Delhi Value Added Tax (Amendment) Act, 2011. - F. No. 21 (I)/2011/LAS-IV/Leg./3107 - Delhi Value Added Tax

DELHI LEGISLATIVE ASSEMBLY SECRETARIAT

NOTIFICATION

Delhi, the 17th March, 2011

F. No.  21 (I)/2011/LAS-IV/Leg./3107.-The following is published for general information.-

THE DELHI VALUE ADDED TAX (AMENDMENT)

BILL, 2011

(Bill No. 1 of 2011)

(As introduced by the Legislative Assembly of the National Capital Territory of Delhi on 17th March, 2011)

Delhi Value Added Tax (Amendment) Act, 2011.

F. No.  21 (I)/2011/LAS-IV/Leg./3107.-A Bill further to amend the Delhi Value Added Tax Act, 2004. Be it enacted by the Legislative Assembly of the National Capital Territory of Delhi in the Sixty-second Year of the Republic of India as follows :-

1. Short title, extent and commencement.-(1) This Act may be called the Delhi Value Added Tax (Amendment) Act, 2011.

(2) It extends to the whole of the National Capital Territory of Delhi.

(3) It shall come into force on the date of its publication in the Official Gazette.

 2. Amendment of Section 74.-In the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of2005), in Section 74, in sub-section (10), for the word "six", the word "seven" shall be substituted.

STATEMENT OF OBJECTS AND REASONS

The Delhi Sales Tax Act, 1975 (DST Act) was repealed and simultaneously, a new Act, i.e. Delhi Value Added Tax Act, 2004 (DVAT Act) was brought into effect, from 1st April, 2005. A Special provision in the form of Section 74(10) was inserted in the new Act with the intention that all the pending appeals, which numbered more than 60,000 under the repealed Act, shall be disposed of within a period of five years from the enforcement of the DVAT Act, so that all the pending appeals under the DST Act shall be disposed of by 31st March, 2010. However, last year around 25,000 appeals related to the DST Act were pending for disposal. Consequently, an amendment was made in Section 74(10) of the DVAT Act on 6-1-2010 by which the said period of limitation of five years was enhanced by another one year i.e., from five years to six years. This time limit is also expiring on 31-3-2011 and more than 7500 appeals related to the DST Act are still pending. Senior officers of the Department of Trade and Taxes of the Government function in dual capacity-that of the administrative authorities for supervising the various functions (Branches) or Zones dealing with the revenue targets of the Government and, at the same time, they work as Appellate Authorities.

In view of the above situation, the practical possibility of the disposal of the pending appeals by 31-3-2011, which is the existing deadline, seems to be bleak It is, therefore, essential to further extend the period of limitation prescribed under sub-section (10) of Section 74 of the DVAT Act by another year, which would mean that these appeals would have to be decided by 31-3-2012. For this purpose an amendment in said Section 74 is essential. The Bill seeks to achieve the aforesaid objective.

                SHEILA DIKSHIT, Minister of Finance

New Delhi :

Dated :

FINANCIAL MEMORANDUM

The Delhi Value Added Tax (Amendments) Bill, 2011 does not involve any additional financial implications since no outgo on new posts is anticipated from the Consolidation Fund of the National Capital Territory of Delhi.

MEMORANDUM REGARDING DELEGATED

LEGISLATION

The Delhi Value Added Tax (Amendment) Bill, 2011 does not make provision for the delegation of powers in favour of any functionaries to make subordinate legislation.

P. N. MISHRA, Secy.