Treatment of subsidy on LPG in sale price and VAT - No. F.5(25)/ Policy-II/VAT/Misc. Amend./2008/89-101 - Delhi Value Added Tax

Treatment of subsidy on LPG in sale price and VAT

(EXTRAORDINARY)

GOVERNMENT OF NATIONALCAPITALTERRITORY OF DELHI

DEPARTMENT OF TRADE & TAXES

VYAPAR BHAWAN, I.P. ESTATE: NEW DELHI-02

No. F.5(25)/ Policy-II/VAT/Misc. Amend./2008/89-101

Dated 07-06-2008

NOTIFICATION

In exercise of powers conferred under Sub-Section (3) of Section 70 of the Delhi Value Added Tax Act, 2004, I Archna Arora, Commissioner, Trade & Taxes, do hereby clarify that the subsidy of Rs. 40/- per 14.2 kg domestic cylinder of LPG or Rs. 2.82/kg for other packages for domestic use only by the Government of NCT of Delhi shall not form part of the sale price as this subsidy would be provided by the State Government and the entire benefit of such subsidy will pass on to the consumers and such subsidy would be reduced from the basic price and such reduced price would be construed as sale price for the purpose of calculation of Value Added Tax (VAT).

It is, further, clarified that while filing returns, the Oil companies shall adjust the subsidy amount as mentioned above so calculated on their Sales of domestic LPG in NCT of Delhi against the VAT payable to the Government of the sales of the company and the difference between tax payable by the company in accordance to the provisions of the Act and amount of tax paid by the company shall not be termed as tax deficiency due to adjustment of such subsidy since the subsidy amount shall be credited to the Department by the Food & Supplies Department, Government of NCT of Delhi.

This shall be effective with immediate effect.

(Archna Arora)

Commissioner, Value Added Tax

No. F.5(25)/ Policy-Il/VAT/Misc. Amend./2008/89- 101

Dated 07-06-2008

Copy forwarded for information and necessary action to:

I. The Pr. Secretary (GAD), Government of NCT of Delhi with one spare copy for its publication in Delhi Gazette Part-IV (extraordinary) in today's date.

2. The Pr. Secretary (Finance), Govt. of NCT of Delhi, Delhi Secretariat, I.P. Estate, New Delhi

3. The Secretary to Finance Minister, Government of NCT of Delhi, Delhi Sachivalaya, I.P. Estate, New Delhi.

I.P. Estate, New Delhi.

5. The Commissioner, Food & Supplies, GNCT of Delhi, K-Block, Vikas Bhawan, New Delhi.

6. The Registrar, Value Added Tax Appellate Tribunal, Vyapar Bhawan, I.P. Estate, New Delhi.

7. All VAT Officers, Department of Trade and Taxes, Government of NCT of Delhi, Vyapar Bhawan, I.P. Estate, New Delhi.

8. Guard File.

9. Web site.

10. IOC/HPCL/BPCL

(Rajender Kumar)

VATO(Policy), Value Added Tax