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 class or 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, namely :-
TABLE
(a) not purchase goods from a person who is not registered under the Act;
(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;
(2) The dealer applying for a fresh registration can opt for this scheme by filing an application in Form BU 01 appended to this notification along with their registration application in Form DVAT 04. A dealer who is paying tax under section 3 of the Act, shall opt this scheme by filing an application in Form BU 01 appended to this notification within a period of thirty days
(i) from the first day of the year for which composition is opted.
(ii) from the day of coming into force of this notification in case the scheme is opted for the remaining period of the year 2006-07.
(3)(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.
(b) The dealer, in view of (a) above, shall furnish, along with his application for opting the scheme, the proof of payment, in Form DVAT 20, of tax due as per the calculations reflected in Part B of the Form BU 01.
(4) A dealer who, having opted to pay tax under this scheme for a particular year, does not intend to pay 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 intimation in Form BU 02 appended to this notification within a period of thirty days from the first day of the said following year, be eligible for claiming credit of the tax paid under the Act on the opening stock held by him on the first day of the said following year.
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 a quarter unless otherwise prescribed by the Commissioner for a dealer or class of dealers.
(3) 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 cease to remain a composition dealer 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 and such dealer shall also, subject to the conditions contained in section 20 of the Act in so far as they are applicable and further subject to furnishing the intimation in Form BU 02 within 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 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.
(4) 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 of the Act, 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 the 1st day of May, 2006.