Delhi VAT Amnesty Scheme Closing by 31st January, 2014

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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 – 
·      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
·       In relation to the
Declarant being a contractor, his immediate contractee who has awarded the
works contract under section 36A (1) of the Act. 
2.    Where the tax dues are 
·     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. 
·       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. 
·        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- 
·   “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. 
·     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. 
·        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. 
3.   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. 
4.   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. 
5.   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. 
6.   No refund of tax paid under the
Scheme. 
7.  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. 
8.   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. 
9.   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. 
10.  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.

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