Various matters - Clarifications to Delhi Sales Tax Bar Association - VAT - Delhi - No.VAT/Policy III/2005-06/898

OFFICE OF THE COMMISSIONER OF VALUE ADDED TAX DEPARTMENT OF TRADE AND TAXES, BIKRI KAR BHAWAN, I.P. ESTATE, NEW DELHI-110 002 No.VAT/Policy III/2005-06/898 Dated the : 13/7/05 To Shri H.C. Bhatia, President, Sales Tax Bar Association (Regd.), New Delhi This is with reference to the meeting of the representatives of the Sales Tax Bar Association with the Commissioner of Value Added Tax and officers of the Department in the chamber of the Commissioner in which certain difficulties being faced by the dealers and the issues arising under the Delhi Value Added Tax Act, 2004 were discussed. The brief synopsis of the discussion is as under : Re : Registration cases : Instructions have been issued to the officers not to reject the applications for registration on flimsy grounds otherwise action will be taken against them. They have been informed that where a surety filed by a dealer seeking registration is not acceptable, they should afford another opportunity to the dealer to furnish surety bond. The authorities hearing the objections have also been advised to give opportunity to the dealers whose application for registration may have been rejected to furnish fresh surety bond or remove the deficiencies in their application. Re : Late returns : Instructions have also been issued to the Front Office to accept the returns filed beyond the prescribed period without insisting on payment of penalty for late filling of returns. Re : Opening of receipt counter in the Front Office up to 04.30 : Instructions have also been issued to ensure that the counters in the Front Office remain open upto 04.30 pm to accept the Dak. Re : Acknowledgement for filling returns : Instructions have been issued to supply acknowledgements in proof of filing returns free of cost without any payment. On some issues of general importance arising under the Delhi Value Added Tax Act, 2004 the various queries were discussed. The answers thereto are given hereunder : Q. Under Delhi Sales Tax Act, 1975 or Delhi Sales Tax on Works Contract Act, 1999 a contractor could claim deduction of payment made to subcontractor. How will a contractor work out his liability under the Delhi Value Added Tax Act, 2004? Ans. Under the Delhi Value Added Tax Act, 2004, the contractor will claim input tax credit on the basis of the Tax Invoice raised by the subcontractor on him and adjust the credit against his output tax liability. Q. Whether Refund Adjustment Order issued by the Department in cases pertaining to Delhi Sales Tax Act, 1975 can be adjusted against the liability under the Delhi Value Added Tax Act, 2004? Ans. In cases of refund arising out of the Delhi Sales Tax Act, 1975 it is advised that the dealer entitled to refund instead of asking for refund adjustment order should request for refund vouchers. Q. How application for amendment under Central Sales Tax Act, 1956 is to be filed whether in DVAT-7 or on plain paper? Ans. Application for amendment under the Central Sales Tax Act, 1956 may be filed on plain paper and not on DVAT-7. Q. Whether a dealer who has been informed of his TIN No. but not yet issued registration certificate, can issue Tax Invoice? Ans. Yes, the dealer who has been informed his TIN No. can issues tax Invoice from the date of communication of TIN No. Q. What is the position of the Notifications issued under section 8(5) of Central Sales Tax Act, 1956 reducing the rate of tax on inter-State sales of certain goods? Ans. Notifications issued under section 8(5) of the Central Sales Tax, Act, 1956 reducing rates of tax on inter-State sales on certain goods have not been rescinded and therefore, the same continue to be in force. On behalf of the Commissioner, I wish to assure you that such discussions are a continuous process for successful implementation of the VAT in Delhi, which would go on. (P.N. Mishra) Additional Commissioner (Policy) No.VAT/Policy III/2005-06/898 Dated the : 13/7/05 Copy forwarded for information to : 1. All Additional Commissioners, Joint Commissioners, Zonal J.C's and Deputy Commissioners. 2. All VATOs / AVATOs 3. P.S. to C.V.A.T. for information 4. System Analyst, E.D.P. for compliance. 5. The President, Delhi Sales Tax Bar Association. 6. Guard File. (S.R. Maheshwari) Value Added Tax Officer (Policy-III)