Regarding Security - VAT - Delhi - 033

Regarding Security GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE TAXES (POLICY-III BRANCH) BIKRIKAR BHAWAN, I.P. ESTATE, NEW DELHI CIRCULAR No. 33 of 2005-06 Dated: 30.09.2005 In terms of provisions contained in section 24 of the Delhi Value Added Tax Act, 2004, read with rule 22 of the Delhi Value Added Tax Rules, 2005, a dealer is required to furnish security of Rupees One Lac only subject to reduction to the maximum of rupees Fifty Thousand only on production of documents specified therein. A query has been raised as to whether a deemed registered dealer who has already filed a Bank Guarantee or personal surety under DST Act, but that bank guarantee or personal surety is for an amount lesser than the amount prescribed under rule 22, can file (i) an undertaking from such surety dealer / Bank for the Bank Guarantee or surety already on record, (ii) another Bank Guarantee or personal surety for the deficient amount so that the limit prescribed under rule 22 of the aforesaid Rules can be satisfied. In this connection, it is clarified that if a deemed registered dealer files the undertaking as mentioned at (1) above plus another bank guarantee or personal surety for the deficient amount as mentioned at (2) above, that shall be treated as sufficient compliance of the requirement of the section 24. This issues with the prior approval of the Commissioner, VAT. Sd/- (S.R. MAHESHWARI) VALUE ADDED TAX OFFICER (POLICY-III) No. F.6(4)/P-III/VAT/2005/1022 Dated:30.09.05 1. P.S. to Commissioner, VAT 2. P.S. to all Addl. Commissioners, VAT 3. P.A.s to all Joint / Deputy Commissioners, VAT 4. All VATOs / AVATOs 5. System Analyst, EDP branch for placing the circular on the official web site 6. P.R.O. of the department 7. President, Sales Tax Bar Association (Regd.) 8. Guard file Sd/- (S.R. MAHESHWARI) VALUE ADDED TAX OFFICER (POLICY-III)