of NCT of Delhi Form DM 02 [See notification under section 16(12)] (PART-A) Intimation regarding withdrawal by a drugs and medicine dealer from Composition scheme as notified by Government under sub-section (12) of section 16 Ward No.
1. TIN
2. Full Name of Applicant Dealer
3. Full Address of Dealer
4. Year with effect from which withdrawal from composition scheme is sought* - * hereinafter referred to as “current year”
5. Turnover in the preceding year (Rs.)
6. Reasons for withdrawal from composition scheme
7. Details of input tax credit sought on opening stock S. No. Tax Invoice date Tax Invoice No. Supplier TIN No. under the Act Purchase Price (Rs.) Input Tax (Rs.) Total Name and signature of applicant / authorized signatory
8. 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 / / Department of Trade and Taxes Government of NCT of Delhi Form SS 02 [See notification under section 16(12)] Statement of opening stock held on the first day of the year from which composition is to be opted
1. TIN
2. Full Name of Business
3. Total Value of the Stock as on first day of the year from which composition scheme is to be opted
4. Details of Stock purchases (as per Table below) Table S.No. Description of goods Quantity Purchase Value Tax payable * The above table can be prepared and attached with the form as per the requirement Certification of Details I/We__________________________hereby certify that all the above-mentioned stock details are true and correct to the best of my/our knowledge. Further certified that the particulars indicated above are the correct version of the documents, which are in my/our possession and can be produced before the Value Added Tax Department on demand. Signature of the dealer Name: Address: Date: Place: