Any businessmen dealing with non taxable items and having turnover exceeding Rs20 lakh will now not be required to have registration with Trade and Taxes Department (VAT Department).
The Delhi Government has also decided to withdraw a proposal to increase penalty provision to two years from six months imprisonment. The Delhi Cabinet on Monday approved a proposal to amend “the Delhi Value Added Tax (third amendment) Bill 2016” once again, top sources told The Pioneer. The move came after mounting pressure from traders’ wing and also the Government wanted to give an impression that its policies are not anti-traders.
The Cabinet has decided to do away with Sections 18 and 89 of the DVAT Act. The section 18 of DVAT talks about mandatory registration of non taxable items and having business turn over Rs20 lakh and above.
The Section 89 of DVAT Act deals with penalties and offence in case of default. The amendment has provisions to reduce penalty from two years to six months for VAT defaulters.
The Delhi Government in April has approved certain amendments in the VAT Bill 2016 that increases penalty from six months to two years. Acceding to the demands of the traders, the Government has again decided to keep the penalty provision up to six month for tax defaulters. After the Cabinet’s approval, the Bill would be sent to the lieutenant-Governor for approval.
Once approved, it would be reintroduced in the Delhi Assembly. These amendments are the part of the “the Delhi Value Added Tax (third amendment) Bill 2016”, which was returned to the Delhi Government by the lieutenant-Governor with riders that prior approval was not taken on the Bill.