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    Delhi Value Added Tax Act

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    Dheeraj
    The document defines key terms used in the Delhi Value Added Tax Act, 2004. It defines a dealer as any person who buys or sells goods in Delhi directly or indirectly as part of their business. It defines capital goods as plant, machinery, and equipment used directly or indirectly for trade, manufacturing or works contracts in Delhi. It notes the distinction between capital goods and capital assets, with the latter being a broader term. Input tax is defined as the proportion of the price paid by the buyer that represents tax charged by the selling dealer. Net tax means the amount calculated for a tax period under section 11 of the Act.

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    Delhi Value Added Tax Act

    Uploaded by

    Dheeraj
    27 views3 pages
    The document defines key terms used in the Delhi Value Added Tax Act, 2004. It defines a dealer as any person who buys or sells goods in Delhi directly or indirectly as part of their business. It defines capital goods as plant, machinery, and equipment used directly or indirectly for trade, manufacturing or works contracts in Delhi. It notes the distinction between capital goods and capital assets, with the latter being a broader term. Input tax is defined as the proportion of the price paid by the buyer that represents tax charged by the selling dealer. Net tax means the amount calculated for a tax period under section 11 of the Act.

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    DELHI VALUE ADDED TAX ACT

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    The document defines key terms used in the Delhi Value Added Tax Act, 2004. It defines a dealer as any person who buys or sells goods in Delhi directly or indirectly as part of their business. It defines capital goods as plant, machinery, and equipment used directly or indirectly for trade, manufacturing or works contracts in Delhi. It notes the distinction between capital goods and capital assets, with the latter being a broader term. Input tax is defined as the proportion of the price paid by the buyer that represents tax charged by the selling dealer. Net tax means the amount calculated for a tax period under section 11 of the Act.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    27 views3 pages

    Delhi Value Added Tax Act

    Uploaded by

    Dheeraj
    The document defines key terms used in the Delhi Value Added Tax Act, 2004. It defines a dealer as any person who buys or sells goods in Delhi directly or indirectly as part of their business. It defines capital goods as plant, machinery, and equipment used directly or indirectly for trade, manufacturing or works contracts in Delhi. It notes the distinction between capital goods and capital assets, with the latter being a broader term. Input tax is defined as the proportion of the price paid by the buyer that represents tax charged by the selling dealer. Net tax means the amount calculated for a tax period under section 11 of the Act.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    ADVISORY

    ON

    DELHI VALUE ADDED TAX ACT, 2004

    DEFINITIONS:
    1. Dealer: means any person who, for the purpose of or consequential to his
    engagement in or in connection with or incidental to or in the course of his
    business, buys or sells goods in Delhi directly or otherwise, whether for
    cash or for deferred payment or for commission, remuneration or other
    valuable consideration and includes, -
    (i) a factor, commission agent, broker, del credere agent or any other
    mercantile agent by whatsoever name called, who for the purpose of
    or consequential to his engagement in or in connection with or
    incidental to or in the course of the business, buys or sells or supplies
    or distributes any goods on behalf of any principal or principals
    whether disclosed or not;
    (ii) a non-resident dealer or as the case may be, an agent, residing in the
    State of a non-resident dealer, who buys or sells goods in Delhi for
    the purpose of or consequential to his engagement in or in
    connection with or incidental to or in the course of the business;
    (iii) a local branch of a firm or a company or association of persons,
    outside Delhi where such firm company, association of persons is a
    dealer under any other sub-clause of this definition;
    (iv) a club, association, society, trust, or cooperative society, whether
    incorporated or unincorporated, which buys goods from or sells
    goods to its members for price, fee or subscription, whether or not in
    the course of business ;
    (v) an auctioneer, who sells or auctions goods whether acting as an
    agent or otherwise or, who organizes the sale of goods or conducts
    the auction of goods whether or not he has the authority to sell the
    goods to sell the goods belonging to any principal, whether disclosed
    or not and whether the offer of the intending purchaser is accepted
    by him or by the principal or a nominee of the principal ;
    (vi) a casual trader ;
    (vii) any person who, for the purpose of or consequential to his
    engagement in or in connection with or incidental to or in the course
    of his business disposes of any goods as unclaimed or confiscated, or
    as unserviceable or scrap, surplus, old, obsolete or as discarded
    material or waste products by way of sale.

    2. Capital Goods: [Section 2(1)(f) of the DVAT Act]


    “Capital goods” means plant, machinery and equipment used, directly or
    indirectly, in the process of trade or manufacturing or for execution of
    works contract in Delhi.

    Capital Assets vs. Capital Goods: It is important to observe that the DVAT
    Act has defined the term “capital goods” and not “capital assets”. “Capital
    assets” is a wider term and covers all capital goods which are used for the
    purpose of business, and therefore, will include those capital goods which
    are not included in the definition of “capital goods”, e.g., furniture, motor
    vehicles, etc. Whenever under the DVAT Act, the legislature has used the
    term “capital assets”, its intention is to enlarge the scope. When, the term
    “capital asset” is used in the definition of business under section 2(1) (d),
    the intention is to cover sale of all capital assets. Therefore, for the purpose
    of the DVAT Act, we can say that the term “capital assets” is genesis and
    the term “capital goods” is its specie.
    3. Input Tax: in relation to the purchase of goods, means the proportion of the
    price paid by the buyer for the goods which represent tax for which the
    selling dealer is liable under this Act.
    4. Net Tax: means the amount calculated for a tax period under section 11 of
    this Act.

    1. Purchase Bills:
    (i) Name of the party.
    (ii)

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