Bifurcating their excess Input Tax Credit by certain dealers. - VAT - Delhi - 04 OF 2011-12

GOVERNMENT OF NCT OF DELHI DEPARTMENT OF TRADE AND TAXES (POLICY BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002 No.F.6(86)/Policy/VAT/2011/ 170-177 Dated: 14th June, 2011 CIRCULAR NO 04.. OF 2011-12 It has been observed that certain dealers are bifurcating their excess In-put Tax Credit (ITC) in the returns by claiming the portion of ITC as Refund in the column no. R9.2 and the remaining portion as Carry Forward in the column no. R9.3 in the prescribed return Form DVAT-16. The above said practice adopted by the dealers has been examined under relevant Sections of the DVAT Act, 2004 viz-a viz Section 9(1) read with Section 11(2)(b) and Section 38(3) of the DVAT Act, 2004 , which reveals that the dealers can either elect to claim the excess ITC as Refund in column no. R9.2 OR Carry Forward the amount in the column no. R9.3 in the prescribed return Form DVAT-16. All Assessing Authorities are, therefore directed/advised to take note of the above referred provisions and other statutory provisions as laid down in DVAT Act, 2004 and related DVAT Rules, 2005 while processing the refund claims and return of the dealers. This issues with prior approval of the Commissioner, Value Added Tax, Government of National Capital Territory of Delhi. (G. C. Lohani) VATO (POILCY)