DELHI TAX COMPLIANCE ACHIEVEMENT SCHEME, 2013
HIGHLIGHTS & FAQs
Abbreviations used:
(i) DSC (or) Scheme : Delhi Tax Compliance Achievement Scheme/Voluntary VAT
Amnesty Scheme(VVAS)
(ii) DVAT Act : Delhi Value Added Tax Act, 2004
(iii) CST Act : Central Sales Tax Act, 1956
(iv) DST Act: Delhi Sales Tax Act, 1975
(v) WCT Act : Delhi Sales Tax on Works Contract Act, 1999
(vi) RTU Act: Delhi Sales Tax on Right to Use Goods Act, 2002
(vii) ET Act : Delhi Tax on Entry of Motor Vehicles into Local areas Act, 1994
(viii) VATO : Value Added Tax Officer and Sales Tax Officer
Notes - In this Paper -:
1. In this Paper, "Notice of Assessment/Penalty" under the DVAT Act has been considered
and titled as "Assessment Order"; and Objection as "Appeal".
2. In this paper, the term "declared tax" means amount disclosed/surrendered and
amount settled (where assessment order has been issued) under this Scheme. The term
"declarant" means the person, who has declared tax.
OBJECTIVE AND SCOPE OF THE SCHEME
A. Improve Self-Compliances:
Where assessment order has NOT been issued, the declarant (including trader,
manufacturer, contractor, builder, leasing company, etc.) shall pay only declared tax (for the period
up to 31.03.2013); and get immunity from interest, penalty and prosecution. Circumstances, such
as,-
(i) Dealer failed to obtain registration and pay tax;
(ii) Rate of tax has been wrongly charged by the selling dealer;
(iii) Sale has not been disclosed/under-disclosed in the DVAT / CST Act
(iv) Input tax credit (ITC) has wrongly been claimed by the purchasing dealer;
(v) Credit Note/Debit Note, including bulk discounts, have not been accounted for.
(vi) Central sale has been stated as local sale or vice a versa, resulting in tax deficiency;
(vii) In case of central sales against Form C or other declaration forms, the declarant is not
expecting central declaration forms from purchasing dealers;
(viii) Matter is pending in assessment, audit or special audit and the assessment order has
not been framed by VATO;
Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
(ix) Goods, paper and other accounts are seized by enforcement team, in inspection, survey,
search or seizure, carried before 31.3.2013 or for period upto 31.03.2013, where the
declarant expects some tax deficiency;
(x) TDS has not been deducted u/s 36A of the DVAT Act;
B. Disputes Settlement
Where the assessment order has been issued by the Department, the declarant shall
pay tax and interest as stated in such order/notice.
The order must pertain to a period before and up to 31.3.2013, and tax has not been
paid up to 31.8.2013.
The assessment order might be issued under the DVAT Act, CST Act, DST Act, WC Act,
RTU Act, or ET Act.
The dispute may or may not be pending before any higher forum including the DVAT
Tribunal or the High Court or the Supreme Court.
The declarant is eligible even if no appeal has been filed against that order so far.
The declarant will get immunity from payment of interest from the date of order till
the date of declaration, penalty and prosecution under the Act.
IMPORTANT DATES & PERIODS
12.09.2013 Enactment of section 107 of the DVAT Act empowering the Government to
introduce this Scheme
20.09.2013 Date of Notification of the Scheme and its coming it into force
Up to 31.03.2013 Eligibility: Period for which tax dues might be declared or paid
31.08.2013 Eligibility: Tax dues up to 31.3.2103 has not been paid or only partly paid by
31.08.2013
31.01.2014 Last date of payment of at least 50% of declared tax and filing of declaration
in Form DSC-1 under this Scheme
21.03.2014 Last date of payment of remaining amount of declared tax, if any
COMPUTATION OF TAX DUES
S.N. Nature of Tax Dues Procedure of Calculation
1 Other than Works Contractors: Commodity wise taxable turnover in the tax
Dealers, whether registered or period in respect of which declaration to be made
not, under the DVAT Act or the CST (X)
Act on whom assessment order has
Rate of tax applicable for that tax period
not been served by VATO
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
S.N. Nature of Tax Dues Procedure of Calculation
2 Works Contractors: Dealers, (a) Works contractors engaged in construction,
whether registered or not, under of complex, building, etc., for sale to a buyer
the DVAT Act or the CST Act on before construction is complete, where
whom assessment order has not value of land is included in total
been served by VATO consideration: @1% of total consideration
(including labour & services);
(b) Other works contractors, including the
dealers stated at Sl. No. (a), who opt to
exclude the value of land as per Rule 3 of the
DVAT Rules; @ 3% of total turnover
(including value of labour and services).
3 Dealers registered under the DVAT As stated at Sl. No. 1 or 2, as the case may be
Act or the CST Act on whom
assessment order has been served
on certain issues, but declaring tax
dues on different issues
4 Dealers including works contractors, Aggregate of amount of tax and interest stated in
registered under the DVAT Act, CST the assessment order (exclude penalty, if any)
Act DST Act, WC Act, RTU Act or ET (less)
Act on whom assessment order has
Amount already paid by the dealer towards the
been served
said demand.
5 Persons required to deduct tax at 3% of total sum paid or credited by the person
source u/s 36A of the DVAT Act for discharge of any liability for the execution of
(TDS) works contract or the amount actually deducted,
whichever is greater
(less)
Amount already deposited towards such discharge
Manner of calculation of tax dues by the works contractor, being the builders:
Transactions of builders may be divided in two parts: -
(i) Activity carried by the builder for the land owner, that is, determination of value of
works contract for the land-owner where consideration has been received by the
builder in the form of land : Here the value of land shall be determined as per newly
inserted Rule 3(1A) of the DVAT Rules;
(ii) Activity carried on by the builder for the intended buyer (booking of property/unit
before completion of construction by the builder): Builder has two options, namely -
(a) Pay tax @1% of total consideration, including the value of land, receivable/
received from the intended buyer; or
(b) Pay tax @ 3% of total turnover (including value of labour and services) as reduced
by the value of land determined in accordance with the recently amended Rule
3(3) & (4) of the DVAT Rules.
The Government has amended Rule 3 of the DVAT Rules vide Notification No.
F.3(16)Fin(Rev-I)/2013-14/ds VI/785 effective from 20.09.2013. This Rule facilitates the
works contractor to determine his taxable turnover.
Adjustment of input tax credit from declared tax dues
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
The input tax credit cannot be adjusted against payment of tax dues under VVAS.
Accordingly, entire tax dues under the Scheme shall be paid in cash through the normal e-
payment method.
Adjustment of `excess tax credit' or `carry forward amount' from declared tax dues
There are no provisions for such adjustment and, thus, entire amount shall be paid by the
declarant in cash. He shall not be entitled to adjust his carry forward amount as per the
Returns, if any. For example, a declarant, who has carry forward amount of Rs. 10 lacs as
on the date of declaration, declares the amount of tax dues of Rs.12 lacs under this
Scheme. In such a case, he shall pay entire Rs.12 lacs in cash, without adjusting the carry
forward amount of Rs.10 lacs.
PROCEDURE OF MAKING DECLARATION
1. Compute the amount of tax dues in accordance with preceding Paras;
2. If not registered under the DVAT Act (either as a dealer with TIN allotment or as a TDS
deductor with TAN allotment), obtain registration. Also pay tax and file returns for the
period after 1.4.2013 along with the declaration in DSC-1;
3. Where declaration is made in relation to the tax dues against which objection/appeal/
revision is pending before the higher forum, then-
i. all statutory appeals/revisions pending before quasi-judicial forums up to the stage of
Tribunal shall be deemed to have been withdrawn once the Scheme is opted for;
ii. all matters pending in the High Court and Supreme Court shall be withdrawn by the
declarant, and the declarant shall submit the copy of the application filed before the
Court for withdrawal along with Form DSC-1;
4. Fill the declaration in Form DSC-1 on the web-site of the Department;
5. Pay at least 50% of amount of declared tax dues through Challan online. It may be
noted that declarant may pay even the entire amount of tax dues at this stage;
6. File hard copy of Form DSC-1 along with Challan to the designated authority on or
before 31.1.2014;
7. The designated authority shall suo-moto issue the acknowledgement in Form DSC-2
within a period of 15 working days from the date of receipt of the declaration. If it is not
received, then designated authority may be contacted;
8. Pay remaining (unpaid) amount of tax dues through Challan online on or before the
21.3.2014;
9. Submit proof of such payment along with a copy of acknowledgement in DSC-2 (already
received at Step No. 7) to the designated authority;
10. Obtain Form DSC-3 from the designated authority: On furnishing the details of full
payment of declared tax dues, the designated authority shall issue an acknowledgement
of discharge of such dues within 15 days in Form DSC-3;
11. A declaration made under this Scheme shall become conclusive upon issuance of Form
DSC-3 by the designated authority.
12. Amount paid under this Scheme will not be refunded under any circumstances;
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
13. If fails to pay the tax dues, either fully or in part, after making declaration, such balance
dues along with interest thereon shall be recovered under the provisions of DVAT Act.
IMMUNITIES UNDER THE SCHEME
A. Immunities, where assessment order has NOT been issued:
Immunity from interest in relation to declared tax
Immunity from penalty in relation to declared tax
Immunity from prosecution
Immunity from any other proceedings in relation to declared tax
If not already registered under the Act:-
Immunity from penalty of late registration
Immunity from interest for late payment of tax for the period after 1.4.2013
Immunity for late filing of returns for the period after 1.4.2013
A declaration made under this Scheme shall become conclusive upon issuance of Form
DSC-3, and no matter shall be reopened/reassessed/reviewed thereafter in any
proceedings under this Scheme or the Act before any Authority or Court relating to the
period covered by such declaration to the extent of tax dues declared by the declarant;
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.
B. Immunities, where assessment order has been issued:
Immunity from interest in relation to declared tax for the period after issuance of
assessment order till the date of declaration
Immunity from prosecution
Immunity from penalty or any other proceedings in relation to declared tax
C. No Immunities under this Scheme:
Interest stated in the assessment order
Interest and penalty not related to declared tax
Penalty which has no relation to tax deficiency. For example, where penalty has been
imposed for late filing of Returns or other documents or for non-maintenance of stock
records, etc, such cases would not be covered within the scope of VVAS.
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
FALSE DECLARATION
Where the Commissioner has reasons to believe that the declaration was false in material
particular, he may serve notice on the declarant, within one year from the date of declaration, in
respect of such declaration. He may require the declarant to show cause why he should not be
required to pay the tax dues unpaid or short-paid as per provisions of the Scheme.
If the Commissioner is satisfied that the declaration made by the declarant was
substantially false, then benefit of this Scheme shall not available to the declarant. Such declarant
may be proceeded u/s 89(2) of the Act for furnishing of false declaration.
MISCELLANEOUS
DSC/VVAS introduced by the Delhi Government is certainly an innovative and futuristic Scheme. It
would increase the number-base of the dealers registered with the DVAT Department; and help in
reducing existing disputes/litigations. Inspite of few issues already discussed, it is a welcome move.
Disclaimer:
This paper is an attempt to answer the frequent queries in a simple language. However, for authentic
legal interpretation please refer to the scheme Notified vide No. F.3(16)Fin(Rev-I)/2013-14/ds VI/786
dated 20.09.2013
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
FREQUENTLY ASKED QUESTIONS
Enforcement Survey
Q1. What is the procedure for evaluating the amount to be paid wherein
enforcement survey/seizure of goods/ papers have been made or where the
notice of audit has been issued?
If the dealer wants the estimated tax dues to be evaluated he may contact the
helpdesk under supervision of Sh. C. Arvind, Additional
Commissioner (T & T). Tel. No. 011-23705434; email -
actt.amnesty.scheme@gmail.com
Q2 In case of survey cases where default assessment is pending, and where advance
cheque has been collected by the enforcement team at the time of survey and
encashed; can such advance payment be adjusted from the amount of tax
deficiency stated by the team in its report? If yes, where the amount of advance
tax is more than the tax dues, can that excess payment be carry forward by the
declarant and adjusted from his future tax liability?
Yes, the advance tax collection can be adjusted by the declarant from his tax
dues. Any excess payment can also be adjusted from his future VAT liability.
However, he shall file the relevant details along with the DSC-1.
Also, what about the case where the dealer admits his tax liability and deposits
the same within 3 days of the survey?
It would not be applicable since section 87(6) was inserted w.e.f. 1.4.2013; and
the amnesty scheme covers the tax dues upto 31.3.2013.
Assessment/Audit/Special Audit
Q3. Since dealers can declare under the VVAS upto 31 st January, 2014, whether
assessment / audit / special audit / objection/ appeal / recovery proceedings of
the Department will continue during the period of VVAS i.e. upto 31.01.2014 ?
Yes. There is no guarantee that the dealer will opt for VVAS and hence, the
Department will continue with assessment / audit / special audit / objection/
appeal / recovery proceedings in the normal course and if the proceedings all
completed then the dealer will need to pay the assessed tax with interest.
Hence, it is in the interest of the dealer to declare and avail the benefit under
VVAS at the earliest and in any case on or before 31.01.2014.
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
Q4. If the notice of assessment has been issued and the dealer is not disputing the
tax and interest and has already paid the same what would be the procedure for
claiming benefit of waiver of penalty under Amnesty Scheme?
The dealer can file DSC-1, along with proof of payment of tax and interest, to
avail the benefit.
Q5. Can VVAS be applied for part of the assessment order/notice of assessment?
No. Under VVAS, the dealer would be required to pay the entire assessed tax and
interest.
Q6. There are instances of more than one rate of tax for the same/similar goods
depending on sale value or other differentiation. Can we get an illustrative list of
goods with more than one rate of tax?
To ascertain the rate of tax on goods, the dealers are advised to refer section 4,
section 6 and the Schedules appended to the Delhi Value Added Tax Act, 2004.
An illustrative list of goods with more than one rate of tax is given below:-
Sl. Commodity Rate of Tax Rate of Tax
No.
1. Watches Costing upto Rs. 5000 Costing above Rs. 5000
12.5% 20%
2. Printers Normal Printers - 5% Multi-functional
printers 12.5%
3. Garments Costing upto Rs. 5000 Costing above Rs. 5000
5% 12.5%
4. Foot wears Costing upto Rs. 500 Costing above Rs. 500
Exempt 12.5%
5. Hardware and Hardware 5% Sanitary fittings and
Sanitary Goods goods 12.5%
6. Paper & Board Normal paper & board Coated paper and
5% board 12.5%
7. Mobile phones Costing upto Rs. 10000 Costing above Rs.
5% 10000 12.5%
8. Electric cables Cables having cross Industrial cables i.e.
section area of the core Cables having cross
from 0.5 to 6.0 sq. section area of the core
millimeter 12.5% above 6.0 sq.
millimeter 5%
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
Q7. Where an Audit notice has been issued to the dealers; and the dealer wants to
pay tax dues under VVAS, what would be the procedure for dropping/withdrawal
of such notice?
The dealer could estimate the deficit tax, which has led to issuance of the audit
notice, and pay the same along with DSC 1. Alternatively, the dealer may contact
help desk to ascertain his estimated tax dues on payment of which his audit is
unlikely to be pursued, unless some other aspect which is substantially adverse
comes to notice, and pay the same with DSC 1.
Q 8. Can a dealer pay a single/ consolidated amount against his estimated tax dues in
context of his tax dues for the multi-year audit or multi-year special audit
ordered against it; or otherwise?
Yes, the declarant can pay tax dues through single challan and file one DSC-1 for
the consolidated amount. However, the declarant shall furnish tax period wise
details of tax dues along with DSC-1.
Returns
Q9. If a dealer has defaulted in filing return and has paid tax late what will be the
procedure for applying under Amnesty Scheme and return filing?
The dealer should file online return as per the normal procedure and apply in
DSC1 separately for availing waiver of interest and penalty relating to the tax
deficiency only. The dealer will, however, have to pay tax first, along with proof
of the same, to claim the benefit under Amnesty scheme.
Objection/Appeal
Q10. Where objection or Appeal has been partly allowed and case has been
remanded, what would be the procedure for VVAS?
The dealer will have to get the remanded case assessed and then avail benefit
under the Scheme on the basis of revised order. He may contact the concerned
Zonal Additional/ Joint Commissioner to get the remanded order passed at the
earliest.
Q11. Appeal filed before the High Court and Supreme Court cannot be withdrawn
unless DSC-3 is issued. And it would not be possible to withdraw appeal before
acceptance of VVAS. Can revised guidelines be issued in this regard?
After the declarant dealer has paid the full tax and interest, as applicable, under
the VVAS, the Department will issue a letter of intent of issuing DSC-3. After
dealer files copy of application of withdrawal of Court case, the Department will
issue DSC-3. However, this DSC-3 will get confirmed only when the case is finally
withdrawn.
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
Q12. In case of remand assessment, the interest is levied upto the date of remand
order. Suppose the total demand of a dealer is 2 lacs; and the OHA has granted
partial relief of 10,000/ and remitted the matter to the AC(VAT) for the
remaining part of the assessment order. However, in remand assessment, to
claim the benefit of this 10,000/-; the dealer might have to pay additional
interest of 30,000/- (i.e. on remaining tax: from the date of original order till
the date of remand order). In such a case, can the declarant pay tax dues as per
the original assessment order, without getting the remand assessment done as
directed by the OHA?
Once the remand assessment order is passed, the original order gets merged in
the remanded order and loses its identity; therefore, declarant shall pay tax dues
stated in the remand assessment order.
However, where the objection is partly allowed but remand assessment has not
been framed till the date of declaration, the declarant can pay tax dues as per
the original assessment order, provided the declarant pays full tax and interest
as per earlier assessment order and not a part of it.
Penalty
Q13. Where tax and interest have been admitted, and paid; however, penalty is under
challenge: Can VVAS be applied for amount of penalty in relation to such tax? If
yes, how DSC-1 to be filed since nothing would be payable?
Yes, the dealer can file DSC-1, along with proof of payment of tax and interest, to
avail the benefit.
Q14. Where amount of tax and interest is Rs. 10,000/- and penalty is Rs. 5,000/-. The
dealer has already paid Rs.12,000/-. How would DSC-1 be filled since there is
excess payment of Rs.2,000/-?
The penalty paid/ partly paid prior to the date of notification of the Scheme will
not be allowed to be adjusted. The amnesty benefit would be available only for
the balance of penalty.
Q15. Whether the amount paid towards the stay of demand of penalty can be
adjusted towards tax dues? For example, assessment is made for an amount of
tax and interest for 10,000/-; and for penalty - 5,000/-. The dealer deposited
stay amount of 2,000/- towards tax; and 1,000/- towards penalty. How much
amount would be deposited by the declarant under VVAS?
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
The declarant shall pay 7,000/- [10,000/ (-) 2,000/ (-) 1,000/] under VVAS; and
get immunity from payment of penalty of 5,000/-.
Registration
Q.16 a) Whether a dealer, whose registration has been cancelled due to any reasons,
has neither deposited tax nor furnished return after cancellation, can opt for
the amnesty scheme simply by paying the tax dues under the scheme?
b) Will there be any difference if the objection/appeal against the cancellation
order is pending?
c) If yes, what will be the procedure?
No. There is no provision of summary disposal of restoration application under
amnesty scheme. The restoration process has to be through objection only.
Moreover, suo-motto cancellation of registration is done in rare cases due to
serious violation. Thus, summarily restoring all such cases in amnesty scheme
without going into merits may not be possible. However, the dealer can avail of
the amnesty scheme as unregistered dealer during the period of cancellation.
The dealer is not expected to file the returns for the unregistered period as far as
Amnesty scheme is concerned till he gets a new registration or his earlier
registration is restored.
Q17. Can an unregistered dealer/contractee, who has discontinued his business
before 31st March 2013, pay tax dues under VVAS without getting registration
under the Act (to avoid registration, and then its cancellation)?
Yes, he can pay tax dues under this Scheme. However, where the dealer claims
that he is not liable to pay tax under the Act from 1 st April 2013 upto the date of
declaration, he shall file an affidavit in this regard along with DSC-1. In the
affidavit the dealer/ contractee shall indicate his date of liability (date on which
his business activities started) and the date on which he ceased to be a dealer/
contractee.
Preparation of DSC-1
Q18. Whether period of turnover, to which tax dues relates, would be disclosed in
DSC-1 by the declarant?
Yes; so that the dealer can be given the benefit of declaration for that period.
Q19. The Builder, if opts to pay tax @3%, would claim deduction for land from GTO.
Will he be required to furnish year wise computation of turnover along with DSC-
1?
Yes.
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
Q20. A dealer pays tax under VVAS for the period from 1.4.2009. Would he be
summoned for non-declaration of tax dues for the period before 1.4.2009?
DSC-1 will discharge the dealer of his liabilities for the period/year for which it is
filed. As per proviso to Section 34 (1) (b) of the DVAT Act, 2004, the
Commissioner can examine non-declaration of tax dues upto six years.
Works Contract/Builder
Q21. A contractee opts for VVAS and pays tax of 3% after obtaining registration. He is
not required to file TDS return for the period upto 31.03.2013. His immediate
contractor has also not filed his return.
- Since the language of explanation to clause 3(5) is not clear, whether
contractor would get immunity from payment of tax, apart from interest and
penalty?
- What would be the procedure to disclose the name of the contractor by the
contractee, so that contractor could get immunity from tax, etc.?
Yes. If one of the parties either contractee or contractor avails the Scheme and
pays 3% tax, then both the parties will get immunity from interest and penalty
for the particular contract/ part of contract. The contractee has to file the return
as per the provisions of the DVAT Act & Rules wherein the name of contractor
has to be filled up.
Q22. It has been stated in the VVAS that double taxation has been avoided in works
contract transaction. Where the contractee has failed to deduct TDS, but his
contractor has paid due taxes and filed returns as prescribed, will the contractee
get immunity under this scheme? If yes, what will be the procedure?
Yes, the contractee can get immunity under the VVAS. For this purpose, he shall
file DSC-1 along with copy of all returns filed by his contractor along with Form
2B of the contractor. The contractee shall get immunity only of that turnover
amount, which is stated by the contractor in Form 2B of his DVAT Return against
that contractee. If the contractee does not have TAN under the Act, he shall first
obtain TAN under the Act.
Q23. Please explain calculation of tax in case of collaboration agreement.
LO = LAND OWNER, BD = BUILDER DEVELOPER, IP = INTENDING PURCHASER
LO entered into a Collaboration Agreement with the BD, for a property. The BD
constructs four floors - two would belong to the LO and two to the BD.
1) BD would also pay a sum of 150 to the LO (area of plot being 200 sq. yds, the
size of original plot)
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Description Turnover Tax RateTax under
() (%) Amnesty ()
(2) (3) & FAQs (4)
Highlights of Delhi Tax Compliance Achievement Scheme, 2013
A Tax on works contract carried by BD for LO (for
two flats)
(a) Actual value of construction 47.5
(b) Circle Rate of construction 47.5
(not given; assumed at 47.5)
47.5* 3 1.425
(c) Circle Rate of Land Amount paid to LO =
195 150 = 45 (Highest
(Circle Rate of land assumed at 195 for 50% of (a), (b),
share of land): or (c))
Notes:
- It is assumed that separate conveyance deed
for land has neither been executed between
LO and BD nor between BD and PB
(If separate conveyance deed signed, then
value is ascertainable from the same)
- Tax shall be payable minimum at circle rate
of construction.
*It is presumed that 47.5 comprises of cost
of materials and labour and the profit earned
on construction.
B Tax on works contract carried by BD for IP
B.1 Two Flats sold during completion of
construction
Step I. Calculate value of Proportionate
Share of Land transferred to BD
(a) Amount paid by the BD to LO (+) Value of
construction for LO as per (A): 150/- (+)47.5
= 197.5
(b) If (a) is not applicable: then circle rate of
Land 195/-
Step II. Calculate value of construction (Sale
Value Value of Land) (Sale Deed is 300/-)
(a) If method I.(a) is adopted then 300 102.5 3 3.075
197.5 = 102.5/-
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Highlights of Delhi Tax Compliance Achievement Scheme, 2013 & FAQs
In case where the land cost cannot be
ascertained by above method then it will be
calculated on the basis of circle rate of land.
B.2 Alternatively (OR)
Pay tax @1% on 300 300 1 3
C Total Tax Tax on works contract as
calculated in (A) + tax on works
contract as calculated in (B)
In case the actual cost of construction or actual cost of land is not ascertainable from the
book of accounts, circle rates for construction or land shall be taken into account to
calculate the VAT liability.
1) Total cost of construction for the entire property is 95 i.e. 47.5 for the
portion of the LO & 47.5 for the BD's share.
2) Total cost for the BD for his share comes to 150 plus 95 i.e. 245.
3) BD sells his share for 300.
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