Section 3 - Imposition of tax - Delhi Value Added Tax Act, 2004

CHAPTER II Imposition of Tax 3. Imposition of tax. - (1) Subject to other provisions of this Act, every dealer who is - (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. 1 [ (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. ] 2 [ (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. ] 6 [ (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. (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. 5 [ (10) If 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 the participants in the exhibiton-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; 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 fails 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. ] 7 [(11) Notwithstanding anything contained in this Act to the contrary, the Government may by notification specify the goods on which a person shall pay tax in advance at the rates notified by the Government but not exceeding the rates applicable on such goods under this Act, when he imports such goods into the National Capital Territory of Delhi from a place outside India, subject to such conditions as may be specified in the notification. The aforesaid payment of tax in advance shall be counted towards the final tax liability of the taxable person: Provided that the Government may by notification exempt any person or class of persons from payment of tax in advance or reduce the rate of payment of tax in advance subject to such conditions as may be notified: Provided further that if on an application made by a person the Commissioner or an officer authorized by him, after verifying all aspects of the case, arrives at a decision that such person should be exempted from payment of tax in advance or that the rate of payment of tax in advance should be reduce for such person, he may do so and impose such terms and conditions on such person as he may deem fit. Explanation.- The person, who imports goods into the National Capital Territory of Delhi, shall pay tax in advance, on the presumption that such goods are meant for the purpose of sale or for use in manufacture or processing of goods meant for sale, unless, it is proved otherwise by such person. It is further presumed, unless it is proved otherwise by such person, that such goods or any product manufactured therefrom shall not be sold below the price at which such goods have been purchased and imported.] ----------------------------------- Notes:- 1. Substituted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated 28.03.2005 w.e.f. 01.04.2005. 2. Substituted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, dated 28.03.2005 w.e.f. 01.04.2005. 3. Substituted vide DVAT (Amendment) Act, 2005; No.F.14(29)/LA/2005/333, Dated:- 16/11/05 , before it was read as:- (4) The net tax of a dealer shall be paid within twenty eight days of the conclusion of the dealer's tax period. Explanation :- The net tax of a dealer (which is the dealer's tax reduced by tax credits and with adjustments) shall be paid at the same time as prescribed for furnishing a return, but the obligation to pay 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. 4. Substituted vide Notification No.F.14(19)/LA-2011/lclaw/5, dated 13/02/2012 , w.e.f. 01.04.2012 before it was read as:- twenty eight vide Notification No.F.3(25)/Fin.(Rev.-I)/2011-12/DSIII/288, Dated : 28/03/2012 In the proviso, for the number 28 , the number 21 has been Substituted vide Notification No.F.14(19)/LA-2011/lclaw/5, dated 13/02/2012 , 5. Inserted vide DVAT (Amendment) Act, 2005; No.F.14(29)/LA/2005/333, Dated:- 16/11/05 6. Substitutedvide THE DELHI VALUE ADDED TAX (AMENDMENT) ACT, 2013 (DELHI ACT 01 OF 2013) w.e.f. April 1, 2013 , before it was read as 3 [ (4) The net tax of a dealer shall be paid within 4 [ 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 4 [ 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. ] 7. Inserted vide F.14(12)/LA-2016/ cons2law/77-86 - Dated 5-7-2016