Following the directions of lieutenant-Governor Najeeb Jung, the Delhi Cabinet has approved a proposal “the Delhi Value Added Tax (third amendment Bill 2016” once again.
After the Cabinet’s approval, the Bill would be sent to the l-G for approval. Once approved, it would be reintroduced in the Delhi Assembly, top sources told The Pioneer.
The proposed Bill gives power to VAT Department to impose tax on imported items. The Bill also withdrew its previous amendment that gives policing powers to VAT officer to prosecute offenders/defaulters. It has also proposed maximum punishment from six month to two years for violation of the VAT Act.
According to Act, the VAT officer can lodge case and file chargesheet under the Delhi VAT Act. They cannot now prosecute defaulters under IPC.
“The Government’s notification may specify the goods on which a person shall pay tax in advance at the rates notified by the Government but not exceeding the rates applicable on such goods under this Act, when he imports such goods into the Delhi from a place outside India, subject to such conditions as may be specified in the notification. The aforesaid payment of tax in advance should be counted towards the final tax liability of the taxable person,” the Bill said.
Officials said the person who imports goods into the NCT Delhi should pay tax in advance, on the presumption that such goods are meant for the purpose of sale or for use in manufacture or processing of goods meant for the purpose of sale or for use in manufacture or processing of goods meant for sale unless it is proved otherwise by such person.
The existing Act has provisions of imprisonment of six month but now the amendment has proposed three year imprisonment for violation of tax valued over Rs 1crore. “All records, books of accounts, registers and other documents, maintained by a dealer, transporter or operator of a warehouse shall, at all reasonable times, be open to inspection by the Commissioner,” the proposal said.
Earlier, the Bill was returned back to the Delhi Government as it has not prior approval from the l-G.
According to sources, following the directions of the l-G, the Delhi Government has withdrawn section 92 sub section (3) which say while investigating any offence under this Act, the officer so authorised should be competent to investigate any offence under the IPC 1860 commission of which forms a part of the same transaction. The previous Bill authorised policing power to VAT officers. This means VAT officials can arrest any businessmen found violating payment of tax and provisions of VAT Act. “There should be norms to check records and what should VAT officials do during raids against erring traders,” said insiders.