The Delhi Sales Tax Act, 1975

(1) This Act may be called the Delhi Sales TaxAct, 1975. (2) It extends to the whole of the Union territory of Delhi. (3) It shall come into force on such date1as the Administrator may, by notification in the OfficialGazette, appoint.

In this Act, unless the context otherwise requires,-- (a) "Administrator" means the Administrator of Delhi appointed by the President underarticle 239 of the Constitution; (b) "Appellate Tribunal" means the Appellate Tribunal constituted under section 13; (c) "business" includes-- (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade,commerce or manufacture whether or not such trade, commerce, manufacture, adventure orconcern is carried on with a motive to make gain or profit and whether or not any gain or profitaccrues from such trade, commerce, manufacture, adventure or concern; and (ii) any transaction in connection with, or incidental or ancillary to, such trade, commerce,manufacture, adventure or concern; (d) "Commissioner" means the Commissioner of Sales Tax appointed under sub-section (1) ofsection 9; (e) "dealer" means any person who carries on business of selling goods in Delhi and includes-- (i) the Central Government or a State Government carrying on such business; (ii) an incorporated society (including a co-operative society), club or association which sellsor supplies goods, whether or not in the course of business, to its members for cash or fordeferred payment or for commission, remuneration or other valuable consideration; (iii) a manager, factor, broker, commission agent, del credere agent, or any mercantile agent,by whatever name called, and whether of the same description as hereinbefore mentioned or not,who sells goods belonging to any principal whether disclosed or not; and (iv) an auctioneer who sells or auctions goods belonging to any principal, whether disclosedor not and whether the offer of the intending purchaser is accepted by him or by the principal or anominee of the principal; (f) "Delhi" means the Union territory of Delhi; (g) "goods" includes all materials, articles, commodities and all other kinds of moveable property,but does not include newspapers, actionable claims, stocks, shares, securities or money; (h) "manufacture", with its grammatical variations and cognate expressions, means producing,making, extracting, altering, ornamenting, finishing or otherwise processing, treating or adapting anygoods, but does not include any such process or mode of manufacture as may be prescribed; (i) "Official Gazette" means the Delhi Gazette; (j) "prescribed" means prescribed by rules made under this Act; (k) "registered" means registered under this Act; (l) "sale", with its grammatical variations and cognate expressions, means any transfer ofproperty in goods by one person to another for cash or for deferred payment or for other valuableconsideration, and includes-- (i) a transfer of goods on hire-purchase or other system of payment by instalments, but doesnot include a mortgage or hypothecation of, or a charge or pledge on, goods; (ii) supply of goods by a society (including a co-operative society), club, firm or anyassociation to its members for cash or for deferred payment, or for commission, remunerationor other valuable consideration, whether or not in the course of business; and (iii) transfer of goods by an auctioneer referred to in sub-clause (iv) of clause (e); (m) "sale price" means the amount payable to a dealer as consideration for the sale of any goods,less any sum allowed as cash discount according to the practice normally prevailing in trade, butinclusive of any sum charged for anything done by the dealer in respect of goods at the time of orbefore the delivery thereof other than the cost of freight or delivery or the cost of installation in caseswhere such cost is separately charged; (n) "tax" means sales tax payable under this Act; (o) "turnover" means the aggregate of the amounts of sale price receivable, or, if a dealer soelects, actually received by the dealer, in respect of any sale of goods made during any prescribedperiod in any year after deducting the amount of sale price, if any, refunded by the dealer to apurchaser in respect of any goods purchased and returned by the purchaser within the prescribedperiod: Provided that an election as aforesaid once made shall not be altered except with the permissionof the Commissioner and on such terms and conditions as he may think fit to impose; (p) "year" means the financial year.

(1) Every dealer whose turnover during the year immediately preceding thecommencement of this Act exceeds the taxable quantum and every denier who at the commencement ofthis Act, is registered or is liable to pay tax under the Central Sales Tax Act, 1956 (74 of 1956), shall beliable to pay tax under this Act on all sales effected by him on or after such commencement. (2) Every dealer to whom sub-section (1) does not apply, shall-- (i) with effect from the date immediately following the day on which his turnover calculated fromthe commencement of any year first exceeds within such year the taxable quantum, be liable to paytax under this Act on all sales effected by him after that day; (ii) if he becomes liable to pay tax under the Central Sales Tax Act, 1956 (74 of 1956) or isregistered as a dealer under the said Act at any time after the commencement of this Act, be liable topay tax on all sales effected by him or on his behalf within Delhi on or after the date he becomes soliable or is registered under the said Act, whichever is earlier. (3) Every dealer who has become liable to pay tax under this Act shall continue to be so liable untilthe expiry of three consecutive years during each of which his turnover has failed to exceed the taxablequantum and such further period after the date of such expiry as may be prescribed and on the expiry ofsuch further period his liability to pay tax shall cease: Provided that any dealer may, after the expiry of one year following the year in which his turnoverhas failed to exceed the taxable quantum, apply for the cancellation of his certificate of registration, andon such cancellation, his liability to pay tax shall cease: Provided further that in respect of any goods purchased by any dealer before the date of suchcancellation and remaining unsold or unutilised for the purpose for which they were purchased, he shallbe liable to pay so much of tax as would have been payable had he not been registered as a dealer on thedate of purchase of such goods. (4) Every dealer whose liability to pay tax under this Act has ceased under sub-section (3), shall, ifhis turnover calculated from the commencement of any year again exceeds the taxable quantum on anyday within such year, be liable to pay such tax with effect from the date immediately following the day onwhich his turnover first exceeds the taxable quantum, on all sales effected by him after that day. (5) Any dealer whose certificate of registration has been cancelled under sub-section (3) ofsection 20, shall-- (a) if his turnover calculated from the date of cancellation of such certificate exceeds the taxablequantum on any day within the year; or (b) if his turnover calculated from the commencement of any subsequent year, exceeds thetaxable quantum on any day within the year, be liable to pay tax under this Act with effect from the date immediately following the day on which suchturnover again first exceeds the taxable quantum on all sales effected by him after that day of goodsimported by him from outside Delhi or manufactured by him in Delhi or purchased by him withoutpayment of tax leviable under this Act. (6) No dealer who deals exclusively in one or more classes of goods specified in the ThirdSchedule shall be liable to pay any tax under this Act. (7) For the purposes of this Act, "taxable quantum" means, -- (a) in relation to any dealer who imports for sale any goods into Delhi. . . . . Nil, (b) in relation to any dealer who manufactures goods for sale regardless of the value of goodsmanufactured . . . . . . . . . Rs. 30,000.00, (c) in relation to any other dealer . . . . . . Rs. 1,00,000.00: Provided that if the Administrator is of opinion that having regard to the difficulty in maintainingaccounts or for any other sufficient cause the taxable quantum in respect of any class of dealers fallingunder clause (b) should be increased, the Administrator may, by notification in the Official Gazette, fix inrespect of such class of dealers such taxable quantum, not exceeding rupees one lakh, as may be specifiedin the notification. Explanation.--For the purposes of computation of taxable quantum under sub-section (7), theturnover of all sales effected by a dealer shall be taken into account irrespective of whether such sales aretaxable under this Act or not.

(1) The tax payable by a dealer under this Act shall be levied-- (a) in the case of taxable turnover in respect of the goods specified in the First Schedule, at therate of twelve paise in the rupee; (b) in the case of taxable turnover in respect of the goods specified in the Second Schedule, atsuch rate not exceeding four paise in rupee as the Central Government may, from time to time, bynotification in the Official Gazette, determine; (c) in the case of taxable turnover in respect of any food or drink served for consumption in ahotel or restaurant or part thereof, with which a cabaret, floor show or similar entertainment isprovided therein, at the rate of forty paise in the rupee; (d) in the case of taxable turnover in respect of any other goods, at the rate of seven paise in therupee: Provided that the Administrator may with the previous approval of the Central Government and bynotification in the Official Gazette, add to, or omit from, or otherwise amend, the First Schedule or theSecond Schedule, either retrospectively or prospectively, and thereupon the First Schedule or, as the casemay be, the Second Schedule, shall be deemed to be amended accordingly: Provided further that no such amendment shall be made retrospectively if it would have the effect ofprejudicially affecting the interests of any dealer: Provided also that in respect of any goods or class of goods the Administrator is of the opinion that itis expedient in the interest of the general public so to do, he may, with the previous approval of theCentral Government and by notification in the Official Gazette, direct that the tax in respect of taxableturnover of such goods or class of goods shall, subject to such conditions as may be specified, be levied atsuch modified rate not exceeding the rate applicable under this section, as may be specified in thenotification. (2) For the purposes of this Act, "taxable turnover" means that part of a dealer's turnover during theprescribed period in any year which remains after deducting therefrom,-- (a) his turnover during that period on-- (i) sale of goods, the point of sale at which such goods shall be taxable is specified bythe Administrator under section 5 and in respect of which due tax is shown to the satisfaction ofthe Commissioner to have been paid; (ii) sale of goods declared tax-free under section 7; (iii) sale of goods not liable to tax under section 8; (iv) sale of goods which are proved to the satisfaction of the Commissioner to have beenpurchased within a period of twelve months prior to the date of registration of the dealerand subjected to tax under the Bengal Finance (Sales Tax) Act, 1941 (Bengal Act VI of 1941), asit was then in force, or under this Act; (v) sale to a registered dealer-- (A) of goods of the class or classes specified in the certificate of registration of suchdealer, as being intended for use by him as raw materials in the manufacture in Delhi of anygoods, other than goods specified in the Third Schedule, or newspapers,-- (1) for sale by him inside Delhi; or (2) for sale by him in the course of inter-State trade or commerce, being a saleoccasioning, or effected by transfer of documents of title to such goods during themovement of such goods from Delhi; or (3) for sale by him in the course of export outside India being a sale occasioning themovement of such goods from Delhi, or a sale effected by transfer of documents of titleto such goods effected during the movement of such goods from Delhi, to a place outsideIndia and after the goods have crossed the customs frontiers of India; or (B) of goods of the class or classes specified in the certificate of registration of suchdealer as being intended for resale by him in Delhi, or for sale by him in the course ofinter-State trade or commerce or in the course of export outside India in the manner specifiedin sub-item (2) or sub-item (3) of item (A), as the case may be; and (C) of containers or other materials, used for the packing of goods, of the class or classesspecified in the certificate of registration of such dealer, other than goods specified in theThird Schedule, intended for sale or resale; (vi) such other sales as are exempt from payment of tax under section 66 or as may beprescribed: Provided that no deduction in respect of any sale referred to in sub-clause (iv) shall be allowedunless the goods, in respect of which deduction is claimed, are proved to have been sold by the dealerwithin a period of twelve months from the date of his registration and the claim for such deduction isincluded in the return required to be furnished by the dealer in respect of the said sale: Provided further that no deduction in respect of any sale referred to in sub-clause (v) shall beallowed unless a true declaration duly filled and signed by the registered dealer to whom the goodsare sold and containing the prescribed particulars in the prescribed form obtainable from theprescribed authority is furnished in the prescribed manner and within the prescribed time, by thedealer who sells the goods: Provided also that where any goods are purchased by a registered dealer for any of thepurposes mentioned in sub-clause (v), but are not so utilised by him, the price of the goods sopurchased shall be allowed to be deducted from the turnover of the selling dealer but shall be includedin the taxable turnover of the purchasing dealer; and (b) the tax collected by the dealer under this Act as such and shown separately incash memoranda or bills, as the case may be.

Notwithstandinganything contained in this Act, the Administrator may, by notification in the Official Gazette and subjectto such conditions, if any, as may be specified therein, specify the point of sale at which any goods orclass of goods may be taxed, and on the issue of such notification, the points of sale in relation to anysuch goods or class of goods other than the point of sale so notified, shall be exempt from payment of taxunder this Act: Provided that no such exemption shall be allowed unless a true declaration duly filled and signed bythe registered dealer by whom the goods are sold and containing the prescribed particulars in theprescribed form obtainable from the prescribed authority is furnished in the prescribed manner and withinthe prescribed time, by the dealer who purchases the goods: Provided further that the Administrator may, if he is of opinion that it is necessary in the publicinterest so to do, by notification in the Official Gazette, exempt, subject to such restrictions andconditions as may be specified therein, any dealer or class of dealers from furnishing a declaration underthe first proviso.