Silent Features on Delhi Value Added (Amendment) Bill, 2013
Amendment in Section 2 (e)
Definition of Business Premises earlier includes the
(i) Address of Dealer , registered with Vat Department
(ii) Any Place used by person for conduct of business, except principally used for residence
Now, the definition is being enlarged to includes the
(i) Place from where a dealer carries on business through agent and
(ii) Warehouse, godown or such other place where a dealer stores his goods.
Clause 2(m) defines the goods which means every kind of movable goods (other than newspaper, actionable claims, stock, shares and securities). Clause (ii) specified that goods shall also includes property in goods involved in execution of work contract , lease , or hire purchase or those to be used in the fitting out, improvement or repair of movable goods.
Now, the amendment had inserted word “immovable goods” along with the word “Movable” goods.
Major changes brought by amendment seeks to provide :-
(a) In any return period, a dealer can either carry forward the excess tax credit or may claim the same as refund. Thus, dealer can’t go for part of excess credit claiming as refund and part of the tax claiming as carried forward to next year.
(b) Earlier , Tax credit could have been carried forward to any next years without any limitation and can be claimed as refund subsequently. Now, Tax credit can be claimed carry forward to any quarter period during the current financial Year only. Thus, no tax can be carried forward to next financial year henceforth.
(c) Any tax credit lying to the credit at the end of year needs to be claimed as
Till now, the Commissioner was having authority to require security for
(a) Registration of Dealer
(b) Continuance of registration Certificate
(c) Proper realization of taxes, composition money or other dues etc
(d) Condition for making refund u/s 38
Now, the commissioner may also require security as condition of de-sealing or release u/s 60(4).
Till now, the law provides that commissioner may not enforce payment of “amount in dispute” until the objection is resolved.
Now, after the amendment, the commissioner may not enforce the payment ,in respect of which condition , if any provided u/s 74(Entertainment of Objection) i.e., stay order, has been complied by the dealer, till the objection is disposed off by the commissioner.
The Law required every dealer to maintain sufficient record to allow Commissioner to readily ascertain the amount of tax due under the Act. Now, the amendment provides for the same to be prepared, maintained and retained at principal place of business, as recorded in registration certificate.
Further, the amendment had provided that the dealers maintaining computerized books , should have the software able to provide soft as well hard copies of records at the principal place of business.
Further, The dealer had been allowed to maintain and retain soft copies of record , meaning thereby that hard copies are necessary to be generated in routine.
Presently, the Law provides that the Commissioner at any stage of proceedings under the Act, the commissioner , having regard to –i) Nature and complexity of business of dealer and ii) Interest of revenue, may direct the dealer to have Special Audit by the CA, empanelled with Vat Department .
The Present Amendment had gone for providing enhanced powers to commissioner . The commissioner may direct the dealer for special audit having regard to :-
a) Nature and complexity of business of dealer, or
b) Interest of Revenue , or
c) Volume of accounts, or
d) Doubts about correctness of accounts, or
e) Multiplicity of transaction in accounts, or
f) Specialized nature of business activity, or
g) Non production of all books of accounts , or
h) Non filling of audit report u/s 49 of the act, or
i) Any other reason.
a) The amendment had changed the definition of “Tax Deficiency”, whereby “Tax Deficiency” means tax difference between “Tax properly payable” and
the amount of tax paid by the dealer.
b) Now, Tax deficiency shall be seen for each calendar month, instead of being calculated for returned period in past.
c) Demand assessed u/s 32 shall also be taken as “Tax Properly payable”.
d) If any tax payable is not paid within the period specified u/s 3(4) e.g,, by the 21st of next month, the same shall also amounts to tax deficiency.
The Government was earlier having power to alter the amount of penalty by notification. That Power had been withdrawn from now onward.
The Penalty prescribed for late filling of Amendment application, vide DVAT-7 was Rs.100/- per day subject to maximum of Rs.5,000/-. Now, the Penalty had been increased to Rs.500/- per day subject to maximum of Rs.10,000/-
The Penalty prescribed for late filling of Cancellation Application, vide DVAT-9 was Rs.100/- per day subject to maximum of Rs.5,000/-. Now, the Penalty had been increased to Rs.1,000/- per day subject to maximum of Rs.25,000/-
The Penalty prescribed for late filling of Return, Revised Return , any document required to be filled with return or to comply with any notification, shall be Rs.500/- per day subject to maximum of Rs.50,000/-.
Where the transporter carries any goods without documents or without proper and genuine documents or without being properly accounted for documents referred to in section 61(2) i.e, Trasnporter Goods Receipts Note , the Transporter was liable to penalty @ 40% of the value of goods. Now, the Penalty has been brought down to 20%.
Where Casual Dealers fails to furnish any return or any documents required to be annexed with return , the same shall be liable to penalty @ Rs.1,000/- per day subject to maximum of Rs.25,000/-. Earlier , the maximum penalty prescribed was Rs.10,000/-
Any person , who contravene any of the provisions of the act or any rules made there under, for which no penalty is separately provided under the Act, shall be liable to pay a penalty of Rs.10,000/-.
Till now, whoever fails without reasonable cause, to comply with requirements made on him under section 59 (Inspection of Records ) or obstruct any officer making inspection or search or seizure u/s 60 (Entering the Premises and seizure of record) or Section 61 (Stop, Search and detained Goods Vehicles) , was , on conviction, punishable with imprisonment for a term not exceeding six months.
Now, the Person shall also be liable to be punishable, where the person fails without reasonable cause, to comply with requirements made on him under section 58 (Audit) or Section 58A (Special Audit).
Notwithstanding anything contained in sub section (1) to (5) of section 89 , no person shall be proceeded under section 89(1) to 89(5) if the total amount involved is less than Rs.2,00,000/- during the period of a year.
Now, It has been further provided that no person shall be proceeded if the person has voluntarily discloses existence of tax deficiency under section 87(6).
A New section has been inserted after section 106, which provides that Government may notification in official gazette , notify amnesty scheme(s) covering payment of tax, interest, penalty or any other dues under the Act. , relating to any period ending before 01.04.2013, covering period of limitation, rate of taxes, tax, interest, penalty, or any other dues payable by class of dealers, or class of dealers or all dealers.