GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI

FINANCE (REVENUE I) DEPARTMENT

DELHI SACHIVALAYA, I.P. ESTATE, NEW DELHI-110002

No.F.3(29)/Fin(Rev-I)/2015-2016/dsvi/93

dated 18/03/2016

NOTIFICATION No.F.3(29)/Fin(Rev-I)/2015-2016

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 for 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 whose  turnover during  the  preceding year as well  as  the  expected turnover  during  the current  year  does  not exceed fifty lakh rupees and  who is not making any sales other than that of ready to eat foods and non-alcoholic beverages including cooked food, snacks, sweets, savouries, juices, aerated drinks,  tea and coffee  etc. served in or catered indoors or outdoors by hotels,  restaurants, sweet-stalls, sweet shops, clubs, caterers  and any other eating houses:

Provided that the condition of  turnover  during preceding year shall not apply to a dealer who  commences his business during the current year.

Five percent of the entire turn-over(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 be 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 be eligible to claim tax credit under  section 9 of the Act;

(d) not calculate his net tax under section 11 of the  Act;

(e) not collect any amount by way of tax under the  Act;

(f) not be entitled to issue  `Tax Invoices’; and

(g) 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) A dealer who is paying tax under section 3  of the Act, can opt for payment of tax under this scheme by filing an application in Form RH 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.

(3) A dealer applying for a fresh registration can also opt for this scheme by filing application in Form  RH 01 appended  to  this  notification alongwith his registration application in Form DVAT 04.

(4)  A dealer opting to pay tax under this scheme shall pay tax, at the rates specified in section 4 of the Act, on the value of the opening stock held by him on the first day from which he opts for this scheme and shall furnish the details of such opening stock in Form RH 02 appended to this notification along with

proof of payment of due tax in Form DVAT 20, with his application in Form RH 01.

(5) Once a dealer has opted to pay tax under this scheme,  he shall, except under the circumstances described at Sl. No. (6) below,  not  be  eligible  to withdraw his option before the end of the year for which opted to pay tax under this scheme.

(6) 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 RH 03  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.

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)  In view of the second proviso to sub-section (1) of section 16 of the Act a dealer who has already opted for composition scheme as per sub-sections (1) to (11) of section 16 and who is covered under the class of dealers described in coloumn 1 of the above table, shall mandatorily withdraw from the composition scheme with effect from 1st April, 2016 by filing application in Form DVAT 03 upto 30th  April, 2016. However, such dealers can opt for composition under this scheme as per the procedure explained above.

(4)  Notwithstanding anything contained in this notification, the Commissioner may notify, by a special or general order, that any or all of the forms appended to this notification shall be filed online.

(5) Tax paid by a dealer under this scheme shall not be adjusted at any stage against the liability of the dealer to pay tax under section 3 of the Act for any period other than the period for which the dealer was eligible for paying tax under this scheme.

(6)  If the turnover of a dealer who opted to pay tax under this scheme exceeds fifty lakh rupees at any time during the year for which so opted, he shall be liable to pay tax under section 3 of the Act on and from the date his turnover exceeds fifty lakh rupees and he shall, 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 RH 03  within seven days from the date on which turnover exceeded fifty lakh rupees, be entitled to claim credit of the input tax paid on opening stock held by him in Delhi on such day.

(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 tax 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, 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 RH 03 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 the tax paid under this Act on the opening stock held by him in Delhi on the first day of the tax period immediately next to the latter tax period in respect of which the default has been committed.

(8)  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 this 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 this scheme.

This notification shall come into force with effect from the 1st day of April,2016.

Download Form RH 01, Form RH 02, Form RH 03

By order and in the name of the

Lt. Governor of the National Capital Territory of Delhi,

(A. K. Singh)

(Dy. Secretary, Finance (VI)

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