Section 105 - Application to sales and purchases - Delhi Value Added Tax Act, 2004

105. Application to sales and purchases.- (1) The tax imposed by section 3 of this Act shall apply to every - (a) sale, including an instalment sale and hire purchase of goods, made on and after 1st April, 2005; (b) sale in the form of the transfer of a right to use goods, to the extent that the right to use goods is exercised after 1st April, 2005. (2) Tax credits arising under section 9 of this Act shall be allowed only for - (a) a purchase, including a purchase under an instalment sale and hire purchase of goods, made on and after 1st April, 2005; and (b) a purchase occurring in the form of the acquisition of a right to use goods, to the extent that the right to use goods is exercised after 1st April 2005. Explanation .- This provision shall not prevent the person claiming the special tax credit allowed under section 14 of this Act. (3) Where an amount is paid or received prior to 1st April,2005 in respect of a sale or purchase occurring after 1st April, 2005, and the person calculates his turnover or turnover of purchases based on amounts paid and received, the amount shall be treated as forming part of the person's turnover or turnover of purchases in the tax period in which the sale occurs. 1 [ (4) Where a dealer registered under the repealed Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999), (hereinafter referred to in this sub-section as "the repealed Act"), is liable to pay tax under this Act, and has at any time prior to the 1 st day of April, 2005 entered into any works contract, where the total contract value was inclusive of the tax payable under the repealed Act, and the execution of the said work contract has continued after the 1 st day of April, 2005, then the liability of the dealer to pay tax under this Act shall be discharged at the rates applicable under this Act, and the liability so discharged in respect of the said contract shall not exceed the liability which would have accrued under the repealed Act if it had continued to be in force and in the case of a dealer who had opted for composition of tax under the repealed Act, the liability under this Act in respect of a contract where the execution has started before the 1 st day of April, 2005 and has continued thereafter shall not exceed the sum which would have been payable by way of composition in respect of the said contract under the repealed Act if it had continued to be in force. Provided that the provisions of this sub-section shall be valid up to the 31 st day March of 2007. Provided further that the provisions of this sub-section shall not apply where the contract value has been changed on account of increased liability under this Act. Provided also that the provisions of this sub-section shall apply only if there was no provision in the contract for revising the value of the contract on account of the change of tax liability. ] ------------------------------ Notes:- 1. Substituted vide (Second Amendment) Act, 2005; No.F.14(29)/LA/2005/333, Dated 16.11.2005. w.e.f. 01.04.2005, retrospectively.