Reduction of Surety Amount - VAT - Delhi - 024

Reduction of Surety Amount OFFICE OF THE COMMISSIONER OF TRADE AND TAXES DEPARTMENT OF TRADE AND TAXES BIKRI KAR BHAWAN, I.P. ESTATE, NEW DELHI Dated: 16.08.2005 CIRCULAR No. 24 OF 2005-06 SUB : REDUCTION OF SURETY AMOUNT IN CAES WHERE DEALER HOLDING IRREVOCABLE GENERAL POWER OF ATTORNEY AGAINST CONSIDERATION FOR IMMOVABLE PROPERTY. Under Rule 22 of Delhi Value Added Tax Rules 2005, security amount for registration can be reduced to the total maximum amount of Rs.50000 in case the dealer furnishes proof of ownership of principal place of business and/or proof of ownership of residential property and/or copy of last electricity bill and/or last telephone bill and/or PAN issued by Income Tax Department and/or passport of proprietor/managing partner. As all are aware, in Delhi, some of the immovable properties are transferred/sold against receipt of full consideration and after execution of irrevocable General Power of Attorney duly registered with the Sub-Registrar Office of Divisional Commissioner, Govt. of NCT of Delhi and the transferee takes possession of such immovable properties on the basis of the irrevocable G.P.A. In such cases where dealer is filing the irrevocable G.P.A. supported with such documents like agreement to sell, will, receipt etc. for claiming reduction of security amount for registration, the claim for reduction of security may be considered as per provision of Rule 22 of Delhi Value Added Tax Rules 2005. This issues with the prior approval of the Commissioner, Value Added Tax. Sd/- (S.R. MAHESHWARI) Value Added Tax Officer (Policy-III) No.F.VAT/Policy-III/2005-06/981 Dated: 16.08.2005