Para 3 - Procedure for Calculation of Tax Dues - Delhi Tax Compliance Achievement Scheme, 2013.

1 [3. Procedure for Calculation of Tax Dues .- (1) Tax dues in respect of sub-clause (i) of clause 2(1)(d) by the dealer on whom notice of assessment under section 32 of the Act has not been served shall be calculated by him in the following manner: (i) The dealer shall first determine the commodity wise taxable turnover in respect of which declaration is to be made under this Scheme; (ii) He shall then ascertain the rate of tax of that commodity applicable as per Schedules appended to the Act for the period under declaration. (iii) Tax dues shall be calculated by multiplying the rate of tax as per item (ii) above in respect of every class of commodity stated at item (i) above. 2 [Provided that wherever tax deficiency has occurred by any reason not related to turnover, the tax due will be equal to the amount of tax deficiency.] Explanation.- Where any audit, special audit, survey, or inspection has been initiated or conducted under Chapter X of the Act, but no notice of assessment under section 32 of the Act has been issued, the dealer shall be eligible to make declaration of his tax dues under this Scheme. (2) Tax dues in respect of sub-clause (i) of clause 2(1)(d) by the dealer on whom notice of assessment under section 32 of the Act has been served, shall be calculated by aggregating the amount of tax and interest determined as per Notice of default assessment of tax and interest in Form DVAT-24 less the amount paid by the dealer, voluntarily or pursuant to a court direction, towards the said demand 3 [or the demand of penalty in relation to such tax dues]. The penalty in relation to such tax for which a notice of assessment of penalty may have been issued under section 33 of the Act shall stand waived off. 4 [The dealer shall however not be entitled to claim any refund by virtue of such waiver.] Explanation.- The dealer shall be liable pay the amount of interest charged in Notice of assessment in Form DVAT-24 only under this sub clause and shall get immunity for interest due and payable thereafter. (3) Notwithstanding anything contained in sub-clause (1) or (2) of this clause, tax dues in respect of the dealers engaged in the execution of works contract shall be calculated by multiplying their total turnover (including value of labour and services relating to works contract) at the following rate: (a) 1% of the total consideration by the dealers, being works contractors, engaged in construction of complex, building, a civil structure or a part thereof, including residential unit or complex or building, for sale whether wholly or partly, to a buyer before construction is complete, where value of land is included in total consideration; and (b) 3% of the total turnover (including value of labour and services) by the other works contractors [including the dealers stated at (a) above, who opt to exclude the value of land in accordance with the provisions of rule 3 of Delhi Value Added Tax Rules, 2005 ] 5 [or circle rate of land notified under Delhi (Prevention of Under Valuation of Instruments) Rules, 2007 as amended from time to time: Provided that where tax dues declared by an existing registered dealer pertain to excess claim of labour and services wrongly claimed in the returns, the declarant shall pay tax in accordance with rate specified in section 4 of the Act on such labour and services wrongly claimed: Provided further that wherever tax deficiency has occurred by any reason not related to turnover, the tax due will be equal to the amount of tax deficiency: Provided also that tax due can be calculated under part (a) or (b) differently for different contracts by the declarant. Explanation.- The contract between landowner and the builder/ developer and that between builder and the intended buyer(s) shall be treated as different contracts.]. (4) Tax dues in respect of sub-clause (ii) of clause 2(1)(d) by the dealer shall be calculated by aggregating the amount of tax and interest determined in the assessment order less the amount paid by the dealer, voluntarily or pursuant to a court direction, towards said demand 6 [or the demand of penalty in relation to such tax dues.]. The penalty, if any, leviable in relation to such tax whether in the assessment order or by way of separate order shall stand waived off 7 [The dealer shall however not be entitled to claim any refund by virtue of such waiver.]. Explanation.- The dealer shall be liable to pay the amount of interest charged in the assessment order and shall get immunity for interest due and payable thereafter. (5) Tax dues in respect of sub-clause (iii) of clause 2(1)(d) by the persons required to deduct tax at source shall be calculated at the rate of three percent of the total sum paid or credited by the person for discharge of any liability for the execution of works contract or the amount actually deducted, whichever is greater less the amount already deposited towards such discharge. Explanation.- This sub-clause covers those cases where neither the contractee has deducted tax at source nor the contractor has paid the taxes due and payable on that contract. Immunity under this sub clause shall be granted from payment of interest and penalty in relation to such tax to the declarant and his immediate contractor.] 8 [(6) Notwithstanding anything contained in sub-clause (1) or (3) of this clause, where tax dues are declared by a registered dealer who failed to pay tax and file his returns for the tax period(s) ending on or before 31st day of March, 2013, he shall pay the net tax as per Section 11 of the Act for all the tax periods in default, and file his return(s) for these tax period(s) in the manner specified in the Act and rules framed there under before filing declaration in Form DSC-1. Upon payment of entire amount of tax dues with interest and filing of all returns in default, he shall be eligible for immunity under this scheme from payment of penalties specified under section 86 of the Act for late payment of tax and late filing of returns.] ------------------------ Notes:- 1. Inserted vide Notification No. F.3(16)/Fin.(Rev-I)/2013-14/dsVI/786 Dated the 20.09.201. 2. Inserted vide Notification F.3(24)/Fin(Rev-I)/2013-14/ - Dated 30-1-2014 3. Inserted vide Notification F.3(24)/Fin(Rev-I)/2013-14/ - Dated 30-1-2014 4. Inserted vide Notification F.3(24)/Fin(Rev-I)/2013-14/ - Dated 30-1-2014 5. Inserted vide Notification F.3(24)/Fin(Rev-I)/2013-14/ - Dated 30-1-2014 6. Inserted vide Notification F.3(24)/Fin(Rev-I)/2013-14/ - Dated 30-1-2014 7. Inserted vide Notification F.3(24)/Fin(Rev-I)/2013-14/ - Dated 30-1-2014 8. Inserted vide Notification F.3(24)/Fin(Rev-I)/2013-14/ - Dated 30-1-2014