CA Vinod Kaushik
The Delhi Govt. is regularly amending various rules and forms to make the law simple and user friendly. In last 2-3 months a series of notifications and circulars have been issued which are very important to understand. In this comprehensive article one such notification has been decoded and their impacts on next quarterly return have been discussed.
Amendment in form DVAT-16:-
Purchase of Diesel & Petrol taxable in the hands of various Oil Marketing Companies in Delhi: – The above said change has been made in form DVAT-16 so that the dealers or retail outlets of various oil marketing company can pay normal taxes like any other dealer. Earlier when the oil marketing companies were discharging their VAT liability on full MRP at which diesel or petrol is to be sold to ultimate customers then the retail outlets were not required to pay vat on value addition or commission whatsoever. Now retail outlets will book input tax credit like a normal dealer and will pay taxes on value addition.
Introduction of Annexure 1E:-
In the DVAT return after annexure ID, the annexure 1E has to be inserted which will capture the information and details of sales made by various fulfillment centers of E-Commerce companies. As we know that E-Commerce companies are required to report the sales details of various fulfillment centers in form EC-II and EC-III now annexure 1E will be used to cross check the sales information reported by both the parties. The above said change would be applicable from the 3rd quarter return of tax year 2015-16 and a separate 1E has to be filed for each e-commerce company with their unique enrolment id.
Updating of Returns:-
In Annexure 1, in field AI, in the title row of the table, in second column, for the words, symbols and figures “Rate of tax (1, 5, 12.5,20) %”, the words and figure “Rate of tax applicable as per section 4” shall be substituted. In Annexure 1, in field A3, in the title row of the table, in second column, for the .words, symbols and figures “Rate of tax (1, 5,12.5,20) %”, the words and figure “Rate of tax applicable as per section 4” shall be substituted:- The above said change has been made because the rate of tax has been increased in last year in case of diesel from 12.50% to 16.67% and in case of petrol from 20% to 25%. Now there are multiple rates of taxes in Delhi VAT ranging from 1% to 25% as per the provisions of section 4.
Updating of Annexure:-
In Annexure-2A and Annexure-2A (1), the column 23 shall be omitted and the columns 24 to 31 shall be renumbered as columns 23 t030; and in Annexure-2B, column 30 shall be omitted Amendment of Form DVAT 30. In the principal Rules, in the Forms appended thereto, in Form DVAT 30, column 23 shall be omitted and columns 24 to 31 shall be renumbered as columns 23 to 30. Amendment of Form DVAT -31:- In the principal Rules, in the Forms appended thereto, in Form DVAT 31, column 30 shall be omitted:- The changes has been made to delete provisions related to sale of petrol and diesel by various oil marketing companies and now the retail outlets can book input on purchase and file return normally.
The regular notification and circulars by Delhi VAT department are important to understand and an attempt is being made continuously to curb the wrongdoing by certain class of dealers. The craze of e-commerce is on its high level with the possible chances of tax evasion by fulfillment centers. The introduction of return in form EC-II and EC-III and now form 1E is also a move to crackdown on erring dealers.
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