The Delhi Sales, Tax on Works Contract Act, 1999

DELHI GAZETTE : EXTRAORDINARY ‘Farah wat aft& rwns fe aie, eis fa wr ath& tsmeitne a yy fata aah een tf ’ reds, tol, Refs, stloers vorsn ,eT ” warm fata St are wt arate & cited Sar ta SrERTe Weea fa re fre eae at tesae ra oe area Ta Frat soeT | ER rae ai eds ae cine om, &, UR. PS! 3s, are eS sans @ dedfind ait sneer fea, (ave a NOTIFICATION xaftter ©) feet errns Dell, the 15th October, 1999 sre ore fei seers sea No. F, 14/22/95-99/L.A.367.—Tnte following Axi aan “ft softer rachinten, grater, age TM of Legislative Assembly received the assent of the LH aR A TAT FT] FRU aR & Hae Fe athe Goveronf oDerth i on 14-!0-{999 and is hereby publishes . aerated fase Frater, gaefufon, for general informatio aaeh atopy fine at a enti wear a Weer Capital Teisitory. 6 Delhi on, 10th September, 1999. eee BN A CT in the execution of works contract in the National Capit i aA carenaren faedre SRB at fen Territory of Delhi.” 4 t ataa d ae fercurgpasitss | _—_-Be it enactebdy the Legislative Assembly of, Nationat Capital Territory of Delhi in the Fiftieth year the Republic of ladia as follows :-— : ; CHAPTER Pr esa ge Seg oh far saa sees Protinitniary ain, fame Hist 20,000)--RARAeT e ~~ 5 os tte, Extent and Commencement -—( eet Gen are Prema ee BE arm i -This Act may be called the Deli Sates Tax on Wo argfir yeh efrw srefevs soot Hsia RT = Contracis’ Act, 1999!” (2) Itextends to the whole of the National Capi amt sraarra ime afra n erie ‘Tersitory of Delhi. a a1 io (3) 11 shal} come imo force on such date as te oh fei mak a a ee may, by notification in the official Gazenes Fret fag ard ariat arava a, ee are a 2. Definitions—(t) In this Act, unless the conead y onary aang he gE wearers A al eT otherwise requires ; ge era} stands war ne were Fan ee aa {a) “assessing aulhorily” means any pel rant fret fear aon wae Feg-A-e appointed by the Camntissioner of Sates T: yeaa fee oe, a fee Gar 30 Fewant aratae aT lo perform all or any of the functions ius aa # A cea a ere wt TA aw az assessing authority under this Act : : DELUI GAZETTE : EXTRAORDINARY. 9 “Commissioner means the person appointe d (q) “sule price” in relation to a transfer of property to be the Cantnissioner of Sales Tax under the in goods (whether as goods or in some other Delii Sales Tax Act, 1975 (43 of 1975); form) involved in the execution ofa works « contract in Delhi, means such amount as is “vonnautor” means any person who executes a atrived at by deducting from the amount of works contract and includes a sub-contractor; valuable considevation paid or payble to a “contractee” means any person for whom or for person for execution of such works contract, whose benefit a works coniractis executed, the amount ‘representing labour and service ie) “The Delisi Sates Tax Act” means the Delhi charges for such execution; Sales Tax Act, 1975 (43 of 1975); {1) “taxable turnover" means such turnover as is ) “gealcr” aneans any person, wha whether for arrived at after deducting from the turnover of valuable consideration, commission, sales such as may be prescrived;, remuneration os otherwise, transfer property in (9): “tax means the tax payable ustder this Act and goods (whethears goods orin some other form) includes a luswp sum amount by way of involved in the execution of works contract and composition payable in lieu of the amount of includes any State Governmenantd the Central tax; : Government which so trausfers such property () “turnover of sale” means the aggregate of the in goods, and any sotiety, eltb or association of persons which so itansiers the’ property in amount of sale price received or receivable by goods to its members; a a.dealer in respect of any transfer of property in goods itvolved in the execution of any works “declared goods” wieats gooas ideflifisedi a the contract whether executed fully or partly during Central Sales Tax Act, 1956 (14 of 1956); any period; “Delhi” means the National Capital “Fecritory (u) “works contract" includes any agreement for of Delhi; : carrying out for cash or for deferred payment “goods” means every kind of movable property or for any valuable consideration, the building in goods (whether as goods or in some other construction, manufacture, processing, fornt) inveved hi the execution of a works fabrication, erection, installation, fiting oul, contract; Y : improvement, sepair or commissioning of any “Government” means Lt. Governor as defined movable or immovable property; under Article 239 AA of Constitution; () “your? mean’ the financial year, "Lt. Governor’! Means LL. Governor of National Q) All words aad experssion used and notd efined Capital Terrirory of Delhi as appointed by ihe in this Act but defined in the Delhi Sales Tax Act, 1975 President under Article 239 of the Constitution; tshall have the meanings assigned-to them in that Act. person’. includes an’ individual, or body of : : CHAPTER HL jndividuals whether incorporated or not, a INCIDENCE AND LEVY OF TAK Hindu undivided family, a-firm,.a local 3. Incidence of Tax.—(}} Every dealer whose authority, a corporation, a- company body or “jumovér of sales during the year immediately preceding authority owned or set up by, or subject to the commencement of this Act exceeds: the taxable acintinistrative contract ef thc, Central quantum, shall be liable to pay tax under this Act on his Government or any State Govérnment (axable turnover of sales effected hy him on or after such (including the’ govertunentofa Union tertitory} commencement. or a cogperative society, whether registered or (2) Every dealer to wham sub-section (1) does not not; ‘ apply, shall, with’ effect from the date immediately “prescribed” means prescribed by niles; following (he day on which his tumover of 2) sales “registered dealer” means a dealer registered calculated form the commencement of any.ycar first exceeds, within such year, the taxable quantum, be liable under section 11; to pay tax under this Act on all sales effected by him “rules” means rules made under this Act; after that date. “sale” means a transfer of property in goods (3) Ever dealer who becomes liable to pay tex under (whether as goods or im some ather form) this Act, shall continue to be so liable unti) his registration invoted in the exeentian ofa works cantract in certificate is duly canectled, und upon such cancellation Delhi; aud the word “sell” with all its his flinbility to pay tax, otlier than lax already levied or grammatical variation and cognate expersions leviable, shall, until his turnover. of afl sales again first shall be contructed accordingly, exceeds the limit specified in sub-section (1), cease: DELHI GAZETTE : EXTRAORDINARY [Pane 10 Provi ded that where the dealer becomes liable topay (6) No tax shall be payable under this section z m tax again in the sdme year in Which he ceased to be liable the amount representing the value of the goods suppl as aloresaid, ther in respect of such sales as take place to the contractor by the contractee, provided thar af duving the period cGmmencing on the date of cessation of ownership of such goods remains with the contract liability (0 tax and, upto the time when his tumover ofall under the terms of the contract. sales does not exceed atch limit, no tax shall be payable. (4) For the purpose of this Act “taxable quantum” clause (q) of sub-section (1) of section 2, the contra means five lakh rupees, . does not maintain proper accounts or the acco! 4, Liability of Dealer——Surbject to the provisions — to be worthy of credencaned the amount actually inc wze di of this Act and the rules made-thereunder, a tax shall be i towards charges for iabour and other services and predaig levied on the taxable turnover of sales involving transfer 3 : c of o m pr m o e p n er c t e y d i n o g r o o c d o s n i t n i nu t e h d e e f x o e r c u e t x i e o c n u t o i f‘ o t n h e o w n o rk OF s af c i o e n r t ra t c h t e r as e c l er a t t ai i n n a t b g l o e , su s p u p ch l y ch o a f r ge l s a bo f u or r la a b n o d u r se a r nd v ic s e e s r vic a e re s 2 @ H sucli profit may, for the purposes of deductions, t commencement of this Act, whether such contract was entered 5 . in L t e o v y p rio o r f , T s a ub x s . e — q { u 1 e ) n t S t a o m s e u chi a s c p o r m o m v e i n de c d e me in n t. su b- of d e t t h e e r mi w n o e r d k s on c on t t he r ac b t a si a s s o m f a y s uc b h e pr p e e s r c c r e i n b ta e g d e ‘a o n f d t d h i e f fe v e e : i sections (2), (3), (4),'(5) and (6), every dealer shall file percentages may be prescribed for differenttypes of w contract, return and pay tax under this Act for caclt year on his taxable turnover of sales on transfer of propertiyn goods 6. Composition of Tax.—(1) Subject to (whether as goods oF in some other form) involved in the conditions and in such circumstances as may prescribed, the assessing authority of the area ma execution of works contract, in the manner as may be prescribed at the rate of eight paise on every Tupec of his uel turnover of sales. : (2) Tax shall be paid at the rate of four paise, on every rupees of his net turnover of sales pertaining to the contract or the Lotal aggregate value of the conta declared goods, if the goods have not suffered tax earlier, received or. receivable towards the execution of and not fax shall be payable-on the tmoyer.of sales pertaining to declared goods, if such goods have suffered contract, | tax enrtier under the Delhi Sales Tax Act and transferred front the contractor to the contractee in the same form in the umover relating to the amount paid to a sub-cono which they were purchased by the contractor. as consideration for the execution of works co whether wholly or party, subject to the production of (3) No tax shall be levied on the turnover eee (ransfer of properly in goods, specified in the Thir Schodule to the Delhi Sales Tax Act, involved in the registred dealer ijable 10 tax/payment of composiz tax under the Act as the ease may be, and thal the rumoxy e { x r e o c m ut t i h o e n co of n t w r or a k c s t ot c ro on the t r co a n ifc t r st a u c ,c t h e e- g i o n o ds th e ar s e a w in a e n s f f o e r r m r ed in of such amounts is included in the retuen of turnaver. by such sub-contractor and tax or the composition 2 which they were purchased by the contractor. case may be has been paid thereupon. (2) No such tax shall be leviable on the turnoyer of (3) Every dealer who clects to pay tax underi f o s r a le i s n s o o n me t - r o a t ns h f e e r r f of o rm p ro i p n e v r o t l y v ed i n i g n oo t d he s , ex w e h c e u t t h i e o r n o a5 f w g o o r o k d s s section shail apply in the prescribed form to the ass authority to be permitted to pay the amount of ta’ contract, if such transfer from the contractor to the sub-section (I) and, on being so permitted, ix; contactee constitutes a sales in the course of Inter-State trade or commesce under section 3 or a sale outside the prescribed manner and form, shall pay the same. | State under section 4 or a sale in the course of Import or 7. Deduction of Tax At Source.—(1) Every Export under section 5 of the Central Sales Tax Act, 1956. other than Individual and Hindu undivided 7 (5) No tax shall be, payable under this section o a responsip l e for making payment to any dealer (herex thé turnover of sales relating 1a tue amoult paid toa sub- in this section referred to as “the contractor") for dis contractor as consideration for the exccution of works o p f a ya a b n l y e l f i o a r b i t l h i e t y tr o a n n sf a er c c o o f u p n r t o pe of r ty va lu in a b g l o e o ds co ( ns w i h d e t contract whether whally or partly subject to thep roduction of proof, as may be prescribed, that such sub-contractor is goods or in some other form) in pursuance ofa com a registered dealer liable to tax under the Act and that the shall, at the time of credit of such sum to the acco turnover of such amount is included in the return of the contractor or at the time of making such payez the. contractor, either in cash or in any other h t a u s r no b v e e e r n f p i a l i e d d . by sueh ‘ sub-contractor and (ax thereupon deduct an amount equal to two per cent from s (6) Any duduction ‘made in accordance with the ie under this, Act <n account of total value of pravisious of this section and credited into the Government contract. treasury shall be treated as payment of tax on hebalfof the 1 Where, on 2b application being made by the person from whose bills or invoices the deduction has been made, and credit shall be given lo him for the aniount so. arin this behalf, the Commissioner is satisfied tat 4:5 contract involves both transfer of property in deducted on the production of the certificate, referrect to ani Jabour and service, or involves only labour and in sub-section (S) above, in the assessment made for the relevant assessinent year. and accourdingly, justifies deduction of tax on a Bet He suin in repect of the works contract or, as the (7) If any person as is referred to in sub-section (1) 2... be, justifies no deduction of tax, he shall, after or sub-section (2) or sub-section (3) fails to make the tr the contractor 4 reasonable opportunity of being - deduction or, after deducting fails to deposit the aniount cant him such cerlificate as may be appropriate: so deducted as required by sub-section (4), the assessing, authority may, after giving to sch person an opportunity Provided thal nothing in the said certificate shal] of being heard, by order in writing, direct that sucht person = tae assessment of the sales tax fiabifiry of the scior under this Act: shall pay, by way of penalty, a sum not exceeding twice the amount deductible under this section besides tax ovided further that where arly deduction has been duductible but not.so deducted and, if deducted, not so Spy a comractar front the payments madee hiss ub- déposited inta the Government treasury. actor in accordance sith sub-secti(o3n) the amounts payments shall be deducted from the.amount on (8) Without prejudice to the provisions of sub-section deduction is fo be made under this sub-section 2), if any person fails tomake deductionor,, after deducting. fails to deposit the amount so deducted, he shall be Jiable ‘0 production af acertificate as prescribed in sub- fo pay simple interest at the rate of hwo per cent per month 5) ofthis section. on the amount deductible under this section but not so 43) Any contractor responsible for making any deducted and, if deducted, not so deposited from the date ¢ or discharge of any liabitity to any sub- ‘on which such amount was deductible to the date on which B ico ctor, i pursuance of a contract with the sub- such payment is actually deposited, Erector, for the transfer of property in goods (whether (9) Where the amount has ot been deposited after “ods of in some other form) involved in the execution, aze wholly oF in part, or the work underlaken by the dediiction, such amatnt together with interest and penalty yall, at the tinie of such paymentor discharge, referred ta in sub-section’(7) and sulv-section (8) shall’be a charge upon all the assets of the person concerned and Bech of by cheque or draft or any other mode, deduct recoverable as arrears of land revenue. Eemount equal fo two per cent of such payment or CHAPTER II SSparge, purportintgo be part or full amouirit oF the tax st t e h e u b n i d ll e r o r th i i n s vo A i c c t e s o s n ais s e u d c h by, t ot ( a h } e s val u ue b-co o n f t r t a r c a t n o s r f e r as TAX CLEARAN A C C E C OU C N E T R S TI FICATE AND 8. Tax Clearance Certifieate—(1) Notwith- b P e r ov m i a d d e e d o t n h at the n e a d m u o c u u n c t ti on o n u w n h d i e c r h th d is e du s c ub t - i s o e n c ti h o a n s s b t e a i n n d g i ng i n an fo y r t c h e i , n g io c on p t e a r i s n o e n d s i h n al a l n y en o t t e h r e r i l n a t w o f a o n r y the w o t r i k m s e Sf e ndv bean made under sub-section (#) or sub-section contract-with any dealer for execution by him of such J exbjece (o production of @ certificate as prescribed in works contract and shall make payment to such dealer ction (5) of this section. for execution of works contract, unless the Commissioner cec ( t 4 i ) on T he ( 2) am or o u s n u t b -s d e u c d t u i c o t n e d (3) u n s d h e a r ll s b u e b -s d e e c p t o i s o i n t ed ( 1) i nt o o r certifies ( i) in ha t s h e no p re l s i c a r bi i l b i e t d y t m o an p n ay e r ta t x h , a t in s t u e c re h s t, d ea pe l n e a r l - t — y or Govecnment treasury by the person making such ‘any amount due or has not defaulted in lion b efure the expiry of fifteen days following, the fusnishing any return or returns together with th in wl hich such deduction is made jn the manner as the receipted challan or challans showing , be prescribed. payinent of all tax payable under this Act, (5) The person making such deduction under sub- (ii) h o a t s h er n w o i t se d ef p a a u y l a t b e l d e . in b y m o a r ki d n ue g f p r a o y m m en ti t m o u f nd t e a r x fon (1) or sub-section (2) ar sub-section (3) shall, at nave of payment or discharge, furnish to the deater this Act; n whose bills or mvaices such deduction is made a (iii) has made satisfactory provision for securing Fi ficate as may be prescribed in respect of the amount the payment of tax by furnishing bank ructed, the rafe at which it has been deducted and the guarantee in favour of the Commissioner or s of deposit into the treasury. otherwise, as the case may be; 2 pie is DG XTRAORDINARY _ [Pax (iv) tas made an underiaking ior getting himself (3) The provi sions of sec tion 18 of the Deily registered as dealer observing and complying Tex Act and Rules framed thereunder os regards secs provisions of this Act, if the contractor has Shall apply to a dealer under this Act motatis mung started the business of wansfer of property in (A) Af the aytherity, after such wquicy es ut od goods involved in exccution of works combact fit, is satisfied that an application for registration for first time in Delhi. order, it shall register the applicant und issue to (2) Wheré on application made by a dealer in the © cenificate af registration in the prescribed form, prescribed form, the Commissionér, after making such (5) The autho city may, after co nsiderin: enquiry as he deems ft aud proper, is satisfied and issues a d ea ce l r e t r i fi is c at n e o t in K a t b h l e e pr to e sc pa r y i be t d a x f u o n r d m e r to se th c e t io e n f fe 5 c t o t r h at t hat s uc h h e time, the cer tificate of r egistr ation. ” s has paid tax payable by, or due from him under that (6) ifany person, upon an application made b: seetion, or has undertaken to register itselfand ta comply h as been registered as a dealer, and thereafter it is fo the provisions of the Act and the Rules, payment may, that he ought n ot to have bee n so registered unde notwilhstanding anything contained in sub-section dh), provision s of this section, he shall be {iable 10 pay be made to such dealer for execution by hin of a works his sales mad¢ from the date on which his registr: contact referred in section 5 on production by his of certificate (ook affect until it is cancelled, notwithstar such certificate of the Commissioner. that he may not be liable-to pay tax under section (3) The application for the certificaterequired under (7) Where a registered ce aler discontinues , tra stih-section (1) shall be made by the contractor or dealer or otherwise disposes of his activity ofexecution of w to the Commissioner and shal! be in such form and shall contract or the carnover of sal es ofa registe red di contain such paniculars as may be prescribed. has, during any year, not excee ded the Jimils specifi {2) Information to be furnished for awarding a section 3 and on an application made (or cancellations works contract.—Any persan catering into any contract’ his registration certificate, the prescribed authority letter of intent with any contractor fot transfer of property ca.nthe cregeistrlati on with effect fram such date in goods (whether as goods, or in some other form) inny fix in accordance with the mites. ‘ involved in the execution of works contract shall furnish (8) Where ihe Commissianer is satisfied that within fifteen daysfrom the date of signingof the contract’ registered dealer has discontinued, transferred& lever of intent such informnation as may be preseribedl.to olltenvise disposed of the activity of execution of weal the assessing: authority under whose jurisdiction the contract and the dealer has failed to apply under ss contraztar's place of business issituated. Failuce t0 do so, section (6) for cancellation of registration, shall entail a penalty not exceeding five hundred rupees C ommissioner may, afier giving the dealer a reasons per day of default after affording such persona reasonable opportunily of being lieard, cancet the registration ¥ opporunity of being heard. effect from such dat e as he ma y Fix to b e the date 10, Accoutnts—(1) Fvery dealer liable to pay tax which the said activity has been discontinued, transfé under this Act, shall keep at his place of business @ Tuc or otherwise disposed of, as the case may be: 3 gecount in the mamier and form.as may be prescribed. Provided that the cancellation of certificate& xegistration on an application of the deales or otherwe (2) All other provisions relating 16 accounts, shall not affect the liability of the dealer to pay the inspection, senrch and seizure as preserited in ‘Delhi Sales (including any interest and penalty) due for any perk ‘fax Act shall apply mutatis mutandis. Wie upto the date of cancellation w hether suct lax (inclu CHAPTER TV any interest and penalty) is assessed before the date REGISTRATION, REFURNS AND PAYMENT OF canc ellation but remains unpaid, or i s assessed th ere: : TAX 12. Returns, payment of tax and interest.—E 11, Registration.—{1) No dealer shall, while being dealer registered under this Act shal} [ite retums and mca liable to pay tax under this Act, execute or continue to payment of tax and interest in the mannec.and form: execule a works contract, unless: he possesses a valid may be prescribed. j certificate of registration as provided by-this Act: i: CHAPTER V Provider that it shall be lawful for the dealer to INSPECTION, SEARCH, SUIZURE AND AN execute or continue to execute a warks cottradl ifthe dealer EVASION PROVISIONS has applied for registration within the prescribed time. 13. Power of entry, inspection and seizure (2) Every dealer required to possess acertificate of accounts and goods.—(]) An assessing authorily or registration shall apply in sueh manner and to such officer net below the rank of Inspector, authorised by authority as may be prescribed. Commissioner in this behalf with such conditions axa DELHI] GAZETTE : EXTRAORDINARY 3 may, be s pecified by che Commissioner. seize suc h accounts, registers ar documents of the dealer power as it may consider necessary and shall give the dealer, or in spect avs y the place of business ofa any olher person form whose custady such accounts, ny other place where it is believed registers or documents are scized a receipt for the same, such authority or offtcer that business is aud may retain the same in its custody for examination, meing done or accounts are being kept by such enquiry, prosceution or other legal action for a period dealer; not exceeding six months. qo direct such dealce to produce eccounts (5} The accaunts, registers or documents impounded ~ ragisters and documents zelating to his business ° under sub-section (2) or seized under sub-section (4) cauld activities for examinations; be retained even beyond a period of six months and \pto a maximum period of two years from the date of 9 inspect, the goods in the possession of the Gealer ot in the posession of any bady else an impounding or seizure, as the case may be, by such authority or officer, after having obtained permission in behalf of such dealer, wherever such gaods are. pinced; writing of the Commissioner or the Deputy Commissioner authorised by the Commissioner. y make search of such place including the (6} The assessing authority or any other officer not search of the gerson found there, where below the rank of assistant sales tax officer authorised by concealment of facts. relating to business is the Commissioner under sub-section (4) may seize any suspected: z goods liable ta tax, which are found in the possession of ‘o brealc open the doors of any premises or to a dealer or in the possession of any body else on behalf Sseeak open ery almirah, box, receptacle in of such dealer and which are not accounted for in his which any g90ds, accounts, registers or accounts, registers or doctiments maintained in the course documents of the dealer are suspected to be of his business; and a list of gaods so seized shall be kept, but access Co such prem ises, almirah, box prepared by sich authority or officer and a copy thereof or receptacle is denice shall be given to the dealeror any other person from whase to record the statement ofthe dealer or his custody such goods are seized. manager, ageat or servant or to lake extracts _ (7) Where itis not feasible io seize the accoulits, from any record and to put identification marks vegistess or documents nnder sub-section (4) or the goods on accounts, registers or documenantd son any under sub-section (6), the assessing authority orthe officer door, almirali, box or receptacle, concericd may serve on the owner or the person who is Explaiation—(1), There shall be a presumption in immediate possession o; control thereof an order that ect of goods, accounts registers or documents, he shallnot remove, part with or athenvise deal with them “ere found atany place af business of a deer adulrin g except with the previous permission of such authority or officer, which may, afier serving such order, take such spection oF search that they relate to his business steps as.may be decmed necessary under the Wats the contrary is proved by fim. circumstances. {2) The power under clauses (d) and (e) of sub- on (4) shalt be exercised by the Inspector in the (8) The assessing authority of the officer referred ence of any authority not below the rank of assistant to in sub-section (6) may, after having given the dealer an opportunity of being heard and after having held such sax officer. futher enquiry as it may consider fit, impose on him, for Me sts ce 3). d W b h e e f r o e re an a y a y ac a c s o s u e n s t s s i , n g re a g u i t st h e o r r s i ty or d or o c a u n m y e nt of s f ic a e r r e the possession of goods not accounted for, whether seized of noturder sut-section (6),a penalcy equalte the amount below the rank of assistant sales tax officer in any of five times of the tax leviable on such goods or thirty Eececding onder she Act such authority or-officer may, percent of the value of such goods, whichever is less, saagans to be recorded in writing, impound and retain and such authority or.olfcer may release the goods, if a vin its custody fora pertod nat exceeding six months, scized, on payment of the penalty impased or on hall give the dealer or any other person who has furnishing such security for the payment thereoafs it may EdJuced such accounts, registers or documents a receipt consider necessary. Be the s ane. (9) The asessing authority ar other officer as referred a: * (dy Whereas atthe time of inspeetion, the assessing to in sub-section (4), may require any person :— E yor any officer not below the rank of assistant fa) Who teansports of holds in custody any goods 45 tax officer authorised by the Commissioner in this of a dealer, to give any information in his alF has reason ¢o suspect that the dealer is attempting possession in sespect of such goads or to allow av m o a id i ne o r r , e v it a d m e a y, t ax for o r re is z s c o o n n s c e t a o li b n e g re h c is o rd ta e x d l i i n a bi w J r i i t t y i n i g n inspection thereof, as the case may be; and 06)99-4 14 DELI} GAZETTE | EXTRAORDINARY __ (Paarl ~ ~" ¢y) whe mai n t ains or has in his possession any (2) Where an offence under this section 4 accounts, registered or documents relating (0 committed with regar d to a business, ever y persuc. wa the business of a dealer, to produce such was responsible for the conducoft the business atthe accaunts, registers ordocuments for inspection. when the offence was commilied or who was answers! }4, Prosecution and Penalties under the Act— fos legal lapse in any mannebry his action or omis:Samg (1) Wheré any person— : shail be liabl1o ebe praceeded against and punished unde (a) liable to be registered under the Act fails to this section, a register bimself; or (3) Without prejudice to the provisions conta in sub-section (2), where an offence under this section's (b) r f e ai t l u s r n t o w f i il t e h i r n e tur t n h e or t - i p m a e y s ta t x i pu a l c a c t o e r d d in a g l on t g o w s i u t c h h committed by a firm or n company and ic is found the offence has been committed with the consent si . interest knowingly prepares or produces false accounts, registers ordocumoe: knnotwisng,ly .connivanee of or is attributable to any neglect. on sre fuimishes false returns in telation to his business, part of any partner of the Sire, or Chairman-Cumy Gt ntakes a false di s closure or averment in any Managing Director, Executive Director, Director of aa statement required (0 be recorded or in any Company, such Partner , Chairman -Cuny-Mani declaration required 10 be Gitled under this Act Oirector, Managing Director, Executive Director ar or the rules; or Director, shall be liable to be proceeded against anti pun ishe d under this section : (o) frauduavloiedsn otrelvadyes tax or deliberately conceals his tax léability in any manner, or (4) Any proceeding under this Act includins =e (@) Tails to pay the amount of any dentand zotice progecding of a ssessment, rens sessment, rectif ication & recovery olber than the praceeding for imposition a e n l d a ps a e d p s e i r n i c o e d t o h f e n r ot e cei J p es t s of t t an e si d x e m m a o n n d t hs n oti h c a e s penalty, sholl br carred an without prejudice to su by him; or 1 prosecution under tis section, a Explamation:—An offence uoder this clause (5) Ifa dealer fail s without r easonable c ause3B ] (e) f s d u h e l a l l l i l b p e a b r e y a m t d e e l e n y t e me d i i d s s r m e a t g o d a e b r , e d a s c a on no t t i i n c u e i ng o f o d f e f m e a nc n e d ; u nt o i r l c m un a o d d m e e p r l y t t h h i w e s i r t e A h u c n t d a e n r f y o , r of s s u h t c a h h l e l , c p o r i n f o n t v o r i a s v i e o o n n t s t h i e o r o n f p t o e h r i n s a l f a t A i c y lu t r e, i a s r f p e t r h e o v H r i i al e n g 10 imposition ofa penalty, not exceeding rupees werd (Q failsto make deduction of taxat sourorc, aefte r thousand and where sirch con travention or failure % + deducting fails @ deposit amount so deducted ag required under section 6; c fi o v n e t i h n u u n i d n r g e d o ne d , u ri t n o g 9 the dail p y e r p i e o n d a l o t f y th n e o t co e n x t c i e n e u d a i n n c g e ru of pe t s h s e} (@) prevents or obstructs in any manner the contravention or faifure provided that no such penarge competent officerunder the Act, toenter, juspect shall be imposed without affording the dealer a and search the business placoer any ollterplace ~ opportunity of Being heard, ‘ 9 where the goods or the accounts, registers and. 18.Investigntion of offeucés.—-(1) Subjecto stoz documentasre believed to be kept, ar pravenis conditions as may be prescribed, the Conimissioner may} or obstructs such officer to seize the geads or authorise either generally or in respect of a particurm| he agcounts, registers und documents; or (h) enters into works contrat with any contractor c an a se a ss o i F s t c a l n a t s s s a a f le c s a s a e x s , of a f n i y c er o ff l i o c er i nv n e o s t t ig b a e t l e o w all d ic o r r a a n n y k . «iy withaur oblaining from the contractor a-tax the offence s ponishab le under this Ac t clearance certificate under section 7 of the Act; 2) Every oilicer so authorissehadl , in the conan is 10 furnish information as réquired under of such investigation, exercise afl powers conferred quetion B of the Act; _Mhils to maintain vegounes in de mannee as the Code of Criminal Pracedure, 1973 (2 of 1974) upam an officer- in-ocfah paolricge seta tion for the investigesi required under section 10 of the'Act; ofa cognizable offenc e, 3 (k) aids or abéts any pétson in the comnuissian of any such offence ax aforesaid; CHAPTERVI ‘on a complanit being made’ against such person by tic Certain Provisions of-the Delhi Sales Taxt Act a af s i s i e c s e s r i ng ha a v u i ll n t g o rit o y b t o a f i ne th d e g s r a e n a c ti or o n a ny f . r a o t m i er the c om D p e e p t u e i n y t 16, Authorities A u p g p d l e i r c ab t l h e e Delhi Sales ‘Tay Conmmissione" having jurisdictsihoalnl ,on conviction by empowered to assess; réassuss, ele. fax under a Merropolitan Magistyare, having jurisdiction, be Act—(1) Subject to the Aber provisions of this Asi punishable with simple imprisonment for a term which the rules made thereunder, the authorities for the tug inay, extend:to six, nowths and with fine not exceeding being empowiered to assess, rea ssess, collect and enioes cupees twenty thousand, payment of any tax under t he Delhi Sales Tax Act ass: DELHI] GAZETTE : EXTRAORDINARY 15 se arsess, collect and enforce payment of tax including the session’in which iLis $0 laid or the session immediately Fac; interest or penalty payable by a dealer under this Act following, the Legislative Assembly agrees in making any Hae i the tax or interest a1 penalty payalsle by sucha dealer modification in the rule or the Legislative Assembly agrecs that the rule should not be made and notifies such dec Sander this Act isa (ax ov interest arpenaity payable under in te Official Gazette, the rule shall form te date of “ga Deli Sales Tax Act and for this purpose they may Sexercizeall arnny of the powers they have under the Delhi publication of such notification have effect only in sucks E Sues Tax Act, and the provisions of the Delhi Salas Tax hodified form or be of no effect, as the case may be; so. however, iat any such modification or anquiment shill AXE, re ic i a t ti i on n , g lo c o r l e l w e u c m t s i , o n, n ot r i e c g e i s s , t r a a s t s i e o s n sm o e f nt, an r y e - d a e s a s l e e s r s in ti e a n b t l , e be withoutprejudicc to the validity of onything previonsty i oay tax under this Act, imposition of he tax liability of foac or omitted to be done wader that rate, Far firm of Hindu undivided family 10 pay 1ax in the event 18, Power to remove difficuky:—-aInfy difficulty he dissolution af swelt firm or partition of such family, arises in giving effect to the provisions of this Act, the fal mode of recavery of lax, appeals, revisions, Government inay, by order published in the official Ereterericus, refunds Gnes, penalties, charging or payment Guzzelte, inake such provisions, not inconsistent with the d the Ireatment of documents furnished by provisions of this Act as appear to it lo he necessnyy or expedient for removing the difficulty: Provided that no such arder'shall be made after the (2) All the provisio ns refatinig to offences and expiry ofa period oFtwo years from the date of publication Hceaalties (including provisions relating to penslcy in Siew of this Act in the official Gazette € grosecution foran offence or in addition to the penalties RT,L, DY SOUZA, Under Secy. ighnsent for an offence) of th e Dejhi Sales Tak “gt shall mutatis mulandis, apply an relation to the Jpecosgmnenn, re-nssessment, collection and the enforcement é¢ payinenl of the tax required to be collected under this rin relation to any process connected with such sment, re-nssessment. collection or reforcement of ‘G as mon t as if the tax payab le unde r this Act were the W S er a te t a fr e a sre Cum e a A ) EL & T F E i T 2r T ( H aa ) tas payable under the Delhi Saics Tax Act. * Be CHAPTER VIL Miscellanious and Rules 12, Power fo make mules —(1) The Government make mifes generally t0 carry out dhe purposes of is Act (2) In particular and without. prejudice to the <acvality of the Faregaing power, such rules may be made vide far all or any of the matiers expressly required He allowed by this Act to be preseribed by rules MG) inmaking any cules the Gaverummaye ndirtec t es: 9 brea ch thereof shall be punishable with fine not eceevling twenty thousand rupees, and wlien the offence EE: contiming ons, with daily fine nor exceeding five adred rupees during the contiquance of such offence. powers conferred under rules 2 (1) Rules made under this secti on shall be subject Treasury Rules (Vol-I) the LY Governoro,f National Baa: che condition of previous publication: it Provided that if the Government is satisfied that ercumstances so exist which render It necessary to take Hirocnediate action, it may dispense with the condition of ‘ious publication of any rules to be made tnder this ($) Every culemade under this sectionshalble laid, from vime to time, “ 25 sownas may We alter HAS: spate, nelo re the Leglaive Wy expe t r h e a n W d a t i n o t n h h e n Ca a p m i e t al o f the LA Vertinghy of DENG a qh r i i n d wy y d W ay D s E wh ich i m h ay e b as e W c a o S m e p S r T i h s e e N d LO i T n B en A e C K s A e L s E s T i O on S , o r WX. GUPTA, Dy, Sey Bin wo successive sesstons, and if, ‘before the expiry of Tinted by the Manager, Govt. of India Press, Hing Koad, Mayap' ew Danicsones tnd Published by the Contrcliet of cao, Delhi 11954.