Composition of tax scheme - trading of drugs and medicines
(TO BE PUBLISHED IN PART IV OF THE DELHI GAZETTE-EXTRAORDINARY)GAOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI FINANCE (TAXES & ESTABLISHMENT) DEPARTMENT DELHI SACHIVALAYA, I.P. ESTATE, NEW DELHI -02
No. F. 3 (78)/Fin. (T&E)/2005-06/1518 kha
Dated: 17/03/06
NOTIFICATION
No. F. 3 (78)/Fin. (T&E)/2005-06 Whereas the Lt. Governor of the National Capital Territory of Delhi 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 Delhi 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 column (3) against the classes of dealers specified in column (1) of the Table below, and other general conditions as prescribed in this notification, hereby, provides the scheme of composition of tax payable by the said dealers as specified in column (2) of the said Table, namely:-
TABLE
|
Eligible class or classes of dealers |
Composition Amount |
Conditions |
|
(1) |
(2) |
(3) |
|
Every registered dealer engaged exclusively in trading drugs and medicines whose turnover in the preceding year as well as the estimated turnover in the current year does not exceed one crore rupees:
Provided that the condition regarding turnover in the preceding year shall not apply to a dealer who has commenced business activities during the current year. |
One percent of the entire turnover. |
(1) The dealer shall -
(a) not be eligible for making purchases, from or procuring goods from or making sales to or making supplies to any place outside Delhi;
(b) not eligible for making purchases from a person who is not registered under the Act except in the case of goods specified in the first Schedule;
(c) not calculate his net tax under section 11 of the Act;
(d) no 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;
(2) The dealer applying for a fresh registration can opt for this scheme by filing an application in Form DM 01 appended to this notification along with his registration application in Form DVAT 04. Such a dealer shall pay tax, at the rates specified in section 4 of the Act, on the value of opening stock of goods which have been purchased or brought from any place outside Delhi, held by him on the date of filing of application and shall furnish the details of such opening stock in Form SS 02 appended to this notification along with proof of payment of due tax in Form DVAT 20, with his application.
(3) A dealer who is paying tax under section 3 of the Act, can opt this scheme by filing an application in Form DM 01 appended to this notification within a period of thirty days from the first day of the year with effect from which composition is opted. Such a dealer shall pay tax, at the rates specified in section4 of the Act, on the opening stock of goods, held by him on the first day of the year with effect from which dealer opts to pay tax under this scheme, and shall furnish the details of such opening stock in Form SS02 appended to this notification along with the proof of payment of tax in DVAT 20, with his application for opting the scheme.
(4) Once a dealer has opted to pay tax under this scheme, he shall, except under the circumstances described at SI. No. (6) and (7) below, not be eligible to withdraw his option before the end of the year for which opted to pay tax under this scheme.
(5) A dealer who, having opted to pay tax under this scheme for a particular year, does not intend to opt for payment of tax under this scheme for the following year, shall, subject to the conditions contained in section 20 of the Act in so far as they are applicable and further subject to furnishing of intimation regarding withdrawal from this scheme in form DM 02 within thirty days from the end of the year for which opted to pay tax under this scheme, be eligible to claim credit of tax paid on the opening stock held by him on the first day of said following year.
(6) A dealer who has opted to pay tax under this scheme and whose turnover exceeds, at any time during the year for which opted to pay tax under this scheme, one crore rupees, shall be liable to pay tax under section 3 of the Act on and from the day his turnover exceeds one crore rupees and shall, subject his intimating the commissioner within seven days of his becoming liable to pay tax under section 3 of the Act in the form DM 02 and further subject to the conditions contained in section 20 of the Act in so far as they are applicable, be eligible to claim credit of tax paid on the opening stock held by him on such day i.e. the day on which his turnover exceeded one crore rupees.
(7) A dealer who has opted to pay tax under this scheme and has defaulted to furnish the returns for two consecutive tax periods by the prescribed due dates shall, with effect from the first day of the period immediately next to the latter tax period in respect of which the default has been committed-
(i) cease to be liable to pay tax under this scheme
(ii) be liable to pay tax under section 3 of the Act.
Such a dealer shall also, subject to the conditions contained in section 20 of the Act in so far as they applicable and further subject to furnishing the intimation in Form DM 02 with in seven days after the end of due date prescribed for filing of return for the latter tax period in respect of which the default has been committed, be eligible to claim credit of the tax paid under this Act on the opening stock held by him in Delhi on the first day of the period immediately next to the latter tax period in respect of which the default has been committed. |
General Conditions:
(1) All the provisions of the Act and the rules made thereunder which are not contrary to this scheme shall apply to every dealer opting to pay tax under the scheme.
(2) The tax period for the dealers opting to pay tax under this scheme shall be quarter unless otherwise prescribed by the Commissioner for a dealer or class of dealers.
(3) In case a dealer has opted for this scheme but has failed to comply with the conditions specified therein or who, at any later stage, is found not eligible for having opted the scheme, all the provisions of the Act including the liability to pay tax under section 3, along with interest due for delay, if any, shall apply mutatis mutandi as if the dealer has never opted for the composition scheme and the amount deposited by such dealer as the composition amount, if any, shall stand forfeited.
This notification shall come into force with effect from 1st April, 2006.
By order and in the name of
The Lt. Governor of the National
Capital Territory of Delhi,
(Daljit Singh)
DY. SECRETARY, FINANCE (T&E)
9911796707
