Composition Scheme
GOVERNMENT OF NATIONALCAPITALTERRITORY OF DELHI
FINANCE (ACCOUNTS DEPARTMENT)
DELHI SACHIVALYA, I.P ESTATE, NEW DELHI-110002
3(57)/Fin.(T&E)/2005-06/893Kha
Dated: 30.11.2005
NOTIFICATION
3(57)/Fin.(T&E)/2005-06 Whereas the Lt. Governor of the National Capital Territory is of the opinion that it is expedient in the interest of general public so to do.
Now, therefore, in exercise of the powers conferred by sub-section 12 of section 16 of the Value Added Tax Act, 2004 (Delhi Act 3 of 2005), (hereinafter referred to as "The Act"), the Lt. Governor of the National Capital Territory of Delhi, subject to the conditions specified in the column (3) against the classes of dealers specified in column (1) of the Table below, and other general conditions as prescribed in the Notification, hereby, provides for the composition of tax payable by the said dealers as specified in column (2) of the said table: -
TABLE
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Eligible class or classes of dealers |
Composition Amount |
Conditions |
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(1) |
(2) |
(3) |
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Every registered dealer engaged exclusively in works contract of the nature of civil construction i.e. construction, electrification, fitting out, improvement or repair of any building or complex, residential or commercial bridge, fly-over, dam or other similar structure of any canal or such other similar activities as may be specified by the Commissioner from time to time. |
(i) Three percent of the entire turnover if the dealer opting to pay tax under this scheme makes all the purchases and the sales during the period for which composition is opted within Delhi only.
(ii) Four percent of the entire turnover on account of works contract executed in Delhi if the dealer is engaged in procuring goods from any place outside Delhi or in supplying goods to any place outside Delhi. |
(1) The dealer shall -
(a) not be eligible for making purchases, within Delhi, from a person who is not registered under the Act except in the case of goods specified in the First Schedule;
(b) not be eligible to claim tax credit under section 9, 14 and 15 of the Act;
(c) not calculate his net tax under section 11 of the Act;
(d) not collect any amount by way of tax under the Act:
(e) not be entitled to issue 'Tax Invoices';
(f) continue to retain the original copies of all tax invoices and all retail invoices for all his purchases and copies of all retail invoices issued by him in respect of his sales as required under section 48 of the Act:;
(g) not make interstate purchases of the material on the strength of his registration certificate or declaration Forms/certificates i.e. C Form, D Form, E-I Form, E-II Form and 'F' Form for the purpose of utilising it in the execution of works contracts; and
(h) not import or procure goods from outside the country.
(2) Where the dealer has made any payment towards sub-contractor for the execution of works contract whether wholly or partly, and the sub-contractor has also opted to pay tax under this scheme, the dealer shall issue a certificate to such sub-contractor ,in Form CC 01 amended to this Notification and such sub-contractor shall be eligible to reduce his turnover liable to be taxed under this scheme by the amount mentioned in the said certificate by enclosing it with his return. Such amount shall not construed part of the field 3 of DVAT 17 for such sub-contractor. The contractor shall not deduct TDS from payments made to such sub-contractors in respect of the turnover covered by the certificate.
(3) The application for opting this scheme shall be in Form WC 01 appended to this notification and the option once exercised shall be valid for a period of three consecutive years.
(4) The dealer applying for a fresh registration can opt for this scheme by filing an application in Form WC 01 appended to this notification along with their registration application in Form DVAT 04. A dealer who is paying tax at the rates specified in section 4 of the Act, shall opt this scheme by filing an application in Form WC 01 appended to this notification within a period of thirty days -
(i) from the first day of the year with effect from which composition is opted, or
(ii) from the day of the notification of this scheme, in case the scheme is opted for the remaining period of the year 2005-06.
(5)(a) The dealer shall pay tax at the rates specified in section 4 of the Act on the opening stock of goods, held by him on the first day with effect from which the dealer opts to pay tax under this scheme, where such stock has been purchased within Delhi or purchased on the strength the registration certificate or declaration Forms or certificates in the course of interstate trade.
(b) The dealer shall reverse the input tax credit claimed on the capital goods during the three years immediately preceding the first day with effect from which the dealer opts to pay tax under this scheme.
(c) The dealer shall furnish, alongwith his application for opting the scheme, the details of such opening stock and such capital goods, as mentioned in (a) and (b) above, in Form SS 01 appended to this notification and the proof of payment of tax in DVAT 20.
(6) A dealer who has opted for this scheme can reverse his option only from the 1st day of the following year by filing an application in Form WC 02 appended to this notification within a period of thirty days from the first day of the following year.
(7) The dealer dealing in works contracts other than private works contracts shall make an application to the contractee authorising him to deduct tax at the applicable rate of composition amount (i.e. three per cent or four per cent, as the case may be) towards the tax payable under the Act instead of two per cent as provided in sub-section (1) of section 36A.
Note- Private contract for the purpose of this means a contract undertaken for any person other than -(1) the Central Government or their departments or their undertaking or their cooperative societies and (2) a company registered under the Companies Act, 1956 (1 of 1956).
(8)The dealer shall not be eligible to discharge his tax liability under the Act in accordance with the provisions of sub-section (4) of section 105. |
Conditions: (1) All the provisions of the Act and the rules made thereunder which are contrary to this scheme shall apply to every dealer opting to pay tax under the scheme.
The tax period for the dealers opting to pay tax under this scheme shall be a quarter otherwise prescribed by the Commisioner for a dealer or class of dealers.
A dealer who has opted to pay tax under this scheme and has defaulted to furnish the for two consecutive tax periods shall cease to remain a composition dealer with effect first day of the period immediately next to the tax period in respect of which the default an committed.
In case a dealer has opted for this scheme but has failed to comply with the conditions stated there in or who, at any later stage, is found not eligible for having opted the scheme, all provisions of the Act including the liability to pay tax at the rate specified in section 4, along interest due for delay, if any, shall apply mutatis mutandi as if the dealer has never opted for composition scheme and the amount deposited by such dealer as the composition amount, if all stand forfeited.
This notification shall come into force with immediate effect.
By order and in the name of
The Lt. Governor of the National
Capital Territory of Delhi,
(Dr.Pooja Gupta)
DY.SECRETARY, FINANCE (T&E)
Form WC 01
[See Notification under section 16(12)]
PART-A
Application For Opting For Composition Scheme by an eligible works contractor in respect of a Scheme notified by Government under sub section (12) of section 16 during the year 2005-06
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1. Registration No. |
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Ward No. |
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2. Full Name of Applicant Dealer
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4. Year with effect from which composition scheme is sought* |
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- |
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* hereinafter referred to as "current year"
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5. Applicable rate of composition amount ** |
3% of the turnover |
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4% of the turnover |
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** " Tick in the appropriate box"
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6. Turnover in the preceding year (Rs.) |
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7. Estimated Turnover in the current year (Rs.) |
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8. Tax Payable on Opening Stock held on first day with effect from which the scheme is being opted Capital Goods in respect of which ITC has been claimedin preceding three years which is to be reversed |
Description* |
Tax Payable (Rs.) |
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(i) Trading Stock |
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(ii) Raw material |
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(iii) Packaging Material |
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(iv) Finished Goods |
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(v) Capital Goods |
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Total |
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(*Please complete Part B)
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9. Details of Tax paid
calculated as per (7)
above |
Description |
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(i) Amount of tax paid* (Rs) |
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(ii) Date of Deposit |
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(iii) Challan No. if any |
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(*Please attach original challan/ proof of deposit)
Name and signature of applicant/authorized signatory
9. Verification
I/We ________________________________ hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my/our knowledge and belief and nothing has been concealed therefrom.
Signature of Authorised Signatory ______________________________________________
Full Name (first name, middle, surname) _____________________________________________
Designation ______________________________________________
Form WC 01
[See Notification under section 16(12)]
PART-B
Details of the stock held on the first day [i.e. on (date)] of the period for which the composition is sought
(i) Details of Trading Stock
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Rate wise details of the Trading Stock |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(i) |
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(*Opening day of the period for which is being opted)
(ii) Details of Raw Material
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Rate wise details of the Raw Material |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(ii) |
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(*Opening day of the period for which is being opted)
(iii) Details of Packaging Material
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Rate wise details of the Packaging Material |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(iii) |
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(*Opening day of the period for which is being opted)
(iv). Details of Finished Goods
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Rate wise details of the Packaging Material |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(iv) |
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(*Opening day of the period for which is being opted)
(v). Details of Capital Goods
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Rate wise details of the Packaging Material |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(v) |
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(*Opening day of the period for which is being opted)
Name and signature of applicant/authorized signatory
VI. Verification
I/We ________________________________ hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my/our knowledge and belief and nothing has been concealed therefrom.
Signature of Authorised Signatory ______________________________________________
Full Name (first name, middle, surname)_____________________________________________
Designation ______________________________________________
Form WC 02
[See Notification under section 16(12)]
PART-A
Application Form for Withdrawal From Composition by a works contractor in respect of scheme as notified by Government under sub section (12) of section 16 during the year 2005-06
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1. Registration No. |
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Ward No. |
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2. Full Name of Applicant Dealer
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4. Year in which withdrawal from composition scheme is sought* |
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- |
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* hereinafter referred to as "current year"
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5. Turnover in the preceding year (Rs.) |
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6. Reasons for withdrawal from
composition scheme |
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7. Value of Opening Stock of goods held on first day of the year from which withdrawal is opted |
Description* |
Input Tax (Rs.) |
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(i) Trading Stock |
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(ii) Raw Material |
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(iii) Packaging Material |
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(iv) Finished Goods |
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Total |
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(*Please complete Part B)
Name and signature of applicant/authorized signatory
8. Verification
I/We ________________________________ hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my/our knowledge and belief and nothing has been concealed therefrom.
Signature of Authorised Signatory ______________________________________________
Full Name (first name, middle, surname)_____________________________________________
Designation ______________________________________________
Form WC 02
[See Notification under section 16(12)]
PART-B
Details of opening stock held on the 1st April of the year from which the composition is sought
(i) Details of Trading Stock
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Rate wise details of the Trading Stock |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(i) |
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(*Opening day of the period for which is being opted)
(ii) Details of Raw Material
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Rate wise details of the Raw Material |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(ii) |
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(*Opening day of the period for which is being opted)
(iii) Details of Packaging Material
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Rate wise details of the Packaging Material |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(iii) |
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(*Opening day of the period for which is being opted)
(iv). Details of Finished Goods
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Rate wise details of the Packaging Material |
Purchase Value (Rs.) |
Fair Market Value*(Rs.) |
Tax Payable (Rs.) |
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A |
Goods taxable at 1% |
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B |
Goods taxable at 4% |
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C |
Goods taxable at 12.5% |
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D |
Goods taxable at 20% |
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E |
Total (Carry to main form 7(iv) |
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(*Opening day of the period for which is being opted)
Name and signature of applicant/authorized signatory
V. Verification
I/We ________________________________ hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my/our knowledge and belief and nothing has been concealed therefrom.
Signature of Authorised Signatory ______________________________________________
Full Name (first name, middle, surname)_____________________________________________
Designation ______________________________________________
Form SS 01
[See Notification under section 16(12)]
Statement of Opening Stock held on the first day of the period for which composition is to be opted
1. Registration Number ___________________________
2. Full Name of Business ___________________________
3. Total Value of on the first day of the period
for which composition scheme is opted ___________________________
4. Details of Stock purchases
(as per Table below) ___________________________
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S.No. |
Description of goods |
Quantity |
Purchase Value |
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Above table can be prepared and attached with the form as per requirement
5. Details of Capital Goods on which input credit has been availed during the preceding three years
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S.No. |
Description of goods |
Quantity |
Purchase Value |
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Certification of Details
I/We_____________________________hereby certify that all the above-mentioned stock details are true and correct to the best of my/our knowledge. Further certified that the particulars indicated above are the correct version of the documents, which are in my/our possession and can be produced before the Value Added Tax Department on demand.
Signature of the dealer
Name:
Address:
Date:
Place:
Form CC 01
[See Notification under section 16(2)]
I ………..…………………………… (Name of the person signing the declaration) …………….(Proprietor/Partner/Director/Manager/Karta/Trustee/Officer in Charge
…………………………………………who is a registered dealer holding TIN……............. under the Delhi Value Added Tax Act 2004 hereby certify that I have opted for to pay tax under the composition scheme as notified under section 16 (2) vide notification dated …………………… mentioned in the notification at serial number………. w.e.f………………., and that I have awarded sub contract work to M/s………………………………….. who is also a registered dealer holding TIN ………………….
Details of Sub Contract are as under :-
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S.No |
Particulars of Works Contract awarded as a Sub Contract |
Date of Allocation of Sub Contract |
Value of Sub contract |
Total Amount of Payments made to the sub contractor during the period from ……….to…..… |
Balance value of the sub contract |
Last date for completion of sub contract, if any |
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(1) |
(2) |
(3) |
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(5) |
(6) |
(7) |
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Total |
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Further certify that I have deposited the due tax to the govt. treasury in respect of the amount mentioned in column 5 above.
Further undertake I shall deposit the due tax to the govt. treasury in respect of the amount mentioned in column 5 above
Name and signature of applicant/authorized signatory
Verification
I/We ________________________________ hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my/our knowledge and belief and nothing has been concealed therefrom.
Signature of Authorised Signatory ______________________________________________
Full Name (first name, middle, surname)_____________________________________________
Designation ______________________________________________
9911796707
