CA Vinod Kaushik

CA Vinod Kaushik

DVAT (IST) Amendment Bill, 2016 passed by Delhi Assembly on 13-06-2016

Insertion of section 3(11): This new section has been inserted to collect advance tax from importers at the time of import. The liability to pay tax has been fastened from point of sale to point of import. Notification in this regard shall be issued by Department which will outline the items, condition, exemption and rate of advance tax on such items. The advance tax paid under this notification shall be adjusted with at the time of making final tax liability by the dealers. If the importer of goods in Delhi proves that these goods are not for sale, not for manufacturing or processing for goods meant for sale in Delhi than advance tax shall not be collected. Further if the importer of goods does not prove otherwise it will be presumed that these goods are not sold below price at which they are imported.

Insertion of section 29(2):The signing of returns by digital signature has been legalized earlier the Department made it mandatory to file return by using digital signature from IVth quarter of 2015-16 but later the notification was extended and made applicable from first quarter of 2016-2017.

Insertion of Section 50A: Communication of information of sale invoice instantly by installing such physical device or software as notified by the Government. The objective of this provision is to ensure that dealers do not manipulate the sales data afterwards. In the proposed GST regime, business organization will submit their sales data to Govt. invoice wise. The only concern is to ensure hassle free website and these provisions must be prescribed for big dealers.

Amendment of section 86(10): By amending this section Govt. has reduced the minimum amount of penalty from ten thousand to one thousand. This amount of penalty was very harsh for small dealers where tax deficiency was say 500 the amount of penalty was minimum ten thousand.

Insertion of Section 91A: The proposal for insertion of new section 91A is to make enabling provisions for setting up of Special Courts for speedy trials of the offences. The provisions once notified will empower Govt. to setup such courts after consultation with Chief justice of Delhi High Court.

Amendment of Section 92: The proposed amendment of section 92 aims to empower investigation under the Indian Penal Code, 1860 where commission of an offence under the Delhi Value Added Tax Act, 2004 required prosecution or otherwise. If Commissioner gives his approval for prosecution then authorised officer shall launch prosecution before Metropolitan Magistrate having jurisdiction over area.

Amendment of Section 93: The amendment in section 93 is to disallow compounding of offences to a habitual offender. Before amendment the defaulters could reach to Commissioner for compounding of offences again and again thereby avoiding prosecution of case.

Amendment of section 107: This section is basically amended to announce amnesty scheme at any time in future which will not necessitate amendment of Act at that time. In my personal view before introduction of GST amnesty scheme shall be announce in general for all class of dealers who are not paying taxes.

(Author can be reached at at [email protected], +91-9953236278)

 Disclaimer: Views expressed are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.

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September 2021