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Dear Professional Colleagues,

Delhi VAT Amnesty Scheme closing by 31st January, 2014

Pursuant to the power conferred by Section 107 of the Delhi Value Added Tax Act, 2004 (“the Act”or “DVAT”), the Lt. Governor of National Capital Territory of Delhi, in the interest of general public provides for the Delhi Tax Compliance Achievement Scheme, 2013 (“the Scheme”), subject to fulfilling the eligibility conditions and compliance procedures as specified in the Notification No.F.3(16)/Fin.(Rev-I)/2013-14/dsVI/786 dated the September 20,2013 (“the Notification”)

The Scheme is aimed at encouraging both registered and unregistered dealers to voluntarily disclose their outstanding tax dues from April 1, 2005 to March 31, 2013 but not paid or partly paid till the August 31, 2013 without interest, penalty and other proceedings in terms of the Clause 5 of the Scheme. The overview of the Scheme is as follows:

1. Any person who makes a declaration of the tax dues under the DVAT or Central Sales Tax Act, 1956 or the erstwhile Delhi Sales Tax Act, 1975 or the Delhi Sales Tax on Works Contract Act, 1999 or the Delhi Sales Tax on Right to Use Goods Act, 2002 or the Delhi Tax on Entry of Motor Vehicles into Local Areas Act, 1994 (collectively termed as “the Acts”) whichever is relevant, shall be “the Declarant” under the Scheme. The Declarant shall also include –

2. In relation to the Declarant being a contractee, who has awarded the works contract under section 36A(1) of the Act, his  immediate contractor to whom he has  awarded  the  works  contract,  to  the  extent  of  amount  declared  by  the contractee; and

3. In relation to the Declarant being a contractor, his immediate contractee who has awarded the works contract under section 36A (1) of the Act.

Where the tax dues are:

i. Tax  due  or  payable  by  the  dealers,  registered  or  required  to  be registered, under the Act or the Central Sales Tax Act, 1956 (“CST Act”) for the period from April 1, 2005 to March 31, 2013 but not paid or partly paid till August 31, 2013.

ii. Tax due and payable under the Acts for the period prior to April 1, 2005 but not paid or partly paid till August 31, 2013.

iii. Tax due and payable by a person who is liable to deduct tax at source under section 36A of the Act for the period April 1, 2005 to March 31, 2013 but not paid or partly paid till August 31, 2013.

It is pertinent to note the following in respect of the tax dues-

1. “Tax dues” includes the amount of tax assessed in terms of notice of assessment or assessment order issued under DVAT or any of the Acts,   whether pending in objection/revision before the objection hearing authority (OHA) or in appeal/revision before appellate authority/Tribunal or any higher court, including writ petition and special leave petition.

2. Where a notice of assessment or assessment order has been issued to a person in respect of some default(s), the term “tax dues” shall also include tax dues relating to default(s) not covered in the notice of assessment or assessment order for the same tax period.

3. The Scheme does not cover cases of notice of assessment of penalty issued under DVAT or any of the Acts and without having any relation to tax deficiency.

4. Prior to filing of declaration, dealer shall obtain registration / person responsible for making deduction of tax, shall obtain a Tax Deduction Account Number (TAN), if unregistered.

5. The Declarant shall pay 50% of "admitted tax dues" by January 31, 2014 and the balance 50% of admitted tax dues by March 21, 2014.

6. Where the Declarant fails to pay the tax dues, either fully or in part, as declared by him, such tax dues along with interest thereon shall be recoverable under the provisions of the Act.

7. No refund of tax paid under the Scheme.

8. The Declarant shall make a declaration of the tax dues to the officer(s) not below the rank of Joint Commissioner as notified by the Commissioner, Value Added Tax for the purposes of this Scheme (“the designated authority”) on or before January 31, 2014 in Form DSC-1, which will be acknowledged within fifteen working days in Form DSC-2. And once all the tax dues are paid and requisite documents are submitted in this regard then the designated authority will issue an acknowledgement of discharge to the Declarant in Form DSC-3 as per the Clause 4 of the Scheme

9. Where the Commissioner has reasons to believe that the declaration was false in material particulars, he may, for reasons to be recorded in writing, maximum within one year from date of declaration, serve notice on the Declarant as to why he should  not  be  required  to  pay  the  tax  dues  unpaid  or  short-paid  as  per  the provisions of the Scheme.

10. Further, the  information  gathered  vide  a  declaration  under  the  Scheme  shall  be  kept confidential and shall not be used except under the Scheme and the same shall not be shared with any other person/ Government department/ agency.

11. All statutory appeals/ revisions pending before quasi-judicial forums upto the stage of Tribunal shall be deemed to have been withdrawn once the Scheme is opted. Further, all matters pending in the High Court and Supreme Court shall be withdrawn by the Declarant and for the case to be withdrawn before the Court, an application for withdrawal along with the declaration needs to be filed by the Declarant.

Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us.

Bimal Jain

FCA, FCS, LLB, B.Com (Hons)

F-30/31/32, Pankaj Grand Plaza

1st Floor, Mayur Vihar, Phase–I,

Delhi – 110091 (India)


Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document should be distributed or copied (except for personal, non-commercial use) without our written permission.


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Bimal Jain
Category VAT   Report

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