lieutenant-Governor Najeeb Jung has given nod to ‘the Delhi Value Added Tax (Amendments) Bill 2016’ which empowers the Delhi Government to charge Value Added Tax in advance on specific goods which are imported into the national Capital.
As per the Bill, 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 Bill is likely to be tabled in the two days session of Delhi Assembly.
In a message to the Government, the l-G said, “Consider amendments in the Bill so as to limit it to the provisions where the legislative Assembly of NCT of Delhi has the legislative competence under Article 239 AA of the Constitution.”
After the Delhi Cabinet effected certain changes in the proposed Bill, the same was sent to the l-G for his approval before it could again be tabled in the House. The Bill proposes that any businessmen dealing with non taxable items will no longer be required to have registration with the Trade and Taxes Department.
The Bill gives ample powers to VAT Department to impose tax on imported items. If the Bill becomes an Act, any person who imports goods in to the city will have to pay tax in advance on the presumption that the same are meant for the purpose of sale or for use in manufacture or processing, unless it is proved otherwise by such person.
The proposed Bill said the Government may by notification in the official gazette require any dealer or class of dealers to install such physical compliance devises or software, as may be considered necessary for instantaneous communication of the information of sale invoices to the VAT Commissioner.
It said the cost of equipment and installation of the devise and software, as may be required, shall be borne by the dealer. The proposed amendment in section 29 will also facilitate the dealers in filing the returns through digital signatures or other electronic options, thereby dispensing with the requirement of filing Form DVAT 56 in person to the department.
The revised Bill has, however, withdrawn its previous amendment that proposed policing powers to VAT officer to prosecute offenders/defaulters. It had also proposed increase in maximum punishment from six month to two years for violation of the VAT Act. According to the Delhi Act, the VAT officer can lodge case and file chargesheet under the Act.
They cannot now prosecute defaulters under IPC.
After the Bill was returned back to the Government, the Delhi Cabinet had proposed withdrawal of Section 92 sub section (3) which says 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 Cabinet is also said to have decided that 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).
Earlier, the Government had got the proposed amendment Bill passed by the House without seeking any prior approval of the l-G.
The lt Governor had returned the Bill to the Government on the ground that his recommendations had not been obtained in terms of Section 22 of the Government of NCT Act, 1991 before it was tabled in the House.